SPS Commerce Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 30 April 2026: press release. Guidance figures: 5 raised, 3 lowered, 7 new. The quarter’s numbers.

Key takeaways

Revenue grew 6% year over year: Revenue rose to $192.1 million from $181.5 million a year earlier. The company reported 6% growth on that comparison. Source
Net income and diluted EPS declined: Net income was $19.7 million, or $0.53 per diluted share, against $22.2 million, or $0.58, a year earlier. Source
MAX AI capabilities launched: The company launched MAX, a new set of AI capabilities, presented as a way to further empower customers. Source
G&A expense rose most: General and administrative expense was $36.4 million against $31.0 million, the largest increase among operating expense lines. Source
Repurchases totaled $47.1 million: Repurchases of common stock were $47.1 million, against $40.0 million in the first quarter of 2025. Source
Full-year revenue range lowered: The full-year revenue range was lowered at both ends, and the company kept growth at 6% to 7% over 2025. Source
Full-year profit and EBITDA ranges raised: Full-year diluted EPS, non-GAAP EPS and adjusted EBITDA ranges were each raised; adjusted EBITDA growth is now 14% to 16%. Source

“SPS Commerce delivered a solid performance this quarter, led by growth of our core business and momentum in cross-selling across our customer base,”
Chad Collins, CEO of SPS Commerce

Guidance

Area	Period	Figure	Against last quarter
Revenue Source	second quarter 2026	$194.5 million to $196.5 million	New
Net income per diluted share Source	second quarter 2026	$0.53 to $0.56	New
Non-GAAP income per diluted share Source	second quarter 2026	$1.06 to $1.09	New
Adjusted EBITDA Source	second quarter 2026	$60.9 million to $62.4 million	New
Share-based compensation expense Source	second quarter 2026	$19.0 million	New
Depreciation expense Source	second quarter 2026	$5.2 million	New
Amortization expense Source	second quarter 2026	$9.4 million	New
Revenue Source	fiscal year 2026	$796.0 million to $802.0 million	Lowered from $798.5 million to $806.9 million
Net income per diluted share Source	fiscal year 2026	$2.66 to $2.69	Raised from $2.50 to $2.58
Non-GAAP income per diluted share Source	fiscal year 2026	$4.73 to $4.76	Raised from $4.42 to $4.50
Adjusted EBITDA Source	fiscal year 2026	$262.8 million to $267.3 million	Raised from $261.0 million to $265.5 million
Share-based compensation expense Source	fiscal year 2026	$69.8 million	Raised from $67.1 million
Depreciation expense Source	fiscal year 2026	$23.0 million	Raised from $21.6 million
Amortization expense Source	fiscal year 2026	$37.4 million	Lowered from $38.3 million
Fully diluted weighted average shares Source	fiscal year 2026	37.3 million shares	Lowered from 38.4 million shares

What changed from last quarter

Guidance raised: Full-year diluted net income per share guidance was raised from the prior range. Source
Guidance raised: Full-year non-GAAP diluted income per share guidance was raised from the prior range. Source
Guidance raised: Full-year adjusted EBITDA guidance was raised from the prior range. Source
Guidance lowered: Full-year revenue guidance was lowered at both ends of the range from the prior release. Source
New guidance: Second-quarter 2026 guidance was issued; the prior release gave first-quarter ranges only. Source
New: The company launched MAX, a new set of AI capabilities; the prior release referred to recently launched agentic capabilities. Source
New: Joe Del Preto is named as chief financial officer in this release, replacing Kim Nelson in that role. Source

Revenue and growth drivers

Revenue grew 6% year over year: Revenue rose to $192.1 million from $181.5 million a year earlier. The company reported 6% growth on that comparison. Source
Net income and diluted EPS declined: Net income was $19.7 million, or $0.53 per diluted share, against $22.2 million, or $0.58, a year earlier. Source
Non-GAAP EPS rose to $1.10: Non-GAAP income per diluted share was $1.10, up from $1.00 in the first quarter of 2025. Source
Adjusted EBITDA rose 7%: Adjusted EBITDA increased 7% to $57.9 million, compared with the first quarter of 2025. Source

Products and customers

MAX AI capabilities launched: The company launched MAX, a new set of AI capabilities, presented as a way to further empower customers. Source
MAX built on network data: MAX is embedded in existing supply chain workflows and uses proprietary network data to guide customer connections across trading relationships. Source
Cross-selling credited for growth: Management credited growth of the core business and momentum in cross-selling across the customer base. Source

“We are focused on driving margin expansion through operating leverage and AI-driven efficiencies,”
Joe Del Preto, CFO of SPS Commerce

Costs and margins

G&A expense rose most: General and administrative expense was $36.4 million against $31.0 million, the largest increase among operating expense lines. Source
Operating income declined: Income from operations was $24.6 million against $26.0 million. Gross profit rose to $132.9 million from $124.6 million. Source
Share-based compensation increased: Stock-based compensation was $18.1 million, up from $13.9 million in the first quarter of 2025. Source
Adjusted EBITDA margin held at 30%: Adjusted EBITDA margin was 30% in both periods, while net margin was 10%, down from 12%. Source

Demand and deferred revenue

Current deferred revenue rose: Current deferred revenue was $80.4 million at March 31, compared with $75.6 million at December 31, 2025. Source
Deferred revenue added to operating cash: The change in deferred revenue added $4.9 million to operating cash flow, against $3.2 million in the first quarter of 2025. Source
Net receivables declined: Accounts receivable, net was $65.1 million, down from $68.2 million at December 31, 2025. Source

“With a large addressable market, a clear path to scale, and disciplined capital allocation, SPS is well positioned to deliver balanced growth and long-term shareholder value.”
Joe Del Preto, CFO of SPS Commerce

Cash flow and balance sheet

Operating cash flow rose: Net cash from operating activities was $55.6 million, against $40.0 million. Purchases of property and equipment were $7.1 million. Source
No acquisition in first quarter: No business acquisition was recorded in the first quarter of 2026. The first quarter of 2025 included $141.6 million, net, for an acquisition. Source
Cash balance edged higher: Cash and cash equivalents were $154.3 million at March 31, up from $151.4 million at December 31, 2025. Source

Share repurchases and share count

Repurchases totaled $47.1 million: Repurchases of common stock were $47.1 million, against $40.0 million in the first quarter of 2025. Source
Treasury stock increased: Treasury stock was $226.9 million, up from $177.9 million at December 31, 2025. Source
Diluted share count fell: Weighted average diluted shares were 37.4 million, against 38.2 million in the first quarter of 2025. Source
Repurchase authority set at $300 million: Total repurchase authority under the program is $300.0 million, expiring December 1, 2027, per the prior release.

Guidance for second quarter and full year

Full-year revenue range lowered: The full-year revenue range was lowered at both ends, and the company kept growth at 6% to 7% over 2025. Source
Full-year profit and EBITDA ranges raised: Full-year diluted EPS, non-GAAP EPS and adjusted EBITDA ranges were each raised; adjusted EBITDA growth is now 14% to 16%. Source
Expense forecasts moved for the year: Full-year share-based compensation and depreciation forecasts increased, while the amortization forecast decreased. Source

Strategy and leadership

Margin expansion stated as focus: The company said it is focused on margin expansion through operating leverage and AI-driven efficiencies. Source
Balanced growth and capital discipline: Management pointed to a large addressable market, a clear path to scale and disciplined capital allocation as the basis for balanced growth. Source
Joe Del Preto leads finance: Joe Del Preto is named as CFO; the prior release set his appointment as Executive Vice President and CFO, effective March 16, 2026.

Coming up, as management said on 30 April 2026

Kim Nelson transition period: Kim Nelson, who announced her retirement, remains with the company through a customary transition period after the CFO change.

Figures management reported

Figure	Reported
Recurring revenue growth Source	7% from the first quarter of 2025
Recurring revenue customers Source	Over 50,000

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

The Blueshirt Group

Irmina Blaszczyk

SPS Commerce Reports First Quarter 2026 Financial Results

First quarter 2026 revenue grew 6% and recurring revenue grew 7% from the first quarter of 2025

MINNEAPOLIS, April 30, 2026 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), the leading intelligent supply chain network, today announced financial results for the first quarter ended March 31, 2026.

Financial Highlights

First Quarter 2026 Financial Highlights

Revenue was $192.1 million in the first quarter of 2026, compared to $181.5 million in the first quarter of 2025, reflecting 6% growth.
Recurring revenue grew 7% from the first quarter of 2025.
Net income was $19.7 million or $0.53 per diluted share, compared to net income of $22.2 million or $0.58 per diluted share in the first quarter of 2025.
Non-GAAP income per diluted share was $1.10, compared to non-GAAP income per diluted share of $1.00 in the first quarter of 2025.
Adjusted EBITDA for the first quarter of 2026 increased 7% to $57.9 million compared to the first quarter of 2025.
Share repurchases in the first quarter of 2026 totaled $47.1 million.

“SPS Commerce delivered a solid performance this quarter, led by growth of our core business and momentum in cross-selling across our customer base,” said Chad Collins, CEO of SPS Commerce. “To further empower our customers, we are excited by the launch of MAX, our new set of AI capabilities. Embedded into existing supply chain workflows and powered by proprietary network data, MAX guides customer connections to support the success of their trading relationships.”

“SPS Commerce’s core business fundamentals remain strong. We are focused on driving margin expansion through operating leverage and AI-driven efficiencies,” said Joe Del Preto, CFO of SPS Commerce. “With a large addressable market, a clear path to scale, and disciplined capital allocation, SPS is well positioned to deliver balanced growth and long-term shareholder value.”

Guidance

Second Quarter 2026 Guidance

Revenue is expected to be in the range of $194.5 million to $196.5 million, representing 4% to 5% year-over-year growth.
Net income per diluted share is expected to be in the range of $0.53 to $0.56, with fully diluted weighted average shares outstanding of 37.3 million shares.
Non-GAAP income per diluted share is expected to be in the range of $1.06 to $1.09.
Adjusted EBITDA is expected to be in the range of $60.9 million to $62.4 million.
Non-cash, share-based compensation expense is expected to be $19.0 million, depreciation expense is expected to be $5.2 million, and amortization expense is expected to be $9.4 million.

Fiscal Year 2026 Guidance

Revenue is expected to be in the range of $796.0 million to $802.0 million, representing 6% to 7% growth over 2025.
Net income per diluted share is expected to be in the range of $2.66 to $2.69, with fully diluted weighted average shares outstanding of 37.3 million shares.
Non-GAAP income per diluted share is expected to be in the range of $4.73 to $4.76.
Adjusted EBITDA is expected to be in the range of $262.8 million to $267.3 million, representing 14% to 16% growth over 2025.
Non-cash, share-based compensation expense is expected to be $69.8 million, depreciation expense is expected to be $23.0 million, and amortization expense is expected to be $37.4 million.

The forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially. The Company does not present a reconciliation of the forward-looking non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP income per share, to the most directly comparable GAAP financial measures because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized.

Quarterly Conference Call

To access the call, please dial 1-833-816-1382, or outside the U.S. 1-412-317-0475 at least 15 minutes prior to the 3:30 p.m. CT start time. Please ask to join the SPS Commerce Q1 2026 conference call. A live webcast of the call will also be available at http://investors.spscommerce.com under the Events and Presentations menu. The replay will also be available on our website at http://investors.spscommerce.com.

About SPS Commerce

SPS Commerce is the leading intelligent supply chain network, connecting trading partners around the globe to optimize supply chain operations for all retail partners. We support data-driven partnerships with innovative cloud technology, customer-obsessed service, and accessible experts so our customers can focus on what they do best. Over 50,000 recurring revenue customers in retail, grocery, distribution, supply, manufacturing, and logistics are using SPS as their retail network. SPS is headquartered in Minneapolis. For additional information, contact SPS at 866-245-8100 or visit www.spscommerce.com.

SPS COMMERCE, SPS, SPS logo and INFINITE RETAIL POWER are marks of SPS Commerce, Inc. and registered in the U.S. Patent and Trademark Office, along with other SPS marks. Such marks may also be registered or otherwise protected in other countries.

SPS-F

Use of Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, we provide investors with Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP income per share, all of which are non-GAAP financial measures. We believe that these non-GAAP financial measures provide useful information to our management, Board of Directors, and investors regarding certain financial and business trends relating to our financial condition and results of operations.

Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses and planning purposes. Adjusted EBITDA is also used for purposes of determining executive and senior management incentive compensation. We believe these non-GAAP financial measures are useful to an investor as they are widely used in evaluating operating performance. Adjusted EBITDA and Adjusted EBITDA Margin are used to measure operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of capital structure and the method by which assets were acquired.

These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in our condensed consolidated financial statements and are subject to inherent limitations. Investors should review the reconciliations of non-GAAP financial measures to the comparable GAAP financial measures that are included in this press release.

Adjusted EBITDA Measures:

Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain from investments and foreign currency transactions, investment income, and other adjustments as necessary for a fair presentation. Other adjustments for the three months ended March 31, 2026, included the expense impact from disposals of other equipment. Net income is the most directly comparable GAAP measure of financial performance

Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue.

Non-GAAP Income Per Share Measure:

Non-GAAP income per share consists of net income adjusted for stock-based compensation expense, amortization expense related to intangible assets, realized gain from investments and foreign currency transactions, other adjustments as necessary for a fair presentation, including for the three months ended March 31, 2026, the expense impact from disposals of other equipment, and the corresponding tax impacts of the adjustments to net income, divided by the weighted average number of shares of common and diluted stock outstanding during each period. Net income per share, the most directly comparable GAAP measure of financial performance, consists of net income divided by the weighted average number of shares of common and diluted stock outstanding during each period. To quantify the tax effects, we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-GAAP adjustments. The difference between this recalculated income tax expense and GAAP income tax expense is presented as the income tax effect of the non-GAAP adjustments.

Forward-Looking Statements

Forward-looking statements notice

This press release may contain forward-looking statements, including information about management's view of SPS Commerce's future expectations, plans and prospects, including our views regarding future execution within our business, the opportunity we see in the retail supply chain world and our performance for the second quarter and full year of 2026, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of SPS Commerce to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents SPS Commerce files with the Securities and Exchange Commission, including but not limited to, SPS Commerce's Annual Report on Form 10-K for the year ended December 31, 2025, as well as subsequent reports filed with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on SPS Commerce's future results. The forward-looking statements included in this press release are made only as of the date hereof. SPS Commerce cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SPS Commerce expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

CONSOLIDATED BALANCE SHEETS

(Unaudited; In thousands, except shares)

	March 31, 2026	December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$154,271	$151,355
Accounts receivable	72,003	75,295
Allowance for credit losses	(6,897)	(7,129)
Accounts receivable, net	65,106	68,166
Deferred costs	65,906	66,693
Other assets	43,457	49,090
Total current assets	328,740	335,304
Property and equipment, net	46,154	43,117
Operating lease right-of-use assets	4,856	5,025
Goodwill	540,836	541,719
Intangible assets, net	206,069	215,815
Other assets
Deferred costs, non-current	20,294	20,719
Deferred income tax assets	511	493
Other assets, non-current	13,748	7,667
Total assets	$1,161,208	$1,169,859
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$14,468	$13,757
Accrued compensation	42,647	47,577
Accrued expenses	15,535	13,074
Deferred revenue	80,382	75,590
Operating lease liabilities	1,918	4,353
Total current liabilities	154,950	154,351
Other liabilities
Deferred revenue, non-current	5,318	5,288
Operating lease liabilities, non-current	4,700	2,839
Deferred income tax liabilities	33,801	33,201
Other liabilities, non-current	279	287
Total liabilities	199,048	195,966
Commitments and contingencies
Stockholders' equity
Common stock	40	40
Treasury stock	(226,903)	(177,949)
Additional paid-in capital	741,544	722,737
Retained earnings	449,167	429,438
Accumulated other comprehensive loss	(1,688)	(373)
Total stockholders’ equity	962,160	973,893
Total liabilities and stockholders’ equity	$1,161,208	$1,169,859

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; in thousands, except per share amounts)

	Three Months Ended March 31,
	2026	2025
Revenues	$192,121	$181,549
Cost of revenues	59,217	56,914
Gross profit	132,904	124,635
Operating expenses
Sales and marketing	44,734	41,634
Research and development	17,917	17,439
General and administrative	36,374	31,018
Amortization of intangible assets	9,320	8,588
Total operating expenses	108,345	98,679
Income from operations	24,559	25,956
Other income, net	1,405	2,207
Income before income taxes	25,964	28,163
Income tax expense	6,235	5,967
Net income	$19,729	$22,196
Net income per share
Basic	$0.53	$0.58
Diluted	$0.53	$0.58
Weighted average common shares used to compute net income per share
Basic	37,379	37,990
Diluted	37,442	38,163

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in thousands)

	Three Months EndedMarch 31,
	2026	2025
Cash flows from operating activities
Net income	$19,729	$22,196
Reconciliation of net income to net cash provided by operating activities
Deferred income taxes	713	(4,418)
Depreciation and amortization of property and equipment	5,834	4,957
Amortization of intangible assets	9,320	8,588
Provision for credit losses	1,973	1,822
Stock-based compensation	18,073	13,867
Other, net	(242)	168
Changes in assets and liabilities, net of effects of acquisitions
Accounts receivable	1,103	(7,443)
Deferred costs	1,265	(1,247)
Other assets and liabilities	(715)	1,174
Accounts payable	(792)	1,677
Accrued compensation	(5,988)	(7,948)
Accrued expenses	893	3,868
Deferred revenue	4,873	3,160
Operating leases	(410)	(438)
Net cash provided by operating activities	55,629	39,983
Cash flows from investing activities
Purchases of property and equipment	(7,140)	(6,150)
Acquisition of business, net	-	(141,636)
Net cash used in investing activities	(7,140)	(147,786)
Cash flows from financing activities
Repurchases of common stock	(47,124)	(40,000)
Net proceeds from exercise of options to purchase common stock	743	635
Net proceeds from employee stock purchase plan activity	520	411
Net cash used in financing activities	(45,861)	(38,954)
Effect of foreign currency exchange rate changes	288	661
Net increase (decrease) in cash and cash equivalents	2,916	(146,096)
Cash and cash equivalents at beginning of period	151,355	241,017
Cash and cash equivalents at end of period	$154,271	$94,921

NON-GAAP RECONCILIATIONS

(Unaudited; in thousands, except Margin, Adjusted EBITDA Margin, and per share amounts)

	Three Months Ended March 31,
	2026	2025
Adjusted EBITDA
Net income	$19,729	$22,196
Income tax expense	6,235	5,967
Depreciation and amortization of property and equipment	5,834	4,957
Amortization of intangible assets	9,320	8,588
Stock-based compensation expense	18,073	13,867
Realized gain from investments and foreign currency transactions	(120)	(366)
Investment income	(1,151)	(1,849)
Other	11	1,013
Adjusted EBITDA	$57,931	$54,373

	Three Months Ended March 31,
	2026		2025
Adjusted EBITDA Margin
Revenue		$192,121		$181,549
Net income		19,729		22,196
Margin	10%		12%
Adjusted EBITDA		57,931		54,373
Adjusted EBITDA Margin	30%		30%

	Three Months Ended March 31,
	2026	2025
Non-GAAP Income per Share
Net income	$19,729	$22,196
Stock-based compensation expense	18,073	13,867
Amortization of intangible assets	9,320	8,588
Realized gain from investments and foreign currency transactions	(120)	(366)
Other	11	1,013
Income tax effects of adjustments	(5,879)	(7,285)
Non-GAAP income	$41,134	$38,013
Shares used to compute net income and non-GAAP income per share
Basic	37,379	37,990
Diluted	37,442	38,163
Net income per share, basic	$0.53	$0.58
Non-GAAP adjustments to net income per share, basic	0.57	0.42
Non-GAAP income per share, basic	$1.10	$1.00
Net income per share, diluted	$0.53	$0.58
Non-GAAP adjustments to net income per share, diluted	0.57	0.42
Non-GAAP income per share, diluted	$1.10	$1.00

The annual per share amounts may not cross-sum due to rounding.

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SPSC@blueshirtgroup.com