SPS Commerce (SPSC) investor relations material

Executive summary

• Q1 2026 revenue grew 6% year-over-year to $192.1 million, with recurring revenue up 7% and fulfillment growth of 8%.

• Net income for Q1 2026 was $19.7 million ($0.53 per diluted share), down 11% from $22.2 million ($0.58) in Q1 2025, reflecting higher operating expenses and increased stock-based compensation.

• Adjusted EBITDA rose 7% to $57.9 million, maintaining a 30% margin.

• AI-driven solutions, notably the MAX agent, are delivering operational efficiencies and value for customers, with 400+ beta users and strong feedback.

• Cross-selling momentum is strong, especially among 1P customers, and integration of solutions is unlocking incremental growth opportunities.

Financial highlights

• Recurring revenues grew 7% to $184.5 million, representing 96% of total revenue.

• Gross profit increased 7% to $132.9 million, maintaining a 69% gross margin.

• Operating expenses rose 10% year-over-year, mainly due to higher compensation, stock-based awards, and investments in AI and enterprise systems.

• Cash and cash equivalents stood at $154.3 million as of March 31, 2026.

• Net cash provided by operating activities was $55.6 million, up from $40.0 million in Q1 2025.

Outlook and guidance

• Q2 2026 revenue expected between $194.5 million and $196.5 million (4–5% YoY growth); adjusted EBITDA guidance: $60.9 million–$62.4 million; EPS: $0.53–$0.56.

• Full-year 2026 revenue guidance: $796.0 million–$802.0 million (6–7% growth); adjusted EBITDA: $262.8 million–$267.3 million (14–16% growth over 2025).

• Full-year non-GAAP EPS: $4.73–$4.76; effective tax rate ~30%.

• Management expects continued growth in recurring revenue customers and ARPU as the company executes its market penetration strategy.

• Cash, cash equivalents, and operating cash flows are expected to be sufficient to meet working capital and capital expenditure needs for at least the next twelve months.