SPS Commerce (SPSC) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 6% year-over-year to $197.8 million, driven by upsell/cross-sell momentum, 1P supplier focus, and business acquisitions, while the company continued integrating Carbon6 and completed the divestiture of the 3P Revenue Recovery business.

• AI-powered solutions (MAX) and an enhanced Analytics platform delivered tangible ROI, operational efficiencies, and significant value to customers, with broader rollout planned.

• Customer success stories highlight cost savings, improved scalability, and enhanced supply chain management through the network and AI capabilities.

• Positioned as a leading intelligent supply chain network with over 300,000 trading relationships and a strong global footprint in NA, EU, and APAC.

• Proprietary AI-driven network intelligence (MAX) leverages 750M+ annual transactions to optimize partner performance and supply chain outcomes.

Financial highlights

• Q2 2026 revenue was $197.8 million, up 6% year-over-year; recurring revenue accounted for 96% of total revenue and grew 6%.

• Adjusted EBITDA for Q2 2026 reached $66.6 million (margin 34%), up from 30% in Q2 2025, reflecting strong operational execution.

• Free cash flow for Q2 2026 was $57.4 million; trailing 12-month free cash flow rose 40% year-over-year to $198.7 million.

• Net income for Q2 2026 was $6.9 million, down from $19.7 million in Q2 2025, primarily due to a $23.5 million loss on the 3P divestiture.

• Share repurchases totaled $51.2 million in Q2 2026, representing nearly 90% of free cash flow.

Outlook and guidance

• FY2026 revenue expected between $788.4 million and $793.4 million (5–6% growth over 2025); core business revenue expected to grow high single digits.

• FY2026 Adjusted EBITDA guidance is $264.6 million–$269.1 million, with a 34% margin (up 300 bps year-over-year).

• FY2026 fully diluted EPS expected at $2.24–$2.33; non-GAAP diluted EPS at $4.84–$4.93.

• Q3 2026 revenue guidance set at $196.3–$198.3 million; Adjusted EBITDA between $67.4 million and $69.4 million.

• Guidance reflects a $10.5 million revenue reduction in H2 2026 due to the divestiture, with neutral impact on Adjusted EBITDA.