SPS Commerce (SPSC) Q4 2025 earnings summary

Executive summary

• Achieved 100 consecutive quarters of revenue growth, with Q4 2025 revenue up 13% and full-year revenue up 18%, despite macroeconomic and tariff-related headwinds impacting customer spend and delaying purchases.

• Continued network and product portfolio expansion, including the acquisition of Carbon6 and integration of SupplyPike, strengthening leadership in revenue recovery solutions.

• Launched new AI-enabled agentic capabilities (Max) to enhance supply chain collaboration and customer value.

• Announced CFO Kim Nelson's retirement and succession by Joseph Del Preto, plus addition of two new independent directors and a cooperation agreement with Anson Funds.

• Positioned in a large and expanding global market with an $11.1B TAM and a strong multinational footprint in NA, EU, and APAC.

Financial highlights

• Q4 2025 revenue was $192.7M, up 13% year-over-year; recurring revenue grew 14%.

• Full-year 2025 revenue reached $751.5M, up 18%; recurring revenue grew 20%.

• Adjusted EBITDA for Q4 was $60.5M (up 22%); full-year Adjusted EBITDA was $231.4M (up 24%), with a 31% margin.

• Net income for 2025 was $93.3M, maintaining a 12% margin.

• Ended 2025 with $151M in cash and cash equivalents; 76% of free cash flow used to repurchase $115M in shares.

Outlook and guidance

• Q1 2026 revenue expected at $191.6M–$193.6M (6–7% year-over-year growth); Adjusted EBITDA $55.5M–$57.5M.

• Full-year 2026 revenue guidance: $798.5M–$806.9M (6–7% growth); Adjusted EBITDA $261M–$265.5M (13–15% growth).

• Full-year 2026 EPS expected at $2.50–$2.58 (GAAP), $4.42–$4.50 (non-GAAP); effective tax rate ~30%.

• Target model aims for 70–75% gross margin and Adjusted EBITDA margin above 35%; expect to increase Adjusted EBITDA margin by 2 percentage points annually.