SPS Commerce (SPSC) Q4 2025 earnings summary

Executive summary

• Achieved 100 consecutive quarters of revenue growth, with Q4 2025 revenue up 13% year-over-year and full-year revenue reaching $751.5 million, despite macroeconomic and tariff-related headwinds.

• Expanded network and product portfolio through acquisitions, notably Carbon6, enhancing leadership in revenue recovery solutions and cross-selling opportunities.

• Launched new AI-enabled agentic capabilities (Max) to drive supply chain efficiency and competitive differentiation.

• Announced CFO transition, with Kim Nelson retiring and Joseph Del Preto assuming the role in March 2026; added two new independent directors and entered 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 $192.7 million, up 13% year-over-year; full-year 2025 revenue reached $751.5 million, up 18%.

• Recurring revenue grew 14% in Q4 and 20% for the year; recurring revenue customers totaled ~54,600.

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

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

• Ended 2025 with $151 million in cash and cash equivalents; repurchased $115 million in shares, deploying 76% of free cash flow.

Outlook and guidance

• Q1 2026 revenue expected between $191.6 million and $193.6 million (6–7% growth year-over-year).

• Q1 2026 Adjusted EBITDA guidance: $55.5 million–$57.5 million; non-GAAP EPS: $0.95–$0.99.

• Full-year 2026 revenue guidance: $798.5 million–$806.9 million (6–7% growth); Adjusted EBITDA: $261 million–$265.5 million (13–15% growth); non-GAAP EPS: $4.42–$4.50.

• Target model aims for 70–75% gross margin and Adjusted EBITDA margin above 35%, with annual margin expansion of 2 percentage points.

• Effective tax rate for 2026 expected at 30% on GAAP pre-tax net earnings.