SPS Commerce Third-Quarter Net Income Rises To $30.7 Million As Adjusted EBITDA Climbs 17%
The supply chain software firm lifted fourth-quarter revenue guidance to as much as $201.3 million and spent $48.8 million on buybacks.
SPS Commerce, which runs a cloud-based supply chain network linking retailers, brands and suppliers, posted third-quarter net income of $30.7 million, or $0.85 per diluted share, up from $25.6 million, or $0.67, a year earlier, the company said Thursday in an 8-K filing. Revenue grew just 4%, but profit grew faster.
Profit outruns sales
Revenue reached $197.6 million, against $189.9 million in the third quarter of 2025. The company said the gain was partly offset by its June 30 sale of the 3P Revenue Recovery business and by variability in the take-rate model of its 1P Revenue Recovery business. Recurring revenue also grew 4%.
Adjusted EBITDA, the company's operating-profit measure that strips out items such as depreciation and stock pay, rose 17% to $70.9 million. Adjusted earnings per share climbed to $1.39 from $1.13.
For the first nine months of 2026, net cash from operating activities was $185.7 million, up from $132.9 million a year earlier. Buybacks in the third quarter totaled $48.8 million.
An AI pitch behind the margins
SPS Commerce's network connects retailers, brands, distributors, manufacturers and logistics providers so they can exchange orders, invoices and sales data through one connection. Recurring revenue customers made up 96% of its $751.5 million in 2025 revenue, according to its annual report.
CEO Chad Collins said progress on the company's AI-driven overhaul of its products and internal operations "has exceeded my expectations." CFO Joe Del Preto credited operating leverage and what he called efficiency gains from agentic customer onboarding.
Guidance after the divestiture
The company's outlook already absorbs the sale, which removes about $10.5 million of second-half 2026 revenue and is expected to be neutral to second-half adjusted EBITDA.
For the fourth quarter, SPS Commerce expects revenue of $199.3 million to $201.3 million and adjusted EBITDA of $72.0 million to $74.0 million. For the full year, it guides to revenue of $786.9 million to $788.9 million, about 5% growth over 2025, and adjusted EBITDA of $267.4 million to $269.4 million.
Management discusses the quarter on a conference call at 3:30 p.m. CT on Thursday.
Sources
- 8-K Filing — SPS COMMERCE INC (SPSC) — SEC EDGAR
- Exhibit er_q326.htm — SPS COMMERCE INC 8-K exhibit — SEC EDGAR
- SPS Commerce Reports Strong Third Quarter 2026 Financial — globenewswire.com
