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# SPS Commerce Will Retire Carbon6 Technology In Mid-2027, Adding $6.9 Million To Next Year's Amortization
- URL: https://www.bullished.co/sps-commerce-will-retire-carbon6-technology-in-mid-2027-adding-6-9-million-to-next-years-bf418d99/
- Published: 2026-10-29T20:25:55.000Z
- Updated: 2026-10-29T20:25:55.000Z
- Description: A shorter useful life for acquired software trimmed third-quarter net income by $0.9 million, or $0.03 per share.
- Author: Matteo Parrino
- Tags: Deals, SPSC, Industry: Technology

SPS Commerce, which runs a cloud-based supply chain network linking retailers, brands, distributors and suppliers, [shortened the useful life](https://www.sec.gov/Archives/edgar/data/0001092699/000109269926000075/spsc-20260930.htm?ref=bullished.co) of technology it acquired with Carbon6, its quarterly report shows, because it expects to stop using that technology in mid-2027\. The change, effective September 1, 2026, added $1.3 million of amortization in the third quarter and cut net income by $0.9 million, or $0.03 per share.

## Amortization steps up

Expect roughly $4.0 million more amortization in the fourth quarter of 2026, then $6.9 million across 2027\. It booked the change prospectively, as a change in accounting estimate, so earlier periods are untouched.

The cause is the company's plan to move its revenue recovery products onto one platform. Once that happens, the acquired technology is expected to go out of use in mid-2027.

The weighted average remaining amortization period for developed technology fell to 3.3 years at September 30, from 5.4 years at June 30\. The schedule for 2027 amortization of intangible assets now stands at $40.1 million, up from $33.4 million in the prior quarter's filing.

## A new critical estimate

The [prior quarter's filing](https://www.sec.gov/Archives/edgar/data/0001092699/000109269926000066/spsc-20260630.htm?ref=bullished.co) said there were no changes in critical accounting policies or estimates. The new report adds the useful lives of long-lived assets, including acquired intangibles, to its critical list alongside revenue recognition, internally developed software and business combinations.

## Carbon6, a sale and a buyback

SPS bought Carbon6 in February 2025 for $212.5 million in cash and stock, and assigned $29.4 million to developed technology on a nine-year life. On June 30, 2026 it sold the third-party piece of the revenue recovery business, recording a loss of about $23.5 million. The accounting change now targets the technology it kept.

Third-quarter net income rose to [$30.7 million](https://www.globenewswire.com/news-release/2026/10/29/3391851/12398/en/sps-commerce-reports-strong-third-quarter-2026-financial-results.html?ref=bullished.co). The company bought back $51.2 million of stock in the quarter, and diluted shares fell to 36.2 million from 38.0 million a year earlier.

The filing also lists a new office lease in Rogers, Arkansas, with about $13.9 million in undiscounted payments. It has not yet started and is off the balance sheet, with commencement expected in the first quarter of 2027.

Fourth-quarter results should carry the roughly $4.0 million of extra amortization, with the Carbon6 technology due to stop being used in mid-2027.

### Sources

- [10-Q Filing — SPS Commerce (SPSC)](https://www.sec.gov/Archives/edgar/data/0001092699/000109269926000075/spsc-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — SPS Commerce (SPSC), Q2 FY2026 filed 2026-07-30 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001092699/000109269926000066/spsc-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, er\_q326.htm) — SPS Commerce, filed 2026-10-29](https://www.sec.gov/Archives/edgar/data/0001092699/000109269926000074/er%5Fq326.htm?ref=bullished.co) — SEC EDGAR
- [3 Cloud Software Stocks Investors Like For Self Funded AI Growth](https://uk.finance.yahoo.com/news/3-cloud-software-stocks-investors-071630325.html?ref=bullished.co) — Yahoo Finance
- [SPS Commerce Reports Strong Third Quarter 2026 Financial](https://www.globenewswire.com/news-release/2026/10/29/3391851/12398/en/sps-commerce-reports-strong-third-quarter-2026-financial-results.html?ref=bullished.co) — globenewswire.com