SPSC · SPS Commerce, Inc.

SPS Commerce delivered solid first-quarter 2026 results anchored by 6% revenue growth to $192.1 million and 7% recurring revenue growth, underscoring resilience and expansion within its core intelligent supply chain network of over 50,000 customers. While GAAP net income declined 11% year-over-year to $19.7 million ($0.53 diluted EPS), Non-GAAP EPS increased 10% to $1.10, reflecting improved operating leverage and disciplined cost management — a theme reinforced by CFO Joe Del Preto’s emphasis on AI-driven efficiencies and margin expansion. Adjusted EBITDA grew 7% to $57.9 million, and full-year guidance was meaningfully raised: Adjusted EBITDA is now expected to grow 14–16% to $262.8–$267.3 million, and revenue guidance was tightened to $796.0–$802.0 million (6–7% growth), implying confidence in sustained execution. The launch of MAX — a new suite of AI capabilities embedded directly into existing supply chain workflows and powered by proprietary network data — signals a strategic pivot toward value-added, intelligence-led differentiation, aimed at deepening customer connections and cross-selling. Leadership transitions were acknowledged as a risk factor in forward-looking statements, but management affirmed strong fundamentals and a clear path to scale. With $47.1 million in share repurchases executed in Q1 and a robust balance sheet ($154.3 million cash, no debt disclosed), SPS maintains flexibility for both organic investment and shareholder return. The combination of top-line momentum, margin progression, AI innovation, and elevated guidance supports investor confidence in balanced long-term value creation.