SPSC · SPS Commerce, Inc.

0001092699-26-000043

Summary

Solid revenue growth and strong cash generation marked the quarter, tempered by profitability declines from higher cost of revenues amid slowed hiring and timing of company-wide expenses.

Key takeaways

Revenue increased 5.8% to $192.1M from $181.5M, reflecting recurring revenue momentum and business expansion.
Gross profit rose 6.6% to $132.9M from $124.6M, delivering a 69.2% gross margin.
Operating income declined 5.4% to $24.6M from $26.0M as cost pressures offset revenue gains.
Net income decreased 11.1% to $19.7M from $22.2M, with diluted EPS of $0.53 versus $0.58.
Net cash from operating activities grew to $55.6M from $39.9M, driven by net income and working capital changes.
Free cash flow reached $48.5M after $7.1M in capital expenditures, supporting increased share repurchases to deliver shareholder value.

Full analysis

SPS Commerce delivered revenue growth of 5.8% to $192.1 million in Q1 FY2026, underscoring the strength of its global supply chain network connecting retailers, brands, distributors, manufacturers, and logistics providers. This expansion reflects ongoing operations growth and penetration in a complex commerce landscape, even as the company navigates cost dynamics.