SPS Commerce, Inc.

spscommerce.com

What Do They Do?

Connects retailers, brands and suppliers through a cloud-based supply-chain network, selling tools for order fulfillment, sales data and supplier collaboration.

How Do They Make Money?

Customers pay subscription fees for cloud supply-chain services, usually under contracts that run from monthly to annual; bills are sent in advance or within 30 days after service. They also pay setup fees per trading-partner connection and one-time fees for professional services and testing.

FY2025 revenue

Who Are Their Customers?

SPS Commerce sells directly to retailers and grocers, distributors and suppliers, and logistics firms through its employed sales force; it also sells through software providers, resellers, system integrators and logistics partners.

Do Revenues Turn Into Profits?

Yes. It kept 12 cents of every revenue dollar as net income in FY2025 and turned 20 cents into free cash flow.

Operating income, FY2025

16% of revenue

▲ +33% vs FY2024 ($88.9M, 14%)

Net income, FY2025

12% of revenue

▲ +21% vs FY2024 ($77.1M, 12%)

Free cash flow, FY2025

20% of revenue

▲ +11% vs FY2024 ($137.4M, 22%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +6%; vs $187.4M in Q2 FY2025
Net income: ▼ −65%; vs $19.7M in Q2 FY2025

May 21, 2026 CFO Kimberly Nelson set a retirement date Nelson transitioned out of the CFO role after Joseph Del Preto took over; her retirement date was set for June 1.

Growing. Revenue grew 95% in 4 years, from $385.3M in FY2021 to $751.5M in FY2025, about 18% a year.

Marketplace seller software The latest report adds software tools for marketplace sellers, including revenue-recovery offerings for suppliers; the older product list described fulfillment, analytics, item data and supplier collaboration.

Comments