SPS Commerce Sets Third-Quarter Results Date, Targets Revenue of $196.3 Million to $198.3 Million
Key Facts
SPS Commerce said it will release results for the third quarter ended September 30, 2026, after the market closes on October 29, with a results discussion call scheduled for the same day. The results date was announced on October 15, while the company’s quarterly guidance projected revenue of $196.3 million to $198.3 million. The guidance also projected non-GAAP diluted earnings per share of $1.20 to $1.23 and adjusted EBITDA of $67.4 million to $69.4 million. These ranges provide a basis for comparing reported results with the company’s quarterly targets, but the available evidence here does not include the actual results. Reuters had reported analyst estimates ahead of the announcement of revenue of $197.51 million and earnings of $1.23 per share for the quarter ended September 30.
The guidance reflects slower revenue growth than in the same period a year earlier. The company posted revenue of $197.8 million in the second quarter of 2026, compared with $187.4 million in the second quarter of 2025, an annual increase of 6%. Recurring revenue also rose 6% from the year-earlier quarter. In the third quarter of 2025, revenue was $189.9 million, compared with $176.5 million in the third quarter of 2024, for growth of 8%. The annual growth rate recorded in the second quarter was therefore below the third-quarter rate a year earlier, while the current comparison centers on whether the core business continued to support revenue despite the divestiture’s impact.
The company completed the sale of its third-party revenue recovery business on June 30 and said its guidance factors in a reduction of about $10.5 million in second-half 2026 revenue as a result of the divestiture. It added that the transaction’s impact on second-half adjusted EBITDA is expected to be neutral. The company had included this impact in its previous guidance, so the reduction relates to its second-half outlook announced in July, rather than a new detail in the third-quarter results. The adjustment puts the projected revenue in the context of a change in the business scope following the unit’s sale, while the expected impact on adjusted earnings remains neutral over the same period.
In the second quarter, management said performance reflected momentum in upselling and cross-selling across the core business. Net income, however, fell to $6.9 million, or $0.19 per diluted share, from $19.7 million, or $0.52 per share, in the year-earlier quarter. Adjusted EBITDA, by contrast, rose 19% year over year to $66.6 million, and share repurchases totaled $51.2 million. These indicators show differing trends in net income and adjusted earnings in the previous quarter. The chief financial officer said strong performance reflected "momentum in upselling and cross-selling across our core business."
The company also expanded its product offerings in September, announcing the availability of MAX agentic AI capabilities, along with its Vision and Decision Intelligence solutions. In its second-quarter results, it had said pilot users achieved hundreds of thousands of dollars in savings per customer over three months through MAX. A Reuters report linked the upcoming assessment to the company’s ability to increase average revenue per user and expand its share of existing customers’ spending, while expecting customer numbers to remain roughly stable or grow slightly. According to the report, the company’s ability to expand spending among existing customers will determine whether it can return to stronger revenue growth. The company’s shares, listed under the ticker SPSC, closed at $85.59 on October 28, the eve of the results.
The company scheduled the results discussion call for 3:30 p.m. Central time, or 4:30 p.m. Eastern time, on October 29. The call will follow the release of results after the market closes that day. The market’s focus will be on the previously published third-quarter guidance and management’s assessment of revenue growth after the divestiture. The core business’s ability to sustain upselling and cross-selling will also be a key focus, given Reuters’ expectation that customer numbers will remain stable or grow slightly. The call is the next scheduled opportunity to hear management’s comments on the results and outlook.