SPS Commerce 2025 Q2 Earnings Record Net Income Growth

SPS Commerce (SPSC) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company experienced a notable quarter, delivering a robust revenue increase and setting a new record for fiscal Q2 net income. Revenue rose 22% to $187.40 million, surpassing expectations, while guidance for Q3 projects revenue growth between 17% and 18%. The full-year outlook remains optimistic with an anticipated 19% to 20% growth over 2024. These results reflect SPS Commerce's resilience and strategic positioning within the supply chain solutions market.

Revenue

The total revenue of SPS Commerce increased by 22.0% to $187.40 million in 2025 Q2, up from $153.60 million in 2024 Q2.

Earnings/Net Income

SPS Commerce's EPS rose 6.1% to $0.52 in 2025 Q2 from $0.49 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $19.73 million in 2025 Q2, marking 9.4% growth from $18.03 million in 2024 Q2. Remarkably, in 2025 Q2, the company set a new record high for fiscal Q2 net income, the highest in 17 years. The EPS reflects positive momentum.

Price Action

The stock price of SPS Commerce has edged down 0.44% during the latest trading day, has edged down 0.50% during the most recent full trading week, and has climbed 4.83% month-to-date.

Post-Earnings Price Action Review

The strategy of buying SPS Commerce (SPSC) shares following a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days resulted in moderate returns, although it did not outperform the broader market. The strategy's compound annual growth rate was 8.88%, lagging behind the benchmark by 35.01%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.25, the approach demonstrated low risk but yielded modest returns. Overall, while the strategy showed potential for gains, its performance was somewhat lackluster compared to market standards.

CEO Commentary

Chadwick Collins - CEO & Director: SPS Commerce delivered a strong second quarter with a revenue growth of 22% to $187.4 million, driven by a commitment to support suppliers in navigating supply chain challenges. The company’s unique full-service EDI solution positions it well for durable growth, as seen with Trader Joe's increasing EDI compliance. Collins emphasized the importance of collaboration between trading partners, which leads to efficiency and cost savings. He expressed optimism about SPS's ability to capitalize on growth opportunities within its $11 billion total addressable market, especially as macro dynamics stabilize, reinforcing a positive long-term outlook.

Guidance

For Q3 2025, SPS Commerce expects revenue between $191.7 million and $193.2 million, reflecting approximately 17% to 18% year-over-year growth. Adjusted EBITDA is anticipated in the range of $57.9 million to $59.9 million, with fully diluted earnings per share projected between $0.50 and $0.54. For the full year 2025, revenue is expected between $759 million and $763 million, representing 19% to 20% growth over 2024, with adjusted EBITDA between $230.7 million and $233.7 million.

Additional News

In recent news, SPS Commerce completed the acquisition of Carbon6 Technologies, a strategic move to enhance its capabilities in revenue recovery solutions for Amazon sellers. This acquisition aligns with SPS Commerce's efforts to strengthen its presence in the retail supply chain sector. Additionally, the company repurchased $20.0 million worth of shares during Q2 2025, showcasing confidence in its business model and commitment to shareholder returns. These strategic actions highlight SPS Commerce's dedication to expanding its market reach and delivering value to its stakeholders.