SPS Commerce Q1 revenue up 6% on core business growth

Overview

• US supply chain network's Q1 revenue rose 6% but slightly missed analyst expectations

• Adjusted EBITDA for Q1 increased 7% and beat analyst estimates

• Company repurchased $47.1 mln in shares during the quarter

Outlook

• SPS Commerce sees Q2 revenue between $194.5 mln and $196.5 mln

• Company expects 2026 revenue between $796 mln and $802 mln

• SPS Commerce expects 2026 adjusted EBITDA of $262.8 mln to $267.3 mln

Result Drivers

• CORE BUSINESS GROWTH - Co said Q1 performance was led by growth of its core business and momentum in cross-selling across its customer base

• AI CAPABILITIES LAUNCH - Co highlighted the launch of MAX, a new set of AI features embedded in supply chain workflows

• MARGIN FOCUS - Co said it is focused on driving margin expansion through operating leverage and AI-driven efficiencies

Company press release: ID:nGNX8z7G9j

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for SPS Commerce Inc is $72.50, about 31.4% above its April 29 closing price of $55.18

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 20 three months ago

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