SPS COMMERCE INC (SPSC) FY2025 10-K Annual Report
SPS COMMERCE INC (SPSC) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 19, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
SPS COMMERCE INC FY2025 10-K Analysis
Business Overview
- • Core business: cloud-based global supply chain network connecting retailers, brands, distributors, manufacturers, logistics providers
- • New acquisition: Carbon6 Technologies Inc., adding Amazon seller software and revenue recovery services for 1P and 3P suppliers
- • Strategic emphasis on expanding international presence (Asia Pacific, Europe) and accelerating omnichannel retail automation
- • Workforce growth to 2,948 employees worldwide, with 90% of 2025 hires in tech, customer success, go-to-market roles
- • 100 consecutive quarters of revenue growth, reaching $751.5 million in 2025, driven by 96% recurring revenues
Management Discussion & Analysis
- • Revenue $751.5M, up 18% YoY from $637.8M, driven by 20% growth in recurring revenue customers to 54,600 and ARPU increase to $14,350
- • Net income $93.3M with operating margin 15.7% vs 13.9%, Adjusted EBITDA margin 31% vs 29%
- • Best performing: Recurring revenues $718M, up 20%, 96% of total; Worst: Other income net down 48% to $5.5M due to decreased investment income
- • Cash provided by operations $178.8M; capital allocation included $100.8M net cash used in financing, including $76.7M in share repurchases
- • Management expects continued growth in recurring revenue customers and ARPU; risks include acquisition integration and market expansion costs
Risk Factors
- • Regulatory risk from U.S. Foreign Corrupt Practices Act violations in international operations, including Ukraine and Philippines exposure
- • Geopolitical risk from Russian interference and civil unrest affecting significant workforce in Ukraine and Philippines
- • Operational risk from reliance on third-party cloud infrastructure; loss or failure to upgrade could disrupt customer access
- • Competitive risk from AI/ML adoption lag behind rivals, risking loss of market share and regulatory liability
- • Financial risk from lack of long-term recurring revenue contracts; customer cancellations require only 30-90 days’ notice
SPS COMMERCE INC FY2025 Key Financial MetricsXBRL
Revenue
$752M
▲ +17.8% YoY
Net Income
$93M
▲ +21.1% YoY
Gross Margin
69.2%
▲ +222bp YoY
Operating Margin
15.7%
▲ +181bp YoY
Net Margin
12.4%
▲ +34bp YoY
ROE
9.6%
▲ +57bp YoY
Total Assets
$1.2B
▲ +13.4% YoY
EPS (Diluted)
$2.46
▲ +20.6% YoY
Operating Cash Flow
$179M
▲ +13.6% YoY
Source: XBRL data from SPS COMMERCE INC FY2025 10-K filing on SEC EDGAR. All figures in USD.
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