Short answer
SPS COMMERCE INC (SPSC) filed its fiscal 2025 10-K annual report with the SEC on Feb 19, 2026. It reported revenue of $752M (+17.8% year over year) and net income of $93M.
- Top risk flagged: Regulatory risk from U.S. Foreign Corrupt Practices Act violations in international operations, including Ukraine and Philippines exposure
FY2025 key financial metrics · XBRL
- Revenue
- $752M
- +17.8% YoY
- Net income
- $93M
- +21.1% YoY
- Operating margin
- 15.7%
- +1.8 pp YoY
- Gross margin
- 69.2%
- +2.2 pp YoY
- EPS (diluted)
- $2.46
- +20.6% YoY
- ROE
- 9.6%
- +0.6 pp YoY
- Operating cash flow
- $179M
- +13.6% YoY
Source: XBRL data from the SPS COMMERCE INC (SPSC) FY2025 10-K on SEC EDGAR. USD.
SPS COMMERCE INC FY2025 10-K analysis
AI summary of each section, grounded in the filing text
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
Generated from the filing text; verify against the original. How to read a 10-K
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