📊 SPSC Key Takeaways
Is Sps Commerce Inc. (SPSC) a Good Investment?
SPS Commerce demonstrates strong operational fundamentals with 17.8% YoY revenue growth, accelerating earnings (+20.6% EPS growth), and excellent cash generation (20.3% FCF margin). The company maintains fortress-like balance sheet strength with zero debt, $151.4M cash, and a capital-light business model, positioning it to sustain growth while rewarding shareholders through cash deployment.
Why Buy Sps Commerce Inc. Stock? SPSC Key Strengths
- Accelerating earnings growth (20.6% EPS growth vs 17.8% revenue growth) indicates strong operating leverage in maturing software platform
- Exceptional free cash flow generation at $152.3M (20.3% FCF margin) with low capex requirements (~3.5% of revenue) demonstrates capital-efficient business model
- Fortress balance sheet with zero debt, 2.17x current ratio, $151.4M cash position, and equity base of $973.9M provides strategic flexibility
SPSC Stock Risks: Sps Commerce Inc. Investment Risks
- Moderate returns on equity (9.6%) and assets (8.0%) suggest challenges in efficiently deploying capital despite strong cash generation
- Operating margin of 15.7% is compressed relative to pure software peers, leaving limited cushion against competitive pressures or cost inflation
- Revenue growth sustainability uncertain in competitive SaaS market; need confirmation that 17.8% growth trajectory can be maintained beyond current period
Key Metrics to Watch
- Revenue growth rate sustainability and operating margin expansion (indicator of pricing power and operating leverage)
- Free cash flow conversion rate and cash deployment strategy (critical given excess capital generation relative to modest ROE)
- Customer retention rates and gross retention metrics (proxy for subscription stability and growth quality in recurring revenue model)
Sps Commerce Inc. (SPSC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 20.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.17x current ratio provides a solid financial cushion.
SPSC Profit Margin, ROE & Profitability Analysis
SPSC vs Technology Sector: How Sps Commerce Inc. Compares
How Sps Commerce Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sps Commerce Inc. Stock Overvalued? SPSC Valuation Analysis 2026
Based on fundamental analysis, Sps Commerce Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sps Commerce Inc. Balance Sheet: SPSC Debt, Cash & Liquidity
SPSC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sps Commerce Inc.'s revenue has grown significantly by 95% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.76 reflects profitable operations.
SPSC Revenue Growth, EPS Growth & YoY Performance
SPSC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $163.7M | $23.5M | $0.62 |
| Q2 2025 | $153.6M | $18.0M | $0.48 |
| Q1 2025 | $149.6M | $18.0M | $0.48 |
| Q3 2024 | $135.7M | $16.8M | $0.45 |
| Q2 2024 | $130.4M | $14.7M | $0.39 |
| Q1 2024 | $125.9M | $15.3M | $0.41 |
| Q3 2023 | $114.5M | $15.9M | $0.43 |
| Q2 2023 | $109.2M | $10.8M | $0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sps Commerce Inc. Dividends, Buybacks & Capital Allocation
SPSC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sps Commerce Inc. (CIK: 0001092699)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SPSC
What is the AI rating for SPSC?
Sps Commerce Inc. (SPSC) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SPSC's key strengths?
Claude: Accelerating earnings growth (20.6% EPS growth vs 17.8% revenue growth) indicates strong operating leverage in maturing software platform. Exceptional free cash flow generation at $152.3M (20.3% FCF margin) with low capex requirements (~3.5% of revenue) demonstrates capital-efficient business model.
What are the risks of investing in SPSC?
Claude: Moderate returns on equity (9.6%) and assets (8.0%) suggest challenges in efficiently deploying capital despite strong cash generation. Operating margin of 15.7% is compressed relative to pure software peers, leaving limited cushion against competitive pressures or cost inflation.
What is SPSC's revenue and growth?
Sps Commerce Inc. reported revenue of $751.5M.
Does SPSC pay dividends?
Sps Commerce Inc. does not currently pay dividends.
Where can I find SPSC SEC filings?
Official SEC filings for Sps Commerce Inc. (CIK: 0001092699) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SPSC's EPS?
Sps Commerce Inc. has a diluted EPS of $2.46.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SPSC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sps Commerce Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is SPSC stock overvalued or undervalued?
Valuation metrics for SPSC: ROE of 9.6% (sector avg: 22%), net margin of 12.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy SPSC stock in 2026?
Our dual AI analysis gives Sps Commerce Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SPSC's free cash flow?
Sps Commerce Inc.'s operating cash flow is $178.8M, with capital expenditures of $26.5M. FCF margin is 20.3%.
How does SPSC compare to other Technology stocks?
Vs Technology sector averages: Net margin 12.4% (avg: 18%), ROE 9.6% (avg: 22%), current ratio 2.17 (avg: 2.5).