SPS Commerce Inc reported second-quarter 2026 results with revenue of $197.8M, up 5.6% from $187.4M a year earlier, while net income fell to $6.9M from $19.7M in the prior-year quarter; diluted EPS was $0.19 versus $0.52 a year ago, driven primarily by a $23.5M loss on a divestiture.
Financial Highlights
- Revenue was $197.8M for Q2 2026, compared with $187.4M in the year-ago quarter; YoY change 5.6%.
- Net income was $6.9M for Q2 2026, compared with $19.7M in the year-ago quarter; YoY change (65.2%).
- Diluted EPS was $0.19 for Q2 2026, compared with $0.52 in the year-ago quarter.
Business Highlights
- Recurring revenue growth of roughly 6–7% year-over-year drove total revenue gains, supported by increased usage and expansion of first‑party (1P) customers.
- Completed strategic divestiture of third‑party (3P) revenue recovery, moving all recurring customers to 1P; this reduced customer count but raised average revenue per user (ARPU).
- ARPU rose 14% sequentially and about 5% in the first half, reflecting deeper product adoption and stronger monetization of the core network services.
- Platform consolidation lowered software and third‑party costs, while depreciation and implementation costs increased as the company invested in system projects.
- Company completed the 3P divestiture and continues to pursue M&A and international expansion; management expects customer count and ARPU to grow under its strategy.
Original SEC Filing:
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