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Upturn AI Summary - About
SPS Commerce Inc(SPSC)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for SPSC
10/02/2026: SPSC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
SPS Commerce is a leading cloud-based software provider that specializes in supply chain management and retail integration. The company has a stable, recurring revenue model built on a network effect where its platform connects thousands of retailers and suppliers. Its primary growth opportunity lies in deepening its analytics capabilities and expanding into new retail-related verticals globally. However, risks include high stock valuation, sector concentration in retail, and the need to successfully integrate acquisitions. The stock generally suits growth-oriented investors who prioritize a strong business model and scalability over immediate dividend yield or low price volatility.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | The company shows consistent revenue growth and scalability typical of a successful SaaS model. |
| Momentum investor | Mixed fit | Momentum appeal is conditional on the stock maintaining a positive trend relative to broader market volatility. |
| Value investor | Weak fit | The stock often trades at premium valuation multiples due to its high growth and recurring revenue quality. |
| Dividend investor | Weak fit | The company does not pay a dividend and focuses on reinvesting capital for growth. |
| Low-risk investor | Mixed fit | While the business model is stable, the stock's valuation can lead to price volatility. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | High growth expectations can cause significant stock price swings based on quarterly results. |
| Valuation risk | Medium / high | Investors pay a premium for growth, which can lead to corrections if growth slows. |
| Competition risk (AI/Software competition) | Medium | Newer AI-driven entrants could challenge the company's platform dominance. |
| Business quality | Strong | The company maintains high recurring revenue and strong customer retention, indicating a solid franchise. |
| Dividend income | Low / none | There is no dividend income for investors seeking immediate cash yield. |
| Execution risk | Medium | Successful growth depends on integrating acquisitions and maintaining a high-value network. |
Price Behavior
Steady Uptrend
The stock demonstrates consistent and steady upward price momentum.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit 10.08% | Avg. Invested days 41 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 10/02/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.03B USD | Price to earnings Ratio 39.72 | 1Y Target Price 75.45 |
Price to earnings Ratio 39.72 | 1Y Target Price 75.45 | ||
Volume (30-day avg) 492.9K shares | Beta 0.51 | 52 Weeks Range 49.04 - 114.87 | Updated Date 10/01/2026 |
52 Weeks Range 49.04 - 114.87 | Updated Date 10/01/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.12 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Recurring Revenue (SaaS) | Subscription fees for access to the SPS Commerce network and software platform. | This is the core stable income stream generated from customers who pay monthly or annually. |
| Professional Services | Implementation, training, and onboarding services for new customers. | This is a one-time fee revenue that helps get new customers up and running on the platform. |
Valuation
Trailing PE 39.72 | Forward PE 68.03 | Enterprise Value 2.76B | Price to Sales(TTM) 3.92 |
Enterprise Value 2.76B | Price to Sales(TTM) 3.92 | ||
Enterprise Value to Revenue 3.58 | Enterprise Value to EBITDA 15.08 | Shares Outstanding 36.00M | Shares Floating 35.56M |
Shares Outstanding 36.00M | Shares Floating 35.56M | ||
Percent Insiders 1.03 | Percent Institutions 114.19 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About SPS Commerce Inc
Exchange NASDAQ | Headquarters Minneapolis, MN, United States | ||
IPO Launch date 2010-04-22 | CEO & Director Mr. Chadwick Collins | ||
Sector Technology | Industry Software - Application | Full time employees 2948 | Website https://www.spscommerce.com |
Full time employees 2948 | Website https://www.spscommerce.com | ||
SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States. It offers solutions through SPS Commerce, a cloud-based platform that connects retailers, brands, distributors, manufacturers, and logistics providers, handling the complexity of modern commerce operations. The company also provides Fulfillment, a comprehensive solution designed to streamline supply chain operation that sends and receives order data, ensuring accurate execution of required processes from order to invoicing and revenue recovery through fully automated operations; and Analytics product that simplifies managing sell-through data from customers business partners that handle data acquisition, cleansing, normalization, and delivery. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies through single connection across all sales channels; and relationship management product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management, onboarding programs, and supplier score carding. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.
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