SPS Commerce Inc logo

SPS Commerce Inc(SPSC)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
1-STAR RATING
Consider higher Upturn Star rating
BUY for 56 days
PROFIT SINCE LAST BUY
+36.8%
LAST CLOSE
$79.74
09/18/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Advisory Performance History (Simulated)Advisory Performance History info

Upturn Advisory & Investor View for SPSC

09/18/2026: SPSC (1-star) has a low Upturn Star Rating. Not recommended to BUY.

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.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit 2.73%
Avg. Invested days 34
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/18/2026

Upturn Scorecard

Upturn Star Rating

SPSC receives a 4-star rating, supported by solid unit economics, solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum, and limited analyst upside.

Company Fundamentals

SPSC has solid overall fundamentals (4 stars), with solid financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, solid earnings growth (+21.1%) and strong cash generation (FCF margin 20.3%) are partially offset by modest insider ownership of 1.03%.

Financial Health Rating

SPSC's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 15.5%). Profitability is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

Earnings growth is SPSC's strongest growth driver at +21.1% FY2025 versus FY2024 (solid, 4 stars). Revenue growth (+17.8%, solid) and free-cash-flow growth (+10.9%, solid) are also constructive, though not equally high across every growth measure.

Ownership

Institutional ownership is 114.3% and approximately 98.8% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.03% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 15.88%
Vanguard Portfolio Management, LLC 8.06%
Disciplined Growth Investors Inc 5.79%
Neuberger Berman Group LLC 4.88%
Vanguard Capital Management, LLC 4.63%

Unit Economics (Per $1K Revenue)

SPSC generates approximately $692 of gross profit, $157 of operating income, and $203 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

Effective Tax Rate: 24.63%

Quantitative Style Profile

SPSC has a liquid, relatively low-volatility profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Low VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 2.87B USD
Price to earnings Ratio 38.34
1Y Target Price 75.45
Price to earnings Ratio 38.34
1Y Target Price 75.45
Volume (30-day avg) 558.6K shares
Beta 0.51
52 Weeks Range 49.04 - 114.87
Updated Date 09/20/2026
52 Weeks Range 49.04 - 114.87
Updated Date 09/20/2026
Dividends yield (FY) -
Basic EPS (TTM) 2.08
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Valuation

Trailing PE 38.34
Forward PE 68.03
Enterprise Value 2.70B
Price to Sales(TTM) 3.72
Enterprise Value 2.70B
Price to Sales(TTM) 3.72
Enterprise Value to Revenue 3.5
Enterprise Value to EBITDA 14.76
Shares Outstanding 36.00M
Shares Floating 35.56M
Shares Outstanding 36.00M
Shares Floating 35.56M
Percent Insiders 1.03
Percent Institutions 114.26

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon 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)

Information icon 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)

Information icon 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
Full time employees 2948

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.