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SPS Commerce (SPSC) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

SPS Commerce
NasdaqGS•Technology•Software - Application
$80.68-1.32(-0.02%)Pre-market
Market Cap
$2.94B
P/E
37.6x
P/S
3.8x
P/B
3.1x

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.

B

How this company scores

GoodMetricSide Score: 65/100

Strongest: Cash & Earnings Quality (25/25); weakest: Profitability (10/25).

Profitability10/25
Growth15/25
Balance Sheet & Red Flags15/25
Cash & Earnings Quality25/25
Strengths
Rising free cash flowInterest easily coveredCash-backed earningsConsistent free cash flow

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 37.6x5y range 22.7x – 130.0x
P/E 37.6x · below its 20-quarter median

Currently below its 20-quarter median.

P/S · 3.8x5y range 2.7x – 16.1x
P/S 3.8x · below its 20-quarter median

Currently below its 20-quarter median.

P/B · 3.1x5y range 2.1x – 12.5x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 12.1% — watch for continued compression, which may signal competitive or cost pressure.

Price & Volume
Market Cap $2.94B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$772.49M
7Q
Q. Revenue
$197.81M
6%
TTM EBITDA
$121.97M
2Q
TTM Op. Income
$98.85M
2Q
Q. Op. Income
$8.41M
2Q
TTM Net Income
$78.00M
2Q
Q. Net Income
$6.86M
2Q
EPS
$0.19
2Q
Shares Out.
$36.53M
5Q
$772.49M in TTM revenue grew 9.8% YoY, reaching $197.81M last quarter. TTM EBITDA of $121.97M and TTM operating income of $98.85M show growth is flowing through to the bottom line. TTM net income of $78.00M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
70.2%
3%
EBITDA Margin
7.4%
2Q
Op. Margin
4.3%
2Q
Net Margin
3.5%
3Q
Op. margin of 4.3% is down 9.9% YoY — costs are rising relative to revenue. Net margin at 3.5% and gross margin of 70.2% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
37.6x
40%
P/S Ratio
3.8x
48%
P/B Ratio
3.1x
43%
At 37.6x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 3.8x and P/B of 3.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 40% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$1.13B
2Q
Cash
$173.17M
5Q
Long-Term Debt
N/A
Book Value
$938.48M
2Q
D/E Ratio
N/A
Debt/EBITDA
0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$66.03M
2Q
TTM Free Cash Flow
$198.70M
7Q
FCF Margin
25.7%
2Q
FCF / Net Income
2.5
2Q
TTM FCF of $198.70M on $66.03M in operating cash flow. The FCF / Net Income ratio of 2.5x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 7 consecutive quarters — an improving trend.

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· below its 20-quarter median

Currently below its 20-quarter median.