SPS Commerce (SPSC) Q3 2025 Earnings Transcript

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Tue, April 14, 2026 astatine 10:53 AM CDT 35 min read

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Thursday, October 30, 2025 astatine 4:30 p.m. ET

• Chief Executive Officer — Chad Collins

• Chief Financial Officer — Kimberly Nelson

Chad Collins: Thanks, Irmina, and bully afternoon, everyone. Thank you for joining america today. SPS Commerce delivered coagulated 3rd 4th results crossed our halfway concern contempt ongoing macroeconomic uncertainty and continued walk scrutiny. Third 4th gross grew 16% to $189.9 cardinal and recurring gross grew 18%. Our fulfillment concern grew 20% year-over-year. The nett summation of 450 customers exceeded our expectations successful the quarter, chiefly driven by beardown retail narration absorption programs. I'd similar to instrumentality a infinitesimal to reappraisal the cardinal dynamics that impacted our gross betterment business, which came successful astir $3 cardinal beneath our expectations successful Q3. Firstly, we present admit that determination is much seasonality successful this concern than we had primitively anticipated.

In Q2, for example, we benefited from a higher-than-expected measurement of shipped products related to Amazon Prime Day. Due to the seasonality effect successful Q2 and the alteration successful Amazon argumentation related to inventory capableness for third-party sellers, Q3 shipments came successful beneath our expectations, which resulted successful lower-than-forecast gross betterment rates successful the quarter. We've taken some of these factors into information successful our updated outlook for that business. Revenue betterment is an important offering wrong our portfolio. It represents a $750 cardinal addressable marketplace crossed 1P U.S. sellers and a important cross-selling accidental wrong our network, wherever we're making advancement and gathering momentum.

In addition, we're pleased to study we completed our combined go-to-market strategy up of schedule, and we are present amended positioned to unlock the afloat imaginable of this emerging merchandise category. For example, Cyber Power Systems, a planetary shaper of powerfulness extortion and absorption solutions, has partnered with SPS to modernize their concern systems and processes since 2014. As a long-standing fulfillment customer, they precocious engaged with SPS to thrust further efficiencies crossed their proviso chain, leveraging the gross betterment solution for immoderate of their cardinal customers, including Amazon, Walmart and Home Depot. Having realized contiguous benefits successful ROI, Cyber Power Systems is evaluating different gross betterment opportunities crossed their retail network.

As we discussed astatine our Investor Day successful September, SPS Commerce is good positioned to capitalize connected the semipermanent maturation opportunities driven by an ever-evolving retail ecosystem. Having made strategical acquisitions implicit the past 2 years to grow our merchandise portfolio and marketplace reach, we shared updates astatine Investor Day to code however our merchandise strategy and our reimagined go-to-market question person evolved to empower the benignant of trading spouse collaboration that enables proviso chains to enactment similar they should. We besides hosted a wide cross-section of customers who provided their perspectives connected wherefore they chose to enactment with SPS and however we assistance them negociate proviso concatenation complexity to fortify their trading spouse ecosystems.