📊 SPSC Key Takeaways
Is Sps Commerce Inc. (SPSC) a Good Investment?
SPS Commerce demonstrates solid fundamental growth with 17.8% revenue expansion and strong 25.2% free cash flow margins, supported by a fortress balance sheet with zero debt and $154.3M cash. However, concerning low ROE of 2.1% and ROA of 1.7% indicate poor capital efficiency, suggesting excess capital relative to profitable deployment opportunities despite solid profitability metrics.
Sps Commerce Inc. Key Strengths (SPSC)
- Strong double-digit revenue growth at 17.8% YoY with EPS growth exceeding at 20.6%, showing operational leverage
- Exceptional cash generation with 25.2% FCF margin and $48.5M annual free cash flow on asset-light model (7.1M CapEx)
- Pristine balance sheet: zero long-term debt, 2.12x current/quick ratio, $154.3M cash position provides strategic flexibility
- Software-grade gross margins of 69.2% indicate pricing power and quality product-market fit
- Operating cash flow of $55.6M supports sustainability of dividends or growth investments
SPSC Stock Risks: Sps Commerce Inc. Investment Risks
- Critically low capital efficiency metrics (ROE 2.1%, ROA 1.7%) despite profitability suggest capital is trapped or underdeployed
- Operating margin of 12.8% is modest for prepackaged software sector, indicating competitive pressure or operational drag
- Accumulating cash without clear capital allocation strategy raises questions about management's ability to deploy capital productively
- Revenue growth sustainability unknown; no visibility into market conditions, customer concentration, or competitive dynamics
- Asset base of $1.2B generating only $19.7M net income signals potential inefficiency or industry headwinds
Key Metrics to Watch
- Return on Equity trend - must improve from 2.1% to justify capital base and shareholder returns
- Operating margin expansion - monitor if 12.8% improves with revenue scale or remains compressed
- Revenue growth trajectory - verify 17.8% is sustainable and not cyclical spike
- Cash deployment decisions - track M&A activity, share buybacks, or dividend initiation to address capital efficiency
- Free cash flow conversion - maintain or improve from current 25.2% FCF margin level
Sps Commerce Inc. (SPSC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 25.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.12x current ratio provides a solid financial cushion.
SPSC Profit Margin, ROE & Profitability Analysis
SPSC vs Technology Sector: How Sps Commerce Inc. Compares
How Sps Commerce Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sps Commerce Inc. Stock Overvalued? SPSC Valuation Analysis 2026
Based on fundamental analysis, Sps Commerce Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sps Commerce Inc. Balance Sheet: SPSC Debt, Cash & Liquidity
SPSC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sps Commerce Inc.'s revenue has grown significantly by 95% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.76 reflects profitable operations.
SPSC Revenue Growth, EPS Growth & YoY Performance
SPSC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $181.5M | $19.7M | $0.53 |
| Q3 2025 | $163.7M | $23.5M | $0.62 |
| Q2 2025 | $153.6M | $18.0M | $0.48 |
| Q1 2025 | $149.6M | $18.0M | $0.48 |
| Q3 2024 | $135.7M | $16.8M | $0.45 |
| Q2 2024 | $130.4M | $14.7M | $0.39 |
| Q1 2024 | $125.9M | $15.3M | $0.41 |
| Q3 2023 | $114.5M | $15.9M | $0.43 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sps Commerce Inc. Dividends, Buybacks & Capital Allocation
SPSC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sps Commerce Inc. (CIK: 0001092699)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780346960.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780346938.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780346921.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780346904.xml | View → |
| Jun 1, 2026 | 4 | xslF345X06/wk-form4_1780346883.xml | View → |
❓ Frequently Asked Questions about SPSC
What is the AI rating for SPSC?
Sps Commerce Inc. (SPSC) has an AI grade of A with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SPSC's key strengths?
Claude: Strong double-digit revenue growth at 17.8% YoY with EPS growth exceeding at 20.6%, showing operational leverage. Exceptional cash generation with 25.2% FCF margin and $48.5M annual free cash flow on asset-light model (7.1M CapEx).
What are the risks of investing in SPSC?
Claude: Critically low capital efficiency metrics (ROE 2.1%, ROA 1.7%) despite profitability suggest capital is trapped or underdeployed. Operating margin of 12.8% is modest for prepackaged software sector, indicating competitive pressure or operational drag.
What is SPSC's revenue and growth?
Sps Commerce Inc. reported revenue of $192.1M.
Does SPSC pay dividends?
Sps Commerce Inc. does not currently pay dividends.
Where can I find SPSC SEC filings?
Official SEC filings for Sps Commerce Inc. (CIK: 0001092699) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SPSC's EPS?
Sps Commerce Inc. has a diluted EPS of $0.53.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SPSC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Sps Commerce Inc. has a A grade with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is SPSC stock overvalued or undervalued?
Valuation metrics for SPSC: ROE of 2.1% (sector avg: 22%), net margin of 10.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is SPSC's AI grade for 2026?
Our dual AI analysis gives Sps Commerce Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SPSC's free cash flow?
Sps Commerce Inc.'s operating cash flow is $55.6M, with capital expenditures of $7.1M. FCF margin is 25.2%.
How does SPSC compare to other Technology stocks?
Vs Technology sector averages: Net margin 10.3% (avg: 18%), ROE 2.1% (avg: 22%), current ratio 2.12 (avg: 2.5).