SPS Commerce, Inc. (SPSC) Stock

SPS Commerce, Inc. (SPSC) is a Technology stock trading at $79.50 (as of 2026-08-20), with a market capitalization of $2.92B and a trailing P/E of 37.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

SPS Commerce, Inc. provides cloud-based supply chain management software, including a trading platform, fulfillment capabilities, and analytics. It serves retailers, suppliers, grocers, distributors, and logistics companies by supporting omnichannel order handling, automated information exchange with trading partners, and supply-chain visibility and reporting.

Understand SPS Commerce, Inc.: how it makes money

SPS Commerce provides cloud-based supply chain management software (its SPS Commerce platform and fulfillment automation) to retailers, suppliers, grocers, distributors, and logistics firms, helping them manage omnichannel orders and automate trading partner communications, with the business focused on recurring customer usage.

The profit engine appears to be recurring revenue from customers using the SPS Commerce cloud network, where value grows as more retailers and trading partners connect to support omnichannel order fulfillment and automated trading relationships.

Business quality (Mixed): Well-aligned with a recurring, network-style operating model (recurring customers, connected retail players, and trading partners), but the provided information here does not include official reportable revenue segments or a clean segment-level breakdown.

Valuation: Trades at 24× trailing earnings · $2B market cap.

Bull case

Recurring revenue customer base: The operating metrics emphasize Recurring Revenue Customers, which supports a repeatable demand model tied to ongoing usage of the SPS Commerce platform.
Network-driven trading automation: Key operating metrics also track Trading Partners Worldwide and retailer connectivity, consistent with a model where the platform becomes more valuable as trading relationships and order flows are connected.

Bear case

Customer additions can be a key pressure point: The KPI set highlights Net Customer Additions and Third-Party Customers Decline, so slower additions or declines could weigh on growth and overall performance.
Adoption and integration risk in trading communications and fulfillment: Because the offering automates trading partner electronic communication and fulfillment workflows, customers switching plans, changing systems, or tightening compliance needs could increase churn risk or slow new deployments.

Valuation — source: SEC EDGAR (first-party)
Price	$79.50
Market Cap	$2.92B
P/E Ratio	37.4
EV / EBITDA	22.5
Price / Book	3.11
Price / Sales	3.78
FCF Yield	6.8%
DCF Value (model)	$41.89
DCF Upside vs Price	-47.3%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$751.50M
Net Margin	12.4%
Revenue Growth (YoY)	5.6%
EPS Growth (YoY)	-63.5%
FCF Growth (YoY)	123.8%

Financial Health — source: SEC EDGAR
Altman Z-Score	10.78 (safe)

Valuation vs Sector & Industry
Stock P/E	37.4
Sector P/E (Technology)	33.9
Industry P/E (Business Services)	30.0
vs Sector	10.3%
vs Industry	24.9%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($439.00M)
Institutional Holders Tracked	10

Company
Sector	Technology
Industry	Business Services
CEO	Chadwick Collins
Employees	2,783
Country	US
IPO Date	2010-04-22

Related Companies (Business model: SaaS / Subscription Software (Enterprise); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.