SPS Commerce Reports Q3 2026 Growth in Profitability Amid Divestitures and Amazon Policy Shifts
SPS Commerce (SPSC) reported third-quarter 2026 results characterized by strong margin expansion despite revenue headwinds. While total revenue grew 4% to $197.6 million, the growth rate was tempered by the divestiture of its 3P Revenue Recovery business and changes in Amazon's take-rate models affecting 1P customers. However, adjusted EBITDA rose significantly by 17% to $70.9 million, resulting in a 36% margin that exceeded long-term targets. The company demonstrated strong operational efficiency, with net income increasing to $30.7 million compared to $25.6 million in the prior year. Management highlighted an underlying core business growth rate of 8% to 9% when excluding divestitures and Amazon-specific volatility. Looking ahead, SPS Commerce provided full-year revenue guidance of $786.9 million to $788.9 million, representing a projected 5% annual increase.
Topics: Adjusted EBITDA Free Cash Flow Net Income Revenue Growth Share Repurchases
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