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Jun 30
SPS Commerce Q2 2025 Earnings Report
SPS Commerce reported strong financial results for the second quarter ended June 30, 2025, with significant growth in revenue and recurring revenue.
Key Takeaways
SPS Commerce delivered its 98th consecutive quarter of topline growth, with second-quarter 2025 revenue increasing by 22% and recurring revenue growing by 24% compared to the same period in 2024. The company reported a net income of $19.7 million and non-GAAP income per diluted share of $1.00, demonstrating strong operational performance and confidence in its full-year outlook.
Revenue for Q2 2025 reached $187.4 million, marking a 22% increase from Q2 2024.
Recurring revenue showed robust growth of 24% compared to the second quarter of the previous year.
Net income for the quarter was $19.7 million, with diluted EPS at $0.52.
Non-GAAP income per diluted share was $1.00, reflecting strong adjusted profitability.
SPS Commerce
SPS Commerce
SPS Commerce Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.com Forward Guidance
SPS Commerce provided optimistic guidance for both the third quarter and the full fiscal year 2025, anticipating continued revenue growth and strong profitability.
Positive Outlook
- Q3 2025 revenue expected to be between $191.7 million and $193.2 million, representing 17% to 18% year-over-year growth.
- Q3 2025 non-GAAP income per diluted share projected to be in the range of $0.96 to $1.00.
- Q3 2025 Adjusted EBITDA expected to be between $57.9 million and $59.9 million.
- Fiscal Year 2025 revenue expected to be in the range of $759.0 million to $763.0 million, representing 19% to 20% growth over 2024.
- Fiscal Year 2025 Adjusted EBITDA expected to be in the range of $230.7 million to $233.7 million, representing 24% to 25% growth over 2024.
Challenges Ahead
- Net income per diluted share for Q3 2025 is expected to be slightly lower than non-GAAP EPS, ranging from $0.50 to $0.54.
- The company does not provide a reconciliation of forward-looking non-GAAP financial measures to GAAP due to the impracticality of forecasting certain items.
- Forward-looking measures involve significant known and unknown risks and uncertainties, and actual results may vary materially.
- Non-cash, share-based compensation expense is expected to be $16.0 million for Q3 2025 and $60.9 million for Fiscal Year 2025, impacting GAAP net income.
- Amortization expense is expected to be $9.5 million for Q3 2025 and $37.1 million for Fiscal Year 2025, also affecting GAAP profitability.