Loading...
•
Sep 30
SPS Commerce Q3 2025 Earnings Report
SPS Commerce reported strong financial results for the third quarter of 2025, with significant growth in revenue, recurring revenue, net income, and adjusted EBITDA.
Key Takeaways
SPS Commerce delivered its 99th consecutive quarter of topline growth, with third-quarter revenue increasing by 16% to $189.9 million and recurring revenue growing by 18%. Net income rose to $25.6 million, and non-GAAP diluted EPS reached $1.13. Adjusted EBITDA saw a substantial 25% increase to $60.5 million, demonstrating continued profitable growth despite global trade and economic uncertainties.
SPS Commerce achieved its 99th consecutive quarter of topline growth, with third-quarter 2025 revenue reaching $189.9 million, a 16% increase year-over-year.
Recurring revenue demonstrated strong performance, growing by 18% compared to the third quarter of 2024.
Net income for the quarter was $25.6 million, or $0.67 per diluted share, while non-GAAP income per diluted share was $1.13.
Adjusted EBITDA increased by 25% to $60.5 million, and the company announced a new $100.0 million share repurchase program.
SPS Commerce
SPS Commerce
SPS Commerce Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.com Forward Guidance
For the fourth quarter of 2025, SPS Commerce expects revenue between $192.7 million and $194.7 million, diluted EPS between $0.53 and $0.57, non-GAAP diluted EPS between $0.98 and $1.02, and Adjusted EBITDA between $58.8 million and $60.8 million. For the full fiscal year 2025, revenue is projected to be between $751.6 million and $753.6 million, diluted EPS between $2.31 and $2.34, non-GAAP diluted EPS between $4.10 and $4.15, and Adjusted EBITDA between $229.7 million and $231.7 million.
Positive Outlook
- Fourth quarter 2025 revenue is expected to grow 13% to 14% year-over-year, reaching $192.7 million to $194.7 million.
- Fiscal year 2025 revenue is projected to grow 18% over 2024, with a range of $751.6 million to $753.6 million.
- Non-GAAP income per diluted share for Q4 2025 is expected to be strong, ranging from $0.98 to $1.02.
- Adjusted EBITDA for Q4 2025 is anticipated to be between $58.8 million and $60.8 million.
- Fiscal year 2025 Adjusted EBITDA is expected to increase by 23% to 24% over 2024, reaching $229.7 million to $231.7 million.
Challenges Ahead
- Net income per diluted share for Q4 2025 is expected to be lower than Q3 2025, ranging from $0.53 to $0.57.
- Non-cash, share-based compensation expense for Q4 2025 is projected at $15.0 million, impacting GAAP net income.
- Depreciation expense for Q4 2025 is expected to be $5.8 million.
- Amortization expense for Q4 2025 is expected to be $9.5 million.
- The forward-looking measures involve significant known and unknown risks and uncertainties, and actual results may vary materially.