Cloud services provider SPS Commerce's Q3 revenue misses expectations

SPS Commerce

30/10/2025 20:40

Overview

SPS Commerce Q3 revenue grows 16% yr/yr but misses analyst expectations

Adjusted EBITDA for Q3 beats analyst estimates, indicating strong operational performance

Company announces new $100 mln share repurchase program, indicating confidence in future growth

Outlook

SPS Commerce expects Q4 2025 revenue between $192.7 mln and $194.7 mln

Company anticipates FY 2025 revenue of $751.6 mln to $753.6 mln

SPS Commerce forecasts Q4 2025 non-GAAP EPS of $0.98 to $1.02

Company projects FY 2025 adjusted EBITDA of $229.7 mln to $231.7 mln

Result Drivers

RECURRING REVENUE GROWTH - Recurring revenue increased by 18% from Q3 2024, contributing to overall revenue growth

SUPPLY CHAIN EFFICIENCIES - CEO Chad Collins highlighted the need for supply chain efficiencies as a driver for growth despite economic uncertainty

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$189.90 mln
$191.80 mln (10 Analysts)
Q3 Net Income
$25.60 mln
Q3 Adjusted EBITDA
Beat
$60.50 mln
$59.30 mln (9 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for SPS Commerce Inc is $142.50, about 26.2% above its October 29 closing price of $105.18

Press Release: ID:nGNX8YPm2l

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)