SPS Commerce's Robust Q2 2025 Results Showcase Growth
SPS Commerce Delivers Strong Financial Performance
SPS Commerce, Inc. (NASDAQ: SPSC), a leading provider of retail supply chain cloud services, has reported remarkable financial results for the second quarter of 2025, marking its 98th consecutive quarter of revenue growth. The company experienced a significant revenue increase of 22% compared to the same period in 2024, with total revenue reaching $187.4 million.
Financial Highlights of Q2 2025
The financial performance for SPS Commerce during the second quarter includes:
- Recurring revenue surged by 24% year-over-year.
- Net income for the quarter was $19.7 million, or $0.52 per diluted share, reflecting an increase from $18.0 million, or $0.48 per diluted share, in Q2 2024.
- Non-GAAP income per diluted share improved to $1.00 from $0.80 a year ago.
- Adjusted EBITDA rose by 27%, totaling $56.1 million compared to the previous year's second quarter.
- The company repurchased $20 million in shares during this quarter.
Statements from Leadership
Chad Collins, CEO of SPS Commerce, emphasized the company's market position, stating, "SPS Commerce is uniquely positioned to assist suppliers in navigating the ever-changing compliance requirements set by retailers. Our offerings facilitate better collaboration among trading partners, resulting in enhanced efficiency and shared successes."
Kim Nelson, the CFO, expressed confidence in the company’s performance, noting, "Our strong results this quarter reinforce our positive outlook for the entire fiscal year 2025. We are well-equipped to harness growth opportunities across a large market and to showcase the resilience of our business model."
Guidance for Future Quarters
Looking ahead, SPS Commerce has provided guidance for the third quarter of 2025:
- The anticipated revenue is expected to range between $191.7 million and $193.2 million, equating to a year-over-year increase of 17% to 18%.
- Net income per diluted share is anticipated to be between $0.50 and $0.54.
- Non-GAAP income per diluted share is expected to land between $0.96 and $1.00.
- Adjusted EBITDA should range from $57.9 million to $59.9 million.
Fiscal Year 2025 Outlook
For the full fiscal year 2025, SPS Commerce expects:
- Total revenue forecast of $759.0 million to $763.0 million, indicating 19% to 20% growth over 2024.
- Expectations for net income per diluted share between $2.17 and $2.22.
- Non-GAAP income per diluted share expected to be between $3.99 and $4.04.
- Adjusted EBITDA is projected to be between $230.7 million and $233.7 million, reflecting 24% to 25% growth.
About SPS Commerce
SPS Commerce has established itself as the leading retail network, connecting different trading partners to streamline supply chain operations. With over 50,000 customers in various sectors including retail, grocery, and logistics, the company is dedicated to fostering data-driven partnerships through innovative cloud technology and customer-focused service.
For more information, interested parties can contact SPS Commerce at 866-245-8100, or visit their website.
Frequently Asked Questions
What were SPS Commerce's revenue growth figures for Q2 2025?
The company reported a revenue growth of 22% compared to Q2 2024, totaling $187.4 million.
What are the projected earnings for Q3 2025?
Projected revenue for Q3 2025 is between $191.7 million and $193.2 million, representing a growth of 17% to 18% year-over-year.
Who is the CEO of SPS Commerce?
Chad Collins is the CEO of SPS Commerce and leads the company's strategic initiatives and growth efforts.
What does SPS Commerce specialize in?
SPS Commerce specializes in retail supply chain cloud services, helping partners streamline operations and maintain compliance.
How many customers does SPS Commerce currently serve?
The company serves over 50,000 recurring revenue customers in various industries such as retail, grocery, distribution, and logistics.
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