SPS Commerce Delivers Impressive Q2 2025 Growth Results
SPS Commerce Achieves Record Growth in Financial Performance
SPS Commerce, Inc. (NASDAQ: SPSC), a prominent leader in retail supply chain cloud services, has announced its impressive financial results for the recent quarter. With a commendable performance in the second quarter of 2025, the company celebrated its 98th consecutive quarter of topline growth.
Financial Growth Highlights
In the second quarter, SPS Commerce witnessed a remarkable revenue increase of 22%, reaching $187.4 million compared to $153.6 million during the same quarter last year. Recurring revenue also made significant strides, reflecting a 24% growth year-over-year.
Detailed Financial Analysis
The earnings report revealed a net income of $19.7 million, equating to $0.52 per diluted share, up from $18.0 million or $0.48 per diluted share reported in the previous year. Notably, the non-GAAP income per diluted share increased to $1.00 compared to $0.80 last year.
Adjusted EBITDA saw a notable growth of 27%, reaching $56.1 million compared to the same period in 2024. The company’s share repurchase totaled $20 million in the quarter, showcasing their commitment to enhancing shareholder value.
Management Commentary on Performance
Chad Collins, CEO of SPS Commerce, expressed pride in the company’s consistent performance. He stated, "SPS Commerce is uniquely positioned as the only full-service EDI solution available. We enable suppliers to maintain EDI compliance effortlessly, adapting to the dynamic needs of retailers. Our products foster closer collaboration among trading partners, driving efficiency and cost-saving opportunities that we believe will ensure long-term growth for our company."
Kim Nelson, the CFO, echoed this sentiment, underscoring the company’s strong second-quarter performance and confidence in the full-year 2025 outlook. "We are well-positioned to capitalize on growth opportunities in our extensive addressable market, demonstrating robust operating leverage and resilience in our business model," she added.
Guidance for Future Growth
Looking ahead, SPS Commerce anticipates revenue for the third quarter of 2025 to be between $191.7 million and $193.2 million, indicating a year-over-year growth of 17% to 18%. Furthermore, net income per diluted share is expected to range between $0.50 and $0.54, with an estimated fully diluted average of 38.5 million shares outstanding. Non-GAAP income per share is projected to be between $0.96 and $1.00.
Expectations for Fiscal Year 2025
For the entire fiscal year 2025, SPS Commerce forecasts revenue between $759 million and $763 million, signifying a growth rate of 19% to 20% compared to 2024. The net income per diluted share is expected to range from $2.17 to $2.22, while adjusted EBITDA is forecasted to be in the range of $230.7 million to $233.7 million, representing a growth of 24% to 25% over the previous year.
About SPS Commerce
SPS Commerce stands as the world’s leading retail network, facilitating connections between trading partners worldwide to optimize supply chain operations for all retail facets. The company supports data-driven partnerships through innovative cloud technology, focusing on customer-driven service and accessible expertise. A notable milestone is achieving 98 consecutive quarters of revenue growth while serving over 50,000 recurring revenue customers across various sectors, including retail and logistics.
For more information, you can contact SPS Commerce directly at 866-245-8100.
Frequently Asked Questions
What were the earnings of SPS Commerce for Q2 2025?
SPS Commerce reported a net income of $19.7 million or $0.52 per diluted share for Q2 2025.
How much did SPS Commerce's revenue grow compared to last year?
The company’s revenue grew by 22% from Q2 2024 to Q2 2025, reaching $187.4 million.
What is SPS Commerce's guidance for Q3 2025?
SPS Commerce expects revenue for Q3 2025 to be between $191.7 million and $193.2 million.
What future growth opportunities does SPS Commerce see?
The company is well-positioned to leverage growth opportunities in its vast market while showcasing strong operating leverage.
How can I contact SPS Commerce for more information?
You can reach SPS Commerce at 866-245-8100 for inquiries and further information.
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