SPS Commerce Reports 22% Revenue Growth to $187.4 Million in Latest Quarter

SPS Commerce, Inc. reported significant financial growth in its latest quarterly filing, with revenues reaching $187.4 million for the three months ended June 30, 2025, a 22% increase from $153.6 million in the same period last year. For the first half of 2025, total revenues amounted to $368.9 million, up from $303.2 million in the prior year, marking a 22% year-over-year increase. The company’s net income also saw a rise, totaling $19.7 million for the second quarter, compared to $18.0 million in the previous year, and $41.9 million for the first half of 2025, up from $36.0 million.

The company experienced a notable increase in its customer base, with the number of recurring revenue customers growing by 21% to approximately 54,500 as of June 30, 2025. This growth was primarily driven by recent acquisitions, including the customer bases from Traverse Systems, SupplyPike, and Carbon6. The average revenue per user (ARPU) also increased by 3% to approximately $13,200, reflecting enhanced product usage among existing customers. Recurring revenues, which accounted for 96% of total revenues in the second quarter, rose 24% to $179.1 million.

SPS Commerce has been actively expanding its market presence through strategic acquisitions. The company completed the acquisition of Carbon6 Technologies, Inc. in February 2025 for $210.2 million, which is expected to enhance its offerings for Amazon sellers. Additionally, the acquisition of SupplyPike in July 2024 for $205.8 million is anticipated to bolster its automated invoice management solutions. These acquisitions are part of SPS's strategy to penetrate deeper into the supply chain management market and expand its international footprint.

Operationally, the company reported an increase in total operating expenses, which rose to $101.1 million in the second quarter, up from $78.4 million a year earlier. This increase was largely attributed to higher personnel-related costs due to increased headcount across various departments. The company’s cash and cash equivalents decreased to $107.6 million from $241.0 million at the end of 2024, primarily due to cash used in acquisitions and share repurchases. Despite this, SPS Commerce remains optimistic about its growth trajectory, projecting continued increases in both customer count and ARPU as it executes its strategic initiatives.

Looking ahead, SPS Commerce plans to further penetrate the supply chain management market, enhance its product offerings, and expand its distribution channels. The company is also focused on pursuing additional acquisitions that will contribute to its growth and market share. With a solid financial foundation and a growing customer base, SPS Commerce is well-positioned to capitalize on opportunities in the evolving retail supply chain landscape.