SPS Commerce reports Q2 revenue growth, lower net income after divestiture-related loss

SPS Commerce reported second-quarter 2026 results that exceeded the high end of its guidance range on revenue and Adjusted EBITDA, while net income fell sharply because of a loss tied to the sale of a business. Revenue for the quarter ended June 30 rose 6% to $197.8 million from $187.4 million a year earlier, recurring revenue also increased 6%, and Adjusted EBITDA climbed 19% to $66.6 million. Net income dropped to $6.9 million, or $0.19 per diluted share, from $19.7 million, or $0.52 per diluted share, while non-GAAP income rose to $46.4 million, or $1.27 per diluted share, from $38.0 million, or $1.00 per diluted share. The results included a $23.5 million loss on sale of business after SPS Commerce completed the divestiture of its 3P Revenue Recovery business on June 30. The company said the divestiture will reduce second-half 2026 revenue by about $10.5 million and is expected to be neutral to Adjusted EBITDA over that period. SPS Commerce repurchased $51.2 million of shares in the quarter and $98.4 million in the first six months of the year. For the third quarter, SPS Commerce expects revenue of $196.3 million to $198.3 million, diluted net income per share of $0.72 to $0.76, non-GAAP income per share of $1.20 to $1.23, and Adjusted EBITDA of $67.4 million to $69.4 million. For full-year 2026, it forecast revenue of $788.4 million to $793.4 million, representing 5% to 6% growth over 2025, diluted net income per share of $2.24 to $2.33, non-GAAP income per share of $4.84 to $4.93, and Adjusted EBITDA of $264.6 million to $269.1 million. At the midpoint, that implies an Adjusted EBITDA margin of 34%, about 300 basis points higher than in 2025. Chief Executive Officer Chad Collins said SPS Commerce is preparing to launch MAX, its agentic AI capabilities, to all SPS Fulfillment customers later this summer after beta users saw savings worth hundreds of thousands of dollars over three months. CFO Joe Del Preto said second-quarter performance reflected upsell and cross-sell momentum in the core business. SPS Commerce ended June with $173.2 million in cash and cash equivalents, up from $151.4 million at the end of 2025.