SPS Commerce (SPSC) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $197.8 million, up 6% year-over-year, driven by upsell/cross-sell momentum and a sharpened focus on 1P suppliers after divesting the 3P Revenue Recovery business.

• Adjusted EBITDA for Q2 2026 was $66.6 million, with a 34% margin, up from 30% in Q2 2025, reflecting strong operational execution.

• Net income for Q2 2026 was $6.9 million, down from $19.7 million in Q2 2025, primarily due to a $23.5 million loss on the divestiture of the 3P Revenue Recovery business.

• Continued rollout of AI-powered solutions (MAX) and enhanced Analytics platform, delivering tangible ROI and operational efficiencies for customers.

• Customer success stories highlight significant cost savings, improved scalability, and enhanced supply chain management through the network and AI capabilities.

Financial highlights

• Q2 2026 revenue: $197.8 million (up 6% year-over-year); recurring revenues accounted for 96% of total revenue.

• Adjusted EBITDA: $66.6 million (margin 34%); non-GAAP diluted EPS: $1.27.

• Free cash flow for Q2 was $57.4 million; trailing 12-month free cash flow rose 40% year-over-year to $198.7 million.

• Net income: $6.9 million (down from $19.7 million in Q2 2025); diluted EPS: $0.19.

• Cash and cash equivalents at June 30, 2026: $173 million.

Outlook and guidance

• FY2026 revenue expected between $788.4 million and $793.4 million, representing 5–6% growth over 2025.

• FY2026 Adjusted EBITDA margin projected at 34%, up 300 basis points from 2025.

• FY2026 non-GAAP income per diluted share expected between $4.84 and $4.93.

• Q3 2026 revenue guidance set at $196.3–$198.3 million; Adjusted EBITDA between $67.4 million and $69.4 million.

• Guidance reflects $10.5 million revenue reduction in H2 2026 due to divestiture; impact on Adjusted EBITDA expected to be neutral.