SPS Commerce Q3 revenue slightly beats estimates amid agentic transformation

Overview

• US supply chain network platform's Q3 revenue grew 4% yr/yr, slightly beating analyst expectations

• Q3 adjusted EBITDA rose 17%, beating analyst expectations

• Revenue growth partially offset by divestiture of 3P Revenue Recovery business and 1P model variability

Outlook

• SPS Commerce expects Q4 revenue of $199.3 mln to $201.3 mln

• Company sees 2026 revenue of $786.9 mln to $788.9 mln

• Company says 2026 guidance reflects $10.5 mln revenue reduction from 3P Revenue Recovery divestiture

Result Drivers

• DIVESTITURE IMPACT - Co said Q3 revenue growth was partially offset by the divestiture of the 3P Revenue Recovery business and variability in the 1P Revenue Recovery take rate model

• AGENTIC TRANSFORMATION - Co said agentic transformation initiatives across product portfolio and internal operations drove efficiency gains

• COST MANAGEMENT - Co attributed margin expansion to disciplined cost management and efficiency gains from agentic customer onboarding

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for SPS Commerce, Inc. is $76.00, about 11.2% below its October 28 closing price of $85.59

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)