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SPS Commerce Q3 revenue slightly beats estimates amid agentic transformation

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$197.60 mln

$197.45 mln (10 Analysts)

Q3 Net Income

$30.70 mln

Q3 Adjusted EBITDA

Beat

$70.90 mln

$68.79 mln (9 Analysts)

*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

  • Oct 29 - Software stocks slide as Fortinet, ServiceNow fail to meet lofty investor expectations

  • Oct 27 - Manhattan Associates Q3 revenue beats estimates on cloud subscription growth

  • Oct 29 - Serval triples valuation to $3 billion as businesses adopt AI workflow automation


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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