SPS Commerce Adjusted EBITDA Jumps 17% on 4% Revenue Growth

SPS Commerce squeezed a 17% jump in adjusted EBITDA out of 4% revenue growth in the third quarter, as the supply chain software company leaned on what it calls agentic customer onboarding to cut costs, according to its earnings release filed with an 8-K on Thursday.

Adjusted EBITDA rose to $70.9 million, while revenue grew to $197.6 million from $189.9 million a year earlier. The company said growth was partly held back by the divestiture of its 3P Revenue Recovery business, completed in the second quarter, and by variability in the take-rate model of its 1P Revenue Recovery business.

"Our third quarter financial results clearly demonstrate the strong operating leverage embedded in our business model," CFO Joe Del Preto said in the release, crediting disciplined cost management and efficiency gains from agentic onboarding.

Earnings climb faster than sales

Net income rose to $30.7 million, or $0.85 per diluted share, from $25.6 million, or $0.67, in the third quarter of 2025, according to the 8-K.

Non-GAAP income was $50.2 million, or $1.39 per diluted share, up from $43.0 million, or $1.13. Recurring revenue, the bulk of the company's business, also grew 4%.

SPS repurchased $48.8 million of its stock during the quarter.

By the numbers

• Revenue: $197.6 million, up 4%
• Adjusted EBITDA: $70.9 million, up 17%
• Diluted EPS: $0.85, vs. $0.67
• Non-GAAP EPS: $1.39, vs. $1.13
• Buybacks: $48.8 million

A bet on AI agents

CEO Chad Collins said the company's agentic transformation, across its products and internally, "has exceeded my expectations."

"With our agentic strategy advancing, we are uniquely positioned to deliver sustainable, profitable growth, backed by the combination of AI and SPS' intelligent network," Collins said, calling that combination "a powerful and durable competitive moat."

The Minneapolis-based company describes itself as an intelligent supply chain network connecting more than 300,000 trading relationships, moving more than 750 million transactions and over $650 billion in gross merchandise value each year.

Outlook

For the fourth quarter, SPS expects revenue of $199.3 million to $201.3 million, diluted EPS of $0.74 to $0.79, non-GAAP EPS of $1.31 to $1.36 and adjusted EBITDA of $72.0 million to $74.0 million.

For the full year, it forecasts revenue of $786.9 million to $788.9 million, about 5% growth over 2025, with diluted EPS of $2.29 to $2.35 and non-GAAP EPS of $5.05 to $5.11.

Full-year adjusted EBITDA is expected at $267.4 million to $269.4 million, a 34% margin at the midpoint, which the company said would be about 330 basis points higher than in 2025.

The guidance reflects a reduction of about $10.5 million in second-half revenue from the 3P Revenue Recovery sale, which the company expects to be neutral to adjusted EBITDA over that period.

Sources

1. SPS Commerce Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001092699-26-000074)

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