SPS Commerce Q2: Revenue Tops Guidance, but Divestiture Loss Sinks Net Income; Buybacks Persist

summarizeSummary

SPS Commerce reported Q2 2026 revenue of $197.8 million, beating guidance, but net income dropped 65% to $6.9 million due to a divestiture loss. The company raised full-year Adjusted EBITDA guidance and continued aggressive share buybacks.

check_boxKey Events · Earnings and Guidance · SPSC

• Revenue Beats, Adjusted EBITDA Up 19%

  Q2 revenue of $197.8 million exceeded the high end of guidance, with recurring revenue growing 6%. Adjusted EBITDA rose 19% to $66.6 million, driven by margin expansion.

• Divestiture Loss Drags Net Income Down 65%

  GAAP net income fell to $6.9 million ($0.19 per share) from $19.7 million a year ago, primarily due to a $23.5 million loss on the sale of the 3P Revenue Recovery business on June 30, 2026.

• Aggressive Share Buybacks Continue

  The company repurchased $51.2 million of its common stock in Q2, part of a $300 million buyback program expanded earlier this year.

• Full-Year Guidance Raised on Adjusted Basis

  2026 revenue is now expected at $788.4–$793.4 million (5–6% growth), with non-GAAP EPS of $4.84–$4.93 and Adjusted EBITDA of $264.6–$269.1 million, reflecting a 300 bps margin improvement.

auto_awesomeAnalysis · SPSC · Technology

SPS Commerce delivered Q2 revenue above the high end of guidance, with 6% growth and a 19% jump in Adjusted EBITDA. However, GAAP net income fell 65% to $6.9 million due to a $23.5 million loss on the divestiture of its 3P Revenue Recovery business. The company repurchased $51.2 million in shares during the quarter and provided full-year guidance that factors in the divestiture's revenue impact. The results show operational strength offset by a one-time strategic exit, while the buyback signals confidence in the underlying business.