SPS Commerce, Inc.

Revenue was $198 million in Q2 2026, up 6% from Q2 2025. Recurring revenue grew 6% year over year. Adjusted EBITDA increased to $66.6 million. The company ended the quarter with $173 million in cash and cash equivalents, and free cash flow was $57.4 million; trailing 12-month free cash flow was $198.7 million, up 40% year over year. Fully diluted shares were approximately 36.8 million for Q3 guidance and 36.9 million for full-year guidance. For Q3 2026, management guided revenue to $196.3 million to $198.3 million, adjusted EBITDA to $67.4 million to $69.4 million, EPS to $0.72 to $0.76, and non-GAAP diluted EPS to $1.20 to $1.23. For full-year 2026, guidance is revenue of $788 million to $793.4 million, adjusted EBITDA of $265 million to $269.1 million, EPS of $2.24 to $2.33, and non-GAAP diluted EPS of $4.84 to $4.93. Management said full-year revenue implies about 5% growth at the midpoint, or high single-digit growth for the core business excluding the divested 3P business, with adjusted EBITDA margin expected to be 34% at the midpoint, about 300 basis points above 2025.

Chad Collins said SPS is leaning harder into its 1P supplier strategy because those customers better match the company’s portfolio and network data advantage. He framed MAX and the broader agentic AI roadmap as a way to turn that network intelligence into workflow automation, faster onboarding, and eventual monetization through bundled agent offerings. His tone was confident and forward-looking, emphasizing customer ROI examples and saying the company is building a differentiated AI layer on top of 25 years of proprietary supply chain data.

Joseph Del Preto described Q2 as a strong quarter driven by the core business, with high-single-digit growth excluding the divested 3P business and ARPU strength from upsell and cross-sell. He noted the company received $9.5 million in cash at closing for the 3P divestiture and recorded a $23.5 million loss on sale in Q2. He highlighted $173 million in cash, $57.4 million of quarterly free cash flow, and $198.7 million of trailing 12-month free cash flow, then said nearly 90% of free cash flow was used to repurchase $51.2 million of SPS shares. On margins, he pointed to adjusted EBITDA of $66.6 million in Q2 and full-year guidance for a 34% adjusted EBITDA margin, up about 300 basis points year over year.

Analysts focused heavily on the 3P divestiture, ARPU math, and what it means for future growth, with management saying the sale was driven by weaker overlap with the rest of the portfolio and Amazon-related policy and take-rate headwinds in 3P. Questions also centered on whether onboarding delays or ERP timing noise are creating pent-up demand; Chad said AI-enabled onboarding should reduce time to transact, but he did not describe substantial pent-up demand, noting ERP market conditions have been softer. On MAX, management said the beta is producing clear ROI and that the company expects to begin selling agent bundles by late Q4, with monetization tied to more autonomous use cases.