SPSC

SPS Commerce, Inc.

SPS Commerce, Inc.SPSC

Technology · Software - Application

86.24USD

-4.77%

Oct 28, 2026

SPSC overview ready

Direct Network-Platform Provider Enabling Multi-Enterprise Retail Supply Chain Connectivity

SPS Commerce is a direct network-platform provider for retail trading-partner connectivity, fulfillment workflows, supplier compliance and transaction/data visibility.

Narrative is still early

Exposed to the Retail Supply Chain Digitization and Automation narrative through Multi-Enterprise Retail Supply Chain Connectivity — infrastructure supplier.

Advancing price action

Longer-term context reads early recovery, with a near-term setup of daily reclaim.

Attractive valuation

Current market expectations look undemanding relative to the cash the business actually produces.

Solid fundamentals

Free cash flow yield is strong.

Primary risk

Dependence on continued adoption of cloud supply chain solutions.

Market Oct 27Filing Jun 30Price action Aug 9Research Jul 29

Conviction Level

Conviction uses Company Fit, Price Action, Valuation, Business Quality. Company Position is research context, not an input.

Theme leadershipGroup context · not a Conviction input

Supply-Chain Software is tracked (too few stocks) — no leadership reading

Price

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Price Action

Advancing price action

Longer-term context reads early recovery, with a near-term setup of daily reclaim.

EntryReset + recovery

The stock is still rebuilding below its long-term weekly base, and the recent reset toward the daily SMA200 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap: $3.1B
Avg Volume (60D): 510.5K
Revenue Growth YoY: +17.8%
Gross Margin: +69.8%
Operating Margin: +12.8%
Free Cash Flow Yield: +6.4%
Distance from 200DMA: +7.0%
P/E: 39.8x

Market metrics as of Oct 27, 2026

Financial results for the period ended Jun 30, 2026

Filed balance-sheet data as of Jun 30, 2026

Fundamentals & Valuation

One of the two valuation perspectives says cheap; peers is the dissenting view.

SPS Commerce, Inc. has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces. It trades at a 6.1% free-cash-flow yield, which the underlying economics comfortably support.

Company Research

Thesis

SPS Commerce is a direct network-platform provider for retail trading-partner connectivity, fulfillment workflows, supplier compliance and transaction/data visibility. SPSC has a genuine and relatively direct fit with multi-enterprise retail supply-chain connectivity, a distinct demand system not represented in the promoted narratives.

Opportunity

Moderate opportunity

Retailers, suppliers, distributors and logistics providers are increasing use of shared cloud networks, standardized transaction data and workflow automation to operate omnichannel commerce with lower integration and compliance friction.

Key risk

Dependence on continued adoption of cloud supply chain solutions.

Economic classification

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Business & Markets

Technology · Software - Application

What they do

SPS Commerce provides cloud-based supply chain management solutions that connect retailers, brands, distributors, manufacturers, and logistics providers to streamline commerce operations.

How it earns

The company primarily generates revenue through subscription-based access to its cloud platform and related services.

Products & services

SPS Commerce cloud platform

Fulfillment solution

Analytics products

Customers & end markets

Retailers

Brands

Distributors

Manufacturers

Logistics providers

Market position

SPS Commerce is a recognized leader in cloud-based supply chain management software.

Demand drivers

Medium cyclicality

Demand for supply chain software is influenced by retail and manufacturing activity, which can be cyclical.