SPSC SPS COMMERCE INC

Overview and Growth

Fiscal 2025 results for SPS COMMERCE INC combined $751.50M of revenue with net income of $93.34M and an operating cash inflow of $178.79M. At $751.50M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 17.8% from $637.76M in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $2.46, which connects the reported earnings outcome with the company’s diluted share count. Against diluted EPS of $2.04 in fiscal 2024, the current result was 20.6% higher. The revenue-to-assets relationship was 0.64x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $519.88M as gross profit before recognizing operating expenses and other items. Gross margin was 69.2%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operations produced $118.30M of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 15.7% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. The bottom-line result was net income of $93.34M, after the operating, financing, tax, and other items recognized for the period. Net margin was 12.4%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $123.83M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 16.5%, relating income before taxes directly to revenue. The reported income-tax provision was $30.50M, the amount recognized between pretax income and the final net-income result. Relative to pretax income, the tax provision measured 24.6%, quantifying the portion of pre-tax earnings paid in income tax. The relationship between net income and period-end equity was 9.6%, indicating the profitability achieved on book capital.

Liquidity and Capital Structure

At period end, the $1.17B asset base was financed through $195.97M of liabilities and $973.89M of equity. At period end, current assets of $335.30M compared with current liabilities of $154.35M, defining the company’s short-term resource position. The current ratio was 2.17x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $151.35M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 98.1%, excluding receivables and other current assets. Liabilities represented 16.8% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 12.9%, a balance-sheet composition measure rather than a liquidity forecast. Total assets were 13.4% higher than fiscal 2024 assets of $1.03B, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

The company reported $178.79M of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 1.92x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $26.52M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 14.8%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $152.27M, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 20.3% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 13.0%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.