SPS Commerce ( (SPSC) ) has released its Q2 earnings. Here is a breakdown of the information SPS Commerce presented to its investors.
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SPS Commerce, Inc. is a leading provider of cloud-based supply chain management solutions, specializing in electronic data interchange (EDI) services for the retail industry. The company is known for its comprehensive EDI solutions that help suppliers maintain compliance with retailers’ evolving requirements.
In its second quarter of 2025, SPS Commerce reported a robust financial performance, marking its 98th consecutive quarter of revenue growth. The company achieved a 22% increase in revenue compared to the same period in the previous year, with recurring revenue growing by 24%. Net income for the quarter was $19.7 million, translating to $0.52 per diluted share.
Key financial metrics highlighted in the report include a 27% increase in adjusted EBITDA, reaching $56.1 million, and non-GAAP income per diluted share rising to $1.00 from $0.80 in the previous year. The company also repurchased shares worth $20 million during the quarter. SPS Commerce’s CEO emphasized the company’s strategic position in the market, focusing on enhancing collaboration between trading partners and achieving long-term growth.
Looking ahead, SPS Commerce projects continued growth, with third-quarter revenue expected to rise by 17% to 18% year-over-year. For the full fiscal year 2025, the company anticipates revenue growth of 19% to 20%, alongside a significant increase in adjusted EBITDA. The management remains confident in capitalizing on growth opportunities within its large addressable market while maintaining strong operating leverage.