Craig-Hallum downgrades SPS Commerce to Hold as unclear headwinds continue

As previously reported, Craig-Hallum downgraded SPS Commerce (SPSC) to Hold from Buy with a $70 price target following quarterly results and an underwhelming FY26 guide. While the company has now achieved 100 straight quarters of sequential revenue growth, concerns have started to mount regarding the performance of acquired businesses, unprecedented customer push outs, and potential AI impacts, Craig-Hallum notes. Add to the mix the fact that CFO Kim Nelson will be retiring shortly, and we feel it prudent to move to the sidelines. The presence of activist investor Anson Funds and the meaningful repurchase program will likely keep a floor on the stock price, but the firm is waiting for more visibility around the timing/magnitude of a potential turnaround.