SPS Commerce (NASDAQ:SPSC) Stock

SPS COMMERCE INC

SPS Commerce

SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from subscription-based recurring revenue services.

SPS Commerce Inc

WIIM

SPSC

SPS Commerce shares are trading higher after Morgan Stanley initiated coverage on the stock with an Overweight rating and announced a $180 price target.

Morgan Stanley initiates coverage on SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) with a Overweight rating and announces Price Target of $180.

News

Price Target

Initiation

Analyst Ratings

Morgan Stanley Initiates Coverage On SPS Commerce with Overweight Rating, Announces Price Target of $180

Ratings for SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) were provided by 5 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">3</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for SPS Commerce, revealing an average target of $184.8, a high estimate of $210.00, and a low estimate of $159.00. A decline of 9.74% from the prior average price target is evident in the current average. 
<img src="https://www.benzinga.com/files/images/story/2025/1748959225_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive SPS Commerce. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Matthew Vanvliet</td>
<td>Cantor Fitzgerald</td>
<td>Announces</td>
<td>Overweight</td>
<td>$170.00</td>
<td>-</td>
</tr>
<tr>
<td>Joe Vruwink</td>
<td>Baird</td>
<td>Raises</td>
<td>Neutral</td>
<td>$159.00</td>
<td>$154.00</td>
</tr>
<tr>
<td>Scott Berg</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$210.00</td>
<td>$210.00</td>
</tr>
<tr>
<td>Gil Luria</td>
<td>DA Davidson</td>
<td>Lowers</td>
<td>Buy</td>
<td>$175.00</td>
<td>$245.00</td>
</tr>
<tr>
<td>Scott Berg</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$210.00</td>
<td>$210.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SPS Commerce. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SPS Commerce compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of SPS Commerce's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of SPS Commerce's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/SPSC/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on SPS Commerce analyst ratings.</a>
<h2>About SPS Commerce</h2>
SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from subscription-based recurring revenue services.
<h3>Financial Milestones: SPS Commerce's Journey</h3>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: SPS Commerce's revenue growth over a period of 3M has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 21.38%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: SPS Commerce's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 12.23% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): SPS Commerce's ROE stands out, surpassing industry averages. With an impressive ROE of 2.5%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): SPS Commerce's ROA excels beyond industry benchmarks, reaching 2.07%. This signifies efficient management of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 0.01, SPS Commerce adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>Analyst Ratings: Simplified</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Deep Dive Into SPS Commerce Stock: Analyst Perspectives (5 Ratings)

Cantor Fitzgerald analyst Matthew Vanvliet initiates coverage on SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) with a Overweight rating and announces Price Target of $170.

Cantor Fitzgerald Initiates Coverage On SPS Commerce with Overweight Rating, Announces Price Target of $170

Baird analyst Joe Vruwink maintains SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) with a Neutral and raises the price target from $154 to $159.

Baird Maintains Neutral on SPS Commerce, Raises Price Target to $159

Providing a diverse range of perspectives from bullish to bearish, 9 analysts have published ratings on SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) in the last three months.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">6</td>
<td align="right">0</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
The 12-month price targets, analyzed by analysts, offer insights with an average target of $196.56, a high estimate of $233.00, and a low estimate of $175.00. Experiencing a 9.37% decline, the current average is now lower than the previous average price target of $216.89. 
<img src="https://www.benzinga.com/files/images/story/2025/1745586016_0.png" alt="price target chart" />
<h2>Understanding Analyst Ratings: A Comprehensive Breakdown</h2>
The standing of SPS Commerce among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
&#x7C; Analyst &#x7C; Analyst Firm &#x7C; Action Taken &#x7C; Rating &#x7C;Current Price Target&#x7C; Prior Price Target &#x7C; 
&#x7C;--------------------&#x7C;-------------------------&#x7C;---------------&#x7C;---------------&#x7C;--------------------&#x7C;--------------------&#x7C; 
&#x7C;Scott Berg &#x7C;Needham &#x7C;Maintains &#x7C;Buy &#x7C; $210.00&#x7C;$210.00 &#x7C; 
&#x7C;Gil Luria &#x7C;DA Davidson &#x7C;Lowers &#x7C;Buy &#x7C; $175.00&#x7C;$245.00 &#x7C; 
&#x7C;Scott Berg &#x7C;Needham &#x7C;Maintains &#x7C;Buy &#x7C; $210.00&#x7C;$210.00 &#x7C; 
&#x7C;Parker Lane &#x7C;Stifel &#x7C;Lowers &#x7C;Buy &#x7C; $200.00&#x7C;$225.00 &#x7C; 
&#x7C;Joe Vruwink &#x7C;Baird &#x7C;Lowers &#x7C;Neutral &#x7C; $175.00&#x7C;$188.00 &#x7C; 
&#x7C;Quinton Gabrielli &#x7C;Piper Sandler &#x7C;Lowers &#x7C;Neutral &#x7C; $175.00&#x7C;$198.00 &#x7C; 
&#x7C;Nehal Chokshi &#x7C;Northland Capital Markets&#x7C;Lowers &#x7C;Market Perform &#x7C; $181.00&#x7C;$209.00 &#x7C; 
&#x7C;Scott Berg &#x7C;Needham &#x7C;Lowers &#x7C;Buy &#x7C; $210.00&#x7C;$230.00 &#x7C; 
&#x7C;George Kurosawa &#x7C;Citigroup &#x7C;Lowers &#x7C;Buy &#x7C; $233.00&#x7C;$237.00 &#x7C;
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SPS Commerce. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SPS Commerce compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of SPS Commerce's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
To gain a panoramic view of SPS Commerce's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/SPSC/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on SPS Commerce analyst ratings.</a>
<h2>Discovering SPS Commerce: A Closer Look</h2>
SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from subscription-based recurring revenue services.
<h3>Unraveling the Financial Story of SPS Commerce</h3>
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining SPS Commerce's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 17.9% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 10.27%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): SPS Commerce's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.09%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): SPS Commerce's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.73%, the company showcases efficient use of assets and strong financial health.
Debt Management: SPS Commerce's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.01.
<h2>The Basics of Analyst Ratings</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Demystifying SPS Commerce: Insights From 9 Analyst Reviews

Needham analyst Scott Berg reiterates SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) with a Buy and maintains $210 price target.

Reiteration

Needham Reiterates Buy on SPS Commerce, Maintains $210 Price Target

SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) is looking for Q2 Adj EPS of $0.87-$0.90 vs $0.93 analyst estimate. sees sales of $184.500 million-$186.200 million vs $185.01 million analyst estimate.

Guidance

SPS Commerce Sees Q2 Adj EPS $0.87-$0.90 vs $0.93 Est; Sees Sales $184.500M-$186.200M vs $185.01M Est

SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) raises FY2025 Adj EPS guidance from $3.78-$3.84 to $3.86-$3.93 vs $3.84 analyst estimate. Raises FY2025 sales outlook from $758.00 million-$763.00 million to $758.50 million-$763.00 million vs $758.01 million estimate.

SPS Commerce Raises FY2025 Adj EPS Guidance from $3.78-$3.84 to $3.86-$3.93 vs $3.84 Est; Raises FY2025 Sales Guidance from $758.00M-$763.00M to $758.50M-$763.00M vs $758.01M Est

SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) reported quarterly earnings of $1.00 per share which beat the analyst consensus estimate of $0.85 by 17.65 percent. This is a 16.28 percent increase over earnings of $0.86 per share from the same period last year. The company reported quarterly sales of $181.55 million which beat the analyst consensus estimate of $179.02 million by 1.41 percent. This is a 21.38 percent increase over sales of $149.58 million the same period last year.

Earnings

Earnings Beats

SPS Commerce Q1 Adj. EPS $1.00 Beats $0.85 Estimate, Sales $181.55M Beat $179.02M Estimate

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Earnings Scheduled For April 24, 2025

SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) will release its quarterly earnings report on Thursday, 2025-04-24. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate SPS Commerce to report an earnings per share (EPS) of $0.85.
The announcement from SPS Commerce is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
<h3>Past Earnings Performance</h3>
During the last quarter, the company reported an EPS beat by $0.02, leading to a 13.8% drop in the share price on the subsequent day.
Here's a look at SPS Commerce's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q4 2024</th>
<th>Q3 2024</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.87</td>
<td>0.83</td>
<td>0.77</td>
<td>0.73</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.89</td>
<td>0.92</td>
<td>0.80</td>
<td>0.86</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-14.000000000000002%</td>
<td>-11.0%</td>
<td>2.0%</td>
<td>6.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2025/1745434965_0.png" alt="eps graph" />
<h3>Tracking SPS Commerce's Stock Performance</h3>
Shares of SPS Commerce were trading at $129.72 as of April 22. Over the last 52-week period, shares are down 21.18%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release. 
<h3>Analyst Insights on SPS Commerce</h3>
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on SPS Commerce.
SPS Commerce has received a total of 8 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $194.88, the consensus suggests a potential 50.23% upside.
<h3>Peer Ratings Comparison</h3>
In this comparison, we explore the analyst ratings and average 1-year price targets of MARA Holdings, Informatica and Q2 Holdings, three prominent industry players, offering insights into their relative performance expectations and market positioning.
<ul>
<li>Analysts currently favor an Buy trajectory for MARA Holdings, with an average 1-year price target of $21.8, suggesting a potential 83.19% downside.</li>
<li>Analysts currently favor an Neutral trajectory for Informatica, with an average 1-year price target of $22.29, suggesting a potential 82.82% downside.</li>
<li>Analysts currently favor an Buy trajectory for Q2 Holdings, with an average 1-year price target of $112.38, suggesting a potential 13.37% downside.</li>
</ul>
<h3>Insights: Peer Analysis</h3>
Within the peer analysis summary, vital metrics for MARA Holdings, Informatica and Q2 Holdings are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

<table>
<thead>
<tr>
<th>Company</th>
<th>Consensus</th>
<th>Revenue Growth</th>
<th>Gross Profit</th>
<th>Return on Equity</th>
</tr>
</thead>
<tbody>
<tr>
<td>SPS Commerce</td>
<td>Buy</td>
<td>17.90%</td>
<td>$115.32M</td>
<td>2.09%</td>
</tr>
<tr>
<td>MARA Holdings</td>
<td>Buy</td>
<td>36.76%</td>
<td>$-52.79M</td>
<td>15.13%</td>
</tr>
<tr>
<td>Informatica</td>
<td>Neutral</td>
<td>-3.79%</td>
<td>$348.37M</td>
<td>0.41%</td>
</tr>
<tr>
<td>Q2 Holdings</td>
<td>Buy</td>
<td>12.91%</td>
<td>$96.34M</td>
<td>0.03%</td>
</tr>
</tbody>
</table>

Key Takeaway:
SPS Commerce ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.
<h3>Delving into SPS Commerce's Background</h3>
SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from subscription-based recurring revenue services.
<h3>Unraveling the Financial Story of SPS Commerce</h3>
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: SPS Commerce's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 17.9%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 10.27%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.09%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.73%, the company showcases effective utilization of assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.01.
<a href="https://www.benzinga.com/quote/SPSC/earnings">To track all earnings releases for SPS Commerce visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

SPS Commerce's Earnings Outlook

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Shares of software stocks are trading higher following President Trump's decision to implement a 90-day pause on reciprocal tariffs for all countries except China.

Needham analyst Scott Berg is taking a look at the software sector following the Trump administration&#8217;s <a href="https://www.benzinga.com/topic/tariffs" target="_blank" rel="noreferrer noopener">reciprocal tariffs</a> announcement on all imported products.
Much of the companies Berg covers have traded 25% lower or more over the last month. Companies are beginning to tighten their overall budgets/spending. 
Given the potential impact on margins, some software players could be impacted by increased budget scrutiny and elongated sales cycles as prospects evaluate their overall spending, driving less demand for their product/service.
However, other companies are expected to see a positive impact on demand from tariff volatility. PROS Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRO#NYSE">PRO</a>), for example, is an AI-infused pricing optimization platform that works with airlines and business-to-business industries that are heavily manufacturing-based. These include automotive parts, chemicals, consumer goods, industrial distribution, and manufacturing. 
Tariff volatility could be a general tailwind to demand for PROS, Berg notes.
Also Read: <a href="https://www.benzinga.com/25/04/44665533/taiwan-semiconductor-stock-tumbles-as-tariff-fears-spark-global-tech-selloff" target="_blank" rel="noreferrer noopener">Taiwan Semiconductor Stock Tumbles As Tariff Fears Spark Global Tech Selloff</a>
Another company to note is Global-E Online (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GLBE#NASDAQ">GLBE</a>). It offers an interesting double-edged sword scenario as tariffs could benefit merchant interest or face volume headwinds as consumers have less purchasing power. 
While tariffs could serve as a headwind to cross-border purchasing, especially as the US Federal government considers the de minimus exemption an opportunity for further change, the company&#8217;s limited history shows the impact is almost negligible for several reasons. Brexit experienced minimal effect on volumes in and out of the UK. The company&#8217;s fast-growing multi-local solution is also a good example of how brands can utilize the platform to reduce their exposure.
Berg would expect a more dynamic tariff environment to be relatively net neutral to SPS Commerce, Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) overall business. The impact on transactional items or even a tailwind should be minimal, and supplier changes should be minimal. Marketing software vendors should have minimal to no real effect. Revenue models are usually tied to the number of consumer profiles stored and marketed to, not the number of transactions or GMV volumes.
Similar to SPS Commerce, certain marketing software companies don&#8217;t have direct exposure to the number of sale transactions or GMV for these respective customers. They include: Braze, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BRZE#NASDAQ">BRZE</a>), HubSpot, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUBS#NYSE">HUBS</a>), Klaviyo, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KVYO#NYSE">KVYO</a>), Thryv Holdings, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/THRY#NASDAQ">THRY</a>) and Zeta Global Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZETA#NYSE">ZETA</a>).
The number of customer profiles predominately drives the revenue model for the marketing components of these platforms. While Berg would expect sales transactions for end consumers to fall at many retail merchants, the size of the merchant&#8217;s customer pool may not be very different, which would not change the cost these merchants pay to the software vendors. 
On the other hand, a scenario exists where these merchants need to increase their outreach to customers to spur incremental sales, which could drive the usage of more transaction channels like <a href="https://www.benzinga.com/topic/whatsapp">SMS and WhatsApp</a>.
Read Next:
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<li><a href="https://www.benzinga.com/25/04/44652222/trumps-tariffs-may-shift-us-spending-from-goods-to-services-creating-uncertainty-for-ecommerce-and-advertising-industries-analyst-warns" target="_blank" rel="noreferrer noopener">Tariffs To Impact End Demand: Goldman Sachs Analyst Expects Drag On Corporate Spending, Hiring</a></li>
</ul>
Image: Shutterstock

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PROS, Global-E, SPS Commerce Stand Out As Tariffs Reshape Software Spending Priorities: Analyst

In the latest quarter, 10 analysts provided ratings for SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>), showcasing a mix of bullish and bearish perspectives.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">7</td>
<td align="right">0</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
The 12-month price targets, analyzed by analysts, offer insights with an average target of $206.9, a high estimate of $233.00, and a low estimate of $175.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 6.25%. 
<img src="https://www.benzinga.com/files/images/story/2025/1742990444_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
The perception of SPS Commerce by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Scott Berg</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$210.00</td>
<td>$210.00</td>
</tr>
<tr>
<td>Parker Lane</td>
<td>Stifel</td>
<td>Lowers</td>
<td>Buy</td>
<td>$200.00</td>
<td>$225.00</td>
</tr>
<tr>
<td>Joe Vruwink</td>
<td>Baird</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$175.00</td>
<td>$188.00</td>
</tr>
<tr>
<td>Quinton Gabrielli</td>
<td>Piper Sandler</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$175.00</td>
<td>$198.00</td>
</tr>
<tr>
<td>Nehal Chokshi</td>
<td>Northland Capital Markets</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$181.00</td>
<td>$209.00</td>
</tr>
<tr>
<td>Scott Berg</td>
<td>Needham</td>
<td>Lowers</td>
<td>Buy</td>
<td>$210.00</td>
<td>$230.00</td>
</tr>
<tr>
<td>George Kurosawa</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Buy</td>
<td>$233.00</td>
<td>$237.00</td>
</tr>
<tr>
<td>Scott Berg</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$230.00</td>
<td>$230.00</td>
</tr>
<tr>
<td>Parker Lane</td>
<td>Stifel</td>
<td>Lowers</td>
<td>Buy</td>
<td>$225.00</td>
<td>$250.00</td>
</tr>
<tr>
<td>Scott Berg</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$230.00</td>
<td>$230.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to SPS Commerce. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SPS Commerce compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of SPS Commerce's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of SPS Commerce's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/SPSC/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on SPS Commerce analyst ratings.</a>
<h2>About SPS Commerce</h2>
SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from subscription-based recurring revenue services.
<h3>SPS Commerce's Financial Performance</h3>
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: SPS Commerce's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 17.9%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 10.27%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.09%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.73%, the company showcases effective utilization of assets.
Debt Management: With a below-average debt-to-equity ratio of 0.01, SPS Commerce adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Breaking Down SPS Commerce: 10 Analysts Share Their Views

SPS Commerce's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NYSE">SPSC</a>) short percent of float has risen 7.59% since its last report. The company recently reported that it has 1.29 million shares sold short, which is 4.68% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.0 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">List of the most shorted stocks</a>
<h3>SPS Commerce Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1742238932_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for SPS Commerce has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing SPS Commerce's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>, SPS Commerce's peer group average for short interest as a percentage of float is 10.44%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

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What Does the Market Think About SPS Commerce?

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Shares of companies in the broader technology sector are trading higher. The sector may be rising as the overall market rebounds after falling recently on tariff concerns.

Stifel analyst Parker Lane maintains SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) with a Buy and lowers the price target from $225 to $200.

Stifel Maintains Buy on SPS Commerce, Lowers Price Target to $200

SPS Commerce shares are trading lower after multiple firms cut their respective price targets on the stock.

Press Releases

SPS Commerce Announces Date of Fourth Quarter and Fiscal Year 2024 Financial Results

SPS Commerce Completes Acquisition of Carbon6 Technologies

SPS Commerce Reports Fourth Quarter and Fiscal Year 2024 Financial Results

SPS Commerce to Present at the Morgan Stanley Technology, Media & Telecom Conference

General

SPS Commerce Releases 2024 ESG Report, Reinforcing Commitment to Sustainable and Responsible Growth

SPS Commerce Announces Date of First Quarter 2025 Financial Results

SPS Commerce Reports First Quarter 2025 Financial Results

SPS Commerce Enhances Offering to Include Suite of Services for Manufacturing Supply Chain

SPS Commerce to Present at the 1st Annual D.A. Davidson Technology & Consumer Conference

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