Overview

* SPS Commerce ( SPSC ) Q3 revenue grows 16% yr/yr but misses analyst expectations

* Adjusted EBITDA for Q3 beats analyst estimates, indicating strong operational performance

* Company announces new $100 mln share repurchase program, indicating confidence in future growth

Outlook

* SPS Commerce expects Q4 2025 revenue between $192.7 mln and $194.7 mln

* Company anticipates FY 2025 revenue of $751.6 mln to $753.6 mln

* SPS Commerce forecasts Q4 2025 non-GAAP EPS of $0.98 to $1.02

* Company projects FY 2025 adjusted EBITDA of $229.7 mln to $231.7 mln

Result Drivers

* RECURRING REVENUE GROWTH - Recurring revenue increased by 18% from Q3 2024, contributing to overall revenue growth

* SUPPLY CHAIN EFFICIENCIES - CEO Chad Collins highlighted the need for supply chain efficiencies as a driver for growth despite economic uncertainty

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $189.90 $191.80

Revenue mln mln (10

Analysts

)

Q3 Net $25.60

Income mln

Q3 Beat $60.50 $59.30

Adjusted mln mln (9

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for SPS Commerce Inc ( SPSC ) is $142.50, about 26.2% above its October 29 closing price of $105.18

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)