Detailed financial statements for SPS Commerce, Inc. (SPSC): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year with up to 20 years of history.
SPS Commerce, Inc. delivers comprehensive, cloud-based solutions for supply chain management across the globe. The company's central offering is its "SPS Commerce" platform, an advanced system that enhances operations for retailers, suppliers, grocers, distributors, and logistics firms. This platform allows these businesses to streamline the management and fulfillment of omnichannel orders, boost sell-through efficiency, and automate the creation of new trading partnerships.
Analysis Summary
SPS Commerce, Inc. reported revenue of $751.5M in the most recent fiscal year, growing at a 5-year CAGR of 19.2%. Net income reached $93.3M, with a 15.4% 5-year CAGR.
Trailing-twelve-month margins: gross margin 69.8%, operating margin 15.8%, net margin 10.1%. Free cash flow grew at 16.1% CAGR over 5 years.
At the current price of $80.68, SPSC trades at a P/E of 41.16 and an ROE of 8.14%. Market capitalisation stands at $2.9B.
Balance sheet quality for SPSC: current ratio of 2.2, net cash position of $144.2M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $152.3M represents 163% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $193.3M | $220.6M | $248.2M | $279.1M | $312.6M | $385.3M | $450.9M | $536.9M | $637.8M | $751.5M |
| Cost of Revenue | $64.3M | $73.6M | $81.7M | $92.2M | $99.8M | $131.7M | $153.1M | $182.1M | $210.7M | $231.6M |
| Gross Profit | $128.9M | $146.9M | $166.5M | $186.9M | $212.8M | $253.6M | $297.8M | $354.8M | $427.1M | $519.9M |
| Research & Development | $22.0M | $23.2M | $22.1M | $28.3M | $31.0M | $39.0M | $45.7M | $53.7M | $62.8M | $68.7M |
| Selling, General & Admin | $94.7M | $110.8M | $113.6M | $114.9M | $126.1M | $149.3M | $169.1M | $207.8M | $251.8M | $295.7M |
| Operating Expenses | $121.4M | $138.5M | $139.8M | $148.5M | $162.6M | $198.5M | $226.6M | $277.6M | $338.2M | $401.6M |
| Operating Income | $7.5M | $8.4M | $26.7M | $38.4M | $50.2M | $55.1M | $71.2M | $77.2M | $88.9M | $118.3M |
| EBITDA | $18.9M | $21.8M | $39.4M | $54.8M | $68.8M | $78.5M | $99.4M | $120.3M | $141.7M | $176.6M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pre-tax Income | $8.8M | $9.1M | $28.3M | $42.1M | $52.7M | $53.5M | $71.3M | $85.6M | $99.5M | $123.8M |
| Income Tax | $3.1M | $11.6M | $4.5M | $8.4M | $7.1M | $8.9M | $16.2M | $19.7M | $22.4M | $30.5M |
| Net Income | $5.7M | -$2.4M | $23.9M | $33.7M | $45.6M | $44.6M | $55.1M | $65.8M | $77.1M | $93.3M |
| EPS | $0.17 | $-0.07 | $0.69 | $0.96 | $1.29 | $1.24 | $1.53 | $1.80 | $2.07 | $2.46 |
| EPS (Diluted) | $0.17 | $-0.07 | $0.68 | $0.94 | $1.26 | $1.21 | $1.49 | $1.76 | $2.04 | $2.46 |
| Shares Outstanding (Diluted) | $34.5M | $34.7M | $35.2M | $36.0M | $36.3M | $37.0M | $37.0M | $37.5M | $37.9M | $38.0M |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $115.9M | $123.1M | $133.9M | $179.3M | $149.7M | $207.6M | $162.9M | $219.1M | $241.0M | $151.4M |
| Short-term Investments | $23.1M | $40.2M | $44.5M | $34.3M | $37.8M | $49.8M | $51.4M | $56.4M | 0 | 0 |
| Receivables | $20.7M | $24.9M | $27.5M | $31.5M | $35.5M | $34.6M | $39.4M | $46.8M | $52.0M | $68.2M |
| Inventory | $19.2M | $25.1M | $34.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $185.9M | $219.5M | $249.6M | $291.6M | $233.4M | $352.4M | $322.8M | $401.4M | $381.9M | $335.3M |
| Property, Plant & Equipment | $15.3M | $16.9M | $21.0M | $39.5M | $42.0M | $42.8M | $44.6M | $43.9M | $45.7M | $48.1M |
| Goodwill | $49.8M | $51.6M | $69.7M | $76.8M | $134.9M | $143.7M | $197.3M | $249.2M | $399.2M | $541.7M |
| Intangible Assets | $19.8M | $16.5M | $22.7M | $22.7M | $60.2M | $58.6M | $88.4M | $107.3M | $181.3M | $215.8M |
| Total Assets | $298.4M | $335.5M | $386.1M | $447.4M | $526.5M | $615.8M | $672.9M | $823.8M | $1.03B | $1.17B |
| Accounts Payable | $2.3M | $4.5M | $4.4M | $4.3M | $5.4M | $8.3M | $11.3M | $7.4M | $8.6M | $13.8M |
| Short-term Debt | 0 | 0 | 0 | 0 | $4.7M | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | $32.2M | $43.1M | $56.5M | $68.0M | $80.1M | $102.9M | $110.6M | $130.7M | $146.7M | $154.4M |
| Long-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | $49.1M | $58.7M | $67.1M | $92.6M | $105.7M | $131.6M | $135.8M | $156.4M | $176.5M | $196.0M |
| Retained Earnings | -$33.7M | -$19.9M | $15.3M | $49.0M | $93.5M | $138.1M | $193.2M | $259.0M | $336.1M | $429.4M |
| Total Equity | $249.3M | $276.8M | $319.0M | $354.9M | $420.7M | $484.3M | $537.1M | $667.5M | $854.7M | $973.9M |
| Total Debt | 0 | 0 | 0 | $23.9M | $24.4M | $20.5M | $17.3M | $14.0M | $12.5M | $7.2M |
| Net Debt | -$139.0M | -$163.3M | -$178.4M | -$189.7M | -$163.1M | -$236.8M | -$197.0M | -$261.4M | -$228.5M | -$144.2M |
| Working Capital | $153.8M | $176.3M | $193.1M | $223.6M | $153.2M | $249.6M | $212.2M | $270.8M | $235.2M | $181.0M |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $5.7M | -$2.4M | $23.9M | $33.7M | $45.6M | $44.6M | $55.1M | $65.8M | $77.1M | $93.3M |
| Depreciation & Amortization | $11.3M | $11.8M | $12.7M | $16.4M | $18.7M | $24.9M | $28.2M | $34.7M | $42.2M | $58.3M |
| Stock-based Compensation | $8.0M | $12.7M | $12.5M | $14.7M | $18.9M | $27.6M | $33.4M | $45.5M | $54.6M | $53.7M |
| Change in Working Capital | -$4.9M | -$3.6M | $827000 | -$3.1M | -$4.4M | $6.9M | -$16.5M | -$11.8M | -$14.9M | -$54.3M |
| Operating Cash Flow | $18.8M | $31.1M | $55.0M | $71.8M | $88.6M | $112.9M | $100.1M | $132.3M | $157.4M | $178.8M |
| Capital Expenditure | -$8.0M | -$7.3M | -$13.8M | -$13.6M | -$16.5M | -$19.6M | -$19.9M | -$19.8M | -$20.0M | -$26.5M |
| Acquisitions | -$18.0M | -$500000 | -$27.3M | -$11.5M | -$98.7M | -$17.1M | -$91.4M | -$70.2M | -$147.9M | -$142.6M |
| Stock Repurchased | 0 | -$5.8M | -$19.9M | -$20.6M | -$18.9M | -$20.4M | -$43.2M | 0 | -$37.6M | -$114.3M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $10.8M | $23.8M | $41.3M | $58.2M | $72.1M | $93.3M | $80.2M | $112.5M | $137.4M | $152.3M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +14.1% | +12.5% | +12.4% | +12.0% | +23.2% | +17.0% | +19.1% | +18.8% | +17.8% | |
| Net Income Growth (YoY) | -142.7% | +1078.4% | +41.2% | +35.2% | -2.2% | +23.6% | +19.4% | +17.1% | +21.1% | |
| EPS Growth (YoY) | -141.8% | +1071.8% | +39.1% | +34.4% | -3.9% | +23.4% | +17.6% | +15.0% | +18.8% | |
| Shares Change (YoY) | +0.7% | +1.4% | +2.2% | +0.8% | +1.9% | -0.0% | +1.4% | +1.0% | +0.4% | |
| FCF Growth (YoY) | +121.1% | +73.5% | +41.1% | +23.9% | +29.4% | -14.1% | +40.4% | +22.1% | +10.9% | |
| Gross Margin | 66.7% | 66.6% | 67.1% | 67.0% | 68.1% | 65.8% | 66.1% | 66.1% | 67.0% | 69.2% |
| Operating Margin | 3.9% | 3.8% | 10.8% | 13.8% | 16.0% | 14.3% | 15.8% | 14.4% | 13.9% | 15.7% |
| EBITDA Margin | 9.8% | 9.9% | 15.9% | 19.6% | 22.0% | 20.4% | 22.0% | 22.4% | 22.2% | 23.5% |
| Net Margin | 3.0% | -1.1% | 9.6% | 12.1% | 14.6% | 11.6% | 12.2% | 12.3% | 12.1% | 12.4% |
| FCF Margin | 5.6% | 10.8% | 16.6% | 20.9% | 23.1% | 24.2% | 17.8% | 21.0% | 21.5% | 20.3% |
| Effective Tax Rate | 35.5% | 126.7% | 15.8% | 19.9% | 13.5% | 16.7% | 22.7% | 23.1% | 22.5% | 24.6% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.31 | $0.69 | $1.17 | $1.62 | $1.99 | $2.52 | $2.17 | $3.00 | $3.63 | $4.01 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $33.9M | $34.4M | $34.4M | $35.0M | $35.2M | $35.9M | $36.1M | $36.6M | $37.3M | $37.9M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 8.14% |
| Return on Invested Capital | 9.28% |
| Return on Assets | 6.93% |
| Gross Margin | 69.82% |
| Operating Margin | 15.83% |
| Net Margin | 10.10% |
Financial Health
| Debt / Equity | 0.01 |
| Current Ratio | 2.26 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 205.59 | -342.25 | 59.70 | 57.73 | 84.18 | 114.80 | 83.94 | 107.69 | 88.88 | 36.23 |
| P/B | 4.75 | 3.02 | 4.44 | 5.47 | 9.09 | 10.56 | 8.64 | 10.64 | 8.03 | 3.47 |
| P/S | 6.13 | 3.79 | 5.71 | 6.95 | 12.24 | 13.27 | 10.29 | 13.23 | 10.76 | 4.49 |
| Gross Margin | 66.7% | 66.6% | 67.1% | 67.0% | 68.1% | 65.8% | 66.1% | 66.1% | 67.0% | 69.2% |
| Operating Margin | 3.9% | 3.8% | 10.8% | 13.8% | 16.0% | 14.3% | 15.8% | 14.4% | 13.9% | 15.7% |
| Net Margin | 3.0% | -1.1% | 9.6% | 12.1% | 14.6% | 11.6% | 12.2% | 12.3% | 12.1% | 12.4% |
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