SPS Commerce, Inc. (SPSC)
Vertical SaaSSaaS Metrics & Investor Data — Q1 2026
analyticsEditorial Financial Analysis
Financial Performance & Trajectory
SPS Commerce has demonstrated consistent and accelerating revenue growth, with trailing revenue reaching $0.75B in Q1 2026, up from $0.72B in Q3 2025. The year-over-year growth rate improved from 13.3% in Q3 2025 to 17.8% in Q1 2026, signaling a strong demand environment for its supply chain management platform. Gross margins have remained robust but slightly compressed, declining from 72.0% in Q3 2025 to 68.9% in Q1 2026, likely reflecting increased cloud infrastructure costs or mix shift toward lower-margin fulfillment services. Free cash flow (FCF) margins remain healthy, though they dipped from 21.1% in Q3 2025 to 17.2% in Q1 2026, indicating reinvestment in growth initiatives. Overall, the business is scaling effectively with a solid balance between top-line expansion and cash generation.
Operational & Go-to-Market (GTM) Efficiency
The company’s Rule of 40 score has strengthened from 34.4 in Q3 2025 to 38.1 in Q4 2025, before settling at 35.0 in Q1 2026. This metric, combining revenue growth and FCF margin, remains above the 30+ threshold considered healthy for SaaS firms, though it has room for improvement to reach the 40+ benchmark. Net revenue retention (NRR) and CAC payback data are not disclosed, limiting visibility into customer expansion dynamics and sales efficiency. However, the consistent growth acceleration suggests that R&D and go-to-market investments are yielding positive returns, likely driven by increased adoption of the Fulfillment and Analytics solutions. The lack of disclosed NRR implies that SPS may rely more on new customer acquisition than net dollar expansion for growth.
Market Valuation & Sentiment
SPS Commerce trades at an EV/Revenue multiple of 2.5x as of Q1 2026, up from 2.2x in Q4 2025, reflecting modest multiple expansion despite stable operational performance. This valuation is reasonable relative to its 17.8% growth rate and 68.9% gross margins, though it offers limited upside compared to high-growth peers. Insider trading activity shows no recent buying or selling, with net insider value unchanged at +$0.0K, indicating management's neutral stance on the stock's current value. Wall Street consensus is a Hold with an average price target of $68.71, supported by 10 Buys, 13 Holds, and 0 Sells. The target implies a slight premium to current levels, suggesting analysts see limited near-term catalysts but acknowledge the company's stable fundamentals and market position.
Disclaimer: The editorial financial analysis above is generated using data sourced from SEC EDGAR filings and Wall Street consensus ratings. This analysis is provided for informational and educational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research or consult with a registered financial advisor before making any investment decisions.
SPS Commerce, Inc. (SPSC) is a Vertical SaaS SaaS company with a market cap of $2.1B as of Q1 2026. The company trades at 2.5x EV/Revenue and has delivered +17.8% revenue growth year-over-year. With a gross margin of 69% and FCF margin of 17.2%, SPS Commerce, Inc. scores 35 on the Rule of 40 — placing it in the upper half of public SaaS companies tracked by SaaSDB.
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Latest company metrics compared to the Vertical SaaS sector medians
EV/Revenue is 2.5x (sector median: 3.3x) — trading at a discount of 0.8x relative to peers.
Rule of 40 is 35.0% (sector median: 30.4%) — outperforming peers by 4.5%.
Revenue Growth is 17.8% (sector median: 15.5%) — outperforming peers by 2.2%.
Gross Margin is 68.9% (sector median: 74.2%) — underperforming peers by 5.3%.
FCF Margin is 17.2% (sector median: 11.9%) — outperforming peers by 5.3%.
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