Description

SPS Commerce’s Hidden 9% Growth Story: Amazon Headwinds Mask a Stronger Business!

SPS Commerce, Inc. reported third-quarter 2026 revenue of $197.6 million, increasing 4% year-over-year, with recurring revenue also growing 4%. Growth was affected by the mid-2026 divestiture of its 3P Revenue Recovery business, reducing second-half revenue by approximately $10.5 million, and Amazon policy changes affecting its 1P Amazon Take Rate business. Together, these factors reduced quarterly revenue growth by approximately 500 basis points. Adjusted EBITDA increased 17% to $70.9 million, representing a 36% margin, exceeding the long-term target through operational efficiencies and cost discipline. SPS Commerce expanded its agentic AI platform, MAX, integrating supply chain intelligence into customer workflows. Early implementations helped RIP-IT Sports and Zevia identify process errors and prevent losses. Fulfillment customer adoption accelerated, with additional AI monetization features expected next year. AI-driven agentic onboarding improved implementation speed, compliance and contract-to-live transaction cycles, supporting customer acquisition. However, its immediate margin contribution remains modest.