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SPS Commerce: The Stress Test Is Amazon Recovery Timing Not The $192.1 Million Revenue!

SPS Commerce reported a first quarter 2026 revenue of $192.1 million, reflecting 6% growth year-over-year with recurring revenue increasing by 7%, underpinned by an 8% growth in its fulfillment segment. The company continues to navigate challenges specifically tied to its Amazon revenue recovery business, which remains a headwind due to policy changes and the introduction of a new subscription platform fee aimed at better aligning pricing with delivered value. This fee, anticipated to be around $19.99 per month, is projected to result in the churn of up to 4,000 smaller third-party suppliers during 2026, although management does not foresee this materially affecting overall revenue. The number of first-party customers remained flat sequentially, while third-party customers declined modestly. Operationally, SPS Commerce emphasized its advancing AI-driven solutions, particularly the beta deployment of its AI agent, MAX, being tested by about 400 customers.