Is the business good?
How good a business is SPSC?
SPS Commerce, Inc. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
11%
Return on invested capital · cost of capital 9.0% · 2.4 points above what the capital costs: growth creates value
- Operating margin
- 15%
Operating margin · Software - Application median 8.2% · 12 months to Q1 2026
- Cash conversion
- 1.84×
Cash conversion · 1.73× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 16% |
| FY2021 | 14% |
| FY2022 | 16% |
| FY2023 | 14% |
| FY2024 | 14% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q1 2026
- 69%
- Operating margin12 months to Q1 2026
- 15%
- Net margin12 months to Q1 2026
- 12%
- Free cash flow margin
- 22%
- R&D as % of revenue
- 9.1%
- Revenue, trailing twelve months
- $762M
- Free cash flow, trailing twelve months
- $167M
- Net income, trailing twelve months
- $91M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #56 of 90 by Smart Score