How is The Needle Moving On This Mid Cap Stock-SPSC

Acrobull UK Advisory Services Ltd.

September 01			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
SPS Commerce Inc.	SPSC-NASDAQ	Technology		$4.181 Billion	Medium

SPS Commerce, Inc. offers cloud-based supply chain management solutions in the United States. The company delivers its services through the SPS Commerce platform, a cloud-based system designed to improve how retailers, grocers, suppliers, manufacturers, distributors, and logistics providers manage their omnichannel operations, supply chains, and other business needs.

Recent Highlights

CEO Statement- SPS Commerce is the only full-service EDI solution on the market that is uniquely positioned to help suppliers easily stay compliant with retailers’ constantly evolving requirements,” said Chad Collins, CEO of SPS Commerce. “Our suite of products fosters stronger collaboration among trading partners, driving greater efficiency, cost savings, and mutual success—factors we believe support SPS’s long-term growth potential.

We delivered strong results in the second quarter and remain confident in our full-year 2025 outlook,” added Kim Nelson, CFO of SPS Commerce. “Looking ahead, we’re well positioned to seize growth opportunities within our expansive addressable market, while continuing to demonstrate solid operating leverage and the strength of our resilient business model

Second Quarter 2025 Financial Highlights

Total revenue for the quarter reached $187.4 million, representing a 22% increase compared to $153.6 million in the second quarter of 2024. This growth was primarily driven by the continued expansion of the company’s customer base and higher adoption of its recurring revenue services.

Recurring revenue, which accounts for the majority of SPS Commerce’s total revenue, saw a 24% year-over-year increase, reflecting the company’s strong customer retention and consistent demand for its subscription-based solutions.

Net income for Q2 2025 was $19.7 million, or $0.52 per diluted share, up from $18.0 million, or $0.48 per diluted share, in the same period last year. This improvement highlights the company’s disciplined financial management and ability to scale profitably.

On a non-GAAP basis, earnings per diluted share rose to $1.00, compared to $0.80 in the second quarter of 2024, reflecting continued operational efficiency and margin expansion.

Adjusted EBITDA also demonstrated strong growth, increasing27% year-over-year to $56.1 million, further emphasizing the scalability of SPS Commerce’s platform and its ability to deliver consistent, high-margin performance.

Stock Observation- Building on our strong performance this quarter, with revenue increasing 22% year-over-year to $187.4 million, we are confident in our ability to sustain momentum through the remainder of 2025. Continued demand for our solutions, combined with ongoing investments in innovation and market expansion, positions us well to deliver robust growth in the coming quarters, however short term market fluctuation may impact stock performance.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Taking into account the company’s overall financial performance and key factors, Acrobull UK reiterates its Buy rating on the stock

Disclaimer- Acrobull UK conducts research using both fundamental and technical analysis; however, the guidance we provide on stocks is of a general nature. Investors are solely responsible for carrying out their own risk assessments before making investment decisions, and Acrobull UK accepts no liability for any gains or losses arising from actions taken based on our recommendations.

We strongly advise investors to seek independent counsel from a qualified financial advisor, broker, or legal professional. While our research and recommendations are grounded in factual analysis, they should not be interpreted as assurances of future returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$110.30 USD
Acrobull Recommendation	Buy at $107.95
Target Price	Target $122.25 USD
RSI Level	14 Day RSI 37
Total Shares Outstanding	37.91 Million
Shares Held by Insiders Shares Held by Institutions Risk Factor Stop Loss	0.95% 103.35% Medium 5%