Here are 1-3 brief analogies to describe SPS Commerce:

• SPS Commerce is like the PayPal or Stripe for business-to-business (B2B) supply chain data, standardizing and simplifying the exchange of critical documents like purchase orders and invoices between companies.
• It's the digital equivalent of FedEx or UPS for supply chain documents, ensuring that vital information flows quickly and accurately between retailers, brands, and their suppliers.
• Think of it as the Rosetta Stone for businesses in the supply chain, translating and standardizing diverse data formats so that different company systems can seamlessly communicate and transact.

• EDI Integration Services: These services enable businesses to electronically exchange critical business documents like purchase orders and invoices with their trading partners.
• Supply Chain Analytics: This service provides data-driven insights and reporting to optimize inventory, sales, and overall supply chain performance.
• Fulfillment Automation Services: These services streamline order processing, shipping, and inventory management for efficient order fulfillment.
• Assortment Management: A service that helps manage and distribute accurate product information and digital assets to retailers across various channels.
• Retail Network Platform: This platform connects retailers, suppliers, and logistics providers to facilitate collaboration and improve supply chain efficiency.

SPS Commerce (SPSC) Major Customers

• Amazon Web Services (parent company: Amazon.com, Inc. - AMZN)
• Microsoft Azure (parent company: Microsoft Corporation - MSFT)

Chad Collins
Chief Executive Officer

Chad Collins has served as the Chief Executive Officer and Director of SPS Commerce since October 2023. Prior to joining SPS Commerce, he was the Global Chief Executive Officer of Körber Supply Chain Software from 2020 to 2023. Before that, he held various leadership roles at HighJump Software, including President from 2015 to 2017 and Chief Executive Officer from 2017 to 2020. HighJump was a global supply chain software company that was acquired by Körber in 2017. He started his career as a supply chain consultant with Cap Gemini Ernst & Young.

Kimberly K. Nelson
Executive Vice President & Chief Financial Officer

Kimberly K. Nelson has been the Chief Financial Officer and an Executive Vice President of SPS Commerce since 2007. Under her financial leadership, SPS Commerce held its initial public offering on April 21, 2010. Before joining SPS Commerce, she led Amazon's investor relations department and held other financial leadership positions in financial planning, analysis, and forecasting for Amazon.com from 2000 to 2007. Earlier in her career, she held financial management positions at Pillsbury (now General Mills) and Nestle.

James J. Frome
Executive Vice President & Chief Operating Officer

James J. Frome, also known as Jim, has been Executive Vice President and Chief Operating Officer of SPS Commerce since March 2001. He joined SPS Commerce in 2000 and is responsible for overseeing global strategy, sales, marketing, and operations. Mr. Frome possesses over 24 years of experience in technology marketing and management, including previous roles as a divisional vice president of marketing at Sterling Software and director of product management at Information Advantage.

Jamie Thingelstad
Executive Vice President & Chief Technology Officer

Jamie Thingelstad has served as the Chief Technology Officer of SPS Commerce since August 2013. With a background in software engineering, he has led product, development, and corporate strategy for prominent technology companies in the e-commerce, retail, and supply chain sectors for more than two decades. His previous roles include Chief Operating Officer and Chief Technology Officer at 8thBridge Inc., and Co-Founder and Vice President of Technology at WebSpan Inc.

Dan Juckniess
Executive Vice President & Chief Revenue Officer

Dan Juckniess has served as Executive Vice President and Chief Revenue Officer of SPS Commerce since June 2024, having previously been Senior Vice President. He brings over 20 years of experience in executive and leadership roles across enterprise cloud services, educational technology, and business information solutions. Mr. Juckniess has a proven track record of achieving substantial revenue growth and leading transformative sales, customer service, and marketing organizations for market leaders such as Edmentum and Thomson Reuters.

The key risks to SPS Commerce's business include:

1. Cybersecurity and Regulatory Risks: SPS Commerce faces significant threats from cybersecurity incidents and data breaches, which could harm its reputation and financial stability. Additionally, changes in data privacy and internet regulations could restrict the use and adoption of its products.
2. Highly Competitive and Evolving Market: The company operates within a rapidly changing and intensely competitive environment, making it challenging to maintain and expand its market position. A significant aspect of this risk is the reliance on attracting and retaining new customers and increasing sales to existing ones, often without long-term contracts, which introduces instability as customers can cancel with short notice.
3. Integration Risks from Acquisitions: As part of its growth strategy, SPS Commerce pursues acquisitions. These endeavors carry inherent risks related to seamlessly integrating the acquired companies' operations, cultures, and technologies, which could lead to operational disruptions and potentially dilute its brand reputation.

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SPS Commerce (symbol: SPSC) operates in the cloud-based supply chain management sector, offering a suite of products and services primarily centered around its retail network and B2B integration capabilities. These offerings include Fulfillment, Analytics, Assortment, Community, Electronic Data Interchange (EDI), Product Data Management, Omnichannel Integration, Retail Analytics, Vendor Onboarding, and Automated Inventory Management.

The total addressable market (TAM) for SPS Commerce's main products and services is estimated to be $11.1 billion globally. A significant portion of this market, approximately $6.5 billion, is attributed to the U.S. market.

SPS Commerce (SPSC) is expected to drive future revenue growth over the next two to three years through several key initiatives and market advantages:

• Continued Customer Growth: SPS Commerce has consistently demonstrated its ability to add new customers, with a net increase of 450 customers in Q3 2025, exceeding expectations. This growth is largely fueled by strong retail relationship management programs. The company's focus on expanding its network of recurring revenue customers contributes significantly to its sustained financial performance.
• Expansion of Product Portfolio and Market Reach through Strategic Acquisitions: The company is strategically positioned to capitalize on long-term growth by expanding its product portfolio and market reach, partly through strategic acquisitions. SPS Commerce completed its combined go-to-market strategy ahead of schedule, which is expected to unlock the full potential of its emerging product category. Recent strategic acquisitions, such as Cyber Power Systems and Petco, have enhanced its supply chain solutions for clients.
• Increased Wallet Share and Cross-Sell Initiatives: SPS Commerce aims to increase revenue per user (ARPU) and drive customer lifecycle value through cross-sell initiatives. The appointment of a new Chief Commercial Officer is specifically intended to accelerate these efforts, focusing on deeper penetration within its existing customer base. This strategy reflects confidence in leveraging its established competitive position for ARPU expansion.
• Capitalizing on a Large and Evolving Retail Ecosystem: SPS Commerce operates within an expansive and evolving retail ecosystem, addressing an estimated $11 billion total addressable market. The company's leadership remains confident in its ability to leverage growth opportunities across this large market, reinforcing its long-term growth trajectory.

Share Repurchases

• SPS Commerce authorized a new program to repurchase up to $100.0 million of common stock, effective December 1, 2025, and expiring on December 1, 2027.
• The company repurchased $30.0 million in common stock during the third quarter of 2025.
• SPS Commerce also repurchased $20.0 million of shares in the second quarter of 2025.

Share Issuance

• In connection with the acquisition of Carbon6 Technologies, Inc. on February 4, 2025, SPS Commerce issued 378,100 shares of its common stock, valued at $67.7 million, from treasury shares.

Outbound Investments

• SPS Commerce acquired Carbon6 Technologies, Inc., a provider of software tools for Amazon sellers, on February 4, 2025, for a total consideration of $210.2 million, which included $142.5 million in cash and $67.7 million in stock.
• On July 31, 2024, the company acquired SupplyPike, an automated invoice deduction management and prevention solution business, for $206 million, paid through a combination of stock and cash.
• The company has an ongoing focus on mergers and acquisitions to expand product offerings, geographic reach, and customer acquisition.

Capital Expenditures

• SPS Commerce's capital expenditures were $16 million in 2020, $20 million in 2021, $20 million in 2022, $20 million in 2023, and $20 million in 2024.
• For fiscal year 2025, depreciation expense is expected to be $21.1 million.