Annual Reports
SPS Commerce, Inc.'s annual reports contain management's most considered account of the business. These are the sections, passages and visual pages worth opening in the originals preserved in Sources.
SPS Commerce, Inc. — FY2025 Annual Report (Form 10-K) — FY2025
Latest 10-K: the network model, a 100th-straight-quarter of growth to $751.5M revenue, and the Carbon6-driven jump in the customer base. · Open the full document →
Item 1. Business — p. 5 · Read the full section →
Management's own framing of the connect-once network, its products, and the network effect that compounds with each participant added.
The moat in the company's words: value rises exponentially with scale as trading partners are already connected.
The value of our network increases exponentially with scale. After joining, customers typically discover that many of their existing or prospective trading partners are already connected, enabling immediate transaction capability. […] As transaction volume grows among network participants through these expanded relationships, we earn additional revenue from increased activity across the network. Our customers grow their business relationships more efficiently, and we grow alongside them.
p. 7 · Read in context →
Item 1A. Risk Factors — p. 14 · Read the full section →
The two risks specific to this business: digesting a serial-acquisition strategy and defending a hub that carries partners' data.
Integration risk — SPS grows partly by buying customer bases (Carbon6, SupplyPike, Traverse, Vision33).
Fully integrating an acquired company or business into our operations may take a significant amount of time and resources. In addition, we may only be able to conduct limited due diligence on an acquired company’s operations. Following an acquisition, we may be subject to liabilities arising from an acquired company’s past or present operations, including liabilities related to data security, encryption and privacy of customer data[…]
p. 20 · Read in context →
Cyber risk — admits past cyber events and a target profile given its central role in the retail supply chain.
A failure to protect the confidentiality and integrity of our customers’ information and prevent cyber-attacks could materially damage our reputation, expose us to claims and litigation, and lead to service disruptions and harm our business. […] Given the interconnected and technology-dependent nature of the retail supply chain, our significant presence and impact in the retail industry, and past cyber events affecting our systems, it is reasonable to believe that we are a target for such attacks.
p. 26 · Read in context →
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — p. 39 · Read the full section →
Where management shows the P&L bridge and explains what drove 18% revenue growth — ARPU, more customers, and acquisitions.
Acquisitions reshaped the customer count: ~8,500 added via Carbon6; recurring revenue up 20% to $718.0M.
Approximately 50 1P recurring revenue customers were added in May 2024 due to the acquisition of the existing customer base of Traverse Systems LLC ("Traverse Systems") and approximately 200 1P recurring revenue customers were added in July 2024 due to the acquisition of the existing customer base of SupplyPike Inc. ("SupplyPike"). Additionally, approximately 8,500 recurring revenue customers were added in February 2025 due to the acquisition of the existing customer base of Carbon6, of which approximately 300 are 1P recurring revenue customers and the remainder are 3P recurring revenue customers. […] Recurring revenues increased 20% to $718.0 million for the year ended December 31, 2025, as compared to the same period in 2024, and accounted for 96% and 94% of our total revenues in 2025 and 2024, respectively.
p. 46 · Read in context →
Critical Accounting Policies and Estimates — p. 42 · Read the full section →
Revenue recognition defines the subscription model — nonrefundable set-up fees deferred and recognized ratably over ~two years.
More annual reports
SPS Commerce, Inc. — FY2024 Annual Report (Form 10-K) — FY2024 · 101 pages · Prior year ($637.8M revenue): the SupplyPike and Traverse Systems acquisitions before Carbon6 scaled the base. · Open →
SPS Commerce, Inc. — FY2023 Annual Report (Form 10-K) — FY2023 · 99 pages · $536.9M revenue year; useful baseline before the FY2024–FY2025 acquisition wave. · Open →
SPS Commerce, Inc. — FY2022 Annual Report (Form 10-K) — FY2022 · 101 pages · Shows the business description and network narrative before the 'Relationship Management' rebrand of Community. · Open →
SPS Commerce, Inc. — FY2021 Annual Report (Form 10-K) — FY2021 · 95 pages · Earliest edition on the shelf ($385.3M revenue, 84th consecutive quarter) — the pre-scale starting point. · Open →