Q1 2026 SPS Commerce Inc Earnings Call Transcript
Key Points
- SPS Commerce Inc (SPSC) reported a solid first quarter with a 6% increase in revenue to $192.1 million.
- Recurring revenue grew by 7%, driven by an 8% growth in fulfillment.
- The company is leveraging AI to improve operational efficiency, with early applications driving measurable gains in customer treatment strategies.
- SPS Commerce Inc (SPSC) is experiencing strong cross-selling momentum, particularly among 1P customers.
- The MAX AI agent is helping customers like Siete Foods protect up to 8% of revenue that would otherwise be lost to stockouts.
- SPS Commerce Inc (SPSC) continues to face headwinds in the Amazon portion of its revenue recovery business.
- The company expects a projected decline of up to 4,000 3P suppliers in 2026 due to the introduction of a subscription platform fee.
- The Amazon revenue recovery business is on a negative trajectory and is expected to trough towards the end of 2026.
- There are ongoing challenges with delayed enablement campaigns, which are expected to be more impactful in the second half of the year.
- The company reported that the number of 3P customers declined by 400 in the first quarter.
Good day and welcome to the SPS Commerce Q1 2026 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the call over to Irmina Blaszczyk. Please go ahead.
Good afternoon, everyone, and thank you for joining us on SPS Commerce first-quarter 2026 conference call. We will make certain statements today, including with respect to our expected financial results, go-to-market strategy, and efforts designed to increase our traction and penetration with retailers and other customers. These statements are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially.
Please note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Please refer to our SEC filings,
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