Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
SPS CommerceSPSC +4.37%84 Gross Margin % is 70.16% as of Jun. 2026, which is 5% above its 10-year median of 66.82. GuruFocus rates SPSC with a GF Score™ of 84/100 and a GF Value™ of $181.43 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,690 Software companies, SPS Commerce ranks better than 79.67% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
SPS Commerce had a gross margin of 70.16% for the quarter that ended in Jun. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
SPS Commerce Gross Margin % Related Terms
SPS Commerce Gross Margin % Historical Data
* Premium members only.
The historical data trend for SPS Commerce's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SPSC vs PLUS, PDFS, INTA: Gross Margin % Comparison
For the Software - Application subindustry, SPS Commerce's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SPS Commerce Gross Margin % vs Software Industry
For the Software industry and Technology sector, SPS Commerce's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SPS Commerce's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
SPS Commerce (SPSC) has a Gross Margin % of 70.16% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SPS Commerce and its competitors. This is near median its historical median of 66.82. Over the past decade, SPS Commerce's Gross Margin % has ranged from 65.82 to 69.82. According to the industry distribution chart, SPS Commerce ranks #547 out of 2690 companies in the Software industry, placing it in the top 20.3%.
Is SPS Commerce's Gross Margin % too high?
SPS Commerce's current Gross Margin % of 70.16% is near median its 10-year median of 66.82. Over the past 10 years, this metric has ranged from a low of 65.82 to a high of 69.82. The Software industry median Gross Margin % is 40.78. SPS Commerce's value of 70.16% is 72.1% above this industry median. Based on the distribution chart, SPS Commerce ranks #547 out of 2690 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, SPS Commerce has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SPS Commerce's Gross Margin % compare to PLUS and PDFS?
According to the Software industry distribution chart, SPS Commerce ranks #547 out of 2690 companies for Gross Margin %. This places SPS Commerce in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.78. SPS Commerce's value of 70.16% is 72.1% above this benchmark. Historically, SPS Commerce's own Gross Margin % has ranged from 65.82 to 69.82 over the past decade. While the company's 10-year median is 66.82 vs. the industry median of 40.78, SPS Commerce has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.78, based on 2,690 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SPS Commerce's current Gross Margin % of 70.16% is 72.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on SPS Commerce and its competitors. For the Software industry, the median Gross Margin % is 40.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SPS Commerce's current Gross Margin % is 70.16%, which is near median its own 10-year median of 66.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SPS Commerce stock overvalued right now?
Based on GuruFocus' analysis, SPS Commerce (SPSC) is currently considered Significantly Undervalued. The stock's GF Value™ is $181.43, compared to a current price of $80.80 — trading 55.5% below its estimated fair value. The current Gross Margin % is 70.16%, which is near median its 10-year median of 66.82 and 72.1% above the Software industry median of 40.78. SPS Commerce's overall GF Score™ is 84/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For SPS Commerce (SPSC), the current Gross Margin % is 70.16% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SPS Commerce (SPSC) Overvalued in 2026?
Based on GuruFocus' analysis, SPS Commerce stock appears to be undervalued.
The current stock price of $80.80 is trading 55.5% below its estimated GF Value™ of $181.43.
GuruFocus considers SPS Commerce to be Significantly Undervalued.
Key valuation signals for SPSC:
Gross Margin %: 70.16% (near median its 10-year median of 66.82)
GF Value™: $181.43 vs. price of $80.80 (55.5% below fair value)
Industry Position: 72.1% above the Software median (#547 of 2690)
No single metric tells the full story. See the SPSC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. The company has one operating segment Supply Chain Management Solutions, that derives revenues from customers by providing access to cloud-based supply chain management services, primarily under subscription-based service arrangements.
84GF Score
Get the complete analysis for SPSC
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SPSC has been successfully added to your 
