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SPS CommerceSPSC +4.37%84 Pretax Margin % is 5.26% as of Jun. 2026, which is 66% below its 10-year median of 15.34. GuruFocus rates SPSC with a GF Score™ of 84/100 and a GF Value™ of $181.48 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,832 Software companies, SPS Commerce ranks better than 77.54% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. SPS Commerce's Pre-Tax Income for the
three
months ended in Jun. 2026 was $10.4 Mil. SPS Commerce's Revenue for the
three
months ended in Jun. 2026 was $197.8 Mil. Therefore, SPS Commerce's pretax margin for the quarter that ended in Jun. 2026 was 5.26%.
The historical rank and industry rank for SPS Commerce's Pretax Margin % or its related term are showing as below:
SPSC'
s Pretax Margin % Range Over the Past 10 Years
Min: 4 Med: 15.34 Max: 16.85
Current: 13.57
SPSC's Pretax Margin % is ranked better than 77.54% of 2832
companies
in the Software industry
Industry Median: 3.76
vs SPSC: 13.57
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
SPS Commerce Pretax Margin % Related Terms
SPS Commerce Pretax Margin % Historical Data
* Premium members only.
The historical data trend for SPS Commerce's Pretax 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: Pretax Margin % Comparison
For the Software - Application subindustry, SPS Commerce's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, SPS Commerce's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where SPS Commerce's Pretax 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.
SPS Commerce (SPSC) has a Pretax Margin % of 5.26% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on SPS Commerce and its competitors. This is 66% below median its historical median of 15.34. Over the past decade, SPS Commerce's Pretax Margin % has ranged from 4.00 to 16.85. According to the industry distribution chart, SPS Commerce ranks #636 out of 2832 companies in the Software industry, placing it in the top 22.5%.
Is SPS Commerce's Pretax Margin % too high?
SPS Commerce's current Pretax Margin % of 5.26% is 66% below median its 10-year median of 15.34. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 16.85. The Software industry median Pretax Margin % is 3.76. SPS Commerce's value of 5.26% is 39.9% above this industry median. Based on the distribution chart, SPS Commerce ranks #636 out of 2832 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 Pretax Margin % compare to PLUS and PDFS?
According to the Software industry distribution chart, SPS Commerce ranks #636 out of 2832 companies for Pretax Margin %. This places SPS Commerce in the top 23% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.76. SPS Commerce's value of 5.26% is 39.9% above this benchmark. Historically, SPS Commerce's own Pretax Margin % has ranged from 4.00 to 16.85 over the past decade. While the company's 10-year median is 15.34 vs. the industry median of 3.76, 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.76, based on 2,832 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SPS Commerce's current Pretax Margin % of 5.26% is 39.9% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on SPS Commerce and its competitors. For the Software industry, the median Pretax Margin % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SPS Commerce's current Pretax Margin % is 5.26%, which is 66% below median its own 10-year median of 15.34. 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 $181.48, compared to a current price of $80.80 — trading 55.5% below its estimated fair value. The current Pretax Margin % is 5.26%, which is 66% below median its 10-year median of 15.34 and 39.9% above the Software industry median of 3.76. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For SPS Commerce (SPSC), the current Pretax Margin % is 5.26% 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 $181.48.
GuruFocus considers SPS Commerce to be Significantly Undervalued.
Key valuation signals for SPSC:
Pretax Margin %: 5.26% (66% below median its 10-year median of 15.34)
GF Value™: $181.48 vs. price of $80.80 (55.5% below fair value)
Industry Position: 39.9% above the Software median (#636 of 2832)
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
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