Should You Buy This US Mid Cap Stock-SPSC

Acrobull Canada Advisory Inc.

June 16			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
SPS Commerce Inc.	SPSC-NASDAQ	Technology		$5.119 Billion	Medium

SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States. The company offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, manufacturers, distributors, and logistics firm; and manages omnichannel.

Recent Highlights

Strong Revenue Growth: The solid top-line growth was driven by an increase in recurring revenue from its subscription-based model, which accounts for the majority of SPS Commerce's revenue.

Recurring revenue grew 19% year-over-year, reflecting the strength of its customer retention strategy and expansion within existing customer accounts.

First Quarter 2026 Highlights

Revenue- The company reported revenue of $170.09 million, This represents an 18% year-over-year increase from Q1 2024, Revenue exceeded Wall Street's consensus estimate of $168.76 million, The company continues to perform well thanks to its growing customer base and strong demand for its supply chain solutions.

Net Income- Net income for the quarter was $17.6 million, or $0.46 per share, a slight decline compared to the previous year.

Recurring Revenue- SPS Commerce’s recurring revenue grew by 19% year-over-year, reflecting the strength of its subscription-based model. The company also achieved an 18% increase in adjusted EBITDA, reaching $49.6 million.

Stock Observation- Analysts have slightly adjusted their expectations, with some lowering their EPS estimates, but overall, SPS Commerce's long-term growth outlook remains positive due to strategic investments and acquisitions in technology and supply chain solutions. The RSI level for the stock is at 47 which is close to oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$134.80 USD
Acrobull Recommendation	Buy
Target Price	$146.50 USD
RSI Level	14 Day RSI 47
Total Shares Outstanding	37.98 Million
Shares held by Insiders Risk Factor Stop Loss	0.95% Medium 5%