SPS Commerce, Inc. (SPSC): Business Model Canvas [Dec-2025 Updated]

Honestly, when you look at SPS Commerce, Inc. (SPSC), you're not seeing a high-growth startup; you're seeing a deeply entrenched utility powering global retail compliance, and that's where the real moat is. Their business model is built on the network effect-connecting over 54,950 recurring accounts to thousands of trading partners-a sticky foundation projected to deliver $751.6 million to $753.6 million in revenue for fiscal 2025. To understand why this recurring revenue is so defensible, you need to see the mechanics of their full-service approach across all nine building blocks. Let's break down the canvas right now.

SPS Commerce, Inc. (SPSC) - Canvas Business Model: Key Partnerships

You're looking at the ecosystem that lets SPS Commerce, Inc. actually deliver on its promise of supply chain cloud services. These aren't just vendors; they are the rails the business runs on. The strength here is in the sheer density of connections.

The network itself is massive, which is the primary moat. As of the first quarter of 2025, SPS Commerce, Inc. reported serving approximately 54,150 recurring revenue customers. This customer base plugs into a global network connecting over 115,000 businesses in total. That scale creates a powerful network effect, making it harder for competitors to catch up.

The company is actively growing this base and its value per customer. The average recurring revenue per customer as of Q1 2025 was $13,850. Management has a stated goal to increase the average revenue per customer to $40,000 globally.

Here's a look at the scale of the technology connections SPS Commerce, Inc. maintains:

Partnership Type	Metric	Data Point
ERP/WMS/TMS Integrations	Pre-Qualified Software Automations	400+
ERP/WMS/TMS Integrations	Pre-built EDI Integration Systems	Over 100
Third-Party Logistics (3PLs)	Pre-Qualified 3PLs	1,900+
Trading Partners (Total Network)	Suppliers, Logistics, Buying Orgs (Q1 2025)	Over 50,000

Strategic acquisitions are key to adding new capabilities, especially in high-growth areas like e-commerce seller support. The January 2025 acquisition of Carbon6 Technologies is a prime example of this strategy in action. This move strengthens revenue recovery offerings for Amazon sellers, which is definitely a growth vector.

The financial commitment and expected return from the Carbon6 deal are clear:

• Total purchase price for Carbon6 was approximately $210 million.
• The stock component of the purchase was about 40%.
• SPS Commerce, Inc. anticipated Carbon6 would add approximately $40.0 million in revenue for fiscal year 2025.
• The acquisition was expected to increase Adjusted EBITDA by approximately $5.5 million for fiscal year 2025.

This follows other strategic buys; for instance, the August 2024 acquisition of SupplyPike Inc. was projected to add $25 million in revenue for 2025. SPS Commerce, Inc. also acquired Traverse Systems, further expanding its product suite to address compliance and chargeback penalties.

For customer acquisition, the company relies on a multi-pronged approach involving its existing partners. Organic growth is driven by a mix of direct sales, community enablement programs, and channel partnerships for referrals and joint sales efforts. The mandate from major retailers and distributors to use Electronic Data Interchange (EDI) compliance is the foundational pull for many of these partnerships.

The company actively manages the complexity of these connections. The expert team at SPS Commerce, Inc. actively manages about 9,000 changes from retailers each year to maintain compliance across the network.

Finance: review the Q4 2025 revenue guidance of $184.5 million to $186.2 million against the actual run-rate from Q1 2025 revenue of $181.5 million by Monday.

SPS Commerce, Inc. (SPSC) - Canvas Business Model: Key Activities

Maintaining and expanding the global retail trading network

SPS Commerce, Inc. connects over 115,000 businesses globally. As of the first quarter of 2025, the company served approximately 54,150 recurring revenue customers. The total addressable market (TAM) is estimated at $11 billion. The company reported its 99th consecutive quarter of revenue growth with the third quarter of 2025 results. Revenue for the second quarter of 2025 reached $187.4 million, a 22% year-over-year increase. For the third quarter of 2025, revenue was $189.9 million, marking a 16% growth. Full-year 2025 revenue guidance is projected to be between $759 million and $763 million, representing 19% to 20% growth over 2024.

The Average Revenue Per User (ARPU) was approximately $13,200 as of the second quarter of 2025, and $13,850 as of the first quarter of 2025.

Metric	Value (Q1 2025)	Value (Q2 2025)	Value (Q3 2025)	Guidance (FY 2025)
Revenue (Millions USD)	$181.5	$187.4	$189.9	$759.0 - $763.0
Recurring Revenue Growth YoY	23%	24%	18%	N/A
Total Connected Businesses	Over 115,000	N/A	N/A	N/A
Recurring Revenue Customers	54,150	N/A	N/A	N/A

Software development for Fulfillment, Analytics, and Assortment suites

The company continues to invest in its platform capabilities across Fulfillment, Analytics, and Assortment. Research and development expense for the first quarter of 2025 was $17,439 thousand. For the second quarter of 2025, Research and development expense was $17,271 thousand.

• Fulfillment provides comprehensive EDI solutions for managing orders and logistics across all sales channels.
• Analytics delivers data analytics tools to enhance supply chain visibility.
• Assortment management is a core component of the platform suite.

Full-service EDI compliance management and onboarding

SPS Commerce, Inc. is positioned as the only full-service EDI solution on the market to help suppliers maintain EDI compliance with frequently changing retailer requirements. The company supports data-driven partnerships to optimize order process, product setup, and sales performance.

Strategic M&A to acquire new products and customer bases

Mergers and Acquisitions remain a key component of the growth strategy, used for expanding or enhancing product offerings and customer acquisition. The most recent acquisition closed in January 2025 with Carbon6 Technologies. The SupplyPike acquisition in summer 2024 was valued at $206 million and generated $25 million in annual sales. The Carbon6 acquisition was valued at $210 million and had a revenue contribution pegged at $40 million, resulting in a combined $65 million revenue contribution supporting current sales growth.

Direct sales and community enablement programs for customer acquisition

Enablement activity remains strong, driven by retailers realizing the value of digitized connections. The company repurchased $20.0 million of SPS Commerce shares in the second quarter of 2025. Share repurchases in the third quarter of 2025 totaled $30.0 million. The Board authorized a new program to repurchase up to $100.0 million of common stock, effective December 1, 2025, and expiring December 1, 2027.

Adjusted EBITDA for the second quarter of 2025 increased 27% to $56.1 million compared to the second quarter of 2024. For the full year 2025, Adjusted EBITDA is expected to be in the range of $230.7 million to $233.7 million, representing 24% to 25% growth over 2024.

SPS Commerce, Inc. (SPSC) - Canvas Business Model: Key Resources

You're looking at the core assets SPS Commerce, Inc. relies on to run its business, the things it absolutely must own or control to make the model work. These aren't just nice-to-haves; they are the engine.

The foundation here is the network effect. SPS Commerce, Inc. operates what it calls the world's leading retail network, connecting over 115,000 businesses globally. This scale is a massive barrier to entry for others. Also, the company has achieved 99 consecutive quarters of revenue growth as of the third quarter of 2025, which speaks volumes about the stickiness of these connections.

The customer base itself is a critical resource, providing the recurring revenue that fuels operations. As of the third quarter of 2025, the total number of recurring revenue accounts stood at approximately 54,950. This base generated significant top-line results, with Q3 2025 revenue hitting $189.9 million, and recurring revenue specifically growing 18% year-over-year for that quarter.

The technology underpinning this is the proprietary cloud-based Electronic Data Interchange (EDI) platform. While specific details on the IP value are not public dollar amounts, the platform's effectiveness is shown in the Average Revenue Per User (ARPU) metric, which was approximately $13,300 for the quarter ending September 30, 2025. The company's ability to grow this ARPU shows the value embedded in their standardized integrations.

Here's a quick look at some of the hard numbers underpinning these resources as of Q3 2025:

Resource Metric	Value as of Q3 2025
Total Connected Businesses (Global Network)	Over 115,000
Recurring Revenue Accounts	Approx. 54,950
Consecutive Quarters of Revenue Growth	99
Q3 2025 Revenue	$189.9 million
Q3 2025 Recurring Revenue YoY Growth	18%
Q3 2025 Adjusted EBITDA	$60.5 million
Q3 2025 Average Recurring Revenue Per User (ARPU)	Approx. $13,300

You also have the human capital, which is essential for the full-service offering. This includes specialized supply chain and retail data experts who handle the complex integration and ongoing support, effectively removing the IT burden for the customer. The company's guidance for the full fiscal year 2025 revenue is set between $751.6 million and $753.6 million, showing the scale these experts manage.

The intellectual property, which includes pre-built, standardized EDI integrations, is what makes onboarding faster and more reliable than building point-to-point connections. This library of integrations is a direct result of years of accumulated expertise and development.

• Proprietary cloud platform architecture.
• Extensive library of pre-built EDI integration templates.
• Deep domain expertise in retail compliance standards.
• Strong cash position ending Q3 2025 at $134 million in cash and investments.

SPS Commerce, Inc. (SPSC) - Canvas Business Model: Value Propositions

You're looking at the core reasons why businesses choose SPS Commerce, Inc. (SPSC) to manage their supply chain complexity, and the numbers definitely back up the value they deliver. It's about taking the headache out of compliance and connecting you to everyone you need to work with.

Full-service EDI: eliminates customer burden of managing complex compliance

SPS Commerce, Inc. positions itself as the only full-service EDI (Electronic Data Interchange) solution that lets you stop worrying about retailer requirements constantly changing. They handle both the legal and the specific business compliance needs for each trading partner. This focus on simplicity is recognized; for instance, SPS Commerce, Inc. was named the #1 IT Infrastructure Software in G2's 2025 Best Software Awards. You get intuitive platforms and expert guidance, aiming for accelerated speed-to-value without lengthy timelines.

Network effect: single connection to thousands of trading partners

The sheer size of the network is a major value driver. As of the first quarter of 2025, SPS Commerce, Inc. reported serving over 50,000 recurring revenue customers across retail, grocery, distribution, and manufacturing. This means one connection gives you access to thousands of trading partners. The stickiness of this network is reflected in the financials; for the nine months ended September 30, 2025, domestic revenue accounted for 84% of total revenue, showing a deep, established U.S. presence. The company's strategy is network-led growth.

Data-driven insights via SPS Analytics for inventory and sales trends

The platform moves beyond simple data exchange to offer real business intelligence through SPS Analytics. This helps you unify omnichannel metrics to optimize inventory and forecast sales accurately. The financial scale of the business underscores the volume of data being processed: total revenue for the trailing twelve months ending September 30, 2025, reached approximately $729.76 million, with recurring revenue growing 18% year-over-year in the third quarter of 2025 alone. Here's the quick math on the scale of their recurring business:

Metric	Value (as of late 2025)
Global Total Addressable Market (TAM)	$11.1 billion
Recurring Revenue Customers (Q1 2025)	54,150
Average Recurring Revenue Per Customer (Q1 2025)	$13,850
Q3 2025 Revenue	$189.9 million
FY 2025 Revenue Guidance (Low End)	$751.6 million

Streamlined omnichannel fulfillment and order management

SPS Commerce, Inc. provides solutions to manage orders across all sales channels, which is critical for modern retail. The Fulfillment product line is the primary revenue driver, generating $161.8 million in the three months ended September 30, 2025. This focus on core operational efficiency contributes to strong profitability metrics, with Adjusted EBITDA for Q3 2025 hitting $60.5 million, a 25% increase year-over-year.

Faster time-to-market for suppliers connecting to new retailers

The value proposition includes making it simple for suppliers to start exchanging data with new retailers quickly. This is supported by their commitment to simplicity and fast onboarding. The company's growth trajectory shows this is working:

• Q2 2025 revenue grew 22% year-over-year.
• Q1 2025 recurring revenue grew 23% year-over-year.
• The company has achieved 99 consecutive quarters of topline growth as of Q3 2025.
• FY 2025 Adjusted EBITDA guidance projects growth between 23% and 24% over 2024.

Finance: draft 13-week cash view by Friday.

SPS Commerce, Inc. (SPSC) - Canvas Business Model: Customer Relationships

You're managing relationships for a platform that connects over 50,000 recurring revenue customers as of late 2025, all relying on seamless B2B document exchange. The core relationship is built on a full-service, high-touch model for Electronic Data Interchange (EDI) setup and maintenance, which is essentially outsourcing the complexity of trading partner compliance.

SPS Commerce takes a managed services approach where they control trading partner maps, testing, and compliance behind the scenes. This means customers are highly reliant on the SPS Commerce implementation team for configuration changes, which can sometimes lead to slower resolution times for minor adjustments, but it ensures that the complex, non-negotiable retail compliance standards are met.

Here's a snapshot of the scale of these customer relationships as of the latest reported figures:

Metric	Value / Period	Context
Recurring Revenue Customers	Over 50,000 (Late 2025)	The base for subscription and transaction-based revenue.
Q3 2025 Recurring Revenue Growth	18% Year-over-Year	Reflects success in retaining and expanding existing customer value.
Q1 2025 Recurring Revenue Growth	23% Year-over-Year	Indicates strong momentum in the existing customer base expansion.
Wallet Share (Avg. Revenue per Customer)	Approx. $11,550 (2023)	The last reported annual figure for average revenue per recurring customer, showing growth potential.
Total Addressable Market (TAM)	$11 billion	The overall market opportunity SPS Commerce is addressing.

Dedicated customer success teams are focused on growing that wallet share, which is measured by metrics like Net Revenue Retention (NRR) in the industry. The goal is to drive expansion revenue by getting customers connected to more trading partners or utilizing more platform features, like their Analytics suite.

For scalable support, SPS Commerce offers several avenues, which is critical given that general industry data suggests customers expect a response within 10 minutes for urgent queries. You have access to:

• Support via phone.
• Support via email.
• The company's Training Center for self-paced learning.
• 'Customer-obsessed service' from accessible experts.

To reduce the burden on these high-touch teams for routine tasks, the platform incorporates automation. This directly supports the need for automated, self-service tools for basic order and inventory management, allowing customers to focus on exceptions rather than manual data entry. Generally, while 69% of consumers try to solve problems on their own first, fewer than one-third of companies provide robust self-service options like a knowledge base. SPS Commerce aims to be in that minority by embedding these tools within their core offering.

SPS Commerce, Inc. (SPSC) - Canvas Business Model: Channels

You're looking at how SPS Commerce, Inc. gets its cloud services in front of its over 50,000 recurring revenue customers across retail, grocery, distribution, and manufacturing. The channel strategy is clearly segmented based on customer size, which makes sense given the $11.1 billion Total Addressable Market (TAM) they are targeting.

The company's approach relies on a mix of direct engagement for larger accounts and partner-driven scale for others. As of the third quarter of 2025, the network stood strong, having achieved its 99th consecutive quarter of revenue growth.

Direct sales force targeting mid-market and large enterprises

The direct sales force is the engine for landing the larger, more complex trading partners in the mid-market and enterprise segments. While the exact size of the sales team isn't public, this team is responsible for driving the core recurring revenue, which grew 18% year-over-year in the third quarter of 2025. This direct motion is crucial for securing the high-value relationships that contribute to the Average Revenue Per User (ARPU), which was approximately $13,300 as of September 30, 2025. The CEO noted that the go-to-market strategy reinforces the focus on channel sales specifically for larger customers. The fulfillment business, which likely involves significant direct sales engagement for new integrations, grew 20% year-over-year in Q3 2025.

Strategic channel partners (ERP/WMS) who recommend the platform

Strategic channel partners, like those providing Enterprise Resource Planning (ERP) or Warehouse Management Systems (WMS), act as powerful recommenders. This is the designated route for reaching certain segments of the market, particularly larger entities that already have deep investments in adjacent systems. The analysis of the go-to-market strategy confirmed that channel sales are a key focus for larger customers. The success of the overall network is evident in the fact that SPS Commerce, Inc. added a net of 450 customers in the third quarter of 2025 alone, beating expectations.

Community enablement programs for smaller suppliers and brands

For smaller suppliers and brands, SPS Commerce, Inc. leans heavily on community enablement programs. This is the strategy to efficiently onboard the long tail of the network, which is essential for capturing the full $11.1 billion TAM. These programs are designed to make it easier for smaller entities to connect, driving volume and network effect. The company's overall customer base reached approximately 54,500 recurring revenue customers by the second quarter of 2025. This approach helps maintain the high volume of customer additions seen, such as the 450 net additions in Q3 2025.

Cloud-based web dashboard for direct customer access to services

The cloud-based web dashboard serves as the primary interface for direct customer access to services, supporting the entire network. This platform underpins the recurring revenue model, which saw 24% growth year-over-year in Q2 2025 and 18% growth in Q3 2025. The dashboard is where customers interact with the data-driven partnerships the company supports. The platform's resilience is underscored by the fact that the company delivered its 98th consecutive quarter of revenue growth through Q2 2025, and its 99th through Q3 2025. This direct access is key to the value proposition that keeps ARPU climbing, reaching about $13,300 in Q3 2025.

Here's a quick look at the scale of the network as of the third quarter of 2025:

Metric	Value (As of Late 2025)	Reporting Period
Total Recurring Revenue Customers	Approximately 54,500 (as of Q2 2025)	Q2 2025
Net Customer Additions	450	Q3 2025
Average Revenue Per User (ARPU)	Approximately $13,300	Q3 2025
Total Addressable Market (TAM)	$11.1 billion	Guidance
Consecutive Quarters of Revenue Growth	99	Through Q3 2025

The company is defintely using these channels to drive its financial performance, with Q3 2025 revenue hitting $189.9 million. Finance: draft 13-week cash view by Friday.

SPS Commerce, Inc. (SPSC) - Canvas Business Model: Customer Segments

You're looking at the core of SPS Commerce, Inc.'s value capture-the diverse set of trading partners that form their expansive retail network. The company's model is built on connecting these disparate entities, making the composition of this network critical to its recurring revenue stream.

Suppliers and manufacturers needing retailer EDI compliance represent a foundational segment. These are businesses that must exchange data, like purchase orders and advance ship notices, in a standardized format to trade with major buyers. The company's Fulfillment product line, which handles EDI transactions, generated $161.8 million in revenue during the three months ended September 30, 2025. Manufacturing alone accounts for 16% of the companies using SPS Commerce.

Retailers and grocers seeking supply chain optimization and visibility are the demand drivers for the network. These entities require their entire supplier base to integrate efficiently. SPS Commerce, Inc. serves over 4,000+ retailers, grocers, and distributors within its network. For the nine months ended September 30, 2025, domestic revenue, which is heavily influenced by U.S. retail activity, accounted for 84% of total revenue. Retail and Food & Beverages together represent 15% of the company's customer base by industry segment.

Third-Party Logistics (3PL) providers and distributors are essential connective tissue in the supply chain ecosystem SPS Commerce, Inc. manages. These partners rely on the platform for seamless data exchange regarding inventory movements and fulfillment status. Logistics companies are explicitly mentioned as part of the network that connects over 50,000 recurring revenue customers. Distributors are also a key component of the customer base.

The customer base spans the entire spectrum of business sizes, though the platform shows a clear concentration in certain brackets. The company's strategy is to increase the average spend across this entire base. As of Q1 2025, the average recurring revenue per customer was approximately $13,850, with a stated global target to elevate this to $40,000. For context, the full-year 2024 average spend per recurring revenue customer was $40,500 annually.

Customer Segment Characteristic	Data Point / Metric	Source Context
Total Recurring Revenue Customers (Q1 2025)	Over 50,000 to 54,150	Network size as of early 2025
Total EDI Network Partners	Over 100,000+	Total partners in the EDI network
Customer Base by Industry (Largest Segments)	Manufacturing: 16%; Food & Beverages: 8%; Retail: 7%	Distribution by industry segment
Customer Base by Employee Size (Most Common)	50-200 employees	Typical company size profile
Geographic Concentration (Customer Location)	83% of users in the United States	Top country usage distribution

The sheer scale of the network is a primary value driver, creating high switching costs for customers embedded in the system. The total addressable market (TAM) for SPS Commerce, Inc. is estimated at $11.1 billion globally.

• The company reported total revenue of $189.9 million for the third quarter of 2025.
• Total recurring revenue reached $181.9 million in Q3 2025.
• The company has achieved 99 consecutive quarters of topline growth as of late 2025.
• The company's Q3 2025 Adjusted EBITDA was $60.5 million.

If you're mapping out your own strategy, remember that customer retention is tied directly to the number of trading partners a client connects to-the more connections, the stickier the service. Finance: draft 13-week cash view by Friday.

SPS Commerce, Inc. (SPSC) - Canvas Business Model: Cost Structure

You're looking at the expense side of the ledger for SPS Commerce, Inc. (SPSC) as of late 2025. This is where the revenue generated from their retail network gets spent to keep the platform running, growing, and serving its customers. The cost structure is heavily weighted toward personnel to support software development and sales efforts, which makes sense for a cloud-based service provider.

The company's investment in its core technology is significant. This isn't just about keeping the lights on; it's about building new integrations and features to maintain that 99th consecutive quarter of topline growth. Personnel costs are a major driver here, as seen in the third quarter of 2025 when Research and Development expenses hit $\text{17,276 thousand}$ dollars.

Driving new customer acquisition requires a dedicated sales and marketing engine. You see this reflected in the Sales and Marketing expense line item, which was projected to be a substantial portion of the overall operating spend for the full fiscal year 2025. Honestly, this spend is the fuel for adding new trading partners to their network.

Here's a look at the key cost components based on the latest available full-year guidance for Fiscal Year 2025, alongside the actual operating expenses reported for the third quarter of 2025 (ending September 30, 2025). Note that the full-year guidance figures often include estimates for the entire year, while the quarterly figures are actual results for that three-month period.

Cost Component Category	FY 2025 Guidance (Full Year Estimate)	Q3 2025 Actual (Three Months Ended 9/30/2025)
Sales and Marketing Expenses	$\text{127,390 thousand}$	$\text{42,322 thousand}$
Research and Development Expenses	$\text{51,986 thousand}$	$\text{17,276 thousand}$
General and Administrative Expenses	$\text{93,598 thousand}$	$\text{31,690 thousand}$
Amortization of Intangible Assets	$\text{37,100 thousand}$	$\text{9,493 thousand}$
Non-cash, Share-Based Compensation Expense	$\text{58,300 thousand}$	$\text{15,000 thousand}$
Depreciation Expense (Total)	$\text{21,100 thousand}$	$\text{5,800 thousand}$

The costs associated with the platform's foundation-data center, cloud infrastructure, and network maintenance-are embedded within several line items, most notably Depreciation and Amortization. The company has made a point to move $\text{95%}$ of its IT operations into cloud-based infrastructure located in energy-efficient data centers powered by renewable energy as of early 2025. This shift suggests a focus on operational efficiency and sustainability within their infrastructure spend.

You should keep an eye on these specific non-cash and acquisition-related costs, as they impact GAAP earnings but not necessarily cash flow:

• Non-cash, share-based compensation expected for the full year 2025 is projected at $\text{58.3 million}$ dollars.
• Amortization expense from past acquisitions is guided to be approximately $\text{37.1 million}$ dollars for Fiscal Year 2025.
• The Q3 2025 actual for Amortization of Intangible Assets was $\text{9,493 thousand}$ dollars.

Personnel-related costs are a significant driver across the board. For instance, in the third quarter of 2025, the increase in Research and Development expense was directly tied to increased headcount, resulting in an increase of $\text{1.2 million}$ in personnel-related costs alone. Similarly, General and Administrative expenses saw an increase of $\text{3.6 million}$ due to headcount and third-party personnel.

Finance: draft a sensitivity analysis on the impact of a 10% increase in personnel-related costs on Q4 2025 projected operating income by Tuesday.

SPS Commerce, Inc. (SPSC) - Canvas Business Model: Revenue Streams

You're looking at the core ways SPS Commerce, Inc. (SPSC) brings in money as of late 2025. The model leans heavily on predictable, recurring income from its cloud platform, supplemented by project-based work and specific service fees.

The official full-year 2025 revenue guidance, as of the third quarter update, sits in a tight band. This top-line forecast reflects continued, though perhaps moderating, growth across the network.

Revenue Streams for SPS Commerce, Inc. (SPSC) - Full Year 2025 Guidance

Metric	Value/Range
Full-Year 2025 Revenue Guidance	$751.6 million to $753.6 million
Implied Growth Over 2024	Approximately 18%
Q3 2025 Total Revenue	$189.9 million
Q3 2025 Recurring Revenue Growth (YoY)	18%

Recurring subscription revenue from cloud services forms the bedrock. This is the money that comes in automatically from customers using the Fulfillment and Analytics platforms. For the three months ended September 30, 2025, total recurring revenue hit $181.9 million.

Drilling down into that recurring base, the Fulfillment product line is the largest component, bringing in $161.8 million for the same three-month period. The customer base supporting this is substantial, with approximately 54,950 recurring revenue customers reported in Q3 2025, yielding an Average Revenue Per User (ARPU) of about $13,300 for that quarter.

The other revenue components, which are less predictable but important for expansion, include:

• Fees for professional services, including new trading partner onboarding.
• Revenue Recovery services, bolstered by recent strategic additions like Carbon6 Technologies, Inc., which focuses on helping suppliers recoup deductions.
• Transaction-based fees for high-volume data exchange, which can fluctuate with overall shipping and retail activity.

SPS Commerce, Inc. is the only full-service EDI solution on the market uniquely positioned to help suppliers effortlessly maintain EDI compliance. That network effect is what locks in the recurring revenue stream.