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Moving the world of Commerce forward October 2025
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This presentation contains forward-looking statements, including information about management's view of SPS Commerce's future expectations, plans and prospects, including our views regarding future execution within our business, the opportunity we see in the retail supply chain world, our positioning for the future, our future performance, and any statements about customers or the global economy and our business prospects, all of which fall within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of SPS Commerce to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents SPS Commerce files with the Securities and Exchange Commission, including but not limited to, SPS Commerce's Annual Report on Form 10-K for the year ended December 31, 2024, as well as subsequent reports filed with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on SPS Commerce's future results. The forward-looking statements and market analysis included in this presentation are made only as of the date hereof. SPS Commerce cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SPS Commerce expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. This presentation contains references to historical “Adjusted EBITDA” and “Adjusted EBITDA Margin” which are, in each case, not presented in accordance with generally accepted accounting principles (“GAAP”). Reconciliations to the corresponding GAAP measure is provided in Appendix A of this presentation. The Company does not present a reconciliation of the forward-looking non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA margin, to the most directly comparable GAAP financial measures because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized. Forward-Looking Statements and Non-GAAP Financial Measures © 2025 SPS Commerce | 2
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Industry Leading Products & Solutions Large & Expanding Market Opportunity $11.1B Global TAM* Investment Highlights Established & Growing Global Footprint Multinational customers supported by operations in NA, EU, APAC Track Record of Sustained Growth Proven GTM Motion Unique, viral lead generation engine © 2025 SPS Commerce | 3 *Source: TAM Analysis and Market Penetration Study leveraging US Census NAICS Codes across Retail (42 Wholesalers), Distribution (42 Wholesalers), CPG/Finished Goods (31-33 Manufacturing), Retailers/Stores acting as suppliers (44-45 Retail Trade) as of February 2025.
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Transforming how businesses co-operate across the global retail supply chain… To power the connections that move the world of commerce forward. Our Purpose Creating a dynamic, globally interconnected community where players can more freely connect, collaborate, prosper together. © 2025 SPS Commerce | 4
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Consumers’ expectations have increased exponentially as they adopt new commerce channels at an unprecedented rate © 2025 SPS Commerce | 5
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PLAN PREP ORDER PRODUCE STORE / SHIP SELL TRACK Retailers Revenue RecoveryFulfillment Suppliers Third-Party Logistics Analytics SPS Commerce Competitive Differentiation Universal Collaboration At Scale Transforming how Retail Supply Chain partners work together. PAY Supply Chain ANALYZE Full-Service Suite of Solutions Industry Experts $ © 2025 SPS Commerce | 6
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Uniquely Positioned to Support All Trading Relationships 400+ System Partners Security Certified 2,000+ 3PLs 3,500 Buying Organizations Retail • Distribution Grocery • Manufacturing 50,000+ Recurring Revenue Customers* All Fulfillment Models All Channels + *We define recurring revenue customers as customers with active contracts during the reporting period to regularly pay us fees for subscription-based and reoccurring services. © 2025 SPS Commerce | 7
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Viral Lead Generation Tremendous go-to-market leverage from our network model and retail motion MARKETING PARTNERS Retailer Change Events SPS Retail Programs Trading Partner & Product Adds © 2025 SPS Commerce | 8
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OUR COMPETITIVE ADVANTAGE Our network model is a growth multiplier. © 2025 SPS Commerce | 9
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Inherent Growth Levers Land new customers & expand network • Retail programs • Channel sales • Marketing Increase ARPU* • Upsell opportunities • Cross-sell products • Customer size Consolidation Opportunities • Customer • Product • Technology • Geography *We calculate the annualized average recurring revenues per recurring revenue customer, which we also refer to as ARPU, by dividing the annualized recurring revenues for the period by the average of the beginning and ending number of recurring revenue customers for the period. © 2025 SPS Commerce | 10
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Serving a Large and Growing Global Market U.S. TAM $6.5B Global TAM $11.1B © 2025 SPS Commerce | 11 Source: TAM Analysis and Market Penetration Study leveraging US Census NAICS Codes across Retail (42 Wholesalers), Distribution (42 Wholesalers), CPG/Finished Goods (31-33 Manufacturing), Retailers/Stores acting as suppliers (44-45 Retail Trade) as of February 2025.
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Global Market Opportunity Q3 2025 Opportunity* Recurring Revenue Customers 54,950 275,000 Average Recurring Revenue/ Customer** $13,300 $40,500 Global TAM $11.1B © 2025 SPS Commerce | 12 *Source: TAM Analysis and Market Penetration Study leveraging US Census NAICS Codes across Retail (42 Wholesalers), Distribution (42 Wholesalers), CPG/Finished Goods (31-33 Manufacturing), Retailers/Stores acting as suppliers (44-45 Retail Trade) as of February 2025. **We calculate the annualized average recurring revenues per recurring revenue customer, which we also refer to as ARPU, by dividing the annualized recurring revenues for the period by the average of the beginning and ending number of recurring revenue customers for the period.
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~80% of customers 10 - 15% of customers <10% of customers SPS 2024 ARPU* $13,300 ARPU Opportunity $40,500 Significant ARPU Expansion within Existing Base Average Recurring Revenue Recurring Revenue Customers *Distribution similar across small, medium and large customer groups. © 2025 SPS Commerce | 13 *We calculate the annualized average recurring revenues per recurring revenue customer, which we also refer to as ARPU, by dividing the annualized recurring revenues for the period by the average of the beginning and ending number of recurring revenue customers for the period.
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Deeper Look: Inside Total U.S. Addressable Market Small Medium Large 146,500 $44,500 Recurring Revenue Customers Recurring Revenue/ Customer Opportunity $6.5B Customer GroupsU.S. TAM* Annual Revenue ≤$50M Annual Revenue $50M – $300M Annual Revenue $300M+ © 2025 SPS Commerce | 14 *Source: TAM Analysis and Market Penetration Study leveraging US Census NAICS Codes across Retail (42 Wholesalers), Distribution (42 Wholesalers), CPG/Finished Goods (31-33 Manufacturing), Retailers/Stores acting as suppliers (44-45 Retail Trade) as of February 2025.
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Deeper Look: U.S. Customer Groups Small Medium Large Description Small-scale businesses operating with a small number of Retailers and have on average fewer transactions Annual Revenue: $0 – $50M Typically <100 FTEs Midsize Suppliers with broader customer reach and trading at larger scale than small businesses Annual Revenue: $50M – $300M Typically 100-499 FTEs Large Suppliers selling multiple product lines, to many Retailers, across multiple verticals Annual Revenue: $300M+ Typically 500+ FTEs Opportunity - Recurring Revenue Customers 127,500 12,800 6,300 Opportunity - Average Recurring Revenue /Customer $32,500 $94,000 $184,500 © 2025 SPS Commerce | 15 *Source: TAM Analysis and Market Penetration Study leveraging US Census NAICS Codes across Retail (42 Wholesalers), Distribution (42 Wholesalers), CPG/Finished Goods (31-33 Manufacturing), Retailers/Stores acting as suppliers (44-45 Retail Trade) as of February 2025.
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Case Study: Small Customer Customer Group: Small Customer Type: Supplier Annual Company Revenue: $0-$50M 2023 2024 Fulfillment Fulfillment 1 Trading Partner 10 Trading Partners 100 Documents 1200 Documents A U.S. based company supplying hygiene products for public facilities. 2-year SPS relationship, started with Fulfillment, upsold trading partners and increased document volume and plan. 6x growth in revenue 1 Product 1 Product © 2025 SPS Commerce | 16
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Case Study: Medium Customer Customer Group: Medium Customer Type: Distributor Annual Company Revenue: $50M-$300M Fulfillment 1 Trading Partner 23 Trading Partners 100 Documents A U.S. based factory selling technology products including electronics and appliances. 11-year SPS relationship started with Fulfillment, upsold trading partners, cross-sold product capabilities, increased document volume and plan. 110x growth in revenue 2013 2024 Fulfillment $ 90,000 Documents Revenue Recovery 1 Product 2 Products © 2025 SPS Commerce | 17
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Case Study: Large Customer Customer Group: Large Customer Type: Supplier Annual Company Revenue: $300M+ 2010 2020 2023 2024 AssortmentFulfillment Analytics Fulfillment Analytics Fulfillment Assortment Analytics Fulfillment 26 Trading Partners 32 Trading Partners 13,200 Documents 900,000 Documents A U.S. based supplier of products including lighters, lifestyle accessories, and eye-wear. 14-year relationship, started with Fulfillment, leveraged testing services, upsold trading partners, cross-sold product capabilities, increased document volume and plan. 15x growth in revenue 1 Product 3 Products © 2025 SPS Commerce | 18
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Operating Model 2024 Actual Target Model Revenue Growth (%) 19% > High Single Digits (excluding future acquisitions) Gross Margin (% of revenue) 67% 70 – 75% Expenses (% of revenue) Research & Development 10% 9 – 12% Sales & Marketing 23% 18 – 22% General & Administrative 16% 10 – 15% Adjusted EBITDA Margin* 29% 35+% Attractive durable revenue growth and strong operating leverage © 2025 SPS Commerce | 19 *Company expects to expand Adjusted EBITDA Margin by 2% annually, as per Company guidance provided on July 30, 2025.
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Predictable Revenue & Adjusted EBITDA Growth Revenue ($M) Adjusted EBITDA ($M) CAGR 16% CAGR 28% © 2025 SPS Commerce | 20* 2025 estimate based on midpoint of company guidance provided on October 30, 2025. 193 220 248 279 313 385 451 537 638 753 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025* 25 34 51 70 87 107 132 158 187 231 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025*
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Key Metrics Recurring Revenue Customers ('000) ARPU** ($K) CAGR 8% CAGR 8% © 2025 SPS Commerce | 21 24.8 25.8 29.3 30.8 33.2 37.5 42.3 44.8 45.4 54.2 54.5 55.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1'25*Q2'25Q3'25 7.4 8.1 8.4 8.7 9.3 10.1 10.5 11.6 13.3 13.9 13.2 13.3 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1'25*Q2'25Q3'25 *Approximately 8,500 recurring revenue customers were added in February 2025 due to the acquisition of the existing customer base of Carbon6. **We calculate the annualized average recurring revenues per recurring revenue customer, which we also refer to as ARPU, by dividing the annualized recurring revenues for the period by the average of the beginning and ending number of recurring revenue customers for the period.
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Corporate Responsibility – Focus Areas We strive to use our global resources wisely and enable our customers to minimize their own impacts on the environment. We strive to create an SPS employee experience where our people feel inspired, empowered and integral to our mission. Our global teams are invested in the success of local communities; we encourage volunteerism and support social impact initiatives. Our board provides best in class strategic and risk management including oversight of SPS’ corporate responsibility focus areas. Environmental Stewardship Employee Belonging Giving Back Governance © 2025 SPS Commerce | 22
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Industry Leading Products & Solutions Large & Expanding Market Opportunity $11.1B Global TAM* Investment Highlights Established & Growing Global Footprint Multinational customers supported by operations in NA, EU, APAC Track Record of Sustained Growth Proven GTM Motion Unique, viral lead generation engine © 2025 SPS Commerce | 23 *Source: TAM Analysis and Market Penetration Study leveraging US Census NAICS Codes across Retail (42 Wholesalers), Distribution (42 Wholesalers), CPG/Finished Goods (31-33 Manufacturing), Retailers/Stores acting as suppliers (44-45 Retail Trade) as of February 2025.
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• Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures of financial performance. We believe that these non-GAAP financial measures provide useful information to our management, board of directors, and investors regarding certain financial and business trends relating to our financial condition and results of operations. • Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses and planning purposes. Adjusted EBITDA is also used for purposes of determining executive and senior management incentive compensation. We believe these non-GAAP financial measures are useful to an investor as they are widely used in evaluating operating performance. Adjusted EBITDA and Adjusted EBITDA Margin are used to measure operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of capital structure and the method by which assets were acquired. • These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in our consolidated financial statements and are subject to inherent limitations. See corresponding filings with the SEC (Form 10-K or Form 10-Q) for further detail on other adjustments included in non-GAAP financial measures. • Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain or loss from investments held and foreign currency impact on cash and investments, investment income, and other adjustments as necessary for a fair presentation. Net income is the comparable GAAP measure of financial performance. • Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue. • The following tables provide a reconciliation of net income to Adjusted EBITDA and the calculation of Adjusted EBITDA Margin: The years ending December 31, 2017 and 2016 were adjusted for ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs – Contracts with Customers (Subtopic 340-40), adopted on January 1, 2018 and retrospectively applied for the two years ended December 31, 2017 and 2016. Reconciliation of Non-GAAP Financial Measures Appendix A © 2025 SPS Commerce | 25