What changed in this filing

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Item 1. Business

2026-02-19 compared with 2025-02-19 · 95 added, 145 removed, 115 unchanged (68% of the section changed)

SPS Commerce is transforming how our global retail supply chain co-operates by creating a more dynamic, interconnected community where players can more freely connect, collaborate, and prosper together.

Our comprehensive suite of cloud-based products and solutions lead the industry in establishing and maintaining stronger collaboration between retailers, grocers, distributors, suppliers, manufacturers, and logistics firms around the globe.

Our products enable customers to enhance how they operate:

both within their organizations and with their trading partners, with reduced operational costs and stronger supply chain performance;

with order and supply chain visibility, sell-through data, and optimized inventory management, and;

through the limitless access to connect and grow with the world’s largest retail network of trading partners that only SPS Commerce can offer.

As of December 31, 2024, we had approximately 45,350 customers with an active recurring revenue contract at the end of the period, which we refer to as recurring revenue customers, across approximately 90 countries .

Once connected to the SPS Commerce cloud-based retail network, our recurring revenue customers often require additional integrations to new organizations that represent an expansion of our cloud-based network and new sources of revenues for us.

SPS Commerce is a global supply chain network that connects retailers, brands, distributors, manufacturers, and logistics providers through shared infrastructure built to handle the complexity of modern commerce operations.

Our network enables companies to connect once and immediately transact with thousands of trading partners without negotiating standards, building integrations, or maintaining compliance logic.

Our network powers our portfolio of solutions that orchestrate the critical processes, protocols, and data exchanges needed to get the right product, in the right place, at the right time, every time.

We have embedded deep expertise, proven processes, and compliance logic built from over 20 years of commerce intelligence into every connection, delivering a full-service experience that empowers partners to move forward faster, together.

For the years ended December 31, 2025, 2024, and 2023, we generated revenues of $751.5 million, $637.8 million, and $536.9 million, respectively.

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Our revenues are not concentrated with any customer, as our largest customer represented less than 1% of total revenues for the years ended December 31, 2025, 2024, and 2023.

Increasing Demand for a Retail Network

The retail industry is constantly evolving, and consumers expect more, which has accelerated the need for a more automated supply chain.

To navigate disruptions and meet growing consumer demands, companies across the retail ecosystem need to integrate their operations and communications from wholesale, eCommerce, and marketplace sales channels into a single omnichannel process.

These channels no longer operate independently but instead in an interconnected fashion as consumers demand more buying and delivery options.

The coordination needed to manage multiple channels adds complexity to supply chains and trading partner relationships.

The SPS Commerce retail network offers a single destination where companies can manage item details, orders, shipments, invoices, and much more for any customer and any channel.

SPS Commerce operates one of the largest retail networks in the world to improve the way retailers, grocers, distributors, suppliers, and logistics firms work together.

Our recurring revenue customers use SPS Comm erce products to expand and optimize the performance of their trading relationships through the network.

Our products fundamentally change how organizations communicate information to manage their omnichannel, supply chain, and other business requirements.

Our products replace traditional, manual, or disparate approaches (such as email, phone, and fax), multiple channel-specific solution providers, as well as custom-built, point-to-point integrations by delivering a single smart connection to the entire SPS Commerce retail network of prebuilt connections to thousands of global trading partners.

Increasing Demand for a Supply Chain Network

Global commerce is constantly evolving, and consumer expectations continue to rise, accelerating the need for automated, coordinated supply chain operations.

To navigate disruptions and meet growing demands, companies across the commerce ecosystem must orchestrate operations across wholesale, eCommerce, marketplace, and direct-to-consumer channels simultaneously.

These channels no longer operate independently, and consumers expect a seamless experience regardless of how or where they shop.

Managing this complexity across multiple trading partners, fulfillment models, and compliance requirements creates operational burden that most companies cannot efficiently handle on their own.

SPS Commerce operates a global supply chain network where companies connect once and can immediately transact with thousands of trading partners across any channel.

We maintain the compliance rules, connection protocols, and data standards while our teams handle onboarding, monitor transactions, resolve exceptions, and optimize operations continuously.

Our products include:

• Fulfillment - Our Fulfillment product offers a comprehensive solution designed to streamline supply chain operations.

Our connections empower retailers, grocers, distributors, suppliers, manufacturers, and logistics firms to efficiently send and receive order data, ensuring accurate execution of required processes from order to invoicing and revenue recovery through fully automated operations.

Our connections empower retailers, brands, distributors, manufacturers, and logistics providers to efficiently send and receive order data, ensuring accurate execution of required processes from order to invoicing and revenue recovery through fully automated operations.

By integrating seamlessly with existing systems, Fulfillment enhances day-to-day efficiency, reduces errors, and provides real-time visibility across all of our customers' order channels.

SPS COMMERCE, INC.

Form 10-K for the Annual Period ended December 31, 2024

• Analytics - Our Analytics product simplifies managing sell-through data from our customers’ business partners.

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◦ Assortment - Our Assortment product simplifies the communication of robust, accurate item data by automatically translating item attributes and hierarchies through a single connection across all sales channels.

◦ Community - Our Community product allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through proven change management, onboarding programs, and supplier score carding.

In addition to these offerings, we also provide one-time services such as professional services and testing and certification.

◦ Relationship Management - Our Relationship Management product (formerly known as Community) allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through proven change management, onboarding programs, and supplier score carding.

SPS COMMERCE, INC.

Form 10-K for the Annual Period ended December 31, 2025

By embedding expertise, proven processes, and compliance logic into the network itself, we enable companies to participate in modern omnichannel commerce without building or managing the infrastructure themselves.

Our recurring revenue customers use the network to expand and optimize their trading relationships while we handle the operational complexity.

In addition to these offerings, we also provide one-time services such as professional services as well as testing and certification.

Growing Our Network

As one of the largest providers of cloud-based services for retail supply chain management, SPS Commerce enables trading partner relationships among retailers, grocers, distributors, suppliers, manufacturers, and logistics firms that naturally lead to new customer acquisition opportunities.

As one of the largest providers of cloud-based services for supply chain management, SPS Commerce enables trading partner relationships among retailers, grocers, distributors, suppliers, manufacturers, and logistics firms that naturally lead to new customer acquisition opportunities.

“Network Effect”

Once connected to our retail network, trading partners can exchange electronic supply chain information with each other.

The value of our network increases with the number of trading partners connected to it.

After joining our retail network, customers often find that many of their existing or new trading partners are already on the network, allowing for easy connections.

The addition of each new customer enables that customer to communicate with our existing customers and permits our existing customers to do business with the new customer.

This “network effect” of adding additional customers to our products’ infrastructure creates a significant opportunity for existing customers to realize incremental sales by working with our new trading partners and vice versa.

As a result of this increased volume of activity among our network participants, we earn additional revenues from these participants.

The value of our network increases exponentially with scale.

After joining, customers typically discover that many of their existing or prospective trading partners are already connected, enabling immediate transaction capability.

Each new participant can instantly communicate with our existing network of global connections, and existing participants gain access to transact with each new addition.

This network effect creates significant opportunity for participants to realize incremental business.

Suppliers can more easily onboard new retail customers.

Retailers can more quickly activate new suppliers.

Logistics providers can seamlessly integrate with new fulfillment relationships.

As transaction volume grows among network participants through these expanded relationships, we earn additional revenue from increased activity across the network.

Our customers grow their business relationships more efficiently, and we grow alongside them.

Customer Acquisition Sources

Community - As retailers and suppliers reshape how they do business in an omnichannel landscape, they need to bring new capabilities and services to their trading partner networks.

Our Community product is designed to manage this process and bring suppliers into compliance with new requirements.

Relationship Management - As retailers and suppliers reshape how they do business in an omnichannel landscape, they need to bring new capabilities and services to their trading partner networks.

Our Relationship Management product is designed to manage this process and bring suppliers into compliance with new requirements.

For instance, a supplier may wish to collaborate with their retailers around point-of-sale analytics data, or a retailer may decide to change the workflow or protocol by which it interacts with its suppliers.

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Our logistics partners also drive new sales both by providing leads and by embedding our products as part of their service offerings .

SPS COMMERCE, INC.

Form 10-K for the Annual Period ended December 31, 2024

Our Growth Strategy

Our objective is to be the leading global retail network and provider of supply chain management products.

Our objective is to be the leading global supply chain network and provider of supply chain management products.

Key elements of our strategy include:

• Further Penetrate Our Current Market - We believe the global supply chain management market is underpenetrated.

As the retail industry continues to respond to the changing requirements of the omnichannel marketplace, and as the supply chain ecosystem becomes more complex and geographically dispersed, we believe the demand for supply chain management solutions will increase.

As the retail industry continues to respond to the changing requirements of the omnichannel marketplace, and as the supply chain ecosystem becomes more complex and geographically dispersed, we

SPS COMMERCE, INC.

Form 10-K for the Annual Period ended December 31, 2025

believe the demand for supply chain management solutions will increase.

We intend to continue leveraging our relationships with customers and their trading partners to obtain new sales leads.

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We plan to continue to evaluate potential acquisitions based on the number of new customers, revenue, functionality, or geographic reach the acquisition would provide relative to the purchase price, and our ability to integrate and operate the acquired business.

In 2024, we acquired SupplyPike, Inc.

("SupplyPike"), a revenue recovery solution, Traverse Systems LLC ("Traverse Systems"), an industry-leading provider in retailer supply chain performance and vendor management, and Vision33's SAP Business One SPS Integration Technology.

These acquisitions further extend the capabilities of our network and added new customers and technology.

In 2025, we acquired Carbon6 Technologies Inc.

("Carbon6"), a provider of software tools to Amazon.com, Inc.

sellers, including specialized offerings for revenue recovery for both first-party ("1P") and third-party ("3P") suppliers.

This acquisition further extends the capabilities of our network and added new customers and technology.

Our Market Opportunity

We believe we have a significant market opportunity to help organizations accelerate their omnichannel retail strategies with our retail network and supply chain products.

We believe we have a significant market opportunity to help organizations accelerate their omnichannel retail strategies with our supply chain network and supply chain products.

• Omnichannel retail requires new connections/transactions - Each sales channel (wholesale, eCommerce, and marketplaces) brings new trading partners to the supply chain process.

As customers expand their business, the SPS Commerce retail network is a core part of their omnichannel strategy.

As customers expand their business, the SPS Commerce supply chain network is a core part of their omnichannel strategy.

Each additional channel brings more reliance and volume to the network and increases customer revenue.

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Businesses using SPS Commerce products to automate supply chain functions with their trading partners can pivot quickly to new delivery models and capture market share.

The visibility into orders, shipments, and inventory gained by automating trading relationships on the SPS Commerce retail network is critical to their success and offers a competitive advantage.

SPS COMMERCE, INC.

Form 10-K for the Annual Period ended December 31, 2024

The visibility into orders, shipments, and inventory gained by automating trading relationships on the SPS Commerce supply chain network is critical to their success and offers a competitive advantage.

• Consumers want new products - Retail assortments are ever-changing with seasonality shifts and new product introductions from companies of all sizes.

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As retailers evolve, their trading partner relationships must support any new product introductions or new suppliers to achieve their merchandising goals.

The SPS Commerce retail network automates these relationships to quickly secure product details, initiate orders, and track performance to help keep operations running smoothly.

The SPS Commerce supply chain network automates these relationships to quickly secure product details, initiate orders, and track performance to help keep operations running smoothly.

SPS COMMERCE, INC.

Form 10-K for the Annual Period ended December 31, 2025

Technology, Development and Operations

SPS Commerce was an early provider of cloud-services to the retail supply chain management industry, launching the first version of what would become our current services in 1997.

SPS Commerce was an early provider of cloud-services to the supply chain management industry, launching the first version of what would become our current services in 1997.

We use commercially available hardware and cloud-services with a combination of proprietary and commercially available software.

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Our multi-tenant products serve all of our customers, which allows us to maintain relatively low research and development expenses and release software updates more frequently compared to traditional on-premise licensed software products that support multiple versions.

Our development efforts take place at our United States ("U.S.") locations in Minnesota, Iowa, Arkansas, and New Jersey, as well as in Melbourne, Australia;

Our development efforts take place at our United States ("U.S.") locations in Minnesota, Arkansas, and New Jersey, as well as in Melbourne, Australia;

Toronto, Canada;

Breukelen, Netherlands;

Warsaw, Poland;

and Kyiv, Ukraine.

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• Events - Highlights our presence at industry trade shows and orchestrates virtual and in-person events.

SPS COMMERCE, INC.

Form 10-K for the Annual Period ended December 31, 2024

Customer Success

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traditional on-premise software, managed services, and cloud-based full-service products.

SPS COMMERCE, INC.

Form 10-K for the Annual Period ended December 31, 2025

The market for cloud-based supply chain management products is fragmented and rapidly evolving.

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Full-service cloud-based vendors compete with both managed service providers and traditional on-premise software products based on the total cost of ownership and flexibility.

SPS COMMERCE, INC.

Form 10-K for the Annual Period ended December 31, 2024

Intellectual Property and Proprietary Content

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Registrations of trademarks can also generally be renewed indefinitely as long as the trademarks are in use.

We have two patents acquired through the acquisitions of GCommerce, Inc.

and SupplyPike, Inc.

We have a number of patents acquired through acquisitions.

Our trade secrets consist primarily of the software we have developed for our SPS Commerce cloud-based products and network.

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Human Capital

At SPS, we recognize that our employees are crucial to our ongoing growth and success.

Our core values shape our culture and serve as the foundation for fostering an engaging workplace, attracting the right talent, and developing our teams.

These values also inform how we interact with customers, partners, and each other.

By nurturing an inclusive and high-performing culture, we attract, retain, and reward outstanding talent, providing employees with meaningful work and opportunities for personal and professional growth.

Oversight and Governance

Our board of directors, along with the Compensation and Talent Committee, oversees our human capital management as well as our diversity, equity, and inclusion initiatives.

They receive consistent updates from our Chief Human Resources Officer about key strategic initiatives and other significant human resources matters, which include hiring, development, retention, employee engagement, succession planning, compensation and benefits, and risks associated with human resources.

As of December 31, 2024, we had a total of 2,783 employees worldwide, including 1,355 in cost of revenues, 733 in sales and marketing, 461 in research and development, and 234 in general and administrative.

82% are based in North America with the remaining in Europe and Asia Pacific.

The majority of our employees are engaged on a full-time basis.

We also utilize third-party agencies for staff augmentation to enhance our operations.

While we have statutory obligations for employee representation in certain countries, none of our U.S.

employees are unionized.

38% of our global workforce identify as female and 2% did not specify their gender.

Within the U.S.

17% of our employees self-identified as members of an underrepresented group.

As of December 31, 2024, our executive team is comprised of 6 individuals, of which one-third are women.

Belonging@SPS

We power connections that drive the world of commerce forward, and our success depends on making strong decisions, fostering innovation, delivering unparalleled customer solutions, and driving outstanding business performance.

We achieve this by creating an environment where every employee feels a true sense of belonging.

We are committed to creating an environment where everyone feels welcomed, valued, and empowered to contribute meaningfully.

In 2024, we launched Belonging@SPS as a thoughtful update to our diversity, equity, inclusion, and belongin g ("DEI(B)") statement and strategy.

This initiative was shaped by employee feedback, designed to better reflect our core values, and tailored to ensure global relevance.

We bring this commitment to life by embedding it into our human resources processes and integrating it into our talent strategies.

Our Employee Resource Groups ("ERGs"), a core part of our Belonging@SPS commitment, foster employee connections across the globe, and provide learning, engagement, and community-building for all SPS Commerce employees.

We added two new ERGs in 2024, the Disability Empowerment Network and A+ (Asian, Native Hawaiian & Pacific Islanders).

All employees are encouraged to participate in one or more of our ERGs, which also include our Black Business Resource Group, the LGBTQ+ Group, and Women in Tech.

At SPS, our ability to execute our mission - to power the connections that move the world of commerce forward - is fundamentally dependent on the quality, expertise, and velocity of our human capital.

Our strategy is built on the principle that to sustain and grow the world’s largest supply chain network, we must invest in our people who possess the specific competencies required to maintain the reliability and scale of our cloud-based platform, accelerate our customers' adoption of omnichannel commerce, and navigate the increasingly complex global supply chain compliance requirements.

SPS COMMERCE, INC.

Form 10-K for the Annual Period ended December 31, 2025

We have taken meaningful steps to advance our commitment to diversity and inclusion by collaborating with local organizations that support underrepresented communities, including individuals with disabilities and those who are neurodiverse.

Through these partnerships, we gain valuable insights into equipping our workplace with the tools and resources needed for every employee to succeed.

Furthermore, our Talent Acquisition team has a focus area on recruiting individuals with disabilities and neurodiverse candidates, fostering an inclusive hiring process from initial recruitment to onboarding and ongoing professional development.

Since 2021, all new hires have participated in an interactive inclusion curriculum.

In 2024, we refreshed our new employee Belonging@SPS onboarding experience to identity awareness and belonging, focused on creating a safe work environment where employees feel comfortable bringing their full authentic selves to the workplace.

Additionally, we continue to provide all managers with resources to support building inclusive teams.

For over a decade, SPS has invested in and supported the communities in which we live and work, focused on efforts that expand our future talent pipeline by helping to develop the workforce of tomorrow.

Over the years we have invested in student programs focused on creating opportunities for high school and college students who are part of underrepresented populations including women, genderqueer and non-binary individuals, and racial minorities.

Interns make a meaningful impact by supporting real world projects.

They work in all areas of the business and have access to mentorship, job shadows, and other professional development opportunities.

Established in 2020, the SPS Diverse Scholar Program supports diverse first-generation college students (through funding from the SPS Foundation) pursuing a career in technology.

In addition to receiving funding for their education, our diverse scholars participate in our internship program, have access to mentors, are offered part-time work during the school year, and are connected to a wide range of business professionals.

Additionally, as a federal contractor we comply with applicable federal contractor affirmative action requirements.

By embedding Belonging@SPS across the Company, we have built a solid foundation for sustainable growth.

This dedication empowers us to foster an environment where every employee can thrive while enhancing our ability to serve and engage with customers and markets across the globe.

Talent Acquisition, Engagement, and Retention

We work diligently to attract the best talent from a variety of sources to meet current and future business needs.

We have cultivated relationships with many colleges and universities, including Historically Black Colleges and Universities ("HBCUs"), industry groups, professional associations, and other student programs focused on recruiting women, non-binary and genderqueer, minorities, and individuals with disabilities.

Our campus program focuses on bringing in talent with experience from schools that are leaders in technology, supply chain, engineering, and business.

64% of our most recent campus cohort hires identify as underrepresented minorities.

We regularly survey our employees to better understand their perspectives and where we can focus to improve their experience.

Our 2024 employee engagement survey indicated a positive engagement score of 70%, which is higher than the benchmark provided by our survey vendor both globally and for North American companies of similar size or within our sector.

Additionally, our belonging index continues to score higher than benchmarks with an 81% positive perception score.

Our 2024 employee retention rate was 91%.

We believe our strong company culture and focus on providing meaningful work, professional development, flexible work options, competitive pay and benefits, as well as our commitment to belonging contributes to our high employee retention.

Growth and Development

We are shifting training and development from a traditional, program-centric model to a learner-driven strategy that empowers employees to take ownership of their professional growth.

Our focus is on fostering a culture where learning how to learn is as critical as acquiring specific skills.

This evolution represents more than a tactical shift;

it’s a cultural transformation built on our longstanding commitment to learning, which is ingrained in the fabric of our organization.

Our goal is to foster a mindset of continuous reinvention, preparing our teams to meet today’s challenges while adapting to the rapid evolution of global commerce.

In 2024, we took significant steps toward establishing a dynamic, experiential learning model designed to drive performance and behavioral change through active engagement in daily work.

Development of our employees and leaders results in high performing teams who are empowered to grow their careers and deliver exceptional results, beginning on the first day of employment with SPS.

When new employees join

This focus positions our human capital as a long-term competitive asset, directly enabling customer success and driving profitable growth.

As of December 31, 2025, our total workforce has increased to 2,948 worldwi de.

39% of our global workforce identifies as female and 2% did not specify their gender.

Within the U.S.

13% of our employees self-identified as members of an underrepresented group.

Our executive team is comprised of 7 individuals, of which 43% are women.

While 78% of our workforce is based in North America, we continue to build critical skills and capabilities in Europe and Asia Pacific.

In addition to having statutory obligations for employee representation in certain countries, we are keenly focused on our delivered employee experience.

Talent Acquisition, Learning and Development, Belonging, Engagement & Retention

In 2025, we implemented a more formalized strategic workforce planning methodology building plans across the enterprise to recruit, develop and deploy the talent needed to build the solutions and services that will power SPS’s future growth.

SPS strengthened its global talent pipeline in 2025, attracting and retaining critical skills aligned to our strategic capabilities - including technology, customer success, and go-to-market execution.

90% of hires supported these priority areas.

We invested in employer branding, global recruiting infrastructure, and early-career programs to expand reach and help SPS continue to attract top talent to drive business growth.

In 2025, as part of a multi-year learning culture transformation, we introduced a new Learning and Development strategy, one that builds a learning culture, delivers learning experiences in the flow of work and empowers employees to take ownership of their professional and career growth.

In furtherance of that strategy, we deployed an artificial intelligence ("AI")-enabled learning platform that provides our employees with visibility to in-demand skills and offers personalized learning content supporting their professional development and helping SPS develop the skills and capabilities key to driving our business strategy.

At SPS we maintain a strong commitment to Belonging, helping everyone feel accepted, valued, and empowered to make a meaningful impact.

Our company’s core value of “Employees First” clearly states our commitment and we are measuring employee perceptions related to Belonging through our employee listening program.

That commitment is evident in our workforce, recruiting efforts and our community engagement.

SPS has actively engaged Employee Resources Groups, each sponsored by a business executive and open to all employees, providing employees a forum to share their ideas to continually improve the employee experience and build community bridges.

We have relationships with the Wallin Education Partners and a Diverse Scholar Program that supports diverse college students pursuing careers in technology.

In addition to receiving funding for their education, participants are offered internships, have access to mentorship and are connected to business professionals across our organization.

In 2025, we strengthened our community engagement by launching Commerce with Purpose, an inclusive sourcing and community impact initiative focused on building partnerships with diverse vendors operating in the communities where we live and work.

We also launched Let’s Chat SPS in 2025, a global employee connection program to foster meaningful relationships across Team SPS.

These actions continue to build on our Belonging@SPS program and strengthen our foundation for sustainable growth.

To retain the talent we work hard to attract, we regularly survey our employees.

The insights we gain deepen our understanding of their perspectives and our opportunities to improve their experience.

In 2025, we conducted an Organizational Health and Culture survey focused on both the employee experience and organization culture.

We see both as critical enablers of our business strategy, our ability to meet the needs of our customers, and our ability to attract and retain the necessary talent.

As a result of our strong company culture and focus on providing meaningful work, professional development, flexible work options, competitive pay and benefits, as well as our commitment to belonging, our 2025 employee retention rate was 88%.

SPS COMMERCE, INC.

Form 10-K for the Annual Period ended December 31, 2025

SPS, they attend a robust new hire onboarding program that focuses on the skills necessary to become productive employees, including training on company technology, collaboration tools, our company culture, values, and a comprehensive Belonging@SPS experience.

Onboarding is followed by on-the-job training and regular performance and development discussions between employees and their managers.

We are committed to providing ongoing opportunities for employees to build new skills, excel in their current roles, and prepare for future opportunities.

Every employee has access to an online learning platform that supports their growth, along with resources designed to help them explore and advance into management roles.

Looking ahead, we are placing a strong emphasis on professional development at the highest levels of the Company.

Our aim is to equip leaders and managers with the mindsets, tools, and practical experience needed to excel while empowering their teams to achieve success.

We assess leadership talent across the organization through a rigorous talent review process, allowing us to distinguish individuals based on performance and potential.

This process forms the foundation for succession planning in critical roles.

Additionally, our performance review framework integrates the SPS leadership model, ensuring leaders are evaluated not only on their outcomes but also on how well they exemplify essential leadership competencies.

As we grow, we remain committed to cultivating an environment that promotes continuous learning, supports career mobility, and empowers employees to build the skills and connections needed to thrive.

Our initiatives are focused on driving success for our people and customers, propelling the growth of the Company.

The SPS Leadership Model is built on four key pillars:

People Developer, Culture Champion, Strategist, and Results Enabler.

These competencies shape our leadership development programs as we continue to create tools and resources to enhance our leaders’ ability to grow and scale their teams effectively.

In 2024, our senior leadership team completed 360-degree assessments, leveraging the insights to incorporate their strengths and growth opportunities into personalized development plans.

Additionally, we conducted a thorough organizational talent review to evaluate leadership across all levels, allowing us to distinguish talent based on both performance and potential.

Total Rewards and Employee Well-being

At SPS, our total rewards strategy is designed to support the financial, physical, and mental well-being of our employees and their families.

We offer market-competitive pay and comprehensive benefits programs tailored to our global workforce.

Our packages are thoughtfully crafted to attract, retain, and motivate top talent, featuring robust healthcare offerings, an employee stock purchase plan available in most jurisdictions, and other region-specific benefits.

Total Rewards, Governance & Oversight and Well-Being

At SPS, we believe that a sense of well-being is the result of our employees feeling balanced, resilient and energized resulting in high performance and critical talent retention.

We understand that work is only one part of life, so we offer benefit plans, programs and culture that supports and enables the full spectrum of employees’ career, financial, mental, physical and social needs of our global workforce.

We are committed to equitable pay practices, ensuring employees are compensated fairly regardless of gender, race, or ethnicity.

To uphold this commitment, we regularly review pay data in the U.S.

and other regions to ensure fairness and equity.

At SPS, employee well-being is a core priority.

We are dedicated to fostering a holistic approach to well-being that encompasses physical, mental, financial, career, and social dimensions.

Through our partnership with a global Employee Assistance Program (EAP), we provide curated mental health and wellness webinars, access to licensed mental health professionals, and complimentary sessions for employees and their dependents.

In the U.S., our healthcare platform offers virtual mental health solutions, featuring tools for mindfulness, meditation, and overall wellness support.

In 2023, we introduced the Wellbeing at SPS intranet site, providing a centralized hub for employees to easily access our comprehensive well-being programs.

In 2024, we emphasized the importance of preventive care, encouraging employees to take proactive steps in managing their physical and mental health, fostering a healthier and more productive workforce.

Additionally, SPS expanded its focus on financial well-being by offering educational resources and support programs aimed at empowering employees to achieve financial security and stability.

SPS COMMERCE, INC.

Form 10-K for the Annual Period ended December 31, 2024

To uphold this commitment, we regularly review pay data for fairness and equity.

Succession and Governance

Annually, our Chief Human Resources Officer works with our Board of Directors to review SPS’s critical leadership roles and maintain a robust plan for ready-now successors.

Those plans are the culmination of a rigorous talent review process executed company-wide based on the SPS Leadership Model that lays out clear expectations of both performance and behaviors distinguishing our high potential leadership talent.

Social Responsibility and Sustainability

At SPS Commerce, our commitment to positive change extends well beyond advancing commerce.

A key pillar of our Environmental, Social, and Governance ("ESG") strategy is fostering a culture of giving, where employees are empowered to make meaning contributions to their communities.

One of our core values, “Give Back,” reflects our belief that generosity and compassion can create lasting impact.

This is demonstrated through the work of the SPS Foundation, our corporate donations and sponsorships, and the numerous volunteer initiatives we support, which plays a crucial role in shaping the future of our communities.

Together, these efforts exemplify our dedication to making a difference in the communities where we live and work.

Available Information

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business