Minneapolis software firm SPS Commerce explores sale
SPS Commerce has reportedly hired Morgan Stanley to explore a potential sale amid activist pressure and a steep share-price decline.[1]
The company's shares have fallen about 60% in the past year, leaving its market value near $2 billion despite double-digit revenue growth in 2025.[1] SPS generated $751.5 million in revenue for fiscal 2025, up 18% from $637.8 million in 2024.[1]
Irenic Capital Management disclosed a stake and began pressing for a strategic review, including a possible sale, in late January 2026. Anson Funds disclosed its stake and entered a cooperation agreement with SPS on February 12, 2026, which led to the addition of two independent directors. Following the February agreement, the company replaced longtime CFO Kim Nelson with Joseph Del Preto, formerly CFO at Sprout Social.
SPS now has more than 50,000 subscribing customers and processes over 750 million transactions annually, powering more than $650 billion in gross merchandise value. A sale would test appetite for mid-cap software deals and could quickly reprice similar SaaS names if a buyer pays a premium.
The mainstream summary does not mention the significant context surrounding SPS Commerce's share price decline, which has reportedly dropped 80% rather than the 60% stated. This stark contrast highlights the severity of the company's challenges, particularly in light of its 18% revenue growth in 2025. Activist investors like Anson Funds and Irenic Capital have not only pressed for a strategic review but have also influenced leadership changes, including the replacement of the longtime CFO, indicating deeper governance issues than the summary suggests. Furthermore, while the mainstream account notes the hiring of Morgan Stanley to explore a sale, it does not capture the broader implications of this potential sale on the mid-cap software market, where a successful transaction could lead to a revaluation of similar SaaS companies. This perspective is underscored by social media discussions that frame the activist pressure as a potentially positive risk-reward setup for investors, contrasting with the more neutral tone of the summary.
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📊 Relevant Data
SPS Commerce generated $751.5 million in revenue for fiscal year 2025, up 18% from $637.8 million in 2024.
SPS Commerce Reports Fourth Quarter and Fiscal Year 2025 Financial Results — SPS Commerce Investor Relations
SPS Commerce has more than 50,000 subscribing customers and processes over 750 million transactions annually powering more than $650 billion in gross merchandise value.
SPS Commerce company website and about page — SPS Commerce
📌 Key Facts
- SPS Commerce has reportedly hired Morgan Stanley to explore a potential sale, per three unnamed sources cited by Reuters.
- The Minneapolis-based retail supply-chain software maker’s stock has dropped about 60% in the last year, leaving its market value near $2 billion despite double-digit 2025 revenue growth.
- Activist investors Anson Funds and Irenic Capital have pushed SPS for changes; after a February cooperation agreement, SPS added two independent directors and replaced longtime CFO Kim Nelson with ex–Sprout Social CFO Joseph Del Preto.
📰 Source Timeline (1)
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