What is SPS Commerce's nondeductible compensation?

SPS Commerce (SPSC) reported nondeductible compensation of 2.7% in Q4 2025.

What does nondeductible compensation mean?

Reflects the financial impact of compensation expenses that do not qualify for tax deductions, often due to regulatory limits on executive pay. Monitoring this helps investors understand the tax efficiency of the company's compensation structure.

SPS Commerce SPSC Nondeductible compensation

Nondeductible compensation at other companies

Charles River LaboratoriesCRL

$1.24M—

Hyatt HotelsH

$9.25M—

Rackspace Technology, Inc.RXT

$1.38M—

Two Harbors Investment CorporationTWO

$1.37M—

Cinemark HoldingsCNK

$975K+34.5%

Hyatt HotelsH

45.2%—

Other financials

Income statement

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Revenue$192.1M+5.8%

Gross profit$132.9M+6.6%

Operating income$24.6M-5.4%

Net income$19.7M-11.1%

EPS (diluted)$0.53-8.6%

Balance sheet

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Cash & equivalents$154.3M+62.5%

Total debt$6.6M-46.0%

Total equity$962.2M+4.5%

Total assets$1.2B+4.7%

Cash flow

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Operating cash flow$55.6M+39.1%

CapEx$7.1M+16.1%

Free cash flow$48.5M+43.3%

Valuation

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Market cap$2.04B-58.8%

Profitability

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Gross margin69.3%+1.6pp

Operating margin15.3%+0.5pp

Net margin11.9%-0.2pp

FCF margin21.9%+0.9pp

Returns & leverage

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Return on equity9.7%-0.5pp

Debt / equity0×0.0×

Current ratio2.1×+0.5×

Where this comes from

Reported directly by SPS Commerce in its filing.

Tagged under the XBRL concept spsc:EffectiveIncomeTaxRateReconciliationNondeductibleExpenseCompensationExpensePercent.

The official record: SPS Commerce’s 10-K, filed February 19, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is SPS Commerce's nondeductible compensation?: SPS Commerce (SPSC) reported nondeductible compensation of 2.7% in Q4 2025.
What does nondeductible compensation mean?: Reflects the financial impact of compensation expenses that do not qualify for tax deductions, often due to regulatory limits on executive pay. Monitoring this helps investors understand the tax efficiency of the company's compensation structure.