SPS(US:SPSC)2026-02-19 21:32Revenue Growth - Revenues increased by 18% to $751.5 million for the year ended December 31, 2025, compared to $637.8 million in 2024, marking the 100th consecutive quarter of revenue growth [184]. - The number of recurring revenue customers grew by 20% to approximately 54,600 at December 31, 2025, up from approximately 45,350 at the end of 2024 [185]. - Annual Revenue Per User (ARPU) increased by 8% to approximately $14,350 for the year ended December 31, 2025, from approximately $13,300 in 2024 [185]. - Recurring revenues rose by 20% to $718.0 million in 2025, accounting for 96% of total revenues, compared to 94% in 2024 [186]. - The company expects continued growth in recurring revenue customers and ARPU as part of its market penetration strategy [186]. Expenses and Costs - Cost of revenues increased by $20.9 million, primarily due to a $12.4 million rise in personnel-related costs and a $5.2 million increase in software subscriptions [187]. - Operating expenses totaled $401.6 million in 2025, a 19% increase from $338.2 million in 2024 [184]. - Sales and marketing expenses increased by $14.9 million due to higher personnel-related costs and $3.9 million from channel partner fees, primarily from the acquisition of Carbon6 [188]. - Research and development expenses rose by $9.5 million, mainly from increased headcount and third-party personnel, partially offset by $5.2 million from higher capitalization of software development costs [189]. - General and administrative expenses increased by $15.2 million, driven by higher personnel-related costs and ongoing integration costs from acquisitions [190]. Profitability - Net income for 2025 was $93.3 million, reflecting a 21% increase from $77.1 million in 2024 [184]. - Adjusted EBITDA for the year ended December 31, 2025, was $231.4 million, up from $186.6 million in 2024, reflecting a margin increase to 31% from 29% [195]. - Net income for 2025 was $93.3 million, compared to $77.1 million in 2024, with net income per share increasing to $2.46 from $2.07 [196]. Cash Flow and Financial Position - Cash and cash equivalents as of December 31, 2025, were $151.4 million, with net accounts receivable at $68.2 million [198]. - Net cash provided by operating activities increased to $178.8 million in 2025 from $157.4 million in 2024, driven by growth in revenue [199]. - Cash used in investing activities rose to $169.2 million in 2025, primarily due to net cash inflow from investments in 2024 [201]. - Cash used in financing activities increased to $100.8 million in 2025, largely due to $76.7 million for share repurchases [202]. - The company expects cash flows from operations to be sufficient to meet working capital and capital expenditure requirements for at least the next twelve months [206]. Strategic Initiatives - The company plans to continue expanding its distribution channels and international presence while selectively pursuing acquisitions to enhance functionalities and customer base [160]. - New product development and enhancements are ongoing, focusing on improving supply chain operations and analytics capabilities [162].