SPS Commerce (SPSC) Fell Despite Reporting Strong Results

Core Viewpoint - The Alger Weatherbie Specialized Growth Fund's third-quarter 2025 investor letter indicates that while equity markets, particularly the S&P 500 Index, experienced significant growth, the fund's Class A shares underperformed compared to the Russell 2500 Growth Index [1] Company Summary - SPS Commerce, Inc. (NASDAQ:SPSC) is highlighted as a key stock in the fund's portfolio, providing cloud-based supply chain management solutions [2][3] - The stock had a one-month return of 5.62% but saw a significant decline of 36.35% over the past 52 weeks, closing at $109.99 per share with a market capitalization of $4.17 billion as of October 28, 2025 [2] - In the second quarter of 2025, SPS Commerce reported a revenue growth of 22%, reaching $187.4 million, and raised its full-year outlook while also announcing a share repurchase program [3][4] - Despite these positive developments, the company's shares detracted from performance due to management's lowered medium-term organic revenue growth rate, attributed to cautious customer spending and longer decision cycles amid macroeconomic uncertainty [3]