Irenic Capital Management initiated a new position in SPS Commerce (SPSC 1.98%), acquiring 452,066 shares in the fourth quarter, according to a February 17, 2026, SEC filing.
What happened
Irenic Capital Management disclosed a new stake in SPS Commerce (SPSC 1.98%), purchasing 452,066 shares during the fourth quarter of 2025. The position's value at quarter-end was $40.3 million, according to the SEC filing dated February 17, 2026.
What else to know
- This was a new position for Irenic Capital, representing 2.7% of its $1.49 billion in reportable U.S. equity holdings as of December 31, 2025.
- Top five holdings after the filing:
- NYSE: ITGR: $99.11 million (13.7% of AUM)
- NASDAQ: SHC: $67.00 million (9.3% of AUM)
- NASDAQ: TBPH: $51.66 million (7.1% of AUM)
- NASDAQ: ALKT: $48.60 million (6.7% of AUM)
- NYSE: WK: $47.61 million (6.6% of AUM)
- As of February 17, 2026, shares of SPS Commerce were priced at $60.06, down 60% over the past year and significantly underperforming the S&P 500’s roughly 13% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $751.50 million |
| Net Income (TTM) | $93.34 million |
| Market Capitalization | $2.28 billion |
| Price (as of market close 2/17/26) | $60.06 |
Company snapshot
- SPS Commerce offers cloud-based supply chain management solutions, including fulfillment automation and analytics tools, with complementary products for order management and vendor onboarding.
- The firm generates revenue through subscription-based software services that automate and optimize electronic communication and compliance across trading partners.
- It serves retailers, suppliers, grocers, distributors, and logistics firms seeking to enhance omnichannel order management and supply chain visibility.
SPS Commerce, Inc. is a leading provider of cloud-based supply chain management solutions, enabling automation and enhanced analytics for a diverse customer base. The company leverages a scalable SaaS platform to drive operational efficiency and compliance in complex trading ecosystems. Its strategic focus on automation and data-driven insights positions it as a key technology partner for organizations navigating omnichannel retail and distribution challenges.
What this transaction means for investors
Capital allocators do not usually wade into a stock down 60% unless they believe the underlying machine still works or at the very least can.
As far as SPS Commerce, the firm just delivered its 100th consecutive quarter of revenue growth, with fourth quarter revenue up 13% to $192.7 million and recurring revenue up 14% year over year. Full-year revenue, meanwhile, climbed 18% to $751.5 million, while adjusted EBITDA rose 24% to $231.4 million.
The market, however, appears focused on moderating 2026 guidance of 6% to 7% revenue growth. But even at that pace, this remains a profitable, cash-generating SaaS platform serving more than 50,000 recurring revenue customers across retail and logistics.
Within a portfolio that includes industrials, healthcare, and software names like Integer, Sotera Health, Alkami, and Workiva, this position fits an activist pattern of targeting durable but temporarily mispriced operators. Long-term investors should watch execution, margin stability, and capital allocation, especially with a $300 million repurchase authorization in place. A 60% drawdown changes the risk-reward math, but the fundamentals and this big bet suggest this story is not finished.
