SPT
Sprout Social, Inc.11.03
+0.51+4.85%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Reaffirms upmarket, details sub-$30K fixes
Q&A reinforced upmarket momentum, with management countering concerns over softer $30K/$50K net adds by highlighting strong Q4 big-deal wins and multiproduct deals. They positioned the new $30K+ cohort metric as the key tracker over $50K, growing 22% last year. Sub-$30K fixes—purpose-built SKU, self-serve motion—are underway, promising modest 2026 deceleration then 2027 stabilization without elevated churn. Rule 30 hinges on OpEx leverage from AI efficiencies, low-cost hiring, minimal headcount. Trellis beta drew 1,000+ users already. Net adds dipped. Confident tone pervades; watch sub-$30K traction.
Key Stats
Market Cap
652.86MP/E (TTM)
-Basic EPS (TTM)
-0.81Dividend Yield
0%Recent Filings
10-K
FY2025 results
Sprout Social posted FY2025 revenue of $457.5M, up 13% y/y, with net loss narrowing to $43.3M from $62.0M. Q4 drove the momentum as high-tier customers—those with $30K+ ARR (3,803, +13% y/y) and $50K+ ARR (2,022, +18% y/y)—expanded, fueled by sales force growth and NewsWhip acquisition in July adding predictive intelligence. Gross margin held steady at 78% despite data/hosting cost hikes, while operating loss improved via R&D efficiencies post-restructuring. Free cash flow turned positive at $39.3M (derived). $40M revolver debt funds capex; $95M cash cushions. Yet API access limits from social networks threaten quarterly data flows.
8-K
Q4 revenue up 13%, Rule of 40 target
Sprout Social reported Q4 revenue of $120.9 million, up 13% year-over-year, with total RPO at $404.0 million, up 15%. Non-GAAP operating income held steady at $11.5 million while customer count ≥$30K ARR hit 3,803, up 13%. Growth slowed, yet they target 30% non-GAAP Rule of 40 by Q4 2027. CFO departs March 11, 2026.
8-K
Beat guidance, CFO exits
Sprout Social raised its Q4 and full-year 2025 outlook for revenue, non-GAAP operating income, and EPS above prior guidance, based on preliminary results announced February 12, 2026. CFO Joe Del Preto resigned February 9, effective March 11, 2026, for another opportunity—no disagreements or severance. Leadership transition underway. Actuals pending February 26 release; risks could alter outcomes.
8-K
Elects new board director
Sprout Social elected Gregory Scott Brown to its board as a Class II director on November 11, 2025, with term expiring at the 2027 annual meeting. He will receive cash and equity under the Non-Employee Director Compensation Policy. No related arrangements or transactions exist. Board adds fresh perspective.
10-Q
Q3 FY2025 results
Sprout Social posted Q3 revenue of $115.6M, up 13% y/y from $102.6M, with subscription revenue climbing to $114.7M on organic growth from high-tier customers and a NewsWhip nudge. Gross margin held steady at 78%, while operating loss narrowed to $9.1M from $16.9M as R&D and sales efficiencies kicked in post-restructuring. Operating cash flow hit $32.5M YTD, topping last year's $22.2M; free cash flow not disclosed in the 10-Q. Closed NewsWhip in July 2025 for $52.3M cash (plus $3.2M deferred, $8.5M contingent earnout), recognizing $45.7M goodwill and $24.9M finite-lived intangibles (1-7 years). Cash sits at $90.6M, revolver at $44M (SOFR-based, matures 2030, covenants met). Debt load curbs flexibility.
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