Revenue growth has stalled at 0.8% YoY in 2027Q2, while gross margins have eroded to 65.1% from 73.9% in 2025Q1, indicating significant cost pressures and potential pricing headwinds.
Sprinklr, Inc. (CXM) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 |
|---|
| Sales/Revenue | 872.88M | 857.2M | 796.39M | 732.36M | 618.19M | 492.39M | 386.93M | 324.28M |
| Revenue Growth % | 6.35% | 7.64% | 8.74% | 18.47% | 25.55% | 27.26% | 19.32% | - |
| Cost of Goods Sold | 300.35M | 279.42M | 221.78M | 179.4M | 163.72M | 147.55M | 122.08M | 123.16M |
| COGS % of Revenue | - | 32.6% | 27.85% | 24.5% | 26.48% | 29.97% | 31.55% | 37.98% |
| Gross Profit | 572.53M | 577.78M | 574.62M | 552.96M | 454.46M | 344.84M | 264.85M | 201.12M |
| Gross Margin % | 65.59% | 67.4% | 72.15% | 75.5% | 73.52% | 70.03% | 68.45% | 62.02% |
| Gross Profit Growth % | - | 0.55% | 3.92% | 21.67% | 31.79% | 30.2% | 31.69% | - |
| Operating Expenses | 525.87M | 520.76M | 550.65M | 519.01M | 505.69M | 444.31M | 290.43M | 236.65M |
| OpEx % of Revenue | - | 60.75% | 69.14% | 70.87% | 81.8% | 90.24% | 75.06% | 72.98% |
| Selling, General & Admin | 428.05M | 424.76M | 456.25M | 423.42M | 429.03M | 371.72M | 250.15M | 204.16M |
| SG&A % of Revenue | - | 49.55% | 57.29% | 57.82% | 69.4% | 75.49% | 64.65% | 62.96% |
| Research & Development | 97.82M | 96M | 92M | 91.29M | 76.66M | 60.59M | 40.28M | 32.48M |
| R&D % of Revenue | - | 11.2% | 11.55% | 12.47% | 12.4% | 12.31% | 10.41% | 10.02% |
| Other Operating Expenses | 0 | 0 | 2.4M | 4.3M | 0 | 12M | 0 | 0 |
| Operating Income | 47.15M | 59.1M | 23.97M | 33.95M | -51.22M | -99.47M | -25.58M | -35.53M |
| Operating Margin % | 5.4% | 6.89% | 3.01% | 4.63% | -8.29% | -20.2% | -6.61% | -10.96% |
| Operating Income Growth % | - | 146.56% | -29.39% | 166.27% | 48.5% | -288.9% | 28.01% | - |
| EBITDA | 61.15M | 78.16M | 30.09M | 40.11M | -44.6M | -94.84M | -22.41M | -33.41M |
| EBITDA Margin % | 7.01% | 9.12% | 3.78% | 5.48% | -7.21% | -19.26% | -5.79% | -10.3% |
| EBITDA Growth % | 59.69% | 159.78% | -24.98% | 189.92% | 52.97% | -323.15% | 32.92% | - |
| D&A (Non-Cash Add-back) | 13.99M | 19.06M | 6.12M | 6.16M | 6.62M | 4.63M | 3.16M | 2.12M |
| EBIT | 47.15M | 59.1M | 26.77M | 38.24M | -51.22M | -87.47M | -25.58M | -35.53M |
| Net Interest Income | 9.3M | 20.2M | 26M | 30.2M | 8.5M | -3.2M | -5.5M | 0 |
| Interest Income | 9.3M | 20.2M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 19.76M | 7.69M | 24.32M | 26.58M | 3.76M | -17.08M | -8.62M | -927K |
| Pretax Income | 66.92M | 66.79M | 48.29M | 60.52M | -47.47M | -104.55M | -37.41M | -36.46M |
| Pretax Margin % | 7.67% | 7.79% | 6.06% | 8.26% | -7.68% | -21.23% | -9.67% | -11.24% |
| Income Tax | 43.76M | 43.88M | -73.32M | 9.12M | 8.27M | 6.92M | 3.78M | 3.33M |
| Effective Tax Rate % | 65.39% | 65.71% | -151.82% | 15.07% | -17.43% | -6.61% | -10.1% | -9.12% |
| Net Income | 23.16M | 22.91M | 121.61M | 51.4M | -55.74M | -111.47M | -41.18M | -39.78M |
| Net Margin % | 2.65% | 2.67% | 15.27% | 7.02% | -9.02% | -22.64% | -10.64% | -12.27% |
| Net Income Growth % | -80.73% | -81.16% | 136.58% | 192.22% | 49.99% | -170.66% | -3.53% | - |
| Net Income (Continuing) | 23.16M | 22.91M | 121.61M | 51.4M | -55.74M | -111.47M | -37.97M | -39.78M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.10 | 0.09 | 0.44 | 0.18 | -0.21 | -0.43 | -0.16 | -0.16 |
| EPS Growth % | -79.17% | -79.82% | 144.44% | 185.71% | 51.16% | -168.75% | 0% | - |
| EPS (Basic) | - | 0.09 | 0.47 | 0.19 | -0.21 | -0.43 | -0.16 | -0.16 |
| Diluted Shares Outstanding | 237.84M | 257.96M | 274.77M | 287.09M | 259.53M | 256.48M | 249.75M | 249.75M |
| Basic Shares Outstanding | 235.56M | 250.83M | 260.24M | 269.97M | 259.53M | 256.48M | 249.75M | 249.75M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying CXM stock.
For fiscal year 2026, Sprinklr, Inc. (CXM) reported total revenue of $857.2M. This represents a 164.3% increase compared to $324.3M in 2020.
Sprinklr, Inc. (CXM) is profitable, generating $22.9M in net income for the fiscal year ending 2026 with a net profit margin of 2.7%.
Sprinklr, Inc. (CXM) reported an operating income of $59.1M, resulting in an operating profit margin of 6.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Sprinklr, Inc. (CXM) generated $577.8M in gross profit for the year, representing a gross profit margin of 67.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Growth deceleration amid margin pressure
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Market Maturity
Sprinklr's revenue growth has decelerated sharply from 13.0% YoY in 2025Q1 to just 0.8% in 2027Q2, suggesting the company is facing significant headwinds in its core social marketing segments or a challenging enterprise IT spending environment.
The sequential decline in growth rates from the high single digits to near-flat indicates a potential loss of momentum, which may reflect market saturation or increased competitive pressure from larger CRM platforms. This trajectory raises questions about the durability of the company's expansion into adjacent areas like contact center automation, as the core business appears to be maturing faster than anticipated.
Gross Margin Erosion Signals Cost Pressures
Gross margins have contracted by nearly 900 basis points from 73.9% in 2025Q1 to 65.1% in 2027Q2, a trend that appears to be driven by rising costs associated with data ingestion and platform complexity, not just a shift in revenue mix.
This sustained compression is notable because it occurs alongside slowing revenue growth, suggesting the company may be losing pricing power or facing higher variable costs to maintain its unified platform. The margin profile now sits below many SaaS peers, which could indicate that the 'all-in-one' architecture, while a potential moat, carries a significant and growing cost burden that is not being fully passed on to customers.
Operating Leverage Remains Elusive
Despite achieving positive operating income in recent quarters, operating margins have remained volatile and low, peaking at 7.7% in 2026Q2 before falling back to 4.5% in 2027Q2, indicating limited scalability in the cost structure.
The inability to translate revenue growth into consistent operating margin expansion suggests that SG&A and R&D expenses are scaling nearly in line with the top line, preventing the business from achieving the operating leverage typical of mature software companies. This pattern implies that the high-touch sales and support model required for its complex platform may be a structural constraint on profitability.
Net Income Volatility and SBC Dilution
Reported net income has been highly erratic, swinging from a $98.7M profit in 2025Q4 to a $1.6M loss in 2026Q1, while stock-based compensation has consistently consumed over 9% of revenue, significantly diluting shareholder value.
The large Q4 2025 profit appears to be an anomaly, likely driven by non-operating items, as it is not supported by the underlying operating performance. The persistent and substantial SBC expense masks the true cash earnings power of the business and represents a real cost to investors through ongoing share dilution, which is particularly concerning given the modest growth profile.
SG&A Dominance Constrains Profitability
Selling, General & Administrative expenses consistently represent approximately 50% of total revenue, a ratio that has not improved despite the company's scale, highlighting the high cost of its enterprise sales and support motion.
This heavy SG&A burden is the primary obstacle to achieving sustainable profitability, as it offsets the benefits of the company's gross margin. The lack of improvement in this ratio over ten quarters suggests that management has not yet found a way to reduce the customer acquisition and servicing costs inherent in selling a complex, multi-product platform to large enterprises.
Margin Compression Threatens Viability
The simultaneous deceleration in revenue growth and contraction in gross margins presents a challenging narrative, suggesting the company may be sacrificing pricing to retain customers in a competitive market, which could lead to a structural profitability trap.
A short-seller would focus on the fact that the company is growing slower than many peers while also experiencing margin erosion, a combination that often precedes a more severe financial deterioration. The low operating margin leaves little room for error, and any further slowdown in growth could quickly push the company back into operating losses, especially if the high fixed-cost base in R&D and SG&A cannot be reduced.