Gross margins have contracted significantly from 75.5% in 2024Q4 to 65.2% in 2027Q1, suggesting rising costs in platform maintenance are outpacing revenue growth.
| Sales/Revenue | 871.18M | 857.2M | 796.39M | 732.36M | 618.19M | 492.39M | 386.93M | 324.28M |
| Revenue Growth % | 8.1% | 7.64% | 8.74% | 18.47% | 25.55% | 27.26% | 19.32% | - |
| Cost of Goods Sold | 293.23M | 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 | 577.95M | 577.78M | 574.62M | 552.96M | 454.46M | 344.84M | 264.85M | 201.12M |
| Gross Margin % | 66.34% | 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 | 524.54M | 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 | 428.97M | 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 | 96.55M | 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 | -984K | 0 | 2.4M | 4.3M | 0 | 12M | 0 | 0 |
| Operating Income | 53.9M | 59.1M | 23.97M | 33.95M | -51.22M | -99.47M | -25.58M | -35.53M |
| Operating Margin % | 6.19% | 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 | 69.05M | 78.16M | 30.09M | 40.11M | -44.6M | -94.84M | -22.41M | -33.41M |
| EBITDA Margin % | 7.93% | 9.12% | 3.78% | 5.48% | -7.21% | -19.26% | -5.79% | -10.3% |
| EBITDA Growth % | 209.97% | 159.78% | -24.98% | 189.92% | 52.97% | -323.15% | 32.92% | - |
| D&A (Non-Cash Add-back) | 15.15M | 19.06M | 6.12M | 6.16M | 6.62M | 4.63M | 3.16M | 2.12M |
| EBIT | 52.91M | 59.1M | 26.77M | 38.24M | -51.22M | -87.47M | -25.58M | -35.53M |
| Net Interest Income | 15.1M | 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 | 24.02M | 7.69M | 24.32M | 26.58M | 3.76M | -17.08M | -8.62M | -927K |
| Pretax Income | 77.91M | 66.79M | 48.29M | 60.52M | -47.47M | -104.55M | -37.41M | -36.46M |
| Pretax Margin % | 8.94% | 7.79% | 6.06% | 8.26% | -7.68% | -21.23% | -9.67% | -11.24% |
| Income Tax | 49.26M | 43.88M | -73.32M | 9.12M | 8.27M | 6.92M | 3.78M | 3.33M |
| Effective Tax Rate % | 63.22% | 65.71% | -151.82% | 15.07% | -17.43% | -6.61% | -10.1% | -9.12% |
| Net Income | 28.65M | 22.91M | 121.61M | 51.4M | -55.74M | -111.47M | -41.18M | -39.78M |
| Net Margin % | 3.29% | 2.67% | 15.27% | 7.02% | -9.02% | -22.64% | -10.64% | -12.27% |
| Net Income Growth % | -73.81% | -81.16% | 136.58% | 192.22% | 49.99% | -170.66% | -3.53% | - |
| Net Income (Continuing) | 28.65M | 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) | 0.12 | 0.09 | 0.44 | 0.18 | -0.21 | -0.43 | -0.16 | -0.16 |
| EPS Growth % | -72.72% | -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 | 243.13M | 257.96M | 274.77M | 287.09M | 259.53M | 256.48M | 249.75M | 249.75M |
| Basic Shares Outstanding | 240.52M | 250.83M | 260.24M | 269.97M | 259.53M | 256.48M | 249.75M | 249.75M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Enterprise sales cycle saturation
As reported in recent financial filings, Sprinklr's year-over-year revenue growth has decelerated significantly to 7.64%, suggesting that the company is struggling to maintain momentum in its core social marketing segments while transitioning toward a more mature, enterprise-focused growth profile within the broader customer experience market.
The consistent decline in top-line expansion rates indicates that the company may be reaching saturation within its existing customer base. Investors should monitor whether this slowdown reflects a broader cyclical pullback in enterprise IT spending or a specific competitive displacement of its legacy social modules.
Based on the provided income statement data, gross margins have contracted from 75.5% in 2024Q4 to 65.2% in 2027Q1, indicating that the costs associated with data ingestion and platform maintenance are rising faster than the company's ability to extract premium pricing from its enterprise clients.
This downward trend in gross profitability suggests that the platform's inherent complexity may be creating a structural drag on margins. If this compression persists, it may imply that the company is forced to subsidize professional services to maintain its footprint in large-scale, multi-product deployments.
According to historical income statements, operating income has failed to scale consistently with gross profit, as evidenced by the 2027Q1 operating margin of 4.5% which remains well below the levels required to demonstrate true operational efficiency in a high-touch enterprise software sales model.
The persistent reliance on heavy SG&A spending to drive incremental revenue suggests that the company has not yet achieved the desired operating leverage. This warrants further investigation into whether the current sales motion is becoming increasingly inefficient as the company attempts to penetrate more complex, competitive CCaaS environments.
Analysis of the company's financial statements reveals that stock-based compensation remains a significant recurring expense, consistently exceeding $20 million per quarter, which effectively dilutes the quality of the reported net income and complicates the assessment of the company's true underlying cash-generating capability.
While the company has achieved GAAP profitability, the reliance on equity-based incentives suggests that the bottom-line performance may be overstated when viewed on a cash-basis. Investors should be cautious of the potential for continued shareholder dilution as management attempts to retain talent in a highly competitive enterprise software labor market.
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.