Latest Ratios: P/E Ratio -10.1x · EV/EBITDA N/A · ROE -23.4%. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $450M | $661M | $1.7B | $3.4B | $3.1B | $4.9B | $2.3B | $296M | — | — |
| Enterprise Value | $421M | $632M | $1.7B | $3.4B | $3.0B | $4.8B | $2.2B | $181M | — | — |
| P/E Ratio → | -10.11 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.98 | 1.44 | 4.31 | 10.25 | 12.15 | 25.96 | 17.55 | 2.88 | — | — |
| P/B Ratio | 2.16 | 3.25 | 10.50 | 23.72 | 21.66 | 33.58 | 15.34 | 2.31 | — | — |
| P/FCF | 11.43 | 16.80 | 74.82 | 780.29 | 349.55 | 351.04 | — | — | — | — |
| P/OCF | 10.35 | 15.21 | 66.43 | 529.74 | 289.65 | 329.10 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.38 | 4.20 | 10.32 | 11.92 | 25.51 | 16.88 | 1.76 | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 16.08 | 72.97 | 785.83 | 342.96 | 345.03 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.6% | 77.6% | 77.5% | 77.1% | 76.4% | 75.1% | 73.7% | 72.6% | 73.4% | 77.7% |
| Operating Margin | -9.5% | -9.5% | -14.9% | -20.8% | -20.4% | -15.0% | -24.1% | -46.0% | -26.4% | -49.1% |
| Net Profit Margin | -9.5% | -9.5% | -15.3% | -19.9% | -19.8% | -15.3% | -23.8% | -45.6% | -26.6% | -48.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -23.4% | -23.4% | -39.9% | -46.4% | -34.9% | -19.3% | -22.6% | -60.8% | -81.4% | — |
| ROA | -9.1% | -9.1% | -15.0% | -19.2% | -18.0% | -11.4% | -14.7% | -35.8% | -35.7% | -48.4% |
| ROIC | -21.8% | -21.8% | -31.0% | -41.1% | -53.1% | -33.7% | -62.6% | -550.1% | — | — |
| ROCE | -18.3% | -18.3% | -28.5% | -36.8% | -31.6% | -16.4% | -19.8% | -50.5% | -64.7% | -94.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.33 | 0.33 | 0.26 | 0.51 | 0.15 | 0.16 | 0.17 | 0.16 | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.14 | -0.26 | 0.17 | -0.41 | -0.57 | -0.58 | -0.90 | -1.02 | — |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | -0.72 | -1.85 | 5.54 | -6.59 | -6.01 | — | — | — | — |
| Interest Coverage | -16.09 | -16.09 | -16.39 | -22.88 | -324.97 | -93.97 | -85.14 | -172.11 | -32.89 | -911.92 |
Net cash position: cash ($95M) exceeds total debt ($67M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.93 | 0.93 | 0.95 | 1.08 | 1.77 | 2.26 | 3.14 | 3.65 | 1.38 | 0.65 |
| Quick Ratio | 0.93 | 0.93 | 0.95 | 1.08 | 1.77 | 2.26 | 3.14 | 3.65 | 1.38 | 0.65 |
| Cash Ratio | 0.37 | 0.37 | 0.41 | 0.52 | 1.30 | 1.80 | 2.58 | 3.14 | 0.84 | 0.22 |
| Asset Turnover | — | 0.87 | 0.95 | 0.84 | 0.86 | 0.71 | 0.55 | 0.54 | 1.10 | 0.99 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 80.57 | 75.56 | 69.46 | 51.53 | 49.51 | 47.16 | 39.44 | 48.86 | 52.15 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | 8.7% | 6.0% | 1.3% | 0.1% | 0.3% | 0.3% | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $59M | $57M | $56M | $55M | $54M | $51M | $18M | $17M | $16M |
Slowing organic revenue growth
According to recent market data, Sprout Social trades at a price-to-sales ratio of 0.98, which appears to reflect investor skepticism regarding the company's ability to re-accelerate top-line growth from its current decelerating trajectory while simultaneously navigating the transition toward sustainable GAAP profitability in a competitive SaaS environment.
The current forward P/E of 8.07 suggests that the market is pricing in a significant shift toward earnings, yet this valuation remains sensitive to the company's ability to maintain its high gross margins. Investors should monitor whether the current P/S multiple represents a value opportunity or a structural re-rating as the company matures.
Based on reported financial statements, Sprout Social's ROIC has remained consistently negative, reaching -2.5% in 2026Q1, which suggests that the company's aggressive investment in product development and acquisitions has yet to generate a positive return on the capital deployed into the business model.
The persistent negative ROIC indicates that the company is currently destroying value on an invested capital basis, a trend that warrants further investigation into the long-term ROI of the Tagger Media acquisition. Until the company can demonstrate a path to positive capital returns, the current strategy appears to prioritize market share over efficient capital allocation.
As reported in recent filings, Sprout Social's DSO has fluctuated between 50 and 63 days over the last ten quarters, indicating that the company's ability to collect on its enterprise contracts remains sensitive to seasonal billing cycles and the timing of large-scale customer renewals.
The lack of a clear downward trend in DSO suggests that the company has limited leverage over its customer payment terms, which may continue to cause volatility in quarterly cash flow. Investors should monitor these efficiency metrics as a proxy for the company's bargaining power within the enterprise software segment.
Based on the latest quarterly data, Sprout Social has successfully reduced its debt-to-equity ratio to 0.22 in 2026Q1 from a peak of 0.51 in 2023Q4, suggesting a deliberate management focus on strengthening the balance sheet despite the ongoing challenges of operating in a negative-margin environment.
This reduction in leverage appears to be a prudent response to the current interest rate environment, providing the company with greater financial flexibility. However, the negative interest coverage ratios suggest that the company remains reliant on its existing cash reserves and operational cash flow to sustain its current debt obligations.
The price-to-earnings ratio is frequently misapplied to Sprout Social, as the company's heavy reliance on stock-based compensation obscures its true cash-generating potential and makes traditional earnings-based valuation metrics largely irrelevant for assessing the underlying health of this high-growth, early-stage software business model.
Investors should instead focus on free cash flow margins and adjusted EBITDA, which better reflect the company's ability to fund its own operations without constant dilution. Relying on P/E ratios in this context may lead to an inaccurate assessment of the company's valuation relative to its actual cash-burn profile.
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying SPT stock.
Sprout Social, Inc.'s current P/E ratio is -10.1x. This places it at the 50th percentile of its historical range.
Sprout Social, Inc.'s return on equity (ROE) is -23.4%. The historical average is -41.1%.
Based on historical data, Sprout Social, Inc. is trading at a P/E of -10.1x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Sprout Social, Inc. has 77.6% gross margin and -9.5% operating margin.