Revenue growth has slowed to 11.2% in 2026Q1, though the company maintains a stable gross margin profile of 77.0%.
| Sales/Revenue | 469.75M | 457.55M | 405.91M | 333.64M | 253.83M | 187.86M | 132.95M | 102.71M | 78.81M | 44.81M |
| Revenue Growth % | 12.27% | 12.72% | 21.66% | 31.44% | 35.12% | 41.3% | 29.44% | 30.32% | 75.86% | - |
| Cost of Goods Sold | 105.85M | 102.69M | 91.47M | 76.27M | 59.86M | 46.79M | 34.92M | 28.15M | 20.99M | 9.99M |
| COGS % of Revenue | - | 22.44% | 22.54% | 22.86% | 23.58% | 24.91% | 26.26% | 27.41% | 26.64% | 22.3% |
| Gross Profit | 363.91M | 354.85M | 314.43M | 257.38M | 193.97M | 141.07M | 98.03M | 74.55M | 57.82M | 34.82M |
| Gross Margin % | 77.47% | 77.56% | 77.46% | 77.14% | 76.42% | 75.09% | 73.74% | 72.59% | 73.36% | 77.7% |
| Gross Profit Growth % | - | 12.85% | 22.17% | 32.69% | 37.5% | 43.9% | 31.49% | 28.94% | 66.05% | - |
| Operating Expenses | 401.51M | 398.31M | 374.79M | 326.65M | 245.65M | 169.16M | 130.03M | 121.82M | 78.59M | 56.82M |
| OpEx % of Revenue | - | 87.05% | 92.33% | 97.9% | 96.78% | 90.05% | 97.81% | 118.61% | 99.72% | 126.79% |
| Selling, General & Admin | 297.01M | 297.03M | 272M | 247.1M | 184.21M | 129.11M | 99.54M | 93.76M | 53.16M | 40.16M |
| SG&A % of Revenue | - | 64.92% | 67.01% | 74.06% | 72.57% | 68.73% | 74.87% | 91.29% | 67.46% | 89.61% |
| Research & Development | 105M | 101.28M | 102.79M | 79.55M | 61.44M | 40.05M | 30.49M | 28.06M | 25.43M | 16.66M |
| R&D % of Revenue | - | 22.14% | 25.32% | 23.84% | 24.2% | 21.32% | 22.93% | 27.32% | 32.26% | 37.18% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | -580K | -361K | 223K | 490K | 442K | 0 |
| Operating Income | -37.6M | -43.45M | -60.36M | -69.28M | -51.68M | -28.09M | -32M | -47.27M | -20.77M | -22M |
| Operating Margin % | -8% | -9.5% | -14.87% | -20.76% | -20.36% | -14.95% | -24.07% | -46.02% | -26.36% | -49.1% |
| Operating Income Growth % | - | 28.01% | 12.88% | -34.06% | -83.97% | 12.23% | 32.3% | -127.56% | 5.59% | - |
| EBITDA | -24.39M | -31.12M | -48.49M | -61.05M | -46.74M | -23.38M | -26.72M | -41.94M | -16.79M | -20.65M |
| EBITDA Margin % | -5.19% | -6.8% | -11.95% | -18.3% | -18.42% | -12.45% | -20.1% | -40.84% | -21.3% | -46.08% |
| EBITDA Growth % | 47.48% | 35.81% | 20.57% | -30.6% | -99.91% | 12.48% | 36.3% | -149.87% | 18.71% | - |
| D&A (Non-Cash Add-back) | 13.22M | 12.33M | 11.87M | 8.23M | 4.93M | 4.71M | 5.29M | 5.32M | 3.99M | 1.35M |
| EBIT | -35.12M | -40.24M | -57.78M | -63.02M | -49.72M | -28.19M | -31.16M | -46.47M | -20.3M | -21.89M |
| Net Interest Income | 620K | 917K | 448K | 4.27M | 2.38M | -41K | 251K | 37K | -582K | 93K |
| Interest Income | 3.27M | 3.42M | 3.97M | 7.02M | 2.54M | 259K | 617K | 307K | 35K | 117K |
| Interest Expense | 2.65M | 2.5M | 3.52M | 2.75M | 153K | 300K | 366K | 270K | 617K | 24K |
| Other Income/Expense | -72K | 713K | -945K | 3.5M | 1.8M | -402K | 474K | 527K | -140K | 93K |
| Pretax Income | -37.68M | -42.74M | -61.3M | -65.78M | -49.87M | -28.49M | -31.53M | -46.74M | -20.91M | -21.91M |
| Pretax Margin % | -8.02% | -9.34% | -15.1% | -19.72% | -19.65% | -15.17% | -23.71% | -45.51% | -26.53% | -48.89% |
| Income Tax | 767K | 587K | 670K | 649K | 366K | 211K | 127K | 66K | 22K | 117K |
| Effective Tax Rate % | -2.04% | -1.37% | -1.09% | -0.99% | -0.73% | -0.74% | -0.4% | -0.14% | -0.11% | -0.53% |
| Net Income | -38.44M | -43.33M | -61.97M | -66.43M | -50.24M | -28.7M | -31.66M | -46.81M | -20.93M | -21.91M |
| Net Margin % | -8.18% | -9.47% | -15.27% | -19.91% | -19.79% | -15.28% | -23.81% | -45.57% | -26.56% | -48.89% |
| Net Income Growth % | 35.52% | 30.09% | 6.71% | -32.22% | -75.04% | 9.33% | 32.37% | -123.59% | 4.45% | - |
| Net Income (Continuing) | -38.44M | -43.33M | -61.97M | -66.43M | -50.24M | -28.7M | -31.66M | -46.81M | -20.93M | -21.91M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.64 | -0.74 | -1.09 | -1.19 | -0.92 | -0.53 | -0.62 | -2.54 | -1.26 | -1.34 |
| EPS Growth % | 36.54% | 32.11% | 8.4% | -29.35% | -73.58% | 14.52% | 75.59% | -101.59% | 5.97% | - |
| EPS (Basic) | - | -0.74 | -1.09 | -1.19 | -0.92 | -0.53 | -0.62 | -2.54 | -1.26 | -1.34 |
| Diluted Shares Outstanding | 59.74M | 58.63M | 56.94M | 55.66M | 54.61M | 53.77M | 51.37M | 18.44M | 16.59M | 16.4M |
| Basic Shares Outstanding | 59.74M | 58.63M | 56.94M | 55.66M | 54.61M | 53.77M | 51.37M | 18.44M | 16.59M | 16.4M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Slowing organic revenue growth
As indicated by the most recent quarterly financial data, Sprout Social's year-over-year revenue growth has decelerated significantly from 34.3% in 2023Q4 to 11.2% in 2026Q1, suggesting that the company is struggling to maintain its historical expansion pace as it matures within the competitive social media management market.
The consistent decline in top-line growth rates suggests that the company's core subscription model may be facing saturation or increased friction in acquiring new enterprise-level customers. Investors should monitor whether this trend reflects a broader market slowdown or a specific failure to effectively cross-sell newer modules like influencer marketing to the existing base.
According to the reported income statements, Sprout Social has maintained a remarkably consistent gross margin profile, hovering near 77.5% over the last ten quarters, which demonstrates the inherent scalability of its unified, organic cloud-based architecture despite ongoing shifts in the broader software competitive landscape.
This stability implies that the company has successfully managed its hosting and infrastructure costs even as it integrates new features. However, the lack of margin expansion suggests that the company has not yet achieved the economies of scale typically expected in mature SaaS models, warranting further investigation into potential data egress cost pressures.
Based on the provided financial figures, Sprout Social has demonstrated a clear trend of improving operating margins, which narrowed from -19.5% in 2023Q4 to -4.4% in 2026Q1, indicating that management is successfully exercising greater discipline over its significant sales and marketing expenditure relative to revenue growth.
The narrowing of operating losses appears to be driven by a more efficient allocation of resources rather than just top-line expansion. This shift suggests that the company is moving toward a more sustainable operational footing, though the path to GAAP profitability remains contingent on sustaining this trend of expense containment.
As highlighted in the quarterly filings, the company's path to profitability is heavily obscured by substantial stock-based compensation expenses, which frequently exceeded $20 million per quarter throughout 2024 and 2025, effectively masking the true cash-burn profile of the business despite the reported improvements in operating income.
The reliance on equity-based incentives suggests that the reported net income figures may not fully capture the economic cost of talent acquisition. Analysts should carefully adjust for these non-cash charges to understand the underlying cash-flow generation capabilities of the business, as the current GAAP losses likely understate the true operational burden.
While the company shows progress in narrowing operating losses, the sharp deceleration in revenue growth from 34.3% to 11.2% over the last ten quarters raises significant concerns regarding the long-term viability of its current pricing strategy and its ability to defend market share against larger, diversified competitors.
Short-sellers may focus on the potential for brand erosion in the SMB segment resulting from aggressive pricing shifts, which could lead to higher churn rates. If the company cannot prove that its new enterprise-focused modules can offset this loss in volume, the current valuation may appear difficult to justify based on fundamental growth prospects.
Quick answers to the most common questions about buying SPT stock.
For fiscal year 2025, Sprout Social, Inc. (SPT) reported total revenue of $457.5M. This represents a 921.0% increase compared to $44.8M in 2017.
Sprout Social, Inc. (SPT) reported a net loss of $43.3M for the fiscal year ending 2025.
Sprout Social, Inc. (SPT) reported an operating income of $-43.5M, resulting in an operating profit margin of -9.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Sprout Social, Inc. (SPT) generated $354.9M in gross profit for the year, representing a gross profit margin of 77.6%. This demonstrates the company's core pricing power and production efficiency.