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Sprinklr (CXM)
NYSE:CXM

Sprinklr (CXM) AI Stock Analysis

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Sprinklr

(NYSE:CXM)

Rating:78Outperform
Price Target:
$9.50
▲(8.45%Upside)
Sprinklr's overall stock score of 78 reflects strong financial performance and strategic initiatives that promise long-term growth, bolstered by robust cash flow and a stock buyback program. However, challenges remain in the form of slower revenue growth and customer churn, necessitating ongoing operational improvements.
Positive Factors
Earnings
Sprinklr's first quarter was better than expected as subscription revenue grew 4% and beat the midpoint of guidance by 1%.
Profitability
Profitability was significantly better, with an 18% operating margin above the midpoint of prior guidance of 16%.
Negative Factors
Customer Retention
The number of customers with more than $1M ARR fell for the first time sequentially.
Sales Challenges
Sprinklr saw its business adversely impacted by the uncertainty in the macro, which resulted in longer sales cycles as customers scrutinize enterprise spending.

Sprinklr (CXM) vs. SPDR S&P 500 ETF (SPY)

Sprinklr Business Overview & Revenue Model

Company DescriptionSprinklr, Inc. provides enterprise cloud software products worldwide. The company offers Unified Customer Experience Management platform, a purpose-built to analyze unstructured customer experience data, built to scale across future and modern channels, and integrates all stages of the customer journey. Its products include Modern Research that enables its customers to listen, learn from, and act on insights gleaned from modern channels; Modern Care that enables brands to listen to, route, resolve and analyze customer service issues across modern and traditional channels; Modern Marketing and Advertising enables global brands to plan, create, publish, optimize, and analyze their organic/owned marketing content and paid advertising campaigns across modern channels; and Social Engagement and Sales allows customers listen to, triage, engage, and analyze conversations across modern channels. The company also provides professional, managed, training, and consultancy services. Sprinklr, Inc. was founded in 2009 and is headquartered in New York, New York.
How the Company Makes MoneySprinklr generates revenue primarily through a subscription-based model, licensing its software solutions to businesses worldwide. Key revenue streams include software-as-a-service (SaaS) subscriptions, professional services such as consulting and implementation, and customer support services. The company also benefits from strategic partnerships with major technology platforms and social media networks, which enhance its service offerings and expand its market reach. Additionally, Sprinklr's focus on enterprise clients ensures a steady revenue stream through long-term contracts and recurring subscription fees.

Sprinklr Key Performance Indicators (KPIs)

Any
Any
Gross Profit by Segment
Gross Profit by Segment
Chart InsightsSprinklr's Subscription segment has shown consistent growth, but recent quarters indicate a plateau, likely due to macroeconomic pressures and elevated churn. Professional Services, however, has been volatile, with recent improvements. The earnings call highlights strategic initiatives like 'Project Bear Hug' and AI investments aimed at stabilizing growth and enhancing customer engagement. Despite slower revenue growth and execution challenges, the company is leveraging strong free cash flow and a stock buyback program to bolster investor confidence and drive long-term growth.
Data provided by:Main Street Data

Sprinklr Earnings Call Summary

Earnings Call Date:Jun 04, 2025
(Q1-2026)
|
% Change Since: 2.46%|
Next Earnings Date:Sep 03, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a transitional phase for Sprinklr, Inc. with a mix of financial and operational highlights such as record free cash flow and strategic initiatives showing promise. However, challenges remain in terms of slower revenue growth, customer churn, and the need for significant operational improvements.
Q1-2026 Updates
Positive Updates
Record Free Cash Flow
Sprinklr, Inc. generated a record $81 million in free cash flow during the quarter.
Non-GAAP Operating Income and Margin
The company reported $36.7 million in non-GAAP operating income, resulting in an 18% non-GAAP operating margin.
Positive Customer Engagement Initiatives
The 'Project Bear Hug' initiative focused on deeply engaging with the top 500 customers, representing 80% of revenue, and is showing early positive results.
AI and Platform Recognition
Sprinklr, Inc. received industry recognition from Gartner and Forrester for its AI-native unified customer experience management platform.
Stock Buyback Program
The board authorized a $150 million stock buyback program, to be completed by June 30, 2026.
Negative Updates
Slower Revenue Growth
Total revenue grew by only 5% year over year to $205.5 million, and subscription revenue grew by 4% year over year to $184.1 million.
Challenges with Customer Churn
The company faces elevated customer churn and downsell activity, impacting net dollar expansion rate, which was at 102%.
Macro and Executional Pressures
Broader macroeconomic uncertainty has resulted in longer sales cycles and increased scrutiny of enterprise spending, affecting renewal rates and causing logo churn.
Need for Organizational Maturity
Sprinklr, Inc. acknowledged the need for significant improvements in execution, implementation processes, and operational maturity to support mission-critical applications.
Company Guidance
In the first quarter of FY 2026, Sprinklr, Inc. reported a total revenue of $205.5 million, marking a 5% year-over-year increase, with subscription revenue contributing $184.1 million, a 4% increase. The company achieved a non-GAAP operating income of $36.7 million, resulting in an 18% non-GAAP operating margin, and set a record with $81 million in free cash flow. For the second quarter, Sprinklr, Inc. anticipates total revenue between $205 million and $206 million, with subscription revenue ranging from $184 million to $185 million. For the full fiscal year, the company projects a revenue range of $825 million to $827 million and aims to maintain a non-GAAP operating income between $129 million and $131 million, reflecting a 16% operating margin. Despite challenges such as elevated churn and macroeconomic uncertainties, Sprinklr, Inc. is focused on improving execution, with plans to invest in critical areas like AI and customer engagement to drive long-term growth.

Sprinklr Financial Statement Overview

Summary
Sprinklr exhibits strong financial performance with robust revenue growth, improved net income, and solid cash flow management. The company shows financial stability with low leverage, although there is room for operational efficiency improvements to enhance EBIT margins.
Income Statement
85
Very Positive
Sprinklr's income statement reflects strong revenue growth, with a 63.7% increase from 2021 to TTM (Trailing-Twelve-Months). The gross profit margin is robust at 71.0% in TTM, indicating efficient cost management. Net income has also improved significantly, turning positive in recent periods, with a net profit margin of 13.6% in TTM. However, the EBIT margin remains relatively low at 2.0% due to operational expenses, suggesting room for efficiency improvements.
Balance Sheet
78
Positive
The balance sheet shows a solid equity position with an equity ratio of 53.8% in TTM, reflecting financial stability. The debt-to-equity ratio is low at 0.08, indicating minimal leverage risk. Return on equity has improved significantly, reaching 17.1% in TTM. However, total assets have grown slower than equity, suggesting a need for more asset utilization efficiency.
Cash Flow
82
Very Positive
Cash flow analysis reveals healthy operating cash flow, with a strong operating cash flow to net income ratio of 1.09 in TTM, indicating good cash profitability. Free cash flow has improved significantly, with a positive growth rate of 44.0% from the previous year. The company has maintained a positive free cash flow to net income ratio, demonstrating effective cash management.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue805.94M796.39M732.36M618.19M492.39M386.93M
Gross Profit572.35M574.32M552.96M454.46M344.84M264.85M
EBITDA46.97M42.65M49.41M-39.17M-82.84M-19.89M
Net Income109.41M121.61M51.40M-55.74M-111.47M-41.18M
Balance Sheet
Total Assets1.19B1.18B1.22B1.02B920.05M585.89M
Cash, Cash Equivalents and Short-Term Investments570.23M483.46M662.55M578.63M532.41M280.69M
Total Debt50.91M48.70M33.29M16.77M0.0078.85M
Total Liabilities549.74M572.14M543.41M475.66M404.20M403.16M
Stockholders Equity639.77M612.06M679.70M549.33M515.85M182.73M
Cash Flow
Free Cash Flow103.41M71.79M51.14M10.21M-45.33M827.00K
Operating Cash Flow119.65M77.59M71.47M26.66M-32.92M7.31M
Investing Cash Flow32.68M154.13M-110.57M-193.49M-15.65M-219.46M
Financing Cash Flow-154.97M-248.16M24.09M34.97M303.13M269.78M

Sprinklr Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.76
Price Trends
50DMA
8.22
Positive
100DMA
8.30
Positive
200DMA
8.22
Positive
Market Momentum
MACD
0.08
Negative
RSI
58.60
Neutral
STOCH
76.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXM, the sentiment is Positive. The current price of 8.76 is above the 20-day moving average (MA) of 8.41, above the 50-day MA of 8.22, and above the 200-day MA of 8.22, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 76.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CXM.

Sprinklr Risk Analysis

Sprinklr disclosed 44 risk factors in its most recent earnings report. Sprinklr reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sprinklr Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CXCXM
78
Outperform
$2.27B21.3517.50%6.75%97.06%
GTGTM
71
Outperform
$3.37B83.622.23%-3.12%-37.59%
SPSPT
66
Neutral
$1.23B-36.95%17.79%16.49%
DSDSP
65
Neutral
$862.17M457.814.15%30.64%
RNRNG
64
Neutral
$2.69B16.58%7.78%70.43%
63
Neutral
$34.04B6.14-11.52%1.82%5.53%-18.79%
63
Neutral
$1.23B-6.48%10.75%56.37%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CXM
Sprinklr
8.76
-1.23
-12.31%
RNG
RingCentral
29.87
1.62
5.73%
SPT
Sprout Social
21.20
-15.08
-41.57%
GTM
ZoomInfo Technologies
10.26
-1.64
-13.78%
JAMF
Jamf Holding
9.31
-7.90
-45.90%
DSP
Viant Technology
13.78
3.63
35.76%

Sprinklr Corporate Events

Executive/Board ChangesFinancial Disclosures
Sprinklr Announces Departure of Chief Customer Officer
Neutral
Jun 24, 2025

On June 24, 2025, Sprinklr, Inc. announced that its Chief Customer Officer, Scott Harvey, will leave the company on July 7, 2025. During his transition period, he will continue to receive his current salary and benefits, and upon departure, he will receive severance benefits. The company reiterated its financial guidance for the second quarter and full fiscal year 2026, as previously announced on June 4, 2025.

The most recent analyst rating on (CXM) stock is a Sell with a $7.00 price target. To see the full list of analyst forecasts on Sprinklr stock, see the CXM Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Sprinklr Elects New Directors at Annual Meeting
Neutral
Jun 16, 2025

On June 12, 2025, Sprinklr held its annual stockholders meeting virtually, where three key proposals were voted on. Jan R. Hauser, Kevin Haverty, and Ragy Thomas were elected as Class I directors until 2028, the executive compensation was approved on an advisory basis, and KPMG LLP was ratified as the independent public accounting firm for the fiscal year ending January 31, 2026.

The most recent analyst rating on (CXM) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Sprinklr stock, see the CXM Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Sprinklr Announces $150 Million Stock Repurchase Program
Positive
Jun 4, 2025

On June 2, 2025, Sprinklr‘s Board of Directors approved a $150 million stock repurchase program, reflecting the company’s strong financial position and commitment to enhancing shareholder value. The program, set to conclude by June 30, 2026, will be executed through various market transactions, adhering to federal securities laws. Sprinklr also reported its first quarter fiscal 2026 results, highlighting a 5% year-over-year revenue increase to $205.5 million and a record free cash flow of $80.7 million. Despite a GAAP operating loss, the company showed improved non-GAAP financial metrics, indicating progress in its strategic transformation to better serve customers and prepare for future growth.

The most recent analyst rating on (CXM) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Sprinklr stock, see the CXM Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025