Sprinklr (CXM) AI Stock Analysis

• Market Cap: $2.23B
• Dividend Yield: N/A
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 1.04
• Revenue Growth: 6.08%
• EPS Growth: 153.79%
• Country: US
• Employees: 3,589
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.13
• Shares Outstanding: 142,831,150
• 10 Day Avg. Volume: 1,998,687
• 30 Day Avg. Volume: 1,798,071
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 3.39
• Enterprise Value/Ebitda: 31.63
• 1Y Price Target: $10.36
• Price Target Upside: 32.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 70 Neutral
• Price Target: $8.50 ▲(8.56% Upside)

Sprinklr's strong financial performance and reasonable valuation are key strengths, supporting a positive outlook. However, technical analysis indicates bearish momentum, and earnings call insights reveal challenges that could impact future growth. The overall score reflects a balanced view of these factors.

Positive Factors

Project Execution

Q2 showed execution on 'Project Bearhug' to drive stabilization and improve retention.

Revenue Performance

Total revenue and subscription revenue beat guidance by ~3% and ~2% in Q2.

Negative Factors

Customer Churn

The number of customers with more than $1M ARR fell for the first time sequentially.

Sales Challenges

Third-quarter guidance implies that subscription revenue will decrease sequentially as longer sales cycles and continued scrutiny of enterprise spending negatively impact renewals.

Sprinklr Business Overview & Revenue Model

Company Description

Sprinklr is a customer experience management (CXM) platform that enables businesses to manage and enhance their customer interactions across various digital channels. Founded in 2010, Sprinklr operates primarily in the technology sector, offering solutions that integrate social media management, customer engagement, and data analytics. Its core products include social media management, customer service tools, and insights analytics, which help brands create unified customer experiences and drive engagement in an increasingly digital marketplace.

How the Company Makes Money

Sprinklr generates revenue primarily through a subscription-based model, where clients pay for access to its CXM platform and its suite of tools. The company offers various pricing tiers based on the features and services utilized, catering to businesses of all sizes. Key revenue streams include annual subscriptions, professional services for platform implementation and training, and add-on features or modules that customers can purchase. Sprinklr also benefits from strategic partnerships with major technology companies and agencies, which can enhance its service offerings and expand its market reach, thereby contributing to its overall earnings.

Sprinklr Financial Statement Overview

Summary

Sprinklr exhibits strong financial performance with significant improvements in revenue and profitability. The company shows robust revenue growth, a solid equity position, and effective cash management. However, there is room for improvement in operational efficiency to enhance EBIT margins.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	820.77M	796.39M	732.36M	618.19M	492.39M	386.93M
Gross Profit	574.06M	574.32M	552.96M	454.46M	344.84M	264.85M
EBITDA	61.51M	42.65M	49.41M	-39.17M	-82.84M	-19.89M
Net Income	120.18M	121.61M	51.40M	-55.74M	-111.47M	-41.18M
Balance Sheet
Total Assets	1.09B	1.18B	1.22B	1.02B	920.05M	585.89M
Cash, Cash Equivalents and Short-Term Investments	473.99M	483.46M	662.55M	578.63M	532.41M	280.69M
Total Debt	48.21M	48.70M	33.29M	16.77M	0.00	78.85M
Total Liabilities	542.68M	572.14M	543.41M	475.66M	404.20M	403.16M
Stockholders Equity	543.44M	612.06M	679.70M	549.33M	515.85M	182.73M
Cash Flow
Free Cash Flow	124.36M	71.79M	51.14M	10.21M	-45.33M	827.00K
Operating Cash Flow	133.12M	77.59M	71.47M	26.66M	-32.92M	7.31M
Investing Cash Flow	-7.16M	154.13M	-110.57M	-193.49M	-15.65M	-219.46M
Financing Cash Flow	-120.04M	-248.16M	24.09M	34.97M	303.13M	269.78M

Sprinklr Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXM, the sentiment is Negative. The current price of 7.83 is below the 20-day moving average (MA) of 8.31, below the 50-day MA of 8.64, and below the 200-day MA of 8.47, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 38.41 is Neutral, neither overbought nor oversold. The STOCH value of 30.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CXM.

Sprinklr Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	70 Neutral	$2.23B	18.86	23.74%	―	6.08%	153.79%
GTM	69 Neutral	$3.22B	38.67	5.22%	―	-0.54%	626.94%
JAMF	68 Neutral	$1.19B	―	-6.68%	―	11.36%	46.67%
SPT	62 Neutral	$897.54M	―	-32.50%	―	14.79%	27.52%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
RNG	60 Neutral	$2.76B	―	16.58%	―	6.47%	90.60%
DSP	59 Neutral	$640.21M	298.81	5.20%	―	30.92%	―

Sprinklr Corporate Events

Sprinklr CEO Steps In as Interim CFO

On September 3, 2025, Sprinklr announced the departure of its CFO, Manish Sarin, effective September 19, 2025, with Rory Read, the company’s CEO, stepping in as interim CFO. The company also appointed Scott Millard as Chief Revenue Officer, effective September 22, 2025. Sprinklr reported strong financial results for the second quarter of fiscal 2026, with total revenue increasing by 8% year-over-year to $212 million and subscription revenue rising by 6% to $188.5 million. The company continues to focus on its transformation journey, emphasizing customer engagement and R&D innovations.

Sprinklr Appoints New Principal Accounting Officer

On August 7, 2025, Marlise Ricci announced her decision to resign as Chief Accounting Officer of Sprinklr, Inc., effective August 15, 2025. Following her resignation, the company’s Board appointed Manish Sarin, the current Chief Financial Officer, as the new principal accounting officer, effective the same date. There are no known personal or transactional conflicts involving Mr. Sarin in his new role.

Sprinklr Announces Departure of Chief Customer Officer

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.

Sprinklr Elects New Directors at Annual Meeting

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.

Sprinklr Announces $150 Million Stock Repurchase Program

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.