Sprinklr (CXM) AI Stock Analysis

• Market Cap: $1.93B
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.05
• Revenue Growth: 6.08%
• EPS Growth: 153.79%
• Country: US
• Employees: 3,589
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.13
• Shares Outstanding: 142,422,230
• 10 Day Avg. Volume: 2,141,449
• 30 Day Avg. Volume: 2,291,534
• PEG Ratio: 0.13
• Price to Book (P/B): 3.79
• Price to Sales (P/S): 2.91
• P/FCF Ratio: 32.30
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 3.39
• Enterprise Value/Ebitda: 31.62
• 1Y Price Target: $10.19
• Price Target Upside: 29.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 70 Neutral
• Price Target: $8.50 ▲(8.14% 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

AI Platform Recognition

Recognition by leading analysts underscores the platform's innovation and strengthens its competitive position in the CXM market.

Healthy Balance Sheet

A healthy balance sheet with substantial cash reserves and no debt enhances financial stability and supports long-term strategic initiatives.

Strong Free Cash Flow

Strong free cash flow indicates effective cash management and provides financial flexibility for investments, debt reduction, or shareholder returns.

Negative Factors

Customer Churn Challenges

High customer churn can erode revenue growth and indicates potential issues with customer satisfaction or competitive pressures.

Sales Cycle Elongation

Longer sales cycles can delay revenue realization and reflect challenges in closing deals, impacting short to medium-term growth.

Pressure on Renewal Site

Pressure on renewals due to operational issues can lead to revenue instability and highlights the need for improved execution.

Sprinklr Business Overview & Revenue Model

Company Description

Sprinklr, 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 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 health with consistent revenue growth, robust profitability margins, and a solid balance sheet. The company effectively manages its debt and generates substantial cash flow, positioning it well for future growth. Minor concerns include equity reduction and cash flow volatility.

Income Statement

Sprinklr has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 1.84%, indicating a positive trajectory. The company maintains healthy profitability margins, with a gross profit margin of 69.94% and a net profit margin of 14.64% in the TTM. The EBIT and EBITDA margins have improved significantly, reflecting operational efficiency. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.09, indicating low leverage and financial stability. The return on equity (ROE) is strong at 20.97%, showcasing effective use of equity to generate profits. The equity ratio stands at 50.06%, reflecting a solid capital structure. However, the decrease in stockholders' equity over the past year could be a concern if it continues.

Cash Flow

Sprinklr's cash flow performance is impressive, with a free cash flow growth rate of 20.26% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.11 suggests efficient cash conversion. The free cash flow to net income ratio of 0.93 highlights the company's ability to generate cash relative to its net income. However, the lower operating cash flow coverage ratio compared to previous periods suggests potential volatility in cash flow.

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: 7.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 7.86 is below the 20-day moving average (MA) of 7.96, below the 50-day MA of 8.39, and below the 200-day MA of 8.45, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 42.74 is Neutral, neither overbought nor oversold. The STOCH value of 43.26 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
GTM	73 Outperform	3.68B	44.17	5.75%	―	-0.54%	626.94%
CXM	70 Neutral	$1.93B	17.30	23.74%	―	6.08%	153.79%
JAMF	66 Neutral	1.49B	-29.83	-6.32%	―	11.36%	46.67%
RNG	65 Neutral	2.78B	-227.58	4.24%	―	6.47%	90.60%
SPT	62 Neutral	826.33M	-14.80	-37.20%	―	14.79%	27.52%
DSP	59 Neutral	534.46M	252.68	8.57%	―	30.92%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.