Sprout Social (SPT) AI Stock Analysis

• Market Cap: $653.67M
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 13.09%
• EPS Growth: 32.34%
• Country: US
• Employees: 1,322
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.23
• Shares Outstanding: 53,179,993
• 10 Day Avg. Volume: 1,061,291
• 30 Day Avg. Volume: 1,307,300
• PEG Ratio: 3.36
• Price to Book (P/B): 10.50
• Price to Sales (P/S): 4.31
• P/FCF Ratio: 74.82
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 2.11
• Enterprise Value/Ebitda: -22.88
• 1Y Price Target: $19.00
• Price Target Upside: 72.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $10.00 ▼(-9.42% Downside)

Sprout Social's overall stock score is driven by strong earnings call results and financial performance, particularly in revenue growth and cash flow management. However, technical indicators suggest bearish momentum, and valuation metrics are weak due to negative earnings. The company's strategic focus on enterprise clients and AI expansion is promising, but profitability and market sentiment remain challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Sprout Social's services, enhancing its market position and long-term financial stability.

Enterprise Customer Expansion

Growth in high-value customers strengthens Sprout Social's revenue base and reduces dependency on smaller, more volatile accounts.

AI Product Expansion

AI product expansion positions Sprout Social at the forefront of innovation, potentially increasing customer retention and attracting new clients.

Negative Factors

Profitability Challenges

Ongoing net losses indicate challenges in achieving profitability, which could hinder long-term financial sustainability if not addressed.

SMB and Agency Market Pressure

Pressure in the SMB and agency market could limit growth opportunities and affect overall revenue if these segments do not recover.

Negative Return on Equity

A negative ROE indicates inefficiencies in generating returns from shareholders' equity, potentially deterring investment and impacting growth.

Sprout Social Business Overview & Revenue Model

Company Description

Sprout Social, Inc. designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It provides cloud software that brings together social messaging, data, and workflows in a unified system of record, intelligence, and action. The company offers provides various integrated tools in a range of functions comprising social engagement/response, publishing, reporting and analytics, social listening and business intelligence, reputation management, employee advocacy, and automation and workflows. Its tools serve a range of use-cases within its customers' organizations, including social and community management, public relations, marketing, customer service and care, commerce, sales and customer acquisition, recruiting and hiring, product development, and business strategy. The company also offers professional services, which primarily consist of consulting and training services. It serves approximately more than 31,000 customers across small-and-medium-sized businesses, mid-market companies, enterprises, marketing agencies, government, non-profit, and educational institutions. The company was incorporated in 2010 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Sprout Social generates revenue primarily through a subscription-based model, offering tiered pricing plans for its software services. These plans cater to businesses of different sizes, from small startups to large enterprises, allowing customers to choose features that align with their specific needs. Key revenue streams include monthly or annual subscriptions, add-on features, and professional services such as training and support. The company also benefits from partnerships with social media platforms and integrations with other marketing tools, which enhance its service offerings and create additional value for customers, further contributing to its earnings.

Sprout Social Financial Statement Overview

Summary

Sprout Social demonstrates strong revenue growth and efficient cost management, as seen in its high gross profit margin. However, the company faces challenges with profitability, reflected in its negative net profit margin and ROE. The balance sheet shows reduced leverage, and cash flow metrics indicate improved cash generation and management. Overall, while there are positive trends in revenue and cash flow, profitability remains a key area for improvement.

Income Statement

Sprout Social has shown consistent revenue growth, with a TTM revenue growth rate of 3.01%. The gross profit margin remains strong at 77.62%, indicating efficient cost management. However, the company is still operating at a net loss, with a net profit margin of -12.70% in the TTM, which is a concern for profitability. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.17 in the TTM, indicating a reduction in leverage. However, the return on equity remains negative at -31.97%, highlighting profitability issues. The equity ratio is stable, suggesting a solid capital structure, but the negative ROE is a significant concern.

Cash Flow

Sprout Social's free cash flow has grown by 5.09% in the TTM, showing improvement in cash generation. The operating cash flow to net income ratio is positive, indicating that the company is generating cash despite net losses. The free cash flow to net income ratio is high at 93.74%, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	443.75M	405.91M	333.64M	253.83M	187.86M	132.95M
Gross Profit	344.78M	314.43M	257.38M	193.97M	141.07M	98.03M
EBITDA	-31.82M	-45.91M	-54.79M	-44.79M	-23.48M	-25.88M
Net Income	-47.00M	-61.97M	-66.43M	-50.24M	-28.70M	-31.66M
Balance Sheet
Total Assets	481.40M	428.34M	396.58M	293.92M	264.72M	239.67M
Cash, Cash Equivalents and Short-Term Investments	90.64M	90.18M	94.41M	172.85M	176.94M	163.88M
Total Debt	59.32M	43.29M	74.03M	21.79M	23.64M	25.79M
Total Liabilities	287.27M	261.75M	252.39M	151.58M	119.51M	87.57M
Stockholders Equity	194.13M	166.59M	144.19M	142.34M	145.21M	152.10M
Cash Flow
Free Cash Flow	33.18M	23.37M	4.38M	8.82M	13.71M	-15.37M
Operating Cash Flow	37.12M	26.32M	6.46M	10.64M	14.63M	-11.35M
Investing Cash Flow	-45.62M	40.73M	-86.64M	-37.67M	-22.12M	-53.80M
Financing Cash Flow	14.22M	-30.32M	53.96M	-170.00K	83.00K	44.36M

Sprout Social Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.04
• 50DMA: Positive
• 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 SPT, the sentiment is Neutral. The current price of 11.04 is above the 20-day moving average (MA) of 10.24, above the 50-day MA of 10.64, and below the 200-day MA of 17.29, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 57.80 is Neutral, neither overbought nor oversold. The STOCH value of 78.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPT.

Sprout Social Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	77 Outperform	$1.98B	18.98	21.35%	―	6.48%	168.94%
DSP	65 Neutral	$729.22M	442.42	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$653.67M	-13.65	-26.69%	―	13.09%	32.34%
RSKD	51 Neutral	$756.65M	-21.05	-10.54%	―	6.54%	-19.17%
BMBL	51 Neutral	$382.19M	-1.78	-25.34%	―	-7.43%	61.36%
DOMO	48 Neutral	$377.86M	-5.26	―	―	-0.14%	21.60%

Sprout Social Corporate Events

Sprout Social Appoints Gregory Scott Brown to Board

On November 11, 2025, Sprout Social, Inc. announced the election of Gregory Scott Brown to its board of directors as a Class II director, with his term set to expire at the 2027 annual meeting of stockholders. This appointment is expected to enhance the board’s expertise, with Mr. Brown receiving compensation according to the company’s Non-Employee Director Compensation Policy, and no related party transactions or understandings influencing his appointment.

Sprout Social Releases New Investor Presentation

On November 5, 2025, Sprout Social released an investor presentation on its website, which will be used in discussions with investors and analysts. The presentation, part of a Form 8-K filing, includes forward-looking statements and is intended to complement the company’s SEC filings, highlighting potential impacts on stakeholders and industry positioning.