Sprout Social Inc Class A (SPT)
NASDAQ:SPT
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Sprout Social
(NASDAQ:SPT)
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Rating:66Neutral
Price Target:
$7.50
▼(-6.25% Downside)
Action:Reiterated
Date:06/11/26
The score is primarily supported by strengthening financial quality—especially growing free cash flow and low leverage—plus upbeat profitability and margin guidance from the latest earnings call. This is tempered by only neutral technicals (still below the 200-day average) and weaker valuation clarity due to negative earnings and no dividend yield.
Positive Factors
Strong Free Cash Flow
Consistent and expanding free cash flow provides durable internal funding for product investment, share repurchases, and margin expansion initiatives. Positive FCF across periods reduces reliance on external financing and supports resilience while GAAP profits are still recovering.
Negative Factors
Ongoing GAAP Losses
Despite improving trends, continued GAAP losses and negative net margins limit return on equity and indicate the company still must convert operational improvements into sustainable GAAP profitability. That constrains internal capital formation and can limit strategic options if trends reverse.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Free Cash Flow
Consistent and expanding free cash flow provides durable internal funding for product investment, share repurchases, and margin expansion initiatives. Positive FCF across periods reduces reliance on external financing and supports resilience while GAAP profits are still recovering.
Read all positive factors
Sprout Social Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlySprout Social (SPT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$438.46M
Dividend YieldN/A
Average Volume (3M)1.50M
Price to Earnings (P/E)―
Beta (1Y)1.23
Revenue Growth12.27%
EPS Growth37.41%
CountryUS
Employees1,322
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.66
Shares Outstanding54,316,180
10 Day Avg. Volume1,421,091
30 Day Avg. Volume1,504,910
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)3.25
Price to Sales (P/S)1.44
P/FCF Ratio16.80
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit1.05
Enterprise Value/Ebitda-17.55
Forecast
1Y Price Target
$10.00Price Target Upside25.00% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.93
Revenue Forecast (FY)$494.25M
Sprout Social Business Overview & Revenue Model
Company Description
Sprout Social, Inc. delivers a comprehensive, cloud-based platform for social media management, operating across a global clientele that spans the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. This sophisticated software...
How the Company Makes Money
Sprout Social primarily makes money through subscription fees for access to its SaaS platform. Revenue is largely recurring and is generally driven by the number and type of product plans and add-on capabilities purchased (for example, higher-tier...
Sprout Social Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presented a mix of clear operational and product momentum — double-digit revenue growth (11.2% YoY), expanding enterprise customer mix (30K+ ARR cohort +21% YoY and >60% of subscription revenue), record quarterly free cash flow (+~27% YoY), Trellis moving to GA with strong early adoption, and a $50M buyback authorization — all signaling improving durability and capital discipline. Offsetting these positives are near-term execution challenges: the lower-end (<$30K) cohort remains a drag and will be reworked (with modest deceleration expected), bookings/new-business cadence lags despite durable renewals, and some Q1 margin upside reflected timing; AI cost/monetization execution is also a watch item. Overall, the tone is constructive with manageable near-term headwinds as management invests in AI and repositions the go-to-market motion.Positive Updates
Revenue Growth
Revenue of $121.5M in Q1 fiscal 2026, up 11.2% year-over-year.
Negative Updates
Sub-$30K Customer Cohort Decline and Drag on Growth
Customers below $30K ARR now represent ~40% of approximated subscription revenue (down from 61% in 2022); management acknowledged this cohort has been a drag on growth and expects modest deceleration in the sub-$30K segment through 2026 as they rework pricing/packaging.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Revenue of $121.5M in Q1 fiscal 2026, up 11.2% year-over-year.
Read all positive updates
Company Guidance
Sprout guided Q2 FY2026 revenue of $121.7M–$122.5M, non‑GAAP operating income of $9.5M–$10.3M and non‑GAAP EPS of $0.15–$0.16; for FY2026 it expects revenue of $492.5M–$495.5M, non‑GAAP operating income of $54.9M–$60.4M and non‑GAAP EPS of $0.88–$0.97 (assuming ~60.7M weighted average basic shares), expects to exit Q4 with non‑GAAP operating margin near 15%, said non‑GAAP free cash flow margin should track non‑GAAP operating margin annually, is not assuming share repurchases in its EPS outlook, the Board authorized up to $50M of buybacks, and management reaffirmed a Rule‑of‑40 target of 30% by Q4 2027.Sprout Social Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
73
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 469.75M | 457.55M | 405.91M | 333.64M | 253.83M | 187.86M |
| Gross Profit | 363.91M | 354.85M | 314.43M | 257.38M | 193.97M | 141.07M |
| EBITDA | -21.81M | -27.91M | -45.91M | -54.79M | -44.79M | -23.48M |
| Net Income | -38.44M | -43.33M | -61.97M | -66.43M | -50.24M | -28.70M |
Balance Sheet | ||||||
| Total Assets | 508.60M | 523.06M | 428.34M | 396.58M | 293.92M | 264.72M |
| Cash, Cash Equivalents and Short-Term Investments | 113.56M | 95.27M | 90.18M | 94.41M | 172.85M | 176.94M |
| Total Debt | 46.55M | 66.77M | 43.29M | 74.03M | 21.79M | 23.64M |
| Total Liabilities | 293.41M | 319.64M | 261.75M | 252.39M | 151.58M | 119.51M |
| Stockholders Equity | 215.19M | 203.42M | 166.59M | 144.19M | 142.34M | 145.21M |
Cash Flow | ||||||
| Free Cash Flow | 46.69M | 39.32M | 23.37M | 4.38M | 8.82M | 13.71M |
| Operating Cash Flow | 50.54M | 43.43M | 26.32M | 6.46M | 10.64M | 14.63M |
| Investing Cash Flow | -54.64M | -52.15M | 40.73M | -86.64M | -37.67M | -22.12M |
| Financing Cash Flow | 12.74M | 15.50M | -30.32M | 53.96M | -170.00K | 83.00K |
Sprout Social Technical Analysis
Positive
8.00
Price Trends
6.42
Positive
6.74
Positive
9.19
Negative
Market Momentum
0.21
Positive
55.58
Neutral
31.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPT, the sentiment is Positive. The current price of 8 is above the 20-day moving average (MA) of 7.08, above the 50-day MA of 6.42, and below the 200-day MA of 9.19, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 55.58 is Neutral, neither overbought nor oversold. The STOCH value of 31.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPT.
Sprout Social Risk Analysis
Sprout Social disclosed 49 risk factors in its most recent earnings report. Sprout Social 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
Sprout Social Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $727.43M | 76.51 | 16.65% | ― | 18.15% | 331.16% | |
69 Neutral | $727.19M | -40.21 | -5.93% | ― | 5.10% | 48.36% | |
66 Neutral | $438.46M | -11.33 | -19.29% | ― | 12.27% | 37.41% | |
64 Neutral | $1.25B | 44.82 | 3.93% | ― | 8.10% | -73.21% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $136.34M | -2.14 | 31.73% | ― | 0.57% | 31.68% | |
52 Neutral | $354.77M | -0.43 | -108.85% | ― | -11.42% | -20.07% |
* Technology Sector Average
SPT
Sprout Social
7.29
-13.31
-64.61%
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4.94
0.08
1.65%
Sprout Social Corporate Events
Business Operations and StrategyExecutive/Board Changes
Sprout Social Founder Returns as CTO to Drive AI
Positive
Jun 10, 2026
On June 10, 2026, Sprout Social announced that company founder and director Aaron Rankin will return as Chief Technology Officer, effective August 3, 2026, while retaining his board seat. Current CTO Alan Boyce, who has been with the company for n...
Executive/Board ChangesShareholder Meetings
Sprout Social Shareholders Back Board, Pay and Auditor
Positive
May 20, 2026
At its 2026 Annual Meeting of Stockholders held on May 20, 2026, Sprout Social shareholders elected two Class I directors, Peter Barris and Karen Walker, to serve until the 2029 annual meeting, reinforcing continuity in the company’s board l...
Business Operations and StrategyStock BuybackFinancial Disclosures
Sprout Social Reports Q1 Growth and Share Repurchase Plan
Positive
May 7, 2026
Sprout Social on May 7, 2026 reported first-quarter 2026 revenue of $121.5 million, up 11% year over year, with non-GAAP operating income rising to $14.1 million and non-GAAP net income to $13.6 million, alongside robust free cash flow and a growi...
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.