8-K
Sprinklr, Inc. (CXM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 2, 2025
Sprinklr, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 001-40528 | 45-4771485 |
|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |
| 441 9th Avenue<br><br>12th Floor<br><br>New York, New York | 10001 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (917) 933-7800
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol | Name of each exchange<br>on which registered |
|---|---|---|
| Class A Common stock, par value $0.00003 per share | CXM | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On September 3, 2025, Sprinklr, Inc. (the “Company”) issued a press release announcing, among other things, its financial results for the second quarter ended July 31, 2025. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On September 3, 2025, the Company announced that Manish Sarin, the Company’s Chief Financial Officer, principal financial officer and principal accounting officer, will leave the Company on September 19, 2025 (the “Transition Date”). Mr. Sarin has advised the Company that his departure is not related to any disagreement with the Company on any matter related to the operations, policies, or practices of the Company.
In connection with Mr. Sarin’s transition, the Company expects to enter into a transition, separation and release of claims agreement (the “Separation Agreement”) with Mr. Sarin, pursuant to which Mr. Sarin will remain with the Company through the Transition Date (such period, the “Transition Period”). Pursuant to the Separation Agreement, during the Transition Period, Mr. Sarin will continue to be paid at his current base salary rate and will remain eligible to participate in the Company’s benefit plans pursuant to the terms of those plans. At the end of the Transition Period, Mr. Sarin will receive severance benefits consistent with the Company’s Executive Severance and Change in Control Plan, as amended from time to time. Mr. Sarin also will continue to be subject to customary continuing obligations post-employment, such as his obligations of confidentiality and to abide by applicable restrictive covenants.
The foregoing description of the Separation Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the complete text of the Separation Agreement, a copy of which the Company expects to file with its Quarterly Report on Form 10-Q for the quarter ending October 31, 2025, and upon filing will be incorporated herein by reference.
In connection with Mr. Sarin’s departure, on September 2, 2025, the Board designated Rory Read, the Company’s President and Chief Executive Officer and principal executive officer, as the Company’s Chief Financial Officer, principal financial officer and principal accounting officer on an interim basis, effective as of the Transition Date. The Company has initiated a search for a permanent Chief Financial Officer.
The biography for Mr. Read is contained in the Company’s definitive proxy statement, filed with the U.S. Securities and Exchange Commission on May 2, 2025. There is no arrangement or understanding between Mr. Read and any other person pursuant to which he was selected as the Company’s principal financial officer and principal accounting officer, and there is no family relationship between Mr. Read and any of the Company’s other executive officers or directors. There are no transactions between Mr. Read and the Company that would be required to be reported under Item 404(a) of Regulation S-K. Mr. Read is not receiving any additional compensation for his interim role as the Company’s Chief Financial Officer.
Item 7.01 Regulation FD Disclosure.
On September 3, 2025, the Company issued a press release announcing the appointment of Scott Millard as the Company’s Chief Revenue Officer, effective as of September 22, 2025. A copy of the press release is furnished herewith as Exhibit 99.2 and incorporated herein by reference.
The information set forth under Items 2.02 and 7.01 of this Current Report, including Exhibits 99.1 and 99.2 attached hereto, is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description of Exhibits |
|---|---|
| 99.1 | Pressrelease,datedSeptember 3, 2025 |
| 99.2 | Pressrelease, dated September 3, 2025 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: September 3, 2025 | Sprinklr, Inc. | |
|---|---|---|
| By: | /s/ Jacob Scott | |
| Jacob Scott | ||
| General Counsel & Corporate Secretary |
Document
Sprinklr Announces Second Quarter Fiscal 2026 Results
•Q2 Total Revenue of $212.0 million, up 8% year-over-year
•Q2 Subscription Revenue of $188.5 million, up 6% year-over-year
•Q2 net cash provided by operating activities of $34.8 million and free cash flow* of $29.8 million
•RPO and cRPO up 4% and 7% year-over-year, respectively
•149 $1 million customers, up 3 customers quarter-over-quarter
•Scott Millard appointed Chief Revenue Officer, effective September 22nd
•Manish Sarin, Chief Financial Officer, to depart Sprinklr on September 19th
NEW YORK, New York--September 3, 2025--Sprinklr (NYSE: CXM), the unified customer experience management (Unified-CXM) platform for modern enterprises, today reported financial results for its second fiscal quarter ended July 31, 2025.
“Our Q2 results reflect the continued and intentional progress we are making in our transformation to better serve our customers and partners. And while we still have work to do, we are encouraged by the increasing quality of our customer engagements, and upcoming impactful R&D innovations,” said Rory Read, Sprinklr President and CEO. “We remain focused on improving our execution and delivering business value to the iconic brands we serve through our AI-native, Unified CXM platform.”
Read went on to say, “I’d like to welcome Scott Millard as our new Chief Revenue Officer. Scott will join us from Dell Technologies where he was SVP Global AI Sales and brings deep expertise, a proven track record of driving growth at scale, and a passion for building high-performing teams that we believe are all critical as we continue our transformation journey. At the same time, I want to thank our CFO, Manish Sarin, who will be departing Sprinklr. Manish has been an important member of the Executive Leadership Team, and I want to recognize all of his contributions during his three and a half years at the company.”
Second Quarter Fiscal 2026 Financial Highlights
•Revenue: Total revenue for the second quarter was $212.0 million, up from $197.2 million one year ago, an increase of 8% year-over-year. Subscription revenue for the second quarter was $188.5 million, up from $177.9 million one year ago, an increase of 6% year-over-year.
•Operating Income (Loss) and Margin*: Second quarter GAAP operating income was $16.3 million, compared to operating loss of $0.1 million one year ago. Non-GAAP operating income was $38.2 million, compared to non-GAAP operating income of $19.6 million one year ago. For the second quarter, GAAP operating margin was 8% and non-GAAP operating margin was 18% compared to GAAP operating margin of 0% and non-GAAP operating margin of 10% in the second quarter of fiscal year 2025.
•Net Income Per Share*: Second quarter GAAP net income per share, diluted was $0.05, compared to net income per share, diluted of $0.01 in the second quarter of fiscal year 2025. Non-GAAP net income per share, diluted for the second quarter was $0.13, compared to non-GAAP net income per share, diluted of $0.08 in the second quarter of fiscal year 2025.
•Cash, Cash Equivalents and Marketable Securities: Total cash, cash equivalents and marketable securities as of July 31, 2025 were $474.0 million.
* Free cash flow, non-GAAP operating income, non-GAAP operating margin and non-GAAP net income per share are non-GAAP financial measures defined under “Non-GAAP Financial Measures” and are reconciled to net cash provided by operating activities, operating income (loss), net income or net income per share, as applicable, the closest comparable GAAP measure, at the end of this release.
Financial Outlook
Sprinklr is providing the following guidance for the third fiscal quarter ending October 31, 2025:
•Subscription revenue between $186 million and $187 million.
•Total revenue between $209 million and $210 million.
•Non-GAAP operating income between $28.5 million and $29.5 million.
•Non-GAAP net income per share of approximately $0.09, assuming 257 million diluted weighted-average shares outstanding.
Sprinklr is providing the following guidance for the full fiscal year ending January 31, 2026:
•Subscription revenue between $746 million and $748 million.
•Total revenue between $837 million and $839 million.
•Non-GAAP operating income between $131 million and $133 million.
•Non-GAAP net income per share between $0.42 and $0.43, assuming 266 million diluted weighted-average shares outstanding.
Non-GAAP Financial Measures
In addition to our results determined in accordance with U.S. GAAP, we believe that the following non-GAAP financial measures associated with our condensed consolidated statements of operations are useful in evaluating our operating performance:
•Non-GAAP gross profit and non-GAAP gross margin;
•Non-GAAP operating income and non-GAAP operating margin; and
•Non-GAAP net income and non-GAAP net income per share.
We define these non-GAAP financial measures as the respective U.S. GAAP measures, excluding, as applicable, stock-based compensation expense and related charges, amortization of stock-based compensation expense associated with capitalized internal use software, amortization of acquired intangible assets, release of U.S. federal and state valuation allowances, and the estimated tax effect related to the non-GAAP items, as well as other one-time charges, such as restructuring charges, costs associated with acquisitions, non-recurring litigation costs and facility exit costs. We believe that it is useful to exclude these items in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies over multiple periods.
In addition, we believe that free cash flow is also a useful non-GAAP financial measure. Free cash flow is defined as net cash provided by operating activities less cash used for purchases of property and equipment and capitalized internal-use software. We believe that free cash flow is a useful indicator of liquidity as it measures our ability to generate cash, or our need to access additional sources of cash, to fund operations and investments. We expect our free cash flow to fluctuate in future periods with changes in our operating expenses and as we continue to invest in our growth. We typically experience higher billings in the fourth quarter compared to other quarters and experience higher collections of accounts receivable in the first half of the year, which results in a decrease in accounts receivable in the first half of the year.
However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by U.S. GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for our condensed consolidated financial statements presented in accordance with U.S. GAAP.
Sprinklr has not reconciled its financial outlook expectations as to non-GAAP operating income, or as to non-GAAP net income per share, to their respective most directly comparable U.S. GAAP measures as a result of the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future U.S. GAAP financial results. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Sprinklr’s results computed in accordance with U.S. GAAP.
Conference Call Information Sprinklr will host a conference call today, September 3, 2025, to discuss second quarter fiscal 2026 financial results, as well as the third quarter and full year fiscal 2026 outlook, at 8:30 a.m. Eastern Time, 5:30 a.m. Pacific Time. Investors are invited to join the webcast by visiting: https://investors.sprinklr.com/. To access the call by phone, dial 877-459-3955 (domestic) or 201-689-8588 (international). The conference ID number is 13755429. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.
About Sprinklr, Inc. Sprinklr is a leading enterprise software company for all customer-facing functions. With advanced AI, Sprinklr's unified customer experience management (Unified-CXM) platform helps companies deliver human experiences to every customer, every time, across any modern channel. Headquartered in New York City with employees around the world, Sprinklr works with more than 1,900 valuable enterprises — global brands like Microsoft, P&G, Samsung and 60% of the Fortune 100. Sprinklr is redefining the world's ability to make every customer experience extraordinary.
Forward-Looking Statements This press release contains express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the third quarter and full year fiscal 2026 and the impact of, and our ability to execute, our corporate strategies and business initiatives. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “target,” “explore,” “continue,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including: our rapid growth may not be indicative of our future growth; our revenue growth rate has fluctuated in prior periods; our ability to achieve or maintain profitability; we derive the substantial majority of our revenue from subscriptions to our Unified-CXM platform; our ability to manage our growth and organizational change; the market for Unified-CXM solutions is rapidly evolving; our ability to attract new customers in a manner that is cost-effective and assures customer success; our ability to attract and retain customers to use our products; our ability to drive customer subscription renewals and expand our sales to existing customers; our ability to effectively develop platform enhancements, introduce new products or keep pace with technological developments; the market in which we participate is new and rapidly evolving and our ability to compete effectively; our business and growth depend in part on the success of our strategic relationships with third parties; our ability to develop and maintain successful relationships with partners who provide access to data that enhances our Unified-CXM platform’s artificial intelligence capabilities; the majority of our customer base consists of large enterprises, and we currently generate a significant portion of our revenue from a relatively small number of enterprises; our investments in research and development; our ability to expand our sales and marketing capabilities; our sales cycle with enterprise and international clients can be long and unpredictable; certain of our results of operations and financial metrics may be difficult to predict; our ability to maintain data privacy and data security; we rely on third-party data centers and cloud computing providers; the sufficiency of our cash and cash equivalents to meet our liquidity needs; our ability to comply with modified or new laws and regulations applying to our business; our ability to successfully enter into new markets and manage our international expansion; the attraction and retention of qualified employees and key personnel; our ability to effectively manage our growth and future expenses and maintain our corporate culture; our ability to maintain, protect, and enhance our intellectual property rights; unstable economic, political and market conditions, including as a result of public health crises, fluctuations in inflation and interest rates, the imposition of tariffs in the U.S. and abroad, or geopolitical actions, such as war and terrorism or the perception that such hostilities may be imminent; and our ability to successfully defend litigation brought against us. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are or will be discussed in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2025, filed with the SEC on June 5, 2025, under the caption “Risk Factors,” and in other filings that we make from time to time with the SEC. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprinklr at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Sprinklr assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.
Key Business Metrics
RPO. RPO, or remaining performance obligations, represents contracted revenues that have not yet been recognized, and include deferred revenue and amounts that will be invoiced and recognized in future periods.
cRPO. cRPO, or current RPO, represents contracted revenues that have not yet been recognized, and include deferred revenue and amounts that will be invoiced and recognized in the next 12 months.
Investor Relations: ir@sprinklr.com
Media & Press: pr@sprinklr.com
| Sprinklr, Inc. | ||||||||
|---|---|---|---|---|---|---|---|---|
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| July 31,<br>2025 | January 31,<br>2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 125,365 | $ | 145,270 | ||||
| Marketable securities | 348,626 | 338,189 | ||||||
| Accounts receivable, net of allowance of $9.1 million and $8.1 million, respectively | 202,473 | 285,656 | ||||||
| Prepaid expenses and other current assets | 90,712 | 84,982 | ||||||
| Total current assets | 767,176 | 854,097 | ||||||
| Property and equipment, net | 31,599 | 31,591 | ||||||
| Goodwill and other intangible assets | 50,155 | 49,957 | ||||||
| Operating lease right-of-use assets | 44,318 | 44,626 | ||||||
| Deferred tax asset, non-current | 80,695 | 90,369 | ||||||
| Other non-current assets | 112,170 | 113,559 | ||||||
| Total assets | $ | 1,086,113 | $ | 1,184,199 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 28,260 | $ | 27,353 | ||||
| Accrued expenses and other current liabilities | 62,210 | 79,285 | ||||||
| Operating lease liabilities, current | 8,395 | 7,462 | ||||||
| Deferred revenue | 395,059 | 403,483 | ||||||
| Total current liabilities | 493,924 | 517,583 | ||||||
| Deferred revenue, non-current | 2,020 | 6,276 | ||||||
| Operating lease liabilities, non-current | 39,817 | 41,243 | ||||||
| Other liabilities, non-current | 6,915 | 7,034 | ||||||
| Total liabilities | 542,676 | 572,136 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity | ||||||||
| Class A common stock | 4 | 4 | ||||||
| Class B common stock | 3 | 4 | ||||||
| Treasury stock | (23,831) | (23,831) | ||||||
| Additional paid-in capital | 1,328,449 | 1,268,920 | ||||||
| Accumulated other comprehensive loss | (4,742) | (6,969) | ||||||
| Accumulated deficit | (756,446) | (626,065) | ||||||
| Total stockholders’ equity | 543,437 | 612,063 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,086,113 | $ | 1,184,199 | ||||
| Sprinklr, Inc. | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Condensed Consolidated Statements of Operations | ||||||||
| (in thousands, except per share data) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Revenue: | ||||||||
| Subscription | $ | 188,473 | $ | 177,859 | $ | 372,600 | $ | 355,222 |
| Professional services | 23,567 | 19,349 | 44,940 | 37,944 | ||||
| Total revenue | 212,040 | 197,208 | 417,540 | 393,166 | ||||
| Costs of revenue: | ||||||||
| Costs of subscription(1) | 43,177 | 34,306 | 85,363 | 66,876 | ||||
| Costs of professional services(1) | 24,261 | 19,661 | 44,706 | 38,216 | ||||
| Total costs of revenue | 67,438 | 53,967 | 130,069 | 105,092 | ||||
| Gross profit | 144,602 | 143,241 | 287,471 | 288,074 | ||||
| Operating expense: | ||||||||
| Research and development(1) | 23,162 | 23,226 | 45,973 | 45,765 | ||||
| Sales and marketing(1) | 70,583 | 77,490 | 141,654 | 164,974 | ||||
| General and administrative(1) | 35,569 | 38,782 | 69,998 | 67,883 | ||||
| Restructuring(1) | (984) | 3,830 | 15,329 | 3,830 | ||||
| Total operating expense | 128,330 | 143,328 | 272,954 | 282,452 | ||||
| Operating income (loss) | 16,272 | (87) | 14,517 | 5,622 | ||||
| Other income, net | 7,469 | 6,414 | 14,399 | 13,914 | ||||
| Income before provision for income taxes | 23,741 | 6,327 | 28,916 | 19,536 | ||||
| Provision for income taxes | 11,126 | 4,486 | 17,869 | 7,061 | ||||
| Net income | $ | 12,615 | $ | 1,841 | $ | 11,047 | $ | 12,475 |
| Net income per share, basic | $ | 0.05 | $ | 0.01 | $ | 0.04 | $ | 0.05 |
| Weighted average shares used in computing net income per share, basic | 254,391 | 260,830 | 255,501 | 266,187 | ||||
| Net income per share, diluted | $ | 0.05 | $ | 0.01 | $ | 0.04 | $ | 0.04 |
| Weighted average shares used in computing net income per share, diluted | 263,201 | 271,934 | 264,442 | 279,695 |
(1) Includes stock-based compensation expense, net of amounts capitalized, as follows:
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Costs of subscription | $ | 223 | $ | 327 | $ | 488 | $ | 610 | ||||
| Costs of professional services | 726 | 364 | 1,118 | 681 | ||||||||
| Research and development | 4,204 | 2,834 | 8,090 | 5,408 | ||||||||
| Sales and marketing | 6,124 | 5,802 | 12,419 | 11,406 | ||||||||
| General and administrative | 10,027 | 5,765 | 19,603 | 10,842 | ||||||||
| Restructuring | — | — | 866 | — | ||||||||
| Stock-based compensation expense, net of amounts capitalized | $ | 21,304 | $ | 15,092 | $ | 42,584 | $ | 28,947 | ||||
| Sprinklr, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||
| (in thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| Six Months Ended July 31, | ||||||||||||
| 2025 | 2024 | |||||||||||
| Cash flow from operating activities: | ||||||||||||
| Net income | $ | 11,047 | $ | 12,475 | ||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization expense | 9,348 | 9,118 | ||||||||||
| Provision for credit losses | 2,468 | 11,103 | ||||||||||
| Stock-based compensation, net of amounts capitalized | 42,584 | 28,947 | ||||||||||
| Non-cash lease expense | 3,914 | 4,164 | ||||||||||
| Deferred income taxes | 9,822 | (40) | ||||||||||
| Net amortization/accretion on marketable securities | (3,587) | (7,436) | ||||||||||
| Other non-cash items, net | 31 | 216 | ||||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | 80,987 | 67,292 | ||||||||||
| Prepaid expenses and other current assets | (6,330) | (15,289) | ||||||||||
| Other non-current assets | 2,499 | (1,473) | ||||||||||
| Accounts payable | 609 | (9,268) | ||||||||||
| Operating lease liabilities | (4,024) | (2,665) | ||||||||||
| Accrued expenses and other current liabilities | (17,477) | (26,683) | ||||||||||
| Deferred revenue | (13,186) | (7,858) | ||||||||||
| Other liabilities | (138) | 431 | ||||||||||
| Net cash provided by operating activities | 118,567 | 63,034 | ||||||||||
| Cash flow from investing activities: | ||||||||||||
| Purchases of marketable securities | (269,697) | (136,136) | ||||||||||
| Proceeds from sales and maturities of marketable securities | 262,629 | 292,298 | ||||||||||
| Purchases of property and equipment | (654) | (4,028) | ||||||||||
| Capitalized internal-use software | (7,459) | (6,291) | ||||||||||
| Purchases of intangibles | (262) | — | ||||||||||
| Net cash (used in) provided by investing activities | (15,443) | 145,843 | ||||||||||
| Cash flow from financing activities: | ||||||||||||
| Proceeds from issuance of common stock upon exercise of stock options | 12,939 | 17,235 | ||||||||||
| Proceeds from issuance of common stock upon ESPP purchases | 2,785 | 3,403 | ||||||||||
| Payments for repurchase of Class A common shares and related excise tax | (140,845) | (273,873) | ||||||||||
| Net cash used in financing activities | (125,121) | (253,235) | ||||||||||
| Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | 2,295 | (1,247) | ||||||||||
| Net change in cash, cash equivalents and restricted cash | (19,702) | (45,605) | ||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 153,533 | 172,429 | ||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 133,831 | $ | 126,824 | ||||||||
| Sprinklr, Inc. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Reconciliation of Non-GAAP Measures | ||||||||||||
| (in thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Non-GAAP gross profit and non-GAAP gross margin: | ||||||||||||
| U.S. GAAP gross profit | $ | 144,602 | $ | 143,241 | $ | 287,471 | $ | 288,074 | ||||
| Stock-based compensation expense and related charges(1) | 955 | 717 | 1,625 | 1,324 | ||||||||
| Amortization of stock-based compensation expense - capitalized internal-use software | 692 | 539 | 1,341 | 1,031 | ||||||||
| Non-GAAP gross profit | $ | 146,249 | $ | 144,497 | $ | 290,437 | $ | 290,429 | ||||
| Gross margin | 68 | % | 73 | % | 69 | % | 73 | % | ||||
| Non-GAAP gross margin | 69 | % | 73 | % | 70 | % | 74 | % | ||||
| Non-GAAP operating income: | ||||||||||||
| U.S. GAAP operating income (loss) | $ | 16,272 | $ | (87) | $ | 14,517 | $ | 5,622 | ||||
| Stock-based compensation expense and related charges(2) | 21,450 | 15,243 | 42,214 | 29,867 | ||||||||
| Amortization of acquired intangible assets | — | 50 | — | 100 | ||||||||
| Amortization of stock-based compensation expense - capitalized internal-use software | 692 | 539 | 1,341 | 1,031 | ||||||||
| Non-recurring litigation costs(3) | 816 | — | 1,585 | — | ||||||||
| Restructuring costs(4) | (984) | 3,830 | 15,329 | 3,830 | ||||||||
| Non-GAAP operating income | $ | 38,246 | $ | 19,575 | $ | 74,986 | $ | 40,450 | ||||
| Operating margin | 8 | % | — | % | 3 | % | 1 | % | ||||
| Non-GAAP operating margin | 18 | % | 10 | % | 18 | % | 10 | % | ||||
| Free cash flow: | ||||||||||||
| Net cash provided by operating activities | $ | 34,791 | $ | 21,322 | $ | 118,567 | $ | 63,034 | ||||
| Purchase of property and equipment | (365) | (1,483) | (654) | (4,028) | ||||||||
| Capitalized internal-use software | (4,673) | (3,314) | (7,459) | (6,291) | ||||||||
| Free cash flow | $ | 29,753 | $ | 16,525 | $ | 110,454 | $ | 52,715 |
(1) Employer payroll tax related to stock-based compensation for the periods ended July 31, 2025 and 2024 was immaterial as it relates to the impact to gross profit.
(2) Includes $0.1 million and $0.1 million of employer payroll tax related to stock-based compensation expense for the three months ended July 31, 2025 and 2024, respectively, and $0.5 million and $0.9 million of employer payroll tax related to stock-based compensation expense for the six months ended July 31, 2025 and 2024, respectively.
(3) Relates to costs associated with litigation that arise outside of the ordinary course of business.
(4) Includes nil and $0.7 million of employer payroll tax related to the February 2025 restructuring for the three and six months ended July 31, 2025, respectively.
| Three Months Ended July 31, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||||||
| (in thousands) | Per Share-Basic | Per Share-Diluted | (in thousands) | Per Share-Basic | Per Share-Diluted | |||||||
| Non-GAAP net income reconciliation to net income | ||||||||||||
| Net income | $ | 12,615 | $ | 0.05 | $ | 0.05 | $ | 1,841 | $ | 0.01 | $ | 0.01 |
| Add: | ||||||||||||
| Stock-based compensation expense and related charges(1) | 21,450 | 0.08 | 0.08 | 15,243 | 0.06 | 0.06 | ||||||
| Amortization of acquired intangible assets | — | — | — | 50 | — | — | ||||||
| Amortization of stock-based compensation expense - capitalized internal-use software | 692 | — | — | 539 | — | — | ||||||
| Income tax expense(2) | (760) | — | — | — | — | — | ||||||
| Non-recurring litigation costs(3) | 816 | — | — | — | — | — | ||||||
| Restructuring costs(4) | (984) | — | — | 3,830 | 0.01 | 0.01 | ||||||
| Total additions, net | 21,214 | 0.08 | 0.08 | 19,662 | 0.07 | 0.07 | ||||||
| Non-GAAP net income | $ | 33,829 | $ | 0.13 | $ | 0.13 | $ | 21,503 | $ | 0.08 | $ | 0.08 |
| Weighted-average shares outstanding | 254,391 | 263,201 | 260,830 | 271,934 | ||||||||
| Six Months Ended July 31, | ||||||||||||
| 2025 | 2024 | |||||||||||
| (in thousands) | Per Share-Basic | Per Share-Diluted | (in thousands) | Per Share-Basic | Per Share-Diluted | |||||||
| Non-GAAP net income reconciliation to net income | ||||||||||||
| Net income | $ | 11,047 | $ | 0.04 | $ | 0.04 | $ | 12,475 | $ | 0.05 | $ | 0.04 |
| Add: | ||||||||||||
| Stock-based compensation expense and related charges(1) | 42,214 | 0.17 | 0.16 | 29,867 | 0.11 | 0.11 | ||||||
| Amortization of acquired intangible assets | — | — | — | 100 | — | — | ||||||
| Amortization of stock-based compensation expense - capitalized internal-use software | 1,341 | — | — | 1,031 | — | — | ||||||
| Income tax expense(2) | (5,371) | (0.02) | (0.02) | — | — | — | ||||||
| Non-recurring litigation costs(3) | 1,585 | 0.01 | 0.01 | — | — | — | ||||||
| Restructuring costs(4) | 15,329 | 0.06 | 0.06 | 3,830 | 0.02 | 0.02 | ||||||
| Total additions, net | 55,098 | 0.22 | 0.21 | 34,828 | 0.13 | 0.13 | ||||||
| Non-GAAP net income | $ | 66,145 | $ | 0.26 | $ | 0.25 | $ | 47,303 | $ | 0.18 | $ | 0.17 |
| Weighted-average shares outstanding | 255,501 | 264,442 | 266,187 | 279,695 |
(1) Includes $0.1 million and $0.1 million of employer payroll tax related to stock-based compensation expense for the three months ended July 31, 2025 and 2024, respectively, and $0.5 million and $0.9 million of employer payroll tax related to stock-based compensation expense for the six months ended July 31, 2025 and 2024, respectively.
(2) Represents the Company’s current and deferred income tax expense commensurate with the non-GAAP measure of profitability using a non-GAAP tax rate of 26% for the three and six months ended July 31, 2025. The Company uses an annual projected tax rate in its computation of the non-GAAP income tax provision, and excludes the direct impact of stock-based compensation, employer tax costs related to stock-based compensation, intangible amortization expense, amortization of stock-based compensation expense - capitalized internal-use software, non-recurring litigation costs and restructuring costs.
(3) Relates to costs associated with litigation that arise outside of the ordinary course of business.
(4) Includes nil and $0.7 million of employer payroll tax related to the February 2025 restructuring for the three and six months ended July 31, 2025, respectively.
Document
Exhibit 99.2
Sprinklr Announces Scott Millard as Chief Revenue Officer
NEW YORK, NY — September 3, 2025 – Sprinklr (NYSE: CXM), the unified customer experience management (Unified-CXM) platform for modern enterprises, today announced that Scott Millard will join Sprinklr as its Chief Revenue Officer, effective September 22, 2025, reporting to Sprinklr President and CEO, Rory Read.
“We are thrilled to be welcoming Scott to the Sprinklr team. Scott brings deep expertise, a proven track record of driving growth, and a passion for building high-performing teams that we believe are all critical as we continue our transformation journey,” said Sprinklr President and CEO, Rory Read. “His customer-centric approach and competitive drive have helped him to deliver consistent and compelling results, and we believe that his arrival marks an important moment for Sprinklr as we sharpen our go-to-market strategy and position ourselves for long-term success.”
With more than 30 years in the tech industry, Millard is a distinguished sales leader with expertise in sales strategy, execution, and go-to-market excellence across diverse market segments. Most recently, Millard served as Senior Vice President, Global AI Sales at Dell Technologies where he led a $15B+ revenue organization supporting some of the largest AI deployments, globally. Prior to that, Millard held several strategic sales leadership roles within Dell, including Senior Vice President of North America Preferred counts, managing a $5B enterprise and commercial organization.
“I'm excited to join Sprinklr at such a pivotal time in the company’s journey. The company’s transformation is well underway, and I believe momentum is building,” said Scott Millard. “As Sprinklr works to expand their reach into larger enterprises, deepen customer relationships, and accelerate growth, I’m inspired by the opportunity to help guide an organization that is rooted in customer obsession, accountability, teamwork, and trust. I look forward to empowering businesses around the world to reimagine exceptional experiences through Sprinklr’s AI-native, unified CXM platform.”
Millard graduated from Bryant University, where he also received his MBA. He is based in Boston, MA.
About Sprinklr Sprinklr is a leading enterprise software company for all customer-facing functions. With advanced AI, Sprinklr's unified customer experience management (Unified-CXM) platform helps companies deliver human experiences to every customer, every time, across any modern channel. Headquartered in New York City with employees around the world, Sprinklr works with more than 1,900 valuable enterprises — global brands like Microsoft, P&G, Samsung and 60% of the Fortune 100. Sprinklr is redefining the world's ability to make every customer experience extraordinary.
Forward Looking Statements
This press release contains forward-looking information and statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the potential benefits of Scott Millard joining Sprinklr as its Chief Revenue Officer. By their nature, forward-looking information and statements are subject to risks, uncertainties, and contingencies, including (i) the risk that the potential benefits of Mr. Millard’s joining Sprinklr are not realized and (ii) risks, uncertainties and contingencies that may apply to Sprinklr’s business. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are discussed in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2025, filed with the Securities and Exchange Commission (the “SEC”) on June 5, 2025, under the caption “Risk Factors,” and in other filings that we make from time to time with the SEC. Sprinklr does not undertake to update any forward-looking statements or information, including those contained in this press release.
Press Contact Austin DeArman
pr@sprinklr.com