SPT · Sprout Social, Inc.
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Metrics snapshot
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AI Brief
Q2 FY26 earnings call · Aug 6, 2026TL;DR. Sprout Social delivered Q2 results ahead of guidance, raising full-year non-GAAP operating income and EPS outlooks and lifting the Q4 exit operating margin target from 15% to ~17% following a ~20% workforce reduction expected to cut annualized costs by at least $50M, while reiterating no improvement in the demand environment and expecting continued sub-$30K customer headwinds.
- + Delivered non-GAAP operating income $6.1M above guidance and non-GAAP free cash flow up ~60% YoY
- + Announced ~20% workforce reduction expected to reduce annualized non-GAAP cost structure by at least $50M
- + 30K+ ARR customer cohort subscription revenue grew 20% YoY and now represents 61%+ of subscription revenue
- + ACV grew 14.8% YoY with multi-year contracts now ~half of contract mix
- + RPO accelerated to 15.5% YoY growth and CRPO growth accelerated to 12.4% YoY
- − Expect continued headwind from sub-$30K customers with the segment expected to decelerate and turn slightly negative this year
- − Q2 GAAP net loss of $3.1M and GAAP operating loss of $2.7M; ~20% workforce reduction expected to incur $18–20M in pre-tax restructuring charges
- − Guiding Q3 revenue of $123.3–$124.1M, essentially flat sequentially, with no assumed improvement in the demand environment
- − Newswhip acquisition lapping in Q3 will create revenue and RPO growth headwinds going forward
AI-generated from the earnings call and 8-K · may contain errors · not investment advice
Equibles Rating
blended score · not investment adviceBlended from price, momentum, positioning, fundamentals & volatility · daily-close · not investment advice. Market backdrop is context, not part of the score.
Guidance & track record
Guidance from company 8-Ks · delivered figures from as-reported statements · no analyst estimates involved.
Technicals
trend & momentum for long-term holders NeutralIllustrative technical + ownership context — a signal mix, not investment advice.
Key metrics
the company's own KPIs, from written earnings releases and filings| Metric | Latest | Period | YoY |
|---|---|---|---|
| Headcount in the research and development organization | 18% | Three Months Ended June 30, 2026 filing | — |
| Non-GAAP gross profit non-GAAP | $97.77M | Three Months Ended June 30, 2026 filing | — |
GAAP → non-GAAP reconciliationGAAP Gross profit $96.09M
+$555K Stock-based compensation expense
+$1.13M Amortization of acquired developed technology
+$0K Restructuring and related charges
= Non-GAAP gross profit $97.77M
|
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| Non-GAAP net income non-GAAP | $15.56M | Three Months Ended June 30, 2026 filing | — |
GAAP → non-GAAP reconciliationGAAP Net loss -$3.09M
+$15.86M Stock-based compensation expense
+$2.33M Amortization of acquired intangible assets
+$816K Restructuring and related charges
+$0K Loss on lease termination
+$0K Acquisition-related expenses
-$355K Change in fair value of contingent consideration
= Non-GAAP net income $15.56M
|
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| Non-GAAP net income per share non-GAAP | $0.26 | Three Months Ended June 30, 2026 filing | — |
GAAP → non-GAAP reconciliationGAAP Net loss per share attributable to common shareholders, basic and diluted -$0.05
+$0.27 Stock-based compensation expense per share
+$0.04 Amortization of acquired intangible assets
+$0.01 Restructuring and related charges
+$0 Loss on lease termination
+$0 Acquisition-related expenses
-$0.01 Change in fair value of contingent consideration
= Non-GAAP net income per share $0.26
|
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| Non-GAAP operating income non-GAAP | $15.98M | Three Months Ended June 30, 2026 filing | — |
GAAP → non-GAAP reconciliationGAAP Loss from operations -$2.67M
+$15.86M Stock-based compensation expense
+$2.33M Amortization of acquired intangible assets
+$816K Restructuring and related charges
+$0K Loss on lease termination
+$0K Acquisition-related expenses
-$355K Change in fair value of contingent consideration
= Non-GAAP operating income $15.98M
|
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| Number of customers contributing $50,000 or more in ARR | 16% | Three Months Ended June 30, 2026 filing | — |
Figures exactly as the company stated them in writing · click a metric with a to chart its history · period links open the stating document · "filing" marks figures stated in the 10-K/10-Q · YoY needs an exactly comparable prior-year period
Versus peers
Software - Application — same industry group| Company | Mkt cap | YTD | Rev growth Y/Y | P/E | Short % shares |
|---|---|---|---|---|---|
|
SPT
this stock
Sprout Social, Inc.
|
$578.05M | -7.9% | +12.7% | — | 7.0% |
|
QH
QUHUO Ltd
|
$350.35B | +238.0% | +59.7% | — | 0.0% |
|
SAP
Sap SE
|
$243.17B | -13.2% | — | — | 0.4% |
|
CRM
Salesforce, Inc.
|
$191.79B | -10.7% | +25.9% | 21.3 | 3.9% |
|
SHOP
Shopify Inc.
|
$183.03B | -7.4% | +30.1% | 95.5 | 1.3% |
Peers by industry group · P/E from as-reported trailing EPS · short % is of shares outstanding
At a glance
key data from every sectionPerformance
| 5D | 20D | 120D | MTD | YTD | |
|---|---|---|---|---|---|
| SPT | +6.8% | -8.5% | +108.0% | +6.2% | -7.9% |
| SPY | -0.4% | -0.2% | +12.4% | +0.2% | +12.0% |
| vs SPY | +7.2% | -8.3% | +95.6% | +6.1% | -19.9% |