Sprout Social (NASDAQ:SPT) Issues Earnings Results

Sprout Social (NASDAQ:SPT) announced its earnings results on Thursday. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.07, FiscalAI reports. The firm had revenue of $121.50 million during the quarter, compared to analysts’ expectations of $120.33 million. Sprout Social had a negative return on equity of 14.28% and a negative net margin of 8.18%. Sprout Social updated its Q2 2026 guidance to 0.150-0.160 EPS and its FY 2026 guidance to 0.880-0.970 EPS.

Here are the key takeaways from Sprout Social’s conference call:

• Sprout reported revenue of $121.5 million (+11.2% Y/Y) with non‑GAAP operating margin of 11.6% and a record quarterly non‑GAAP free cash flow of $24.7 million, underscoring improved cash generation and operating leverage.
• The board authorized a $50 million share repurchase program, signaling management confidence in the business and providing a capital‑allocation lever to address perceived valuation dislocation while continuing product investment.
• Sprout moved its AI orchestration framework, Trellis, out of beta to general availability, with rapid adoption (thousands of customers) and plans for a hybrid user/access plus usage‑based monetization model as Trellis expands across the platform.
• The company is shifting toward larger customers: customers with ≥$30K ARR grew 21% Y/Y and now represent over 60% of subscription revenue, with multi‑year contracts nearing half the mix—improving ACV, retention and multi‑product attach economics.
• Sprout is reworking the sub‑$30K segment (launched “Essentials” and a self‑serve motion) and expects a modest deceleration in that cohort through 2026, acknowledging this transition as a near‑term drag while aiming for efficiency gains into 2027.

Sprout Social Stock Performance

Shares of NASDAQ SPT traded up $0.60 during trading hours on Friday, reaching $7.40. The stock had a trading volume of 4,669,853 shares, compared to its average volume of 1,355,016. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.93 and a quick ratio of 0.93. The business’s fifty day moving average is $5.94 and its two-hundred day moving average is $8.48. Sprout Social has a twelve month low of $4.92 and a twelve month high of $25.48. The company has a market cap of $440.74 million, a price-to-earnings ratio of -11.21 and a beta of 0.94.

More Sprout Social News

Here are the key news stories impacting Sprout Social this week:

• Positive Sentiment: Q1 earnings beat estimates, with EPS of $0.23 versus the $0.16 consensus, while revenue of $121.5 million also topped forecasts. Sprout Social (SPT) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: The company raised its FY 2026 outlook, guiding for EPS of $0.88 to $0.97 and revenue of $492.5 million to $495.5 million, both above consensus estimates. Sprout Social Announces First Quarter 2026 Financial Results
• Positive Sentiment: Second-quarter guidance also came in slightly above expectations, with EPS of $0.15 to $0.16 and revenue of $121.7 million to $122.5 million versus a lower Street forecast. Sprout Social Announces First Quarter 2026 Financial Results
• Neutral Sentiment: Management said subscription revenue tied to customers with at least $30K in annual recurring revenue grew 21% year over year, and it authorized a new $50 million share repurchase program, which may support sentiment but is not an immediate earnings driver. Sprout Social Announces First Quarter 2026 Financial Results
• Negative Sentiment: Despite the stronger report, Sprout Social remains unprofitable, with negative net margin and negative return on equity, which could temper upside. Sprout Social stock page

Insider Activity at Sprout Social

In other news, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction on Friday, April 10th. The stock was sold at an average price of $5.03, for a total transaction of $201,200.00. Following the sale, the insider owned 7,417 shares in the company, valued at approximately $37,307.51. This represents a 84.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 103,855 shares of company stock worth $600,860 in the last quarter. 9.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Sprout Social

Several large investors have recently made changes to their positions in SPT. Brighton Jones LLC grew its holdings in shares of Sprout Social by 391.7% during the fourth quarter. Brighton Jones LLC now owns 35,985 shares of the company’s stock worth $1,105,000 after purchasing an additional 28,667 shares during the last quarter. AQR Capital Management LLC bought a new stake in shares of Sprout Social during the first quarter worth $365,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Sprout Social by 2.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 53,127 shares of the company’s stock worth $1,168,000 after purchasing an additional 1,265 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Sprout Social by 23.0% during the first quarter. Goldman Sachs Group Inc. now owns 325,750 shares of the company’s stock worth $7,163,000 after purchasing an additional 60,947 shares during the last quarter. Finally, Empowered Funds LLC bought a new stake in shares of Sprout Social during the first quarter worth $325,000.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on SPT. Needham & Company LLC reduced their price objective on Sprout Social from $32.00 to $14.00 and set a “buy” rating for the company in a research report on Friday, February 27th. Canaccord Genuity Group reissued a “hold” rating and issued a $9.00 price objective (down from $16.00) on shares of Sprout Social in a research report on Friday, February 27th. KeyCorp reduced their price objective on Sprout Social from $9.00 to $6.00 and set an “underweight” rating for the company in a research report on Friday, February 27th. Barclays reduced their price objective on Sprout Social from $9.00 to $8.00 and set an “overweight” rating for the company in a research report on Tuesday, April 21st. Finally, Jefferies Financial Group reduced their price objective on Sprout Social from $15.00 to $12.00 and set a “buy” rating for the company in a research report on Tuesday, February 3rd. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Sprout Social currently has a consensus rating of “Hold” and a consensus target price of $13.11.

Sprout Social Company Profile

Sprout Social (NASDAQ: SPT) is a Chicago-based software company specializing in social media management solutions for businesses of all sizes. The company provides a cloud-based platform designed to help organizations improve their social media presence through a suite of tools for content scheduling, community engagement, social listening and analytics. Sprout Social’s platform is built to streamline the workflows of marketing, customer care and public relations teams by providing a centralized hub for managing multiple social channels.

The company’s product offerings include publishing and scheduling capabilities that allow users to plan and automate social content across networks such as Facebook, Instagram, Twitter, LinkedIn and Pinterest.