Sprout Social (NASDAQ:SPT) Announces Quarterly Earnings Results

Sprout Social (NASDAQ:SPT) issued its earnings results on Thursday. The company reported $0.23 earnings per share for the quarter, beating analysts’ consensus estimates of $0.16 by $0.07, FiscalAI reports. The company had revenue of $121.50 million for the quarter, compared to the consensus estimate 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

Sprout Social stock traded up $0.60 during trading hours on Friday, reaching $7.40. 4,669,853 shares of the company were exchanged, compared to its average volume of 1,355,016. The firm has a market cap of $440.74 million, a price-to-earnings ratio of -11.21 and a beta of 0.94. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 0.20. The stock has a 50-day moving average of $5.94 and a 200 day moving average of $8.48. Sprout Social has a 12 month low of $4.92 and a 12 month high of $25.48.

Trending Headlines about Sprout Social

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 business’s stock in a transaction on Friday, April 10th. The shares were sold at an average price of $5.03, for a total value of $201,200.00. Following the completion of the sale, the insider directly owned 7,417 shares in the company, valued at approximately $37,307.51. The trade was a 84.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 103,855 shares of company stock valued at $600,860 over the last 90 days. Company insiders own 9.60% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Quadrant Capital Group LLC acquired a new position in shares of Sprout Social during the 4th quarter worth about $28,000. Summit Securities Group LLC grew its holdings in Sprout Social by 399.0% in the 4th quarter. Summit Securities Group LLC now owns 2,520 shares of the company’s stock valued at $28,000 after buying an additional 2,015 shares during the last quarter. Quarry LP increased its position in Sprout Social by 264.2% in the 3rd quarter. Quarry LP now owns 3,784 shares of the company’s stock worth $49,000 after buying an additional 2,745 shares during the period. Kestra Advisory Services LLC bought a new position in Sprout Social in the 4th quarter worth approximately $54,000. Finally, Russell Investments Group Ltd. lifted its holdings in shares of Sprout Social by 39.1% during the fourth quarter. Russell Investments Group Ltd. now owns 6,235 shares of the company’s stock worth $70,000 after buying an additional 1,752 shares during the last quarter.

Analyst Ratings Changes

Several research firms have weighed in on SPT. Barclays dropped their price objective on shares of Sprout Social from $9.00 to $8.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 21st. Wall Street Zen upgraded Sprout Social from a “hold” rating to a “buy” rating in a report on Sunday, March 8th. 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. Jefferies Financial Group lowered their target price on Sprout Social from $15.00 to $12.00 and set a “buy” rating on the stock in a research note on Tuesday, February 3rd. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sprout Social in a research report on Tuesday, April 21st. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $13.11.

About Sprout Social

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.