Sprout Social recently released its 10-Q report. Sprout Social, Inc. operates a cloud-based social media management platform used across the Americas, Europe, the Middle East, Africa and Asia Pacific. The company’s software combines social messaging, data and workflows in one system and includes tools for publishing, analytics, customer care, listening, reputation management, commerce, influencer marketing and automation. It also provides consulting and training services, though those remain a very small part of revenue.
In Item 2, Management’s Discussion and Analysis, Sprout said revenue rose 11% year over year to $121.5 million in the three months ended March 31, 2026, from $109.3 million a year earlier. Software subscriptions accounted for 99% of revenue in the quarter. Net loss narrowed to $6.3 million from $11.2 million, while stock-based compensation was $18.1 million, down from $19.8 million.
The company said it continues to rely primarily on subscription revenue under a software-as-a-service model, with contracts ranging from monthly to multi-year terms and generally non-cancellable during the subscription period. Professional services revenue remained less than 1% of total revenue and is expected to stay immaterial.
Sprout said its customer mix shifted toward larger accounts even as total customers declined. Customers contributing at least $30,000 in annualized recurring revenue increased to 3,875 as of March 31, 2026, from 3,451 a year earlier, while customers contributing at least $50,000 in ARR rose to 2,085 from 1,766.
The company said non-U.S. revenue represented about 26% of total revenue in the quarter. It also said macroeconomic and geopolitical conditions have led to more measured buying behavior and longer sales cycles, especially for prospective customers and expansion deals.
On July 30, 2025, Sprout completed its acquisition of NewsWhip Group Holdings Limited for an upfront cash payment of $52.3 million, plus $3.2 million of deferred consideration and up to $10.0 million in earnout payments tied to performance through June 30, 2027. Sprout said it funded the upfront payment with cash on hand and $32 million borrowed under its facility, and that NewsWhip’s results were not significant to consolidated financial statements after the acquisition date. As a result of these announcements, the company's shares have moved 8.31% on the market, and are now trading at a price of $7.365. If you want to know more, read the company's complete 10-Q report here.
