10-Q · June 4, 2026
Sprinklr reported a strong Q1 2026 with revenue of $219.5 million, surpassing estimates of $215.9 million, and an EPS of $0.11 against an estimate of $0.08. However, gross margin declined to 66.4%, down from 71.2% in…
Earnings analysis · 10-Q
CXM earnings analysis
Filed September 3, 2026 · Our reading of the company's report
The latest report
Sprinklr delivered modest revenue growth, with total revenue up 1% year over year to $213.743 million and subscription revenue up 3% to $194.845 million, but professional services revenue fell 20% to $18.898 million.…
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Sprinklr delivered modest revenue growth, with total revenue up 1% year over year to $213.743 million and subscription revenue up 3% to $194.845 million, but professional services revenue fell 20% to $18.898 million. Profitability weakened as GAAP operating margin declined to 4.7% from 7.7%, diluted EPS fell to $0.03 from $0.05, and management expects near-term gross-margin pressure from AI, data, and hosting costs. Liquidity remains strong at $452.9 million, but first-half operating cash flow and free cash flow declined materially year over year, while geopolitical disruption in the UAE introduces additional operational and data-security risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.03
What stood out
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Subscription Revenue and RPO Grew
Subscription revenue increased 3% year over year to $194.845 million, driven by expansion among existing customers and new customers. Remaining performance obligations were $1.0268 billion and current RPO was $614.1 million as of July 31, 2026.
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Revenue Increased Year Over Year
Total revenue rose 1% year over year to $213.743 million from $212.040 million, while six-month revenue increased 4% to $433.222 million from $417.540 million.
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Company Remained GAAP Profitable
GAAP operating income was $9.957 million, or 4.7% of revenue, versus $16.272 million, or 7.7%, in the prior-year quarter. GAAP diluted EPS was $0.03 versus $0.05.
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Strong Year-to-Date Cash Generation
Operating cash flow was $88.546 million for the first six months, and free cash flow was $78.933 million after $701,000 of property and equipment purchases and $8.912 million of capitalized internal-use software.
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Substantial Liquidity Position
Liquidity totaled $452.9 million, consisting of $231.4 million of cash and cash equivalents and $221.5 million of marketable securities. Management stated these resources and cash from operations should cover working capital, capital expenditures, and financing obligations for at least the next 12 months and over the long term.
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Net Dollar Expansion Improved
Trailing-12-month net dollar expansion rate improved modestly to 102.4% from 102.2% in the prior-year period, indicating limited positive expansion from existing customers.
What to watch
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AI and Hosting Costs Pressure Margins
Overall gross margin declined to 65.1% from 68.2% in the prior-year quarter. Subscription gross margin fell to 74% from 77%, while professional-services gross margin deteriorated to negative 25% from negative 3%; management expects gross margin to decline further in the near term because of higher AI, data, hosting, and service-delivery costs.
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Cash Flow and Deferred Revenue Declined
Operating cash flow declined to $88.546 million from $118.567 million in the prior-year six-month period, while free cash flow fell to $78.933 million from $110.454 million. The decline reflected a $33.7 million decrease in deferred revenue and a $35.9 million decrease in accrued expenses and other liabilities.
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Geopolitical and Third-Party Data Exposure
The filing adds material exposure related to the 2026 Iran conflict: multiple UAE cloud availability zones were damaged, causing inaccessibility and potential loss of certain customer data. The company also identifies a third-party data agreement with X that expires on December 31, 2026, creating a risk to the level of Unified-CXM insights if it is not renewed.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Quantitative outlook was provided in the September 2 earnings release rather than this filing.
Earlier filings 4
10-Q · September 4, 2025
Sprinklr reported Q3 (three months ended July 31, 2025) revenue of $212,040,000, up $14,832,000 (7.5%) versus $197,208,000 in the prior-year quarter, and delivered GAAP diluted EPS of $0.05 versus $0.01 in the…
10-Q · June 5, 2025
Sprinklr reported revenue of $205,500,000 for the three months ended April 30, 2025, up versus $195,958,000 a year ago, but posted an operating loss of $1,755,000 and diluted EPS of $(0.01). The quarter showed…
10-K · March 21, 2025
Sprinklr presents a strategy focused on a Unified-CXM, AI-first platform that targets large enterprises and contact centers, positioning itself as a single-codebase solution across Service, Social, Insights and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.