10-Q · May 8, 2026
Sprout Social reported Q1 2026 revenue of $121.5 million, an 11% increase from $109.3 million in Q1 2025. The company achieved a diluted EPS of $0.23, significantly up from a loss of $0.19 in the prior year.…
Earnings analysis · 10-Q
SPT earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Sprout Social delivered Q2 revenue of $123.847 million and EPS of $0.26, improving materially from $121 million and a $0.11 loss in Q1 2026 and from $112 million and a $0.21 loss in Q2 2025. Liquidity remained…
Read full summary
Sprout Social delivered Q2 revenue of $123.847 million and EPS of $0.26, improving materially from $121 million and a $0.11 loss in Q1 2026 and from $112 million and a $0.21 loss in Q2 2025. Liquidity remained substantial at $119.9 million of cash against $32.5 million of secured debt. However, the approximately 20% workforce reduction, or 260 employees, carries execution, restructuring-cost and product-development risks, while the filing provides no updated quantitative guidance in the supplied text.
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.
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
- $0.26
What stood out
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Revenue Growth Accelerated
Second-quarter revenue was $123.847 million, up from $121 million in Q1 2026 and $112 million in Q2 2025, representing approximately 2.4% sequential and 10.6% year-over-year growth.
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EPS Turned Positive
Reported Q2 EPS was $0.26 versus a loss of $0.11 in Q1 2026 and a loss of $0.21 in Q2 2025, an improvement of $0.37 sequentially and $0.47 year over year.
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Cash Exceeds Secured Debt
Cash and cash equivalents totaled $119.9 million as of June 30, 2026, providing liquidity relative to $32.5 million of secured indebtedness outstanding under the Amended Credit Agreement.
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Limited Interest-Rate Exposure
Management stated that a hypothetical 10% change in interest rates would not have had a material impact on the financial statements, and that the company does not anticipate material interest-rate exposure.
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Repurchase Authorization Unused
The company reported no share repurchases during the three months ended June 30, 2026, despite authorization to repurchase up to $50 million of Class A common stock.
What to watch
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Large Workforce Reduction Execution Risk
The July 2026 workforce reduction plan covers approximately 20% of employees, or approximately 260 people, and is expected to generate preliminary pre-tax restructuring charges of approximately $18.0 million to $20.0 million. Management cautions that charges could be materially higher and that the plan may disrupt product development, customer relationships and AI initiatives.
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Repurchases Could Reduce Liquidity
The Board authorized a share repurchase program of up to $50 million, but the filing warns that repurchases could materially diminish cash and cash equivalents and marketable securities and adversely affect liquidity. The company also cannot guarantee that the program will enhance long-term stockholder value.
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Variable-Rate Debt Exposure
Although cash totaled $119.9 million, $32.5 million of secured debt was outstanding and the revolving facility bears interest at SOFR plus a margin of 2.25%-2.75% or ABR plus a margin of 1.25%-1.75%. Rising borrowing costs or reduced liquidity could constrain capital allocation.
Management's outlook
The supplied 10-Q text does not provide updated quantitative revenue or EPS guidance. Prior analysis cited full-year guidance of $493.0 million-$496.0 million revenue and $0.88-$0.97 EPS, but the current filing excerpt does not state whether that outlook was maintained.
Earlier filings 4
10-K · February 27, 2026
Sprout Social’s 2025 Form 10-K highlights continued top-line momentum with revenue of $457.5 million in 2025 (up 13% vs. 2024) and improving GAAP losses (net loss narrowed to $43.3 million in 2025 from $62.0 million in…
10-Q · November 6, 2025
Sprout Social reported Q3 revenue of $115.59M (up from $102.64M in Q3 2024, +$12.96M, +12.6%) with gross profit of $89.81M (77.7% margin). Operating loss narrowed to $(9.11)M (‑7.9% margin) from $(16.88)M in Q3 2024,…
10-Q · May 9, 2025
Sprout Social reported a strong performance in Q1 2025, with revenue increasing to $109.3M, a 12.8% rise from the previous year, and outperforming estimates by $1.63M. The gross margin slightly declined to 77.3%, while…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.