SPT earnings analysis
What we found in SPT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.26
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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.…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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