SPT · Sprout Social, Inc.

Sprout Social's first quarter 2026 results showed continued revenue growth and improving profitability. Revenue reached $121.5 million, an 11% increase year-over-year, driven by strength in the higher-ARR customer segment. The company reported a GAAP operating loss of ($5.8) million, a significant improvement from ($11.2) million in the prior year, while non-GAAP operating income rose to $14.1 million from $12.5 million. Non-GAAP net income per share was $0.23, up from $0.22. The company generated $24.7 million in non-GAAP free cash flow, up from $19.5 million. Customer metrics were positive: customers with $30,000+ ARR grew 12% to 3,875, and those with $50,000+ ARR grew 18% to 2,085. Management highlighted the strength in the $30K+ ARR cohort and the company's first-ever $50 million share repurchase program, reflecting disciplined capital allocation. For Q2 2026, Sprout Social guided revenue of $121.7-$122.5 million and non-GAAP EPS of $0.15-$0.16. Full-year 2026 revenue guidance is $492.5-$495.5 million with non-GAAP EPS of $0.88-$0.97. The company reiterated its target of 15% non-GAAP operating margin by Q4 2026 and a 30% Rule of 40 framework by Q4 2027. The share repurchase authorization signals confidence in the company's financial position and future prospects.