Sprout Social, Inc. Earnings Recaps
Q2 2026
Aug 9, 2026
Sprout Social’s shares jumped nearly 20% on robust margin expansion, accelerating contract growth, and meaningful progress in AI product adoption, signaling investor confidence in the company’s ability to leverage its platform despite workforce reductions.
Key takeaways
- Revenue reached $123.8 million, up 10.8% year-over-year, supported by a 12.4% increase in current remaining performance obligations to $202.7 million.
- Non-GAAP operating margin improved by 370 basis points to 12.9%, reflecting successful cost management despite a 20% headcount reduction.
- Non-GAAP free cash flow increased approximately 60% year-over-year to $8.3 million for the quarter, totaling around $54 million on a trailing 12-month basis.
- AI-driven products like Trellis saw strong adoption and retention, with new monetization via Trellis Plus launched in July.
- Strategic multi-year contracts now represent nearly half of the contract mix, up from about one-third two years ago, signaling deeper customer commitment.
Q1 2026
May 9, 2026
Sprout Social’s stock surged 16.2% following a quarter that outperformed across revenue growth, margin expansion, and free cash flow generation, with investors clearly rewarding strong operational execution and confidence reflected in a new share repurchase program.
Key takeaways
- Revenues grew 11.2% year-over-year to $121.5 million, indicating solid underlying demand.
- Non-GAAP operating margin improved modestly to 11.6%, up 16 basis points year-over-year, suggesting slight operating leverage.
- Non-GAAP free cash flow increased 27% year-over-year to $24.7 million, marking the company’s largest quarterly free cash flow to date.
- Remaining performance obligations rose 10% to $281.7 million, supporting revenue visibility and growth runway.
- Board authorized a $50 million share repurchase program, signaling confidence amid a valuation disconnect and focus on capital discipline.