Sprout Social, Inc. Q1 2026 Earnings Recap

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.