Sprout Social, Inc. (SPT) AI Stock Analysis

NASDAQ: SPTAI research summary: business, growth, valuation, analysts, bull and bear case.

SPT AI stock analysis summary

AI Research

Sprout Social, Inc. (SPT) is a cloud-based social media management platform serving over 31,000 customers across global markets. In FY2025, revenue grew 12.7% to $457.5M and free cash flow increased to $39.3M, reflecting a 5-year revenue CAGR of 28.0%. However, the company remains unprofitable on a GAAP basis, posting a net loss of -$43.3M in FY2025 and a trailing twelve-month profit margin of -6.1%.

Market cap
$683.5M
Revenue (TTM)
$481.8M
P/E
—
fwd 5.4x
1Y return
4.3%
S&P 500 16.8%
Avg. target
$10.67
-5.4% vs last close

Bull case

  • Free cash flow expanded to $39.3M in FY2025, rising from $4.4M in FY2023.
  • Sprout Social holds a solid net cash balance of $106.5M as of June 30, 2026, with only $13.4M in total debt.
  • The stock trades at a forward P/E of 5.4x, representing a significant discount to the US-listed Technology peer median of 18.8x.

Bear case

  • The business remains unprofitable on a GAAP basis, with net income of -$43.3M in FY2025 and a trailing twelve-month profit margin of -6.1%.
  • Annual revenue growth has decelerated from 41.3% in FY2021 to 12.7% in FY2025, with analysts projecting 6.0% growth for next fiscal year.
  • The stock has dropped 91.1% over the past 5 years, sharply underperforming the 83.0% gain of the S&P 500.

What Sprout Social does

Sprout Social, Inc. operates a web-based platform for social media management across the Americas, Europe, the Middle East, Africa, and Asia Pacific. Its cloud software integrates social messaging, data analytics, and operational workflows into a unified system for managing and acting on social media interactions. The platform provides tools for social engagement, content publishing, reporting and analytics, social listening, reputation management, employee advocacy, and workflow automation. It also offers consulting and training services. Sprout Social serves more than 31,000 organizations, including small-to-medium businesses, mid-market companies, enterprises, marketing agencies, government entities, and educational institutions.

Growth and profitability

Revenue grew from $187.9M in FY2021 to $253.8M in FY2022, $333.6M in FY2023, $405.9M in FY2024, and $457.5M in FY2025, though annual expansion slowed from 41.3% to 12.7%. Gross margin expanded steadily from 75.1% in FY2021 to 77.6% in FY2025. Operating margin improved from -20.8% in FY2023 to -9.5% in FY2025, while annual net losses narrowed from -$66.4M to -$43.3M over the same period. Diluted EPS was $0.16 in FY2025, down from $0.51 in FY2024. For the latest quarter ended June 30, 2026, revenue increased 10.8% year-over-year, bringing trailing twelve-month revenue to $481.8M with an operating margin of -2.4%.

SPT income statement →

Balance sheet and cash flow

As of June 30, 2026, Sprout Social held $119.9M in cash and short-term investments and $13.4M in total debt, resulting in a net cash position of $106.5M. Total assets were $522.2M against shareholders' equity of $228.6M. The company reported a current ratio of 1.03 and a debt-to-equity ratio of 0.06. For FY2025, operating cash flow was $43.4M and free cash flow was $39.3M, offset by capital expenditures of $4.1M. Over five years, the diluted share count expanded by 11.4%.

SPT balance sheet →

Valuation and performance

Trading at $11.28 per share, Sprout Social carries a market cap of $683.5M and an enterprise value of $529.1M. The stock trades at a forward P/E of 5.4x, below the 18.8x median of its US-listed Technology peers. Its price-to-sales multiple is 1.4x, compared to 2.8x for the peer median, alongside an enterprise value-to-revenue multiple of 1.1x. Over the past 12 months, the stock returned 4.3%, trailing the S&P 500 return of 16.8%. Over five years, shares fell 91.1%, while the S&P 500 rose 83.0%.

SPT key metrics →

What analysts expect

Wall Street analyst coverage includes 2 Strong Buy, 2 Buy, 5 Hold, 0 Sell, and 1 Strong Sell ratings. The mean price target is $10.67, which is 5.4% below the closing price of $11.28 on October 16, 2026. The company beat EPS consensus in each of the last 4 quarters. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $1.13 on revenue of $494.6M. For the following fiscal year, 10 analysts estimate EPS of $1.54 on revenue of $524.4M. The next earnings date is November 3, 2026.

SPT forecast and price target →

Key risks and what to watch

  • Operating margin over the trailing twelve months remains negative at -2.4%.
  • Short interest sits at 9.1% of the float, reflecting meaningful market skepticism.
  • The company's current ratio of 1.03 indicates a thin working capital cushion above short-term liabilities.
  • Wall Street's mean price target of $10.67 sits 5.4% below the last close of $11.28.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this SPT AI stock analysis

This page is an AI-written research summary of Sprout Social, Inc. (SPT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SPT income statement, SPT balance sheet, SPT key metrics, SPT analyst forecast, SPT chart. See the SPT stock overview for the latest quote and news.

SPT AI stock analysis FAQ

Does Sprout Social pay a dividend?

No, Sprout Social does not pay a dividend, reinvesting its operating cash flow into the business with FY2025 capital expenditures totaling $4.1M.

What are analysts forecasting for Sprout Social's revenue and earnings?

For the fiscal year ending December 31, 2026, analysts estimate EPS of $1.13 on revenue of $494.6M. For the subsequent fiscal year, 10 analysts project EPS of $1.54 on revenue of $524.4M.

When is Sprout Social's next earnings announcement?

Sprout Social's next earnings release is scheduled for November 3, 2026.

How strong is Sprout Social's balance sheet?

As of June 30, 2026, Sprout Social held $119.9M in cash and short-term investments against $13.4M in total debt, leaving a net cash position of $106.5M with a debt-to-equity ratio of 0.06.

More Technology AI stock analysis