Sprout Social beats Q4 revenue estimates

Sprout Social

26/02/2026 21:41

Overview

Social media management firm's Q4 revenue rose 13% yr/yr, beating analyst expectations

Company achieved non-GAAP profitability despite a GAAP net loss

Company grew $30K+ ARR customer base by 13% yr/yr

Outlook

Sprout Social expects Q1 2026 revenue between $119.9 mln and $120.7 mln

Company forecasts full-year 2026 revenue between $490.2 mln and $495.2 mln

Sprout Social targets Rule of 40 framework by Q4 2027

Result Drivers

$30K+ ARR CUSTOMER GROWTH - Sprout Social expanded its customer base with $30K+ ARR by 13% year-over-year, reflecting focus on larger clients

SPROUT AI AND TRELLIS - Introduction of Sprout AI and Trellis AI agent aimed at enhancing customer engagement and operational efficiency

Company press release: ID:nGNX5XYJtX

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$120.89 mln
$118.77 mln (10 Analysts)
Q4 EPS
-$0.18
Q4 Net Income
-$10.74 mln
Q4 Gross Profit
$93.75 mln
Q4 Operating Expenses
$104.57 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Sprout Social Inc is $13.00, about 92.3% above its February 25 closing price of $6.76

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)