Sprout Social Q1 revenue slightly beats estimates

Sprout Social

07/05/2026 21:52

Overview

U.S. social media management software firm's Q1 revenue rose 11% yr/yr, slightly beating analyst expectations

Company announced $50 mln share repurchase program

Customers contributing $30K+ ARR grew 12% yr/yr, reflecting focus on larger clients

Outlook

Sprout Social sees Q2 2026 revenue between $121.7 mln and $122.5 mln

Company expects full-year 2026 revenue between $492.5 mln and $495.5 mln

Sprout Social continues to target a 15% non-GAAP operating margin by Q4 2026

Result Drivers

LARGER CUSTOMER COHORTS - Co said growth was driven by a 12% increase in customers contributing $30K+ in ARR and an 18% increase in customers contributing $50K+ in ARR

ENTERPRISE FOCUS - Co said shift to larger customers better reflects its strategic focus and aligns with how management evaluates performance

NEW AND EXPANDED CUSTOMER RELATIONSHIPS - Co cited growth with new and existing customers including Monster, Naterra International, CSL Behring, Reebok, and Roku

Company press release: ID:nGNXZX8R1

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$121.50 mln
$120.33 mln (10 Analysts)
Q1 EPS
-$0.11
Q1 Net Income
-$6.34 mln
Q1 Gross Profit
$93.51 mln
Q1 Operating Expenses
$99.35 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "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 $9.00, about 41.3% above its May 6 closing price of $6.37

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 10 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.)