Sprinklr (CXM) Q1 2026 earnings summary

Executive summary

• Q1 FY26 revenue grew 5% year-over-year to $205.5M, with subscription revenue up 4% to $184.1M and professional services revenue rising 15% to $21.4M.

• Record free cash flow of $80.7M and operating cash flow of $83.8M, nearly doubling from the prior year.

• Non-GAAP operating income reached $36.7M (18% margin), while GAAP net loss was $1.6M due to a $16.3M restructuring charge.

• The company is undergoing a transformation, including a 12% global workforce reduction, leadership changes, and operational improvements.

• Board authorized a new $150M stock buyback program through June 2026.

Financial highlights

• Non-GAAP gross margin was 70%, down from 74% year-over-year, due to higher data and hosting costs; subscription gross margin was 77–78%.

• Non-GAAP net income was $32.3M, or $0.13 per diluted share, up from $25.8M, or $0.09 per share, last year.

• Free cash flow was $80.7M, or $92.5M excluding restructuring payouts.

• Cash and marketable securities totaled $570.2M as of April 30, 2025, with no debt.

• Calculated billings for Q1 were $204.3M, up 7% year-over-year; RPO was $943.2M, up 2% year-over-year.

Outlook and guidance

• Q2 FY26 guidance: total revenue $205M–$206M, subscription revenue $184M–$185M, professional services revenue $21M, non-GAAP operating income $33.5M–$34.5M.

• FY26 guidance: subscription revenue $741M–$743M, total revenue $825M–$827M, non-GAAP operating income $129M–$131M, non-GAAP EPS $0.39–$0.40.

• Free cash flow margin target for FY26 is 15%, or ~$125M.

• Management expects near-term gross margin pressure from higher data and hosting costs, with cost-saving initiatives underway.

• Liquidity is expected to be sufficient for at least the next 12 months and long-term needs.