Sprinklr (CXM) Q3 2025 earnings summary

Executive summary

• Q3 total revenue grew 8% year-over-year to $200.7 million, with subscription revenue up 6% to $180.6 million and 147 customers generating over $1 million each, a 20% increase year-over-year.

• Non-GAAP operating income was $23.3 million (12% margin); GAAP operating income was $7.9 million, and net income was $10.5 million, reflecting higher costs.

• Leadership transition with Rory Read appointed President and CEO, focusing on operational efficiency, innovation, and profitable growth.

• Completed a $300 million share repurchase program, buying back 25.5 million shares during the nine months ended October 31, 2024.

• Unified-CXM platform continues to drive customer wins across major global brands and industries.

Financial highlights

• Professional services revenue was $20.1 million, up 26% year-over-year, with a non-GAAP gross margin of -8% and total non-GAAP gross margin of 72%.

• Free cash flow for Q3 was $4.9 million; $57.6 million for the first three quarters of FY25.

• Cash, cash equivalents, and marketable securities totaled $476.6 million as of October 31, 2024, with no debt outstanding.

• Calculated billings for Q3 were $147.9 million, down 8% year-over-year; deferred revenue at quarter-end was $354.9 million.

• Total RPO at $906.3 million, up 17% year-over-year; CRPO at $545.6 million, up 11%.

Outlook and guidance

• Q4 revenue expected at $200–$201 million; subscription revenue at $180–$181 million; non-GAAP operating income at $17.5–$18.5 million; non-GAAP net income per diluted share at ~$0.07.

• FY25 guidance: subscription revenue $715.9–$716.9 million, total revenue $793.9–$794.9 million, non-GAAP operating income $76.4–$77.4 million, non-GAAP net income per share $0.31–$0.32.

• FY25 billings estimated at $826.5 million; Q4 billings expected at $294 million.

• Free cash flow for Q4 estimated between -$5 million and breakeven.

• Management expects continued investment in cloud infrastructure and support, with margins potentially impacted by increased costs.