Sprinklr (CXM) Q4 2025 earnings summary

Executive summary

• FY25 total revenue was $796.4M, up 9% year-over-year; Q4 revenue grew 4% to $202.5M; subscription revenue reached $717.9M for FY25, with Q4 subscription revenue up 3% to $182.1M.

• 149 customers generated $1M+ in annual subscription revenue, up 18% year-over-year.

• Q4 net dollar expansion rate was 104%, indicating strong upsell and retention.

• Major restructuring included a 15% workforce reduction to optimize costs and enable reinvestment.

• Q4 included a non-cash income tax benefit of $87M from release of valuation allowance.

Financial highlights

• Q4 non-GAAP operating income was $25.9M (13% margin); FY25 non-GAAP operating income was $84.8M (11% margin).

• Q4 non-GAAP gross margin was 71%; subscription gross margin 79%; professional services breakeven.

• Q4 free cash flow was $1.5M; FY25 free cash flow $59.2M (7% margin).

• Q4 calculated billings were $298.6M, up 10% year-over-year; FY25 billings $831.1M, up 6%.

• Cash and marketable securities at $483.5M with no debt.

Outlook and guidance

• Q1 FY26 revenue guidance: $201.5M–$202.5M (3% growth); subscription revenue $182M–$183M.

• Q1 non-GAAP operating income: $31.5M–$32.5M (16% margin); EPS ~$0.10.

• FY26 revenue guidance: $821.5M–$823.5M (3% growth); subscription revenue $741M–$743M.

• FY26 non-GAAP operating income: $129M–$131M (16% margin); EPS $0.38–$0.39.

• FY26 free cash flow expected at ~$120M (15% margin), doubling prior year.

• Subscription gross margin to be negatively impacted by 400 bps due to higher data/hosting costs.