Sprout Social (SPT) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $120.9M, up 13% year-over-year, with strong non-GAAP operating margin of 10.5% and 16% ACV growth; 98% of revenue came from subscriptions.

• Multi-year contracts now represent nearly half of the contract mix, supporting growth in remaining performance obligations (RPO) and upmarket momentum.

• Strategic wins and expansion in enterprise customer segments, with 3,803 customers contributing ≥$30K ARR and 2,022 customers ≥$50K ARR by Q4 FY2025; $30K+ ARR customers now account for 59% of total subscription revenue.

• AI-driven product innovation, including the rollout of Trellis and enhancements in influencer marketing, social care, and compliance, are driving higher win rates and customer value.

• Leadership transition with a new Chief Revenue Officer and outgoing CFO, with a focus on continued execution and financial discipline.

Financial highlights

• Q4 total revenue was $120.9M, up from $107.1M in Q4 FY2024; subscription revenue was $118.5M, up 12% year-over-year.

• Non-GAAP operating income for Q4 FY2025 was $11.5M; non-GAAP net income was $11.6M, with non-GAAP EPS of $0.20.

• Non-GAAP free cash flow for Q4 was $10.9M; full-year was $45.9M, up 55% year-over-year.

• RPO at year-end was $404M, up 15% year-over-year; CRPO was $284.7M, up 14%.

• Dollar-based net retention rate was 100% overall and 102% excluding SMB customers.

Outlook and guidance

• Q1 2026 revenue expected between $119.9M and $120.7M; non-GAAP operating income between $9.2M and $10.0M.

• FY 2026 revenue guidance is $490.2M–$495.2M; non-GAAP operating income $54.2M–$59.2M; non-GAAP net income per share $0.88–$0.97.

• Targeting Rule of 40 (revenue growth plus non-GAAP operating margin) of 30% by Q4 2027.

• Targeting non-GAAP operating margin of ~15% by Q4 2026.