Sprout Social (SPT) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $120.9 million, up 13% year-over-year, with strong non-GAAP operating margin of 10.5% and robust profitability; 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 enhanced multi-product offerings, is 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: $120.9 million, up 13% year-over-year; subscription revenue: $118.5 million, up 12%.

• Q4 non-GAAP operating income: $11.5 million; non-GAAP net income: $11.6 million; non-GAAP EPS: $0.20.

• Q4 non-GAAP free cash flow: $10.9 million; full-year: $45.9 million, up 55% year-over-year.

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

• Dollar-based net retention rate (NDR) for 2025: 100%; excluding SMB: 102%.

Outlook and guidance

• Q1 2026 revenue guidance: $119.9–$120.7 million; non-GAAP operating income: $9.2–$10.0 million; non-GAAP EPS: $0.15–$0.16.

• FY 2026 revenue guidance: $490.2–$495.2 million; non-GAAP operating income: $54.2–$59.2 million; non-GAAP EPS: $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.