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Sprout Social (MX:SPT)
:SPT
Mexico Market
EarningsQ2 2026 Earnings Report

Sprout Social (SPT) Q2 2026 Earnings Report

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MX:SPT Q2 2026 EPS Results

Actual EPS$4.70
Consensus EPS$2.91
Beat/MissBeat by +$1.79
One Year Ago EPS$3.26

MX:SPT Q2 2026 Revenue Results

Actual Revenue$2.24B
Expected Revenue$2.21B
Beat/MissBeat by +$30.07M
YoY Revenue Growth+10.80%

Earnings Announcement Details

QuarterQ2 2026
Date08/06/2026
TimeAfter Close
Conference CallThursday, August 6, 2026
MX:SPT Upcoming Earnings
Sprout Social's next earnings date is estimated for October 29, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:SPT Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 06, 2026|
% Change Since:
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Earnings Call Sentiment|Positive
The call conveyed multiple strong operational and financial positives — double-digit revenue growth, robust margin expansion, sizable free cash flow improvement, accelerated RPO/CRPO, clear up-market traction (20% growth in $30k+ cohort and ACV +14.8%), early promising AI product adoption (Trellis) and a plan for material annualized cost savings. Offsetting these positives are meaningful near-term risks: a ~20% workforce reduction with $18M-$20M charges, ongoing pressure in the sub-$30k segment, conservative near-term guidance given the demand backdrop, and timing of realized cost savings (largely in 2027). On balance, the company is showing operational progress and a path to improved profitability while navigating near-term restructuring and lower-end market headwinds.
Company Guidance
Sprout guided Q3 FY2026 revenue of $123.3M–$124.1M, non‑GAAP operating income of $17.5M–$18.3M and non‑GAAP EPS of $0.29–$0.30 (assuming ~60.7M weighted average basic shares). For fiscal 2026 it expects revenue of $493.0M–$495.6M, non‑GAAP operating income of $68.3M–$70.3M (about a 20% increase versus the prior outlook midpoint) and non‑GAAP EPS of $1.11–$1.15 (assuming ~60.6M shares), and it expects to exit Q4 with a non‑GAAP operating margin near 17%; guidance excludes any impact from the $50M share‑repurchase program. The company said it will incur pre‑tax restructuring charges of ~$18M–$20M (mostly in Q3), expects at least $50M of annualized non‑GAAP cost savings (fully realized in 2027), reaffirmed a Rule of 40 target of 30% by Q4 FY2027, and noted it is lapping the NewsWhip acquisition (a headwind to revenue and RPO) and is not assuming an improvement in the demand environment.
Revenue Growth
Total revenue of $123.8M in Q2, up 10.8% year-over-year; subscription revenue $121.9M, up 9.7% year-over-year.
Margin Expansion
Non-GAAP operating margin of 12.9% in Q2, an increase of 370 basis points year-over-year; company guiding to a Q4 exit margin near ~17%.
Improved Free Cash Flow
Non-GAAP free cash flow of $8.3M in Q2, roughly +60% year-over-year; trailing 12-month non-GAAP free cash flow ~ $54M, demonstrating leverage in the model.
Stronger RPO/CRPO and Contract Mix
RPO of $400.8M, up 15.5% year-over-year; CRPO grew 12.4% year-over-year to $202.7M. Multi-year contracts now represent nearly half of contract mix (up from ~one-third two years ago).
Up-market Customer Momentum
$30,000+ ARR cohort: approximated trailing 12-month subscription revenue grew 20% year-over-year and now represents over 61% of total subscription revenue. Customer counts: 3,926 customers at $30k+ ARR (up 11% YoY) and 2,127 customers at $50k+ ARR (up 16% YoY). Added 51 net new $30k+ customers in Q2 and 388 over the trailing 12 months.
ACV Expansion
Quarterly ACV increased 14.8% year-over-year, reflecting mix shift toward larger, higher-value customers and broader adoption of premium products.
AI Product Progress — Trellis
Expanded Trellis capabilities (insights on demand, Trellis Studio, Trellis Plus paid tier launched July). Early adoption: monthly active Trellis users show higher retention than non-users across segments; initial paid upgrades to Trellis Plus observed and strong customer feedback reported.
Product & Integration Enhancements
Launched/expanded integrations and features: Snapchat scheduling & publishing, PayPal/Lumanu creator payments with automated tax docs, consolidated TikTok ad comments, AI dashboard builder, NewsWhip predictive scoring, and a deeper Canva integration—broadening platform utility for enterprise customers.
Financial Outlook Upgrades & Capital Return
Raised fiscal 2026 non-GAAP operating income guidance to $68.3M-$70.3M (a ~20% increase over prior outlook midpoint). Initiated $50M share repurchase authorization and expect opportunistic buybacks.
Expected Annualized Cost Savings from Restructuring
Company expects to reduce non-GAAP cost structure by at least $50M on an annualized run-rate basis as a result of the reorganization (savings largely to be realized by 2027).

MX:SPT Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Oct 29, 2026
2026 (Q3)
5.32 / -
4.162―
2026 (Q2)
2.91 / 4.70
3.25744.44% (+1.45)
2026 (Q1)
2.82 / 4.16
3.9814.55% (+0.18)
2025 (Q4)
2.86 / 3.62
3.4385.26% (+0.18)
2025 (Q3)
2.90 / 4.16
2.35276.92% (+1.81)
2025 (Q2)
2.75 / 3.26
1.629100.00% (+1.63)
2025 (Q1)
2.73 / 3.98
1.81120.00% (+2.17)
2024 (Q4)
2.73 / 3.44
0.362850.00% (+3.08)
2024 (Q3)
2.17 / 2.35
-0.1811400.00% (+2.53)
2024 (Q2)
1.43 / 1.63
1.26728.57% (+0.36)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed