Sprout Social (SPT) investor relations material

Executive summary

• Achieved revenue of $121.5 million in Q1 2026, up 11.2% year-over-year, with non-GAAP operating margin at 11.6%–12% and gross margin at 77%–78%.

• Non-GAAP free cash flow reached $24.7 million, a 27% year-over-year increase and the highest in company history.

• Customer base of $30K+ ARR grew to 3,875 (up 12%), and $50K+ ARR customers rose 18% to 2,085, now representing over 60% of subscription revenue.

• Board authorized a $50 million share repurchase program, reflecting confidence in long-term value and disciplined capital allocation.

• AI orchestration framework Trellis moved out of beta, now live across Listening and NewsWhip, with rapid adoption and strong customer feedback.

Financial highlights

• Subscription revenue was $120 million, up 10.4% year-over-year; total revenue for Q1 FY2026 was $121.5 million, up from $109.3 million in Q1 FY2025.

• Current remaining performance obligations (CRPO) grew 10% year-over-year to $281.7 million; total RPO reached $395.3 million, up 9.7%–10% year-over-year.

• Non-GAAP operating income rose to $14.1 million, with a margin of 12%.

• Non-GAAP free cash flow margin improved to 20% from 18% in the prior year.

• Ended Q1 with $111.6 million in cash and equivalents, up from $100.9 million a year ago.

Outlook and guidance

• Q2 2026 revenue expected between $121.7 million and $122.5 million; non-GAAP operating income between $9.5 million and $10.3 million; non-GAAP EPS $0.15–$0.16.

• FY2026 revenue guidance set at $492.5 million–$495.5 million; non-GAAP operating income $54.9 million–$60.4 million; non-GAAP net income per share $0.88–$0.97.

• Targeting a 15% non-GAAP operating margin by Q4 2026 and reaffirming a 30% Rule of 40 target by Q4 2027.