Sprout Social Announces Third Quarter 2025 Financial Results

Rhea-AI Summary

Sprout Social (Nasdaq: SPT) reported Q3 2025 results for the quarter ended September 30, 2025, with revenue $115.6M (+13% YoY) and cRPO $258.5M (+17% YoY). GAAP net loss narrowed to $9.4M versus $17.1M a year ago, while Non-GAAP net income was $13.4M (vs. $7.3M). Cash and equivalents were $90.6M at quarter end. Customer metrics improved: customers >$10k ARR reached 9,756 (+7% YoY) and customers >$50k ARR reached 1,947 (+21% YoY).

Company provided Q4 2025 revenue outlook of $118.2M–$119.0M and full-year 2025 revenue guidance of $454.9M–$455.7M, with non-GAAP operating income and EPS targets included.

Positive

• Revenue +13% YoY to $115.6M
• cRPO +17% YoY to $258.5M
• Non-GAAP net income +$6.1M YoY to $13.4M
• Customers >$50k ARR +21% YoY to 1,947

Negative

• GAAP net loss of $9.4M remains
• Cash and equivalents declined to $90.6M from $101.5M
• Guidance excludes GAAP operating loss reconciliation

Insights

Equity Analyst

Sprout Social shows revenue growth, expanding enterprise customers and improved non‑GAAP profitability, with guidance for continued modest growth.

Revenue rose to $115.6 million in Q3 2025, up 13%, while cRPO grew to $258.5 million (up 17%) and total RPO reached $357.1 million (up 15%). GAAP losses narrowed to ($9.4 million) net and operating loss ($9.1 million), while non‑GAAP operating income improved to $13.7 million and non‑GAAP net income to $13.4 million, signaling better underlying profitability despite GAAP deficits.

Key dependencies and risks include reliance on enterprise expansion (customers > $50,000 ARR grew 21% to 1,947) and cash trends: cash fell to $90.6 million from prior quarter $101.5 million. The company forecasts Q4 2025 revenue of $118.2–$119.0 million and full‑year 2025 revenue of $454.9–$455.7 million, so execution against that guidance and sustained cRPO growth will determine durability of the improvement.

Watch the upcoming conference call today and the company’s ability to meet the provided ranges for Q4 2025 and full year 2025, along with cash balance and operating cash flow trends over the next quarter; those items are the most direct, monitorable indicators of whether the non‑GAAP gains translate into lasting GAAP improvement.

CHICAGO, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Sprout Social, Inc. (“Sprout Social”, the “Company”) (Nasdaq: SPT), an industry-leading provider of cloud-based social media management software, today announced financial results for its third quarter ended September 30, 2025.

“Our team delivered strong results in the third quarter, highlighted by 17% cRPO growth and strong profitability,” said Ryan Barretto, CEO of Sprout Social. “We saw strong execution in our enterprise segment as we remain committed to strengthening our enterprise presence through customer adoption, account expansion, and strategic partnerships.”

Third Quarter 2025 Financial Highlights

Revenue

• Revenue was $115.6 million, up 13% compared to the third quarter of 2024.
• Total remaining performance obligations (RPO) of $357.1 million as of September 30, 2025, up 15% year-over-year.
• Current remaining performance obligations (cRPO) of $258.5 million as of September 30, 2025, up 17% year-over-year.
  

Operating Income (Loss)

• GAAP operating loss was ($9.1) million, compared to ($16.9) million in the third quarter of 2024.
• Non-GAAP operating income was $13.7 million, compared to $7.5 million in the third quarter of 2024.

Net Loss

• GAAP net loss was ($9.4) million, compared to ($17.1) million in the third quarter of 2024.
• Non-GAAP net income was $13.4 million, compared to $7.3 million in the third quarter of 2024.
• GAAP net loss per share was ($0.16) based on 58.9 million weighted-average shares of common stock outstanding, compared to ($0.30) based on 57.2 million weighted-average shares of common stock outstanding in the third quarter of 2024.
• Non-GAAP net income per share was $0.23 based on 58.9 million weighted-average shares of common stock outstanding, compared to $0.13 based on 57.2 million weighted-average shares of common stock outstanding in the third quarter of 2024.

Cash

• Cash and cash equivalents totaled $90.6 million as of September 30, 2025, compared to $101.5 million as of June 30, 2025.
• Net cash provided by operating activities was $9.3 million, compared to $9.0 million in the third quarter of 2024.
• Non-GAAP free cash flow was $10.3 million, compared to $9.3 million in the third quarter of 2024.

See “Use of Non-GAAP Financial Measures” below for definitions of Non-GAAP operating income (loss), Non-GAAP net income (loss), Non-GAAP net income (loss) per share and Non-GAAP free cash flow and the financial tables that accompany this release for reconciliations of our non-GAAP measures to their closest comparable GAAP measures. See “Key Business Metrics” below for how Sprout Social defines RPO, cRPO, the number of customers contributing over $10,000 in ARR and the number of customers contributing over $50,000 in ARR.

Customer Metrics

• Grew number of customers contributing over $10,000 in ARR to 9,756 customers as of September 30, 2025, up 7% compared to September 30, 2024.
• Grew number of customers contributing over $50,000 in ARR to 1,947 customers as of September 30, 2025, up 21% compared to September 30, 2024.

Recent Customer Highlights

• During the third quarter, we had the opportunity to grow with new and existing customers like Xerox, NYU, Bentley, Celsius/Alani, Hallmark, Valvoline, Becton Dickinson, the Royal Family, Primo Brands, and Cub Foods.

Recent Business Highlights

Sprout Social recently:

• Launched new Canva integration to streamline design-to-publishing for social (link)
• Launched expansive suite of integrations to empower brands in the social intelligence era (link)
• Expanded Salesforce collaboration to revolutionize Social Customer Care (link)
• Recognized as a silver winner for Best Influencer Marketing Platform at the 2025 Global Influencer Marketing Awards

Fourth Quarter and 2025 Financial Outlook

For the fourth quarter of 2025, the Company currently expects:

• Total revenue between $118.2 million and $119.0 million.
• Non-GAAP operating income between $9.5 million and $10.5 million.
• Non-GAAP net income per share between $0.15 and $0.17 based on approximately 59.3 million weighted-average shares of common stock outstanding.

For the full year 2025, the Company currently expects:

• Total revenue between $454.9 million and $455.7 million.
• Non-GAAP operating income between $46.1 million and $47.1 million.
• Non-GAAP net income per share between $0.77 and $0.79 based on approximately 58.6 million weighted-average shares of common stock outstanding.

The Company’s fourth quarter and 2025 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to non-GAAP operating income, or net loss per share, the most directly comparable GAAP measure to non-GAAP net income per share, and similarly cannot provide a reconciliation between its forecasted non-GAAP operating income and non-GAAP net income per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.

Conference Call Information

The financial results and business highlights will be discussed on a conference call and webcast scheduled at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) today, November 5, 2025. Online registration for this event conference call can be found at https://registrations.events/direct/Q4I191315. The live webcast of the conference call can be accessed from Sprout Social’s investor relations website at http://investors.sproutsocial.com.

Following completion of the events, a webcast replay will also be available at http://investors.sproutsocial.com for 12 months.

About Sprout Social

Sprout Social is a global leader in social media management and analytics software, built on the belief that All Business is Social℠. Sprout’s intuitive platform puts powerful social data into the hands of approximately 30,000 brands so they can deliver smarter, faster business impact. Named the #1 Best Software Product by G2’s 2024 Best Software Award, Sprout offers comprehensive publishing and engagement functionality, customer care, influencer marketing, advocacy, crisis management and AI-powered business intelligence. Sprout’s software operates across all major social media networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “explore,” ”future,” “intend,” “long-term model,” “may,” “medium to longer term goals,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q4 2025 and full year 2025 financial outlook, our plans and objectives for future operations, growth, initiatives or strategies, including our investments in research and development, and other statements that are not historical fact. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others: we may not be able to sustain our revenue and customer growth rate in the future, including due to risks associated with our strategic focus on enterprise customers; price increases have and may continue to negatively impact demand for our products, customer acquisition and retention and reduce the total number of customers or customer additions; our business would be harmed by any significant interruptions, delays or outages in services from our platform, our API providers, or certain social media platforms; if we are unable to attract potential customers through unpaid channels, convert this traffic to free trials or convert free trials to paid subscriptions, our business and results of operations may be adversely affected; we may be unable to successfully enter new markets, manage our international expansion and comply with any applicable international laws and regulations; we may be unable to integrate acquired businesses or technologies successfully or achieve the expected benefits of such acquisitions and investments; unstable market, economic, and political conditions, such as recession risks, effects of inflation, tariffs and trade tensions, changes in government spending, labor shortages, supply chain issues, fluctuations in interest rates, and the impacts of ongoing overseas conflicts, have and could continue to adversely impact our business and that of our existing and prospective customers, which may result in reduced demand for our products; we may not be able to generate sufficient cash to service our indebtedness; covenants in our credit agreement may restrict our operations, and if we do not effectively manage our business to comply with these covenants, our financial condition could be adversely impacted; any cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely could negatively affect our business; changing regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and harm our brand; and risks related to ongoing legal proceedings. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 26, 2025 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, to be filed with the SEC as well as any future reports that we file with the SEC. Moreover, you should interpret many of the risks identified in those reports as being heightened as a result of the current and ongoing instability in market, economic, and political conditions. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprout Social at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Sprout Social assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Use of Non-GAAP Financial Measures

We have provided in this press release certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Our management uses these non-GAAP financial measures internally in analyzing our financial results and believes that these non-GAAP financial measures are useful to investors as additional tools to evaluate ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial measures prepared in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

Non-GAAP gross profit. We define non-GAAP gross profit as GAAP gross profit, excluding stock-based compensation expense, amortization expense associated with the acquired developed technology from our acquisitions of Tagger Media, Inc. (“Tagger”) and NewsWhip Group Holdings Limited (“NewsWhip”), and restructuring charges. We believe non-GAAP gross profit provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

Non-GAAP operating income. We define non-GAAP operating income as GAAP loss from operations, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring charges, non-cash losses from lease terminations, acquisition-related expenses and accretion associated with contingent consideration. We believe non-GAAP operating income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense, restructuring charges, non-cash losses from lease terminations, acquisition-related expenses and accretion associated with contingent consideration, which are often unrelated to overall operating performance.

Non-GAAP operating margin. We define non-GAAP operating margin as non-GAAP operating income (loss) as a percentage of revenue.

Non-GAAP net income. We define non-GAAP net income as GAAP net loss, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring charges, non-cash losses from lease terminations, acquisition-related expenses and accretion associated with contingent consideration. We believe non-GAAP net income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, amortization expense, restructuring charges, non-cash losses from lease terminations, acquisition-related expenses and accretion associated with contingent consideration, which are often unrelated to overall operating performance.

Non-GAAP net income per share. We define non-GAAP net income per share as GAAP net loss per share attributable to common shareholders, basic and diluted, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring charges, non-cash losses from lease terminations, acquisition-related expenses and accretion associated with contingent consideration. We believe non-GAAP net income per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, amortization expense, restructuring charges, non-cash losses from lease terminations, acquisition-related expenses and accretion associated with contingent consideration, which are often unrelated to overall operating performance.

Non-GAAP free cash flow. We define non-GAAP free cash flow as net cash provided by operating activities less expenditures for property and equipment, interest payments on our revolving credit facility, payments related to restructuring charges and acquisition-related costs. Non-GAAP free cash flow does not reflect our future contractual obligations or represent the total increase or decrease in our cash balance for a given period. We believe non-GAAP free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash provided by our core operations that, after expenditures for property and equipment, interest payments on our revolving credit facility, payments related to restructuring charges and acquisition-related costs, is available for strategic initiatives.

Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses. Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses are defined as sales and marketing expenses, research and development expenses and general and administrative expenses, respectively, less stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring charges, non-cash losses from lease terminations and acquisition-related expenses. We believe these non-GAAP measures provide our management and investors with insight into day-to-day operating expenses given that these measures eliminate the effect of stock-based compensation, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring charges, non-cash losses from lease terminations and acquisition-related expenses.

Key Business Metrics

Remaining performance obligations (“RPO”). RPO, or remaining performance obligations, represents contracted revenue that has not yet been recognized, and includes deferred revenue and amounts that will be invoiced and recognized in future periods.

Current remaining performance obligations (“cRPO”). cRPO, or current RPO, represents contracted revenue that has not yet been recognized, and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months.

Number of customers contributing more than $10,000 in ARR. We define number of customers contributing more than $10,000 in ARR as those on a paid subscription plan that had more than $10,000 in ARR as of a period end. We view the number of customers that contribute more than $10,000 in ARR as a measure of our ability to scale with our customers and attract larger organizations. We believe this represents potential for future growth, including expanding within our current customer base.

Number of customers contributing more than $50,000 in ARR. We define number of customers contributing more than $50,000 in ARR as those on a paid subscription plan that had more than $50,000 in ARR as of a period end. We view the number of customers that contribute more than $50,000 in ARR as a measure of our ability to scale with large customers and attract sophisticated organizations. We believe this represents potential for future growth, including expanding within our current customer base.

While we no longer believe that ARR and number of customers are key performance indicators of Sprout Social’s business, these metrics are necessary for an understanding of how we define number of customers contributing over $10,000 in ARR and number of customers contributing over $50,000 in ARR. For this purpose, we define ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last date of the specified period and we define a customer as a unique account, multiple accounts containing a common non-personal email domain, or multiple accounts governed by a single agreement or entity.

Availability of Information on Sprout Social’s Website and Social Media Profiles

Investors and others should note that Sprout Social routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Sprout Social Investors website. We also intend to use the social media profiles listed below as a means of disclosing information about us to our customers, investors and the public. While not all of the information that the Company posts to the Sprout Social Investors website or to social media profiles is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Sprout Social to review the information that it shares at the Investors link located at the bottom of the page on www.sproutsocial.com and to regularly follow our social media profiles. Users may automatically receive email alerts and other information about Sprout Social when enrolling an email address by visiting "Email Alerts" in the "Shareholder Services" section of Sprout Social's Investor website at https://investors.sproutsocial.com/.

Social Media Profiles:
www.twitter.com/SproutSocial
www.twitter.com/SproutSocialIR
www.facebook.com/SproutSocialInc
www.linkedin.com/company/sprout-social-inc-/
www.instagram.com/sproutsocial

Contact

Media:
Layla Revis
Email: pr@sproutsocial.com
Phone: (866) 878-3231

Investors:
Alex Kurtz
Twitter: @SproutSocialIR
Email: investors@sproutsocial.com
Phone: (312) 528-9166

Sprout Social, Inc.
Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share data)
	Three Months Ended September 30,
		2025				2024
Revenue
Subscription	$	114,720			$	101,813
Professional services and other		873				825
Total revenue		115,593				102,638
Cost of revenue(1)
Subscription		25,362				22,928
Professional services and other		422				304
Total cost of revenue		25,784				23,232
Gross profit		89,809				79,406
Operating expenses
Research and development(1)		25,068				26,272
Sales and marketing(1)		47,034				47,499
General and administrative(1)		26,818				22,514
Total operating expenses		98,920				96,285
Loss from operations		(9,111	)			(16,879	)
Interest expense		(761	)			(851	)
Interest income		859				1,007
Other expense, net		(294	)			(110	)
Loss before income taxes		(9,307	)			(16,833	)
Income tax expense		74				254
Net loss	$	(9,381	)		$	(17,087	)
Net loss per share attributable to common shareholders, basic and diluted	$	(0.16	)		$	(0.30	)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted		58,930,087				57,179,710
(1) Includes stock-based compensation expense as follows:
	Three Months Ended September 30,
		2025				2024
Cost of revenue	$	627			$	1,059
Research and development		5,696				7,493
Sales and marketing		5,696				8,962
General and administrative		7,010				5,672
Total stock-based compensation expense	$	19,029			$	23,186

Sprout Social, Inc.
Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share data)
	Nine Months Ended September 30,
		2025				2024
Revenue
Subscription	$	334,510			$	296,100
Professional services and other		2,150				2,718
Total revenue		336,660				298,818
Cost of revenue(1)
Subscription		74,386				67,211
Professional services and other		1,170				851
Total cost of revenue		75,556				68,062
Gross profit		261,104				230,756
Operating expenses
Research and development(1)		72,884				75,167
Sales and marketing(1)		142,638				138,233
General and administrative(1)		78,210				64,035
Total operating expenses		293,732				277,435
Loss from operations		(32,628	)			(46,679	)
Interest expense		(1,684	)			(2,869	)
Interest income		2,700				3,095
Other expense, net		(106	)			(773	)
Loss before income taxes		(31,718	)			(47,226	)
Income tax expense		868				328
Net loss	$	(32,586	)		$	(47,554	)
Net loss per share attributable to common shareholders, basic and diluted	$	(0.56	)		$	(0.84	)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted		58,397,790				56,742,498
(1) Includes stock-based compensation expense as follows:
	Nine Months Ended September 30,
		2025				2024
Cost of revenue	$	2,057			$	2,890
Research and development		18,307				18,979
Sales and marketing		17,721				24,527
General and administrative		20,905				15,454
Total stock-based compensation expense	$	58,990			$	61,850

Sprout Social, Inc.
Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)
	September 30, 2025				December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	90,639			$	86,437
Marketable securities		-				3,745
Accounts receivable, net of allowances of $2,173 and $2,169 at September 30, 2025 and December 31, 2024, respectively		63,501				84,033
Deferred Commissions		25,151				20,184
Prepaid expenses and other assets		15,726				15,816
Total current assets		195,017				210,215
Property and equipment, net		9,868				10,951
Deferred commissions, net of current portion		54,800				51,653
Operating lease, right-of-use asset		10,212				11,326
Goodwill		166,972				121,315
Intangible assets, net		42,142				21,914
Other assets, net		2,385				967
Total assets	$	481,396			$	428,341
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	9,392			$	6,984
Deferred revenue		172,563				178,585
Operating lease liability		2,569				3,747
Accrued wages and payroll related benefits		16,932				20,567
Accrued expenses and other		17,688				10,869
Total current liabilities		219,144				220,752
Revolving credit facility		44,000				25,000
Deferred revenue, net of current portion		834				1,101
Operating lease liability, net of current portion		12,755				14,543
Other non-current liabilities		10,537				351
Total liabilities		287,270				261,747
Stockholders' equity
Class A common stock, par value $0.0001 per share; 1,000,000,000 shares authorized; 56,098,336 and 53,145,821 shares issued and outstanding at September 30, 2025, respectively; 54,219,684 and 51,277,740 shares issued and outstanding at December 31, 2024, respectively		4				4
Class B common stock, par value $0.0001 per share; 25,000,000 shares authorized; 6,236,301 and 6,029,357 shares issued and outstanding at September 30, 2025, respectively; 6,687,582 and 6,480,638 shares issued and outstanding at December 31, 2024, respectively		1				1
Additional paid-in capital		618,673				558,391
Treasury stock, at cost		(37,583	)			(37,422	)
Accumulated other comprehensive income		-				3
Accumulated deficit		(386,969	)			(354,383	)
Total stockholders’ equity		194,126				166,594
Total liabilities and stockholders’ equity	$	481,396			$	428,341

Sprout Social, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
	Three Months Ended September 30,
		2025				2024
Cash flows from operating activities
Net loss	$	(9,381	)		$	(17,087	)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization of property, equipment and software		906				960
Amortization of line of credit issuance costs		60				52
Accretion of discount on marketable securities		-				(58	)
Amortization of acquired intangible assets		2,036				1,553
Amortization of deferred commissions		6,287				4,238
Amortization of right-of-use operating lease asset		392				475
Stock-based compensation expense		19,029				23,186
Provision for accounts receivable allowances		204				732
Accretion of contingent consideration		169				-
Changes in operating assets and liabilities, excluding impact from business acquisition
Accounts receivable		5,814				3,521
Prepaid expenses and other current assets		(945	)			(10	)
Deferred commissions		(10,225	)			(7,286	)
Accounts payable and accrued expenses		(1,534	)			(1,313	)
Deferred revenue		(2,934	)			949
Lease liabilities		(580	)			(960	)
Net cash provided by operating activities		9,298				8,952
Cash flows from investing activities
Expenditures for property and equipment		(787	)			(477	)
Payments for business acquisition, net of cash acquired		(50,333	)			-
Proceeds from maturity of marketable securities		-				3,800
Net cash (used in) provided by investing activities		(51,120	)			3,323
Cash flows from financing activities
Borrowings from line of credit		32,000				-
Repayments of line of credit		(3,000	)			(10,000	)
Proceeds from exercise of stock options		-				2
Employee taxes paid related to the net share settlement of stock-based awards		(161	)			(252	)
Net cash provided by (used in) financing activities		28,839				(10,250	)
Net (decrease) increase in cash, cash equivalents, and restricted cash		(12,983	)			2,025
Cash, cash equivalents, and restricted cash
Beginning of period		105,555				84,830
End of period	$	92,572			$	86,855

Sprout Social, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
	Nine Months Ended September 30,
		2025				2024
Cash flows from operating activities
Net loss	$	(32,586	)		$	(47,554	)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization of property, equipment and software		2,895				2,826
Amortization of line of credit issuance costs		170				155
Accretion of discount on marketable securities		(7	)			(383	)
Amortization of acquired intangible assets		4,622				4,677
Amortization of deferred commissions		17,206				11,649
Amortization of right-of-use operating lease asset		1,114				1,360
Stock-based compensation expense		58,990				61,850
Provision for accounts receivable allowances		2,449				1,473
Loss on lease termination		1,175				-
Accretion of contingent consideration		169				-
Changes in operating assets and liabilities, excluding impact from business acquisition
Accounts receivable		20,338				7,655
Prepaid expenses and other current assets		(744	)			(4,723	)
Deferred commissions		(25,320	)			(21,118	)
Accounts payable and accrued expenses		(4,755	)			(1,526	)
Deferred revenue		(10,512	)			8,755
Lease liabilities		(2,712	)			(2,917	)
Net cash provided by operating activities		32,492				22,179
Cash flows from investing activities
Expenditures for property and equipment		(3,052	)			(2,062	)
Payments for business acquisition, net of cash acquired		(50,333	)			(1,409	)
Proceeds from maturity of marketable securities		3,750				40,185
Net cash (used in) provided by investing activities		(49,635	)			36,714
Cash flows from financing activities
Borrowings from line of credit		32,000				-
Repayments of line of credit		(13,000	)			(25,000	)
Payments for line of credit issuance costs		(486	)			-
Proceeds from exercise of stock options		-				29
Proceeds from employee stock purchase plan		944				1,238
Employee taxes paid related to the net share settlement of stock-based awards		(161	)			(2,000	)
Net cash provided by (used in) financing activities		19,297				(25,733	)
Net increase in cash, cash equivalents, and restricted cash		2,154				33,160
Cash, cash equivalents, and restricted cash
Beginning of period		90,418				53,695
End of period	$	92,572			$	86,855

The following schedule reflects our non-GAAP financial measures and reconciles our non-GAAP financial measures to the related GAAP financial measures (in thousands, except per share data):

Reconciliation of Non-GAAP Financial Measures
	Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Reconciliation of Non-GAAP gross profit
Gross profit	$	89,809			$	79,406			$	261,104			$	230,756
Stock-based compensation expense		627				1,059				2,057				2,890
Amortization of acquired developed technology		985				705				2,395				2,115
Restructuring charges		-				-				416				-
Non-GAAP gross profit	$	91,421			$	81,170			$	265,972			$	235,761
Reconciliation of Non-GAAP operating income
Loss from operations	$	(9,111	)		$	(16,879	)		$	(32,628	)		$	(46,679	)
Stock-based compensation expense		19,029				23,186				58,990				61,850
Amortization of acquired intangible assets		1,957				1,213				4,383				3,639
Restructuring charges		-				-				2,731				-
Loss on lease termination		-				-				1,175				-
Acquisition-related expenses		1,690				-				1,780				-
Accretion associated with contingent consideration		169				-				169				-
Non-GAAP operating income	$	13,734			$	7,520			$	36,600			$	18,810
Reconciliation of Non-GAAP net income
Net loss	$	(9,381	)		$	(17,087	)		$	(32,586	)		$	(47,554	)
Stock-based compensation expense		19,029				23,186				58,990				61,850
Amortization of acquired intangible assets		1,957				1,213				4,383				3,639
Restructuring charges		-				-				2,731				-
Loss on lease termination		-				-				1,175				-
Acquisition-related expenses		1,690				-				1,780				-
Accretion associated with contingent consideration		169				-				169				-
Non-GAAP net income	$	13,464			$	7,312			$	36,642			$	17,935
Reconciliation of Non-GAAP net income per share
Net loss per share attributable to common shareholders, basic and diluted	$	(0.16	)		$	(0.30	)		$	(0.56	)		$	(0.84	)
Stock-based compensation expense		0.33				0.41				1.01				1.10
Amortization of acquired intangible assets		0.03				0.02				0.08				0.06
Restructuring charges		-				-				0.05				-
Loss on lease termination		-				-				0.02				-
Acquisition-related expenses		0.03				-				0.03				-
Accretion associated with contingent consideration		-				-				-				-
Non-GAAP net income per share	$	0.23			$	0.13			$	0.63			$	0.32
Reconciliation of Non-GAAP free cash flow
Net cash provided by operating activities	$	9,298			$	8,952			$	32,492			$	22,179
Expenditures for property and equipment		(787	)			(477	)			(3,052	)			(2,062	)
Interest paid on credit facility		254				836				1,076				3,014
Payments related to restructuring charges		-				-				2,946				-
Acquisition-related costs		1,574				-				1,574				-
Non-GAAP free cash flow	$	10,339			$	9,311			$	35,036			$	23,131

FAQ

What were Sprout Social (SPT) Q3 2025 revenue and growth?

Sprout Social reported $115.6M revenue in Q3 2025, up 13% YoY.

How did Sprout Social's cRPO and RPO change in Q3 2025?

cRPO was $258.5M (+17% YoY) and total RPO was $357.1M (+15% YoY).

What was Sprout Social's Q3 2025 profitability (GAAP and non-GAAP)?

GAAP net loss was $9.4M; Non-GAAP net income was $13.4M in Q3 2025.

How many Sprout Social customers generated >$50k ARR in Q3 2025?

Sprout Social reported 1,947 customers contributing over $50,000 in ARR, up 21% YoY.

What is Sprout Social's Q4 2025 revenue guidance (SPT)?

The company expects Q4 2025 revenue between $118.2M and $119.0M.

What are Sprout Social's full-year 2025 financial targets?

Full-year 2025 revenue guidance is $454.9M–$455.7M; non-GAAP operating income and EPS targets were provided.