Sprout Social, Inc. (SPT) Earnings Call Transcripts
Sprout Social, Inc.'s Latest Earnings Call - Q1 FY2026
In the first quarter of fiscal 2026, Sprout Social, Inc. reported revenue of $121.5 million, reflecting an 11.2% year-over-year growth. The company achieved a non-GAAP operating margin of 11.6%, up 16 basis points from the previous year. Management noted a significant shift towards larger customers, with those contributing over $30,000 in ARR now representing more than 60% of total subscription revenue, a milestone for the company. Additionally, Sprout announced a $50 million share repurchase program, indicating confidence in its long-term value amidst current valuation levels.
Reported metrics
| Metric | Value |
|---|---|
| Revenue | $121.5 million (beat) |
| Non-GAAP Operating Margin | 11.6% (beat) |
| Non-GAAP Free Cash Flow | $24.7 million (beat) |
| Remaining Performance Obligations (RPO) | $395.3 million (inline) |
| Subscription Revenue | $120 million (inline) |
| Customers Above $30,000 ARR | 3,875 (positive) |
Guidance from management
For Q2 2026, revenue is expected to be between $121.7 million and $122.5 million, with non-GAAP operating income between $9.5 million and $10.3 million. For FY 2026, revenue guidance is set at $492.5 million to $495.5 million.
What management said
Yes. And I'll just add, Will, that we mentioned this on the Q4 call, and it's worth mentioning again A lot of these implementations on the pricing and packaging Essentials, this is just happening right now. So we do expect to see a modest deceleration in the sub-300 segment this year and then looking to stabilize going into next year.
I would just add, Adam, as you'd expect and is going through some of these customer stories on the call today, I mean when you're getting into deals for customers over 30,000, over 50,000 in ARR, those are majority direct. I mean, agency is still a really critical part of our go-to-market strategy, but it's a little bit more down market at times.
What analysts pressed on
Analysts expressed concerns about the slower growth in the sub-$30,000 customer segment and the potential impact of budget constraints on customer spending. There were also questions regarding the effectiveness of the new Essentials product in attracting new customers.
Main topics on the call
- Shift Towards Larger Customers — Management highlighted that customers contributing $30,000 or more in ARR grew 21% year-over-year and now account for over 60% of total subscription revenue. Ryan Barretto stated, "This reflects the growing confidence in...
- Introduction of Trellis AI Framework — The Trellis AI framework has moved out of beta and is now live for customers, receiving positive feedback on its speed and quality of insights. Barretto noted, "Trellis is now the most used AI feature across the Sprout p...
- Strong Free Cash Flow Generation — Sprout generated $24.7 million in non-GAAP free cash flow, a 27% increase year-over-year, marking the largest quarterly free cash flow in the company's history. This underscores the company's ability to drive leverage in...
- Share Repurchase Program — The Board authorized a share repurchase program of up to $50 million, reflecting management's confidence in the business's durability and long-term value. Barretto stated, "We believe this program will give us another le...
Read the full Sprout Social, Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Sprout Social, Inc.
Sprout Social, Inc. (SPT) is a publicly listed company in the Software industry, within the Information Technology sector. It trades on NasdaqCM and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 45 calls on record spanning February 26, 2020 to August 6, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 45 Sprout Social, Inc. earnings call transcripts on record, spanning February 26, 2020 to August 6, 2026. Based on this history, Sprout Social, Inc. reports quarterly. The most recent call on file is dated August 6, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- SPT
- Exchange
- NasdaqCM
- Country
- US
- Sector
- Information Technology
- Industry
- Software
- Calls on record
- 45
- First call
- February 26, 2020
- Most recent
- August 6, 2026
- Reporting cadence
- quarterly