Sprout Social (NASDAQ:SPT) Announces Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Posted by Max Byerly on May 9th, 2026

Sprout Social (NASDAQ:SPT – Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.07, FiscalAI reports. The business had revenue of $121.50 million during the quarter, compared to the consensus estimate of $120.33 million. Sprout Social had a negative net margin of 8.18% and a negative return on equity of 14.28%. Sprout Social updated its Q2 2026 guidance to 0.150-0.160 EPS and its FY 2026 guidance to 0.880-0.970 EPS.

Here are the key takeaways from Sprout Social’s conference call:

Sprout reported revenue of $121.5 million (+11.2% Y/Y) with non?GAAP operating margin of 11.6% and a record quarterly non?GAAP free cash flow of $24.7 million, underscoring improved cash generation and operating leverage.
The board authorized a $50 million share repurchase program, signaling management confidence in the business and providing a capital?allocation lever to address perceived valuation dislocation while continuing product investment.
Sprout moved its AI orchestration framework, Trellis, out of beta to general availability, with rapid adoption (thousands of customers) and plans for a hybrid user/access plus usage?based monetization model as Trellis expands across the platform.
The company is shifting toward larger customers: customers with ?$30K ARR grew 21% Y/Y and now represent over 60% of subscription revenue, with multi?year contracts nearing half the mix—improving ACV, retention and multi?product attach economics.
Sprout is reworking the sub?$30K segment (launched “Essentials” and a self?serve motion) and expects a modest deceleration in that cohort through 2026, acknowledging this transition as a near?term drag while aiming for efficiency gains into 2027.

Sprout Social Price Performance

Shares of SPT traded up $0.60 during mid-day trading on Friday, hitting $7.40. The company’s stock had a trading volume of 4,669,853 shares, compared to its average volume of 1,355,016. The firm has a 50-day moving average price of $5.94 and a 200 day moving average price of $8.48. The stock has a market capitalization of $440.74 million, a price-to-earnings ratio of -11.21 and a beta of 0.94. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.93 and a quick ratio of 0.93. Sprout Social has a fifty-two week low of $4.92 and a fifty-two week high of $25.48.

Insider Activity

In other news, insider Justyn Russell Howard sold 40,000 shares of Sprout Social stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $5.03, for a total value of $201,200.00. Following the transaction, the insider owned 7,417 shares of the company’s stock, valued at $37,307.51. The trade was a 84.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 103,855 shares of company stock valued at $600,860. Insiders own 9.60% of the company’s stock.

Institutional Trading of Sprout Social

A number of hedge funds have recently bought and sold shares of SPT. Invesco Ltd. lifted its stake in Sprout Social by 38.6% during the fourth quarter. Invesco Ltd. now owns 76,775 shares of the company’s stock valued at $865,000 after buying an additional 21,399 shares in the last quarter. State of Tennessee Department of Treasury lifted its stake in Sprout Social by 228.3% during the fourth quarter. State of Tennessee Department of Treasury now owns 38,071 shares of the company’s stock valued at $429,000 after buying an additional 26,474 shares in the last quarter. EP Wealth Advisors LLC purchased a new stake in Sprout Social during the fourth quarter valued at about $114,000. Mackenzie Financial Corp lifted its stake in Sprout Social by 225.9% during the fourth quarter. Mackenzie Financial Corp now owns 126,143 shares of the company’s stock valued at $1,435,000 after buying an additional 87,434 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. purchased a new stake in Sprout Social during the fourth quarter valued at about $440,000.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on SPT shares. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sprout Social in a report on Tuesday, April 21st. Jefferies Financial Group reduced their price objective on shares of Sprout Social from $15.00 to $12.00 and set a “buy” rating for the company in a report on Tuesday, February 3rd. Canaccord Genuity Group reissued a “hold” rating and issued a $9.00 price target (down from $16.00) on shares of Sprout Social in a report on Friday, February 27th. KeyCorp reduced their price objective on shares of Sprout Social from $9.00 to $6.00 and set an “underweight” rating for the company in a research report on Friday, February 27th. Finally, The Goldman Sachs Group lowered their price objective on shares of Sprout Social from $13.00 to $8.00 and set a “neutral” rating on the stock in a research note on Monday, March 2nd. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $13.11.

Check Out Our Latest Stock Analysis on SPT

Key Headlines Impacting Sprout Social

Here are the key news stories impacting Sprout Social this week:

Positive Sentiment: Q1 earnings beat estimates, with EPS of $0.23 versus the $0.16 consensus, while revenue of $121.5 million also topped forecasts. Sprout Social (SPT) Q1 Earnings and Revenues Top Estimates
Positive Sentiment: The company raised its FY 2026 outlook, guiding for EPS of $0.88 to $0.97 and revenue of $492.5 million to $495.5 million, both above consensus estimates. Sprout Social Announces First Quarter 2026 Financial Results
Positive Sentiment: Second-quarter guidance also came in slightly above expectations, with EPS of $0.15 to $0.16 and revenue of $121.7 million to $122.5 million versus a lower Street forecast. Sprout Social Announces First Quarter 2026 Financial Results
Neutral Sentiment: Management said subscription revenue tied to customers with at least $30K in annual recurring revenue grew 21% year over year, and it authorized a new $50 million share repurchase program, which may support sentiment but is not an immediate earnings driver. Sprout Social Announces First Quarter 2026 Financial Results
Negative Sentiment: Despite the stronger report, Sprout Social remains unprofitable, with negative net margin and negative return on equity, which could temper upside. Sprout Social stock page

About Sprout Social

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Sprout Social (NASDAQ: SPT) is a Chicago-based software company specializing in social media management solutions for businesses of all sizes. The company provides a cloud-based platform designed to help organizations improve their social media presence through a suite of tools for content scheduling, community engagement, social listening and analytics. Sprout Social’s platform is built to streamline the workflows of marketing, customer care and public relations teams by providing a centralized hub for managing multiple social channels.

The company’s product offerings include publishing and scheduling capabilities that allow users to plan and automate social content across networks such as Facebook, Instagram, Twitter, LinkedIn and Pinterest.