📊 CXM Key Takeaways
Is Sprinklr, Inc. (CXM) a Good Investment?
Sprinklr demonstrates solid financial health with strong free cash flow generation ($70M, 31.9% margin), zero debt, and substantial cash reserves, but fundamental profitability deteriorated significantly with EPS declining 79.5% YoY despite 7.6% revenue growth. The company's abysmal returns on capital (ROE 0.9%, ROA 0.4%) indicate severe inefficiency in deploying its $1.1B asset base, suggesting operational challenges outweigh balance sheet strength.
Sprinklr shows decent top-line growth, strong free cash flow generation, and a clean balance sheet with no long-term debt, which supports financial resilience. However, the sharp decline in net income and very thin operating and net margins suggest earnings quality and scalability remain uneven, making the fundamentals solid but not yet compelling enough for a more aggressive rating.
Sprinklr, Inc. Key Strengths (CXM)
- Exceptional free cash flow generation of $70M (31.9% FCF margin) indicates strong underlying cash generation capability
- Fortress balance sheet: zero long-term debt, $163.3M cash, debt/equity ratio of 0.0x provides financial flexibility
- Healthy gross margins of 65.2% reflect typical software business economics with strong pricing power
- Strong free cash flow generation with an 18.4% FCF margin and minimal capital expenditure needs
- Debt-free balance sheet with solid liquidity, supported by a 1.60x current and quick ratio
- Positive revenue growth and healthy gross margin of 67.4%, indicating an attractive software business model
CXM Stock Risks: Sprinklr, Inc. Investment Risks
- Severe profitability collapse with EPS down 79.5% YoY despite positive revenue growth signals deteriorating unit economics
- Critically poor capital efficiency with ROE of 0.9% and ROA of 0.4% indicates $1.1B in assets generating minimal returns
- Operating margin of only 4.8% compressed from 7-8% industry standards, suggesting structural cost pressures or margin compression
- Net income fell 81.2% year over year, signaling pressure below the gross profit line
- Operating margin of 4.7% and net margin of 2.7% remain low for a software company
- Low ROE and ROA indicate the company is not yet converting its asset and equity base into strong returns
Key Metrics to Watch
- Operating margin trend—must stabilize above 8% to justify capital base
- EPS trajectory—reversing the 79.5% decline is critical to validate business stability
- Customer acquisition cost and lifetime value metrics to assess sustainability of revenue growth
- Operating margin and net income trend
- Revenue growth relative to free cash flow consistency
Sprinklr, Inc. (CXM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 31.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
CXM Profit Margin, ROE & Profitability Analysis
CXM vs Technology Sector: How Sprinklr, Inc. Compares
How Sprinklr, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sprinklr, Inc. Stock Overvalued? CXM Valuation Analysis 2026
Based on fundamental analysis, Sprinklr, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sprinklr, Inc. Balance Sheet: CXM Debt, Cash & Liquidity
CXM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sprinklr, Inc.'s revenue has grown significantly by 74% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.18 reflects profitable operations.
CXM Revenue Growth, EPS Growth & YoY Performance
CXM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $205.5M | -$1.6M | $-0.01 |
| Q3 2026 | $200.7M | $2.9M | $0.01 |
| Q2 2026 | $197.2M | $1.8M | $0.01 |
| Q1 2026 | $196.0M | -$1.6M | $-0.01 |
| Q3 2025 | $186.3M | $10.5M | $0.04 |
| Q2 2025 | $178.5M | $1.8M | $0.01 |
| Q1 2025 | $173.4M | $2.8M | $0.01 |
| Q3 2024 | $157.3M | -$5.9M | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sprinklr, Inc. Dividends, Buybacks & Capital Allocation
CXM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sprinklr, Inc. (CIK: 0001569345)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CXM
What is the AI rating for CXM?
Sprinklr, Inc. (CXM) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CXM's key strengths?
Claude: Exceptional free cash flow generation of $70M (31.9% FCF margin) indicates strong underlying cash generation capability. Fortress balance sheet: zero long-term debt, $163.3M cash, debt/equity ratio of 0.0x provides financial flexibility. ChatGPT: Strong free cash flow generation with an 18.4% FCF margin and minimal capital expenditure needs. Debt-free balance sheet with solid liquidity, supported by a 1.60x current and quick ratio.
What are the risks of investing in CXM?
Claude: Severe profitability collapse with EPS down 79.5% YoY despite positive revenue growth signals deteriorating unit economics. Critically poor capital efficiency with ROE of 0.9% and ROA of 0.4% indicates $1.1B in assets generating minimal returns. ChatGPT: Net income fell 81.2% year over year, signaling pressure below the gross profit line. Operating margin of 4.7% and net margin of 2.7% remain low for a software company.
What is CXM's revenue and growth?
Sprinklr, Inc. reported revenue of $219.5M.
Does CXM pay dividends?
Sprinklr, Inc. does not currently pay dividends.
Where can I find CXM SEC filings?
Official SEC filings for Sprinklr, Inc. (CIK: 0001569345) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CXM's EPS?
Sprinklr, Inc. has a diluted EPS of $0.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CXM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Sprinklr, Inc. has a B grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CXM stock overvalued or undervalued?
Valuation metrics for CXM: ROE of 0.9% (sector avg: 22%), net margin of 1.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is CXM's AI grade for 2026?
Our dual AI analysis gives Sprinklr, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CXM's free cash flow?
Sprinklr, Inc.'s operating cash flow is $70.4M, with capital expenditures of $328.0K. FCF margin is 31.9%.
How does CXM compare to other Technology stocks?
Vs Technology sector averages: Net margin 1.9% (avg: 18%), ROE 0.9% (avg: 22%), current ratio 1.43 (avg: 2.5).