📊 SPT Key Takeaways
Is Sprout Social, Inc. (SPT) a Good Investment?
Sprout Social demonstrates strong SaaS fundamentals with 12.7% YoY revenue growth and excellent 77.6% gross margins, supported by positive free cash flow of $39.3M and improving EPS trends (up 32.1% YoY). However, the company remains unprofitable with negative operating margins (-9.5%), poor ROE (-21.3%), and concerning short-term liquidity (0.93x current ratio), leaving the path to profitability uncertain.
Why Buy Sprout Social, Inc. Stock? SPT Key Strengths
- 12.7% YoY revenue growth demonstrates market demand and competitive positioning
- 77.6% gross margin indicates strong product-market fit and pricing power typical of successful SaaS
- Positive free cash flow of $39.3M despite GAAP losses suggests operational viability and improving cash generation
- Low debt/equity ratio (0.20x) provides financial flexibility for operations or strategic investments
- Improving EPS trend (+32.1% YoY) signals progress toward profitability
SPT Stock Risks: Sprout Social, Inc. Investment Risks
- Unprofitable with -9.5% operating margin and -$43.3M net loss; shareholder value destruction at current profitability levels
- Negative ROE (-21.3%) and ROA (-8.3%) indicate inefficient capital deployment despite strong revenue
- Current ratio of 0.93x indicates working capital stress and potential near-term liquidity constraints
- Path to profitability remains unclear; high operating expenses suggest execution risk in cost management
- Form 4 insider activity (7 filings) warrants monitoring for confidence signals
Key Metrics to Watch
- Operating margin progression toward positive territory (currently -9.5%)
- Quarterly net income inflection point and timing of GAAP profitability
- Working capital management and current ratio improvement above 1.0x
- Free cash flow sustainability and conversion rate relative to revenue
- Revenue growth rate consistency (maintain above 10%)
Sprout Social, Inc. (SPT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
SPT Profit Margin, ROE & Profitability Analysis
SPT vs Technology Sector: How Sprout Social, Inc. Compares
How Sprout Social, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sprout Social, Inc. Stock Overvalued? SPT Valuation Analysis 2026
Based on fundamental analysis, Sprout Social, 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.
Sprout Social, Inc. Balance Sheet: SPT Debt, Cash & Liquidity
SPT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sprout Social, Inc.'s revenue has grown significantly by 144% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.19 indicates the company is currently unprofitable.
SPT Revenue Growth, EPS Growth & YoY Performance
SPT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $102.6M | -$9.4M | $-0.16 |
| Q2 2025 | $99.4M | -$12.0M | $-0.21 |
| Q1 2025 | $96.8M | -$11.2M | $-0.19 |
| Q3 2024 | $85.5M | -$17.1M | $-0.30 |
| Q2 2024 | $79.3M | -$13.1M | $-0.24 |
| Q1 2024 | $75.2M | -$10.3M | $-0.19 |
| Q3 2023 | $65.3M | -$13.9M | $-0.25 |
| Q2 2023 | $61.4M | -$13.1M | $-0.24 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sprout Social, Inc. Dividends, Buybacks & Capital Allocation
SPT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sprout Social, Inc. (CIK: 0001517375)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SPT
What is the AI rating for SPT?
Sprout Social, Inc. (SPT) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SPT's key strengths?
Claude: 12.7% YoY revenue growth demonstrates market demand and competitive positioning. 77.6% gross margin indicates strong product-market fit and pricing power typical of successful SaaS.
What are the risks of investing in SPT?
Claude: Unprofitable with -9.5% operating margin and -$43.3M net loss; shareholder value destruction at current profitability levels. Negative ROE (-21.3%) and ROA (-8.3%) indicate inefficient capital deployment despite strong revenue.
What is SPT's revenue and growth?
Sprout Social, Inc. reported revenue of $457.5M.
Does SPT pay dividends?
Sprout Social, Inc. does not currently pay dividends.
Where can I find SPT SEC filings?
Official SEC filings for Sprout Social, Inc. (CIK: 0001517375) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SPT's EPS?
Sprout Social, Inc. has a diluted EPS of $-0.74.
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 rating reflects both perspectives for balanced insights.
Is SPT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sprout Social, Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SPT stock overvalued or undervalued?
Valuation metrics for SPT: ROE of -21.3% (sector avg: 22%), net margin of -9.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy SPT stock in 2026?
Our dual AI analysis gives Sprout Social, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SPT's free cash flow?
Sprout Social, Inc.'s operating cash flow is $43.4M, with capital expenditures of $4.1M. FCF margin is 8.6%.
How does SPT compare to other Technology stocks?
Vs Technology sector averages: Net margin -9.5% (avg: 18%), ROE -21.3% (avg: 22%), current ratio 0.93 (avg: 2.5).