Sprout Social(US:SPT)2026-02-26 21:07Revenue and Growth - Revenue for Q4 2025 was $120.9 million, representing a 13% increase compared to Q4 2024[4] - Total revenue for Q4 2025 was $120.887 million, up from $107.090 million in Q4 2024, representing a year-over-year growth of approximately 12.5%[43] - For the full year 2025, total revenue was $457.547 million, compared to $405.908 million in 2024, marking a year-over-year increase of approximately 12.7%[47] - Subscription revenue for Q4 2025 reached $118.504 million, compared to $105.922 million in Q4 2024, indicating a growth of about 11.8%[43] - The approximated TTM subscription revenue contribution for customers contributing $30,000 or more in ARR was $268.0 million, accounting for 59.1% of total subscription revenue[7] Customer Metrics - The number of customers contributing $30,000 or more in ARR grew to 3,803, an increase of 13% compared to the previous year[10] - The number of customers contributing $30,000 or more in ARR is viewed as a key metric for future growth potential[32] - The dollar-based net retention rate was 100% in 2025, down from 104% in 2024[10] - The dollar-based net retention rate was not explicitly stated, but the company emphasizes its importance in evaluating long-term customer relationships[34] Profitability and Income - Non-GAAP operating income was $11.5 million, slightly up from $11.4 million in Q4 2024[4] - Non-GAAP net income was $11.6 million, compared to $10.7 million in Q4 2024[4] - Non-GAAP net income for the twelve months ended December 31, 2025, was $48,237 thousand, compared to $28,633 thousand in 2024, an increase of 68.5%[58] - Non-GAAP net loss per share for Q4 2025 was $0.18, compared to $0.25 in Q4 2024, showing a decrease of 28%[44] Expenses and Losses - The net loss for Q4 2025 was $10.741 million, an improvement from a net loss of $14.417 million in Q4 2024, reflecting a reduction of approximately 25.5%[44] - Total operating expenses for Q4 2025 were $104.573 million, up from $97.354 million in Q4 2024, which is an increase of about 7.5%[44] - Stock-based compensation expense for the full year 2025 totaled $78.719 million, down from $84.303 million in 2024, reflecting a decrease of approximately 6.0%[47] - Stock-based compensation expense for the twelve months ended December 31, 2025, was $78,719 thousand, down from $84,303 thousand in 2024, a decrease of 6.7%[56] Cash and Assets - Cash and cash equivalents totaled $95.3 million as of December 31, 2025, up from $90.6 million as of September 30, 2025[4] - The company reported a net increase in cash, cash equivalents, and restricted cash of $6,785 thousand for the twelve months ended December 31, 2025[56] - Total assets increased to $523,062 thousand in 2025 from $428,341 thousand in 2024, representing a growth of 22.1%[49] - Current assets rose to $237,204 thousand in 2025, up from $210,215 thousand in 2024, an increase of 12.9%[49] - Total stockholders' equity increased to $203,422 thousand in 2025, compared to $166,594 thousand in 2024, reflecting a growth of 22.1%[50] Future Outlook - The company aims for a non-GAAP operating margin of approximately 15% by Q4 2026 and a 30% target for the Rule of 40 framework by Q4 2027[12] - The company expects total revenue for Q1 2026 to be between $119.9 million and $120.7 million[9] Deferred Revenue and Goodwill - Deferred revenue increased to $205,639 thousand in 2025 from $178,585 thousand in 2024, a rise of 15.2%[49] - Goodwill increased significantly to $167,122 thousand in 2025 from $121,315 thousand in 2024, a rise of 37.8%[49]