Sprout Social (SPT) Fell Following Reduced Guidance

Core Insights - Meridian Growth Fund's third-quarter 2025 performance was impacted by sector positioning and adherence to strict investment discipline, resulting in a return of -1.78% compared to the Russell 2500 Growth Index's 10.73% return [1] Company Analysis - Sprout Social, Inc. (NASDAQ:SPT) reported a one-month return of -4.04% and a significant 68.30% decline in value over the past 52 weeks, closing at $9.97 per share with a market capitalization of $590.118 million as of November 28, 2025 [2] - The company provides a leading social media management platform recognized for its intuitive design and ease of deployment, which contributes to its competitive advantage [3] - Despite exceeding expectations in results, Sprout Social's stock underperformed due to a reduction in forward guidance, overshadowing solid execution in a market that favors "beat and raise" patterns [3] - Meridian Growth Fund views the recent pullback in Sprout Social's stock price as excessive, citing its durable double-digit growth trajectory and expanding margin profile as reasons for a modest increase in their position during the period [3] Financial Performance - In the third quarter of 2025, Sprout Social, Inc. reported revenue of $115.6 million, reflecting a 13% year-over-year growth [4] - The number of hedge funds holding Sprout Social, Inc. increased from 29 to 34 in the third quarter, indicating growing interest among institutional investors [4]