Sprout earned the #1 spot in 59 of G2’s 2026 Winter Reports, including the Grid® Report for Social Media Listening Tools, Social Customer Service and the Enterprise Grid® Report for Social Media Analytics.The company received 198 leader badges across all business segments and regions. CHICAGO, March 18, 2026 (GLOBE NEWSWIRE) -- Sprout Social (Nasdaq: SPT), an industry-leading provider of cloud-based social media management software, today announced a sweep of honors in G2’s 2026 Winter Reports, earning 198 ...

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $120.9 million, reflecting a 12.9% year-over-year growth [8] - Non-GAAP operating margin improved to 10.5%, up 306 basis points year-over-year [8][35] - Non-GAAP free cash flow for Q4 was $10.9 million, totaling $45.9 million for the year, an increase of approximately 55% year-over-year [9][35] - Remaining performance obligations (RPO) grew 14% year-over-year to $284.7 million, with total RPO increasing almost 15% [8][36] Business Line Data and Key Metrics Changes - The customer count for those with $50K+ ARR increased by 18% year-over-year [8] - Subscription revenue was $118.5 million, up 12% year-over-year [35] - The new metric for approximated subscription revenue contribution for customers contributing $30K and above in ARR showed a growth of 22% and represented 59% of total subscription revenue [19] Market Data and Key Metrics Changes - The company secured strategic wins with major global brands, indicating strong market presence and demand [9][20] - The dollar-based net retention rate (NDR) was 100% for 2025, with 102% excluding SMB customers [36] Company Strategy and Development Direction - The company aims to reach a combined growth plus margin of 30% by Q4 2027, aligning with the Rule of 40 framework [30][31] - A focus on enhancing AI capabilities through the Trellis platform is expected to unlock new revenue opportunities [17][32] - The strategy includes a multi-year plan to drive growth in distinct customer segments, particularly those above $30K in subscription revenue [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of revenue and the potential for AI to unlock new capabilities and revenue opportunities [16][32] - The company anticipates that the transition to a self-serve model for sub-$30K customers will improve efficiency and conversion rates over time [30][72] Other Important Information - The company introduced a new Chief Revenue Officer, Lori Jiménez, to lead revenue initiatives [10] - The company is addressing the challenges in the sub-$30K customer segment by evolving its product offerings and go-to-market strategies [28][69] Q&A Session Summary Question: What does the composition of the Rule of 40 goal look like for the next couple of years? - Management indicated that growth is prioritized over margin in the current environment, with expectations for incremental margin from the $30K+ segment and improved efficiency in the sub-$30K segment [43][45] Question: How would you characterize larger enterprise-type sales in Q4? - Management reported strong execution on large deals and a positive trend in the upmarket motion, despite fluctuations in net add counts [48][50] Question: How is AI Assist adoption trending across larger customer cohorts? - Initial uptake of AI Assist has been excellent, with over 1,000 users already benefiting from the platform [56][57] Question: Can you clarify the new disclosure regarding the $30K+ ARR customers? - Management emphasized that the $30K disclosure will be the primary metric for tracking business performance, as it reflects customers with more complex needs and higher social maturity [64][66] Question: What are the implications of the new strategy for existing customers in the sub-$30K cohort? - The new strategy focuses on product development tailored to the needs of sub-$30K customers, aiming to reduce customer acquisition costs and improve service efficiency [75][76]

Financial Data and Key Metrics Changes - The company reported revenue of $120.9 million for Q4 2025, reflecting a 12.9% year-over-year growth [8] - Non-GAAP operating margin improved to 10.5%, up 306 basis points year-over-year [8][34] - Current remaining performance obligations (RPO) grew 14% year-over-year to $284.7 million, with total RPO increasing almost 15% [8][36] - Non-GAAP free cash flow for Q4 was $10.9 million, totaling $45.9 million for the year, an increase of approximately 55% year-over-year [9][35] Business Line Data and Key Metrics Changes - The customer count for those with $50K+ annual recurring revenue (ARR) increased by 18% year-over-year [8] - Subscription revenue for Q4 was $118.5 million, up 12% year-over-year [35] - The approximated subscription revenue contribution for customers contributing $30K and above in ARR grew by 22% and represented 59% of total subscription revenue [19] Market Data and Key Metrics Changes - The company successfully landed strategic wins with major global brands, indicating strong market presence [9][20] - The dollar-based net retention rate (NDR) for 2025 was 100%, with 102% excluding SMB customers [36] Company Strategy and Development Direction - The company aims to reach a combined growth plus margin of 30% by Q4 2027, aligning with the Rule of 40 framework [30][31] - A focus on enhancing the intelligence of the platform through AI, with the introduction of Trellis, is a key strategic initiative [9][17] - The company is committed to serving more socially sophisticated customers and expanding its multi-product portfolio [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of revenue and the potential for AI to unlock new capabilities and revenue opportunities [16][32] - The company anticipates that the transition to a self-serve model for sub-30K customers will improve conversion and retention over time [30][72] Other Important Information - The company has introduced a new metric for approximated subscription revenue contribution for customers contributing $30K and above in ARR [5] - The new Chief Revenue Officer, Lori Jiménez, has joined the company, bringing extensive experience from major tech firms [10] Q&A Session Summary Question: What does the composition of the Rule of 40 goal look like for the next two years? - Management indicated that growth is prioritized over margin in the current environment, with expectations for incremental margin from the 30K+ core segment [43][45] Question: How would you characterize your larger enterprise-type sales in Q4? - Management reported strong execution on large deals and solid ACVs, with positive trends in the upmarket motion [48][50] Question: Can you share how AI Assist adoption is trending across larger customer cohorts? - Initial uptake of AI Assist has been excellent, with over 1,000 users already empowered to produce insights quickly [56][57] Question: How should we think about the new disclosure of 30K+ ARR customers? - Management believes the 30K disclosure will be a more meaningful metric for tracking business performance compared to the 50K cohort [64][66] Question: What are the implications of the new strategy for existing customers in the sub-30K cohort? - The new product aimed at sub-30K customers is designed to reduce customer acquisition costs while providing effective solutions tailored to their needs [75][76]

Financial Data and Key Metrics Changes - Sprout Social reported revenue of $120.9 million for Q4 2025, reflecting a 12.9% year-over-year growth [6] - Non-GAAP operating margin improved to 10.5%, up 306 basis points year-over-year [6][32] - Non-GAAP free cash flow for Q4 was $10.9 million, totaling $45.9 million for the year, an increase of approximately 55% year-over-year [7][33] - Remaining performance obligations (RPO) grew 14% year-over-year to $284.7 million, with total RPO increasing almost 15% [6][34] Business Line Data and Key Metrics Changes - Subscription revenue reached $118.5 million, up 12% year-over-year [33] - The customer count for those with $50K+ ARR increased by 18% year-over-year [6] - The approximated subscription revenue contribution for customers over $30K grew by 22%, representing 59% of total subscription revenue [17] Market Data and Key Metrics Changes - The dollar-based net retention rate (NDR) was 100% for FY 2025, improving to 102% when excluding SMB customers [34] - Multi-year contracts now account for nearly half of the contract mix, indicating a shift towards larger enterprise customers [6][18] Company Strategy and Development Direction - The company aims to enhance its AI capabilities with the introduction of Sprout AI and the Trellis platform, focusing on actionable insights and improved workflows [8][20] - A multi-year plan is in place to drive growth in two distinct customer segments, targeting a combined growth plus margin of 30% by Q4 2027 [15][29] - The strategy includes repositioning the sub-$30K customer segment to improve efficiency and conversion rates [26][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of revenue and the potential for AI to unlock new capabilities and revenue opportunities [14][15] - The company anticipates that the growth in the $30K+ segment will drive incremental margin improvements due to stronger unit economics [45][46] - Management acknowledged challenges in the sub-$30K segment but is optimistic about stabilizing and improving this cohort through new product offerings and self-serve options [26][70] Other Important Information - The company has introduced a new metric for approximated subscription revenue contribution for customers contributing $30,000 and above in ARR [4] - A new Chief Revenue Officer, Lori Jiménez, has joined the company, bringing extensive experience from major tech firms [9] Q&A Session Summary Question: What does the composition of the Rule of 40 goal look like for the next eight quarters? - Management indicated that growth remains a priority over margin, with expectations for the $30K+ segment to drive incremental margin due to stronger economics [42][45] Question: How is the larger enterprise sales segment performing? - Management reported strong execution in Q4 with significant large deal momentum and multi-product footprints, despite fluctuations in net add counts [48][50] Question: How is AI Assist adoption trending across larger customer cohorts? - Initial uptake of AI Assist has been excellent, with over 1,000 users already benefiting from the platform, enhancing their ability to derive insights [56][58] Question: Can you clarify the new disclosure regarding the $30K+ ARR customers? - Management emphasized that the new metric provides better visibility into customer dynamics and is expected to be updated quarterly [64][68] Question: What are the implications of the new strategy for existing customers in the sub-$30K cohort? - The new product aimed at sub-$30K customers is designed to reduce customer acquisition costs while providing tailored solutions to meet their needs [75][77]

Core Insights - Sprout Social aims to achieve a non-GAAP operating margin of 30% by the fourth quarter of 2027, aligning with the Rule of 40 framework [2][13] - The company reported a 15% growth in total remaining performance obligations (RPO) year-over-year, indicating strong demand for its services [2][5] - Subscription revenue contribution from customers with an annual recurring revenue (ARR) of $30,000 or more grew by 22% in 2025 [1][11] Financial Performance - Total revenue for Q4 2025 was $120.9 million, a 13% increase compared to Q4 2024 [5] - Non-GAAP operating income was $11.5 million, slightly up from $11.4 million in Q4 2024, while GAAP operating loss improved to ($10.8) million from ($13.7) million [5][43] - The company reported a net loss of ($10.7) million for Q4 2025, an improvement from a net loss of ($14.4) million in Q4 2024 [5][43] Customer Metrics - The number of customers contributing $30,000 or more in ARR increased to 3,803, a 13% rise from the previous year [11] - The number of customers contributing $50,000 or more in ARR grew by 18% to 2,022 as of December 31, 2025 [11] - The dollar-based net retention rate was 100% in 2025, down from 104% in 2024, indicating stable customer retention [11] Cash Position - Cash and cash equivalents totaled $95.3 million as of December 31, 2025, up from $90.6 million at the end of Q3 2025 [5] - Net cash provided by operating activities was $10.9 million, significantly higher than $4.1 million in Q4 2024 [5] Business Highlights - Sprout Social introduced Sprout AI, enhancing its capabilities in social data analysis and workflow efficiency [2] - The company was recognized as a leader in influencer marketing platforms by IDC MarketScape and achieved top rankings in G2's 2026 winter reports [12]

Summary of Sprout Social Update / Briefing (November 18, 2025) Company Overview - **Company**: Sprout Social (NasdaqCM:SPT) - **Event**: Breaking Ground, a quarterly launch event focusing on social media and AI innovations Key Industry Insights - **Social Media Evolution**: The customer journey has shifted to social media, with social search becoming the new SEO and social content acting as the new marketing site map [6][8] - **Data Volume**: 5.4 billion people share hundreds of billions of messages daily, generating tens of petabytes of data on social networks [6] - **Customer Engagement**: 55% of users feel brands are not adequately responding to their interactions on social media, indicating a gap in customer engagement [8] Core Product Innovations - **AI Integration**: Sprout has been investing in AI for over a decade, with over 40 custom AI models in use, enabling features like optimal send times and sentiment analysis [14][15] - **Agentic AI**: Introduction of agentic AI, which can reason and take actions based on social data, enhancing workflows and decision-making processes [10][12] - **Trellis**: A new AI agent designed to facilitate social intelligence across organizations, allowing users to interact conversationally with social data for insights [16][20] Product Features and Enhancements - **Trellis Capabilities**: Users can perform tasks like trend analysis and campaign performance reporting through a conversational interface, significantly reducing the time spent on data analysis [16][19] - **Spam Detection**: New AI model for spam detection that categorizes and auto-completes spam messages, improving team efficiency [28] - **Influencer Marketing**: Enhanced capabilities for influencer matchmaking, including brand fit and safety scores, and upcoming features for analyzing video content [30] Upcoming Features - **Integration with ChatGPT**: Launch of a remote MCP server to connect Sprout with ChatGPT, allowing for deeper content analysis and performance comparisons [24][27] - **New Social Listening Sources**: Introduction of Blue Sky for comprehensive insights and monitoring capabilities across various social networks [39] Customer Engagement and Feedback - **Customer Participation**: Early access to Trellis for qualifying social listening customers, with plans for broader rollout [20] - **User Experience**: Positive feedback from customers on the ease of use and efficiency improvements brought by Trellis [52] Panel Discussion Highlights - **AI in Workflows**: Discussion on the transition from AI as an assistant to AI as a coworker, emphasizing the importance of personalized AI applications [48][56] - **Human Element**: Acknowledgment that while AI enhances efficiency, the human aspect of content creation and customer engagement remains crucial [60] Conclusion - **Future Vision**: Sprout Social aims to leverage AI to unlock social intelligence for businesses, enhancing customer engagement and operational efficiency at an unprecedented scale [31]

Core Insights - Sprout Social has launched Sprout AI, featuring a new proprietary AI Agent named Trellis, aimed at transforming social media data into actionable business insights [1][6] - The introduction of Sprout AI represents a significant shift in how organizations can access and utilize social intelligence, enabling faster and more effective responses to market dynamics [2][6] Company Overview - Sprout Social is a leading provider of social media management and analytics software, serving approximately 30,000 brands globally [6][8] - The company emphasizes that its platform is designed to empower businesses to leverage social data for smarter and faster decision-making [6] Product Features - Trellis, the AI Agent, allows users to query billions of social data points for insights related to market research, competitive analysis, and customer feedback [7] - The AI capabilities include proactive risk management by monitoring sentiment and emerging complaints, enabling early crisis detection [7] - Sprout AI enhances routine workflows, allowing teams to focus on strategic initiatives while showcasing the ROI of social media efforts [7] - Features like Optimal Send Times and AI-generated content aim to maximize engagement and reach for social media campaigns [7] Strategic Partnerships - Sprout AI includes secure connections with leading AI providers, starting with ChatGPT, facilitating the integration of social data into daily AI workflows [4][6]