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City of Hope, Cornerstone Building Brands, Atlas Copco Group, Teranet and ETS honored for turning social data into enterprise-wide strategy, proactive customer care and measurable ROI  | Source: Sprout Social, Inc

CHICAGO, Aug. 31, 2026 (GLOBE NEWSWIRE) -- Sprout Social (Nasdaq: SPT), the AI-powered Social Intelligence Platform, today announced the winners of its inaugural 2026 Social Intelligence Awards, honoring brands and visionaries who have moved beyond basic metrics to uncover deep insights, scale proactive care and drive measurable ROI. The awards recognize five organizations using Sprout Social to turn social data into a tangible business advantage.

Winners were recognized across five categories, each tied to a core area of Sprout's AI-powered Social Intelligence Platform: Full-Funnel Social Optimization, Predictive Media Intelligence, Scalable Social Support, Authentic Brand Amplification, and the flagship award, Best in Social Intelligence, incorporating all categories. Using capabilities like Social Listening, Analytics and Engagement, honorees sharpened their strategies, scaled their customer care and extended their brand's reach.

“This year's winners show us where social is headed,” said Scott Morris, CMO of Sprout Social. “Each of these teams treated social as a front-line source for understanding and connecting with their customers, not in theory, but in daily practice. They used Sprout's platform and social intelligence to change how their entire organization listens, responds and makes decisions. That's the real story here: when you give teams the right tools, social has the potential to become one of the clearest windows a business has into the people it serves.”

Best in Social Intelligence Award – City of Hope

City of Hope, one of the largest and most advanced cancer research and treatment organizations in the country, used social intelligence to build a truly community-driven campaign that resonated deeply with its audience. Their social team used Sprout Social Listening to study what patients, survivors, caregivers and supporters were already saying online. Those findings shaped the City of Hope Line, a campaign that invites the community to record and share their own messages of hope through installations at five physical locations and a phone line. Now in its second year, the campaign has helped City of Hope earn its first-ever social Telly Awards wins and Webby nominations, along with sustained double-digit growth in engagement, reach and video views. That success has carried beyond the social team: departments across philanthropy, thought leadership and internal communications now weave the same social-first insight into their everyday work, making social intelligence a resource the whole organization draws on.

“Social intelligence gave us a deeper understanding of what mattered most to our community and helped us turn those insights into meaningful experiences that invite people to connect and share hope. The result is a more audience-centered approach that strengthens how we engage the patients and families we are privileged to serve.” — Nisha Morris, Senior Vice President, Chief Marketing and Communications Officer at City of Hope

Precision Impact Award – Cornerstone Building Brands

Cornerstone Building Brands runs 35 individual brands, each with its own lean marketing team, and is proving that scale doesn't have to mean slower decisions. Their team centralized reporting across the portfolio using Analytics, Competitor Analysis and Social Listening in Sprout Social, replacing brand-by-brand manual reports with automated, brand-specific insight every team could act on immediately. On Home for Good, Cornerstone's annual affordable-housing campaign with Habitat for Humanity, that insight showed static posts performed best with employee advocates while video and carousel content drove stronger results with external audiences, a finding that reshaped the campaign's content mix. Year over year, campaign impressions grew 122.4% to more than 3 million, engagements rose 75.3% and post link clicks increased 42.5%.

"Rather than asking each business unit to become experts in social intelligence, we centralized the analysis and delivered customized, automated reports tailored to each brand's goals and challenges." — Chelsey Godfrey, Social Media Marketing Specialist, Cornerstone Building Brands

Social Synergy Award – Teranet

Teranet Inc., a property intelligence and land registry company, turned a handful of loyal users into one of its most effective distribution channels, using Sprout Social Listening to find mortgage brokers who already had credibility and reach in their own community. Their team tracked signals like LinkedIn activity, industry award nominations and speaking engagements to identify brokers already talking about PurView, Teranet's B2B property intelligence platform, unprompted, then built a scored ambassador program around them. Across the program's tagged posts since launch, PurView has generated more than 12,500 impressions, with roughly 90% of reach coming from people who had never followed the brand before.

"We realized these weren't just satisfied customers, they were untapped distribution channels with pre-built trust that brand content could never replicate." — Maria Policelli-Sohrabi, Digital and Social Media Marketing Manager, Teranet Inc.

Infinite Care Award – ETS

ETS manages social care across its portfolio of testing brands, including GRE, TOEFL, and Praxis, through a centralized model led by Jessica Dillon, Social Media Community Specialist. Using AI-powered sentiment and topic tagging in Sprout's Smart Inbox, Dillon transformed recurring inquiries into actionable insights, helping teams identify emerging trends and prioritize engagement in real time. In one instance, a test taker's questions regarding a disability accommodation were quickly surfaced and routed to the appropriate team, enabling ETS to provide a timely, informed, and empathetic response. During this period, GRE message volume increased 64% year over year while response times remained within a 3-hour service-level agreement. Corporate response time improved from two hours to one hour and 20 minutes, and negative sentiment associated with the Praxis brand decreased by 93%.

"The questions test takers asked most often helped shape new social community content and FAQ resources, allowing us to provide answers earlier, reduce uncertainty and better support learners when they needed it most." — Jessica Dillon, Social Media Community Specialist, ETS

Predictive Edge Award – Atlas Copco Group

Atlas Copco Group, a global manufacturer of industrial equipment, built an early-warning system for brand risk across dozens of business areas, brands and local markets, using signals hiding in plain sight. The team used Sprout Social Listening to track patterns like repeated questions, off-brand content and inactive local accounts across every market at once, surfacing which accounts needed support long before a minor gap could grow into a larger issue. Rather than turning that visibility into an audit, Atlas built it into a support system, with training, feedback and a clear escalation path for local teams in place of after-the-fact correction.

To learn more about Sprout Social's AI-powered Social Intelligence Platform or to schedule a demo, please visit sproutsocial.com.

About Sprout Social

Sprout Social is a leading AI-powered social intelligence platform, built on the belief that All Business is Social℠. Powered by Trellis, Sprout’s proprietary AI agent, the platform is designed to transform real-time social media signals into actionable insights that drive business forward. Consistently recognized as a top software by G2, Sprout enables brands to deliver smarter, faster business impact through a suite of solutions including comprehensive publishing and engagement, customer care, influencer marketing, advocacy and predictive media intelligence. Sprout’s software operates across all major social networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

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www.instagram.com/sproutsocial

Media Contact
Kaitlyn Gronek
Email: [email protected]
Phone: (773) 904-9674

Investors:
Lexi Johnson
Twitter: @SproutSocialIR
Email: [email protected]
Phone: (312) 528-9166

 | Source: Sprout Social, Inc

Since Trellis became available to every Sprout customer in July, teams are using it to turn raw performance data into executive-ready narratives, catch brand risk before it spreads, and route customer feedback to teams outside marketing.Customers including JetBlue and Ipsy say Trellis has cut time spent building reports and monitoring launches from hours to minutes.Trellis Studio, introduced alongside this rollout, gives teams a workspace to build their own AI skill templates, turning recurring work into automated workflows instead of one-off requests.
CHICAGO, Aug. 19, 2026 (GLOBE NEWSWIRE) -- One month after Sprout Social (Nasdaq: SPT), the AI-powered Social Intelligence Platform, made Trellis, its proprietary agentic AI, available to every customer on every plan, a pattern is already emerging: social teams are putting it to work on problems far more complex than simply writing captions.

AI in social media has mostly meant one thing so far, and that is generating content faster. Trellis was built to do more. Social teams are stretched thin, juggling tactical requests while being asked to prove strategic value with fewer resources. Now spanning Listening, Publishing, the Smart Inbox and Reporting, Trellis acts as a single intelligence layer across the Sprout platform, designed to handle that repetitive work so teams can focus on campaigns and insights only they can produce. And as audiences grow weary of AI-generated content, Trellis is not simply designed to produce more of it, but to help teams understand the people on the other side of it.

That shift shows up first in reporting. At JetBlue, Trellis is turning weeks of performance data into executive-ready summaries.

"I was pleasantly surprised by how in-depth and clear Trellis's executive reporting summaries are. It really helped us better understand the numbers and which channels needed work. Overall, it's been extremely helpful in cutting down the time it takes to pull together insights, which is really lovely," said Christina Chew, Social Media Lead at JetBlue.

Other teams are pointing Trellis at different problems entirely, flagging unusual spikes in volume or sentiment early, and comparing performance across networks to decide with confidence where to put budget and effort next.

At Ipsy, that same intelligence is reaching teams well outside marketing. The company uses Trellis to monitor what its members are saying about new launches, then routes the resulting sentiment and theme analysis to product and care teams.

"We consistently use Sprout and Trellis to monitor member feedback, especially around new launches and initiatives. Creating social listening topics and using Trellis to generate executive summaries and sentiment insights has been really helpful for us. We’re excited to see what else it can do," said Stella Hernandez, Program Manager at Ipsy.

Trellis can do this because of what it’s built on. Unlike general-purpose AI models, it draws on real-time, native social data across networks, delivering visibility that foundational models lack.

Teams that want to go further can now build on that foundation themselves. Trellis Studio, introduced alongside this rollout, lets teams create customizable AI skill templates for their own workflows, so recurring work like tracking a viral trend or summarizing a week of feedback runs automatically instead of starting from scratch each time.

"Social teams have spent years being asked to justify a function the rest of the business already depends on," said Scott Morris, CMO of Sprout Social. "Trellis is built to help teams create campaigns that truly resonate, while turning real-time signals from social into intelligence the rest of the business can act on. That's the shift underway across the industry—social moving from a downstream function to a source of strategic direction. A month into making Trellis available to every customer, we're seeing that operationalized across our customer base."

Trellis is featured in today’s Breaking Ground, Sprout Social’s quarterly showcase of product innovations and industry trends, with a workshop walking through how teams can utilize Trellis in practice. For additional information on Trellis and Trellis Studio, which are now available to all Sprout Social customers, visit sproutsocial.com/ai/features/ai-agent.

About Sprout Social

Sprout Social is a leading AI-powered social intelligence platform, built on the belief that All Business is Social℠. Powered by Trellis, Sprout’s proprietary AI agent, the platform is designed to transform real-time social media signals into actionable insights that drive business forward. Consistently recognized as a top software by G2, Sprout enables brands to deliver smarter, faster business impact through a suite of solutions including comprehensive publishing and engagement, customer care, influencer marketing, advocacy and predictive media intelligence. Sprout’s software operates across all major social networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “expect,” “explore,” ”future,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. Forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by Sprout Social and our management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements may relate to the expected timing, availability and capabilities of our products and platform features, including Trellis and Trellis Studio; the anticipated benefits of our AI-powered social intelligence platform; statements about market trends, including the growing importance of social data in enterprise decision-making; our ability to develop and deliver AI-driven features and functionality; our market size and growth strategy, our plans and objectives for future operations, growth, initiatives or strategies, including our investments in research and development, and other statements that are not historical fact. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others: the expected timing and availability of product features, including Trellis and Trellis Studio, may be delayed or may not be released as described; new products and features may not perform as intended or achieve the market acceptance we anticipate; our AI-powered features depend on access to social media data from third-party platforms, which may be restricted, limited or terminated; our business would be harmed by any significant interruptions, delays or outages in services from our platform, our API providers, or certain social media platforms, or if we are unable to renew agreements governing access to the data provided by such APIs on terms acceptable to us or at all; technological advances in AI may in the future disrupt the social media industry, which could significantly reduce the demand for our services or otherwise adversely impact our business or reputation if we are unable to keep pace and navigate this evolving environment; the AI and machine learning models underlying our platform features may produce inaccurate or unexpected results; unstable market, economic, and geopolitical conditions, such as recession risks, effects of inflation, any cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely could negatively affect our business; changing regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and harm our brand; and rapidly evolving laws, regulations and industry standards relating to AI could affect or limit how we develop and deploy AI-powered features. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 27, 2026 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on August 6, 2026, as well as any future reports that we file with the SEC. Moreover, you should interpret many of the risks identified in those reports as being heightened as a result of the current and ongoing instability in market, economic, and geopolitical conditions. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprout Social at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Sprout Social assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

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www.facebook.com/SproutSocialInc
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www.instagram.com/sproutsocial

Media Contact
Kaitlyn Gronek
Email: [email protected]
Phone: (773) 904-9674

Investors:

Lexi Johnson

Twitter: @SproutSocialIR

Email: [email protected]

Phone: (312) 528-9166

Posted by Defense World Staff on Aug 9th, 2026

Amundi lessened its stake in shares of Sprout Social, Inc. (NASDAQ:SPT – Free Report) by 33.8% during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 183,702 shares of the company’s stock after selling 93,819 shares during the period. Amundi owned about 0.31% of Sprout Social worth $1,047,000 as of its most recent filing with the SEC.

Several other large investors have also recently bought and sold shares of SPT. Brighton Jones LLC increased its holdings in Sprout Social by 391.7% during the fourth quarter. Brighton Jones LLC now owns 35,985 shares of the company’s stock worth $1,105,000 after buying an additional 28,667 shares during the last quarter. AQR Capital Management LLC bought a new position in Sprout Social during the first quarter worth about $365,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Sprout Social by 2.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 53,127 shares of the company’s stock worth $1,168,000 after buying an additional 1,265 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in Sprout Social by 23.0% in the first quarter. Goldman Sachs Group Inc. now owns 325,750 shares of the company’s stock valued at $7,163,000 after buying an additional 60,947 shares during the period. Finally, Empowered Funds LLC bought a new stake in Sprout Social in the first quarter valued at approximately $325,000.

Sprout Social Stock Up 26.3% SPT stock opened at $10.34 on Friday. Sprout Social, Inc. has a fifty-two week low of $4.92 and a fifty-two week high of $16.03. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.95 and a quick ratio of 0.95. The stock has a market capitalization of $621.54 million, a price-to-earnings ratio of -20.68 and a beta of 0.97. The business’s fifty day moving average price is $7.83 and its two-hundred day moving average price is $7.11.

Sprout Social (NASDAQ:SPT – Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.16 by $0.10. The company had revenue of $123.85 million during the quarter, compared to analysts’ expectations of $122.19 million. Sprout Social had a negative net margin of 6.13% and a negative return on equity of 9.06%. Sprout Social has set its FY 2026 guidance at 1.110-1.150 EPS and its Q3 2026 guidance at 0.290-0.300 EPS. On average, equities analysts anticipate that Sprout Social, Inc. will post -0.31 earnings per share for the current year.

Insider Transactions at Sprout Social In other news, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction on Friday, July 10th. The stock was sold at an average price of $8.28, for a total transaction of $331,200.00. Following the sale, the insider directly owned 7,417 shares of the company’s stock, valued at approximately $61,412.76. This represents a 84.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 9.60% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades SPT has been the subject of a number of recent analyst reports. Barclays raised their price objective on Sprout Social from $8.00 to $9.00 and gave the company an “overweight” rating in a research report on Monday, May 11th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sprout Social in a report on Friday, July 17th. Finally, KeyCorp lifted their price objective on shares of Sprout Social from $6.00 to $7.00 and gave the stock an “underweight” rating in a research report on Friday. Three research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, Sprout Social has an average rating of “Hold” and a consensus target price of $10.43.

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Trending Headlines about Sprout Social Here are the key news stories impacting Sprout Social this week:

Positive Sentiment: Sprout Social reported second-quarter revenue of approximately $123.85 million, ahead of the $122.19 million analyst consensus. Adjusted earnings were $0.26 per share, beating estimates of $0.16 and improving from $0.18 a year earlier. Sprout Social Surpasses Q2 Earnings and Revenue Estimates Positive Sentiment: Management issued notably stronger profitability guidance: third-quarter adjusted EPS of $0.29-$0.30 versus a $0.18 consensus, and full-year 2026 EPS of $1.11-$1.15 versus expectations of $0.68. Full-year revenue guidance of $493.0-$495.6 million was broadly in line with the $494.4 million consensus. Sprout Social Earnings and Guidance Positive Sentiment: The earnings presentation and call emphasized continued growth among larger customers, with subscription revenue contribution from customers generating at least $30,000 in annual recurring revenue rising 20% year over year. AI product investment and customer upselling support the case for stronger monetization and operating leverage. Sprout Social Announces Second Quarter 2026 Financial Results Neutral Sentiment: Although adjusted results were profitable, Sprout Social remained unprofitable under GAAP, recording an operating loss of approximately $2.7 million and a net loss of $3.1 million. Operating cash flow was positive at $8.5 million, with $119.9 million in cash and equivalents. Sprout Social Q2 2026 Results Negative Sentiment: Recent insider activity remains a potential overhang: insiders reported eight sales and no purchases over the past six months, including sales by the executive chair and CFO. This may raise concerns about insider confidence despite the strong quarterly outlook. About Sprout Social (Free Report)

Sprout Social (NASDAQ: SPT) is a Chicago-based software company specializing in social media management solutions for businesses of all sizes. The company provides a cloud-based platform designed to help organizations improve their social media presence through a suite of tools for content scheduling, community engagement, social listening and analytics. Sprout Social’s platform is built to streamline the workflows of marketing, customer care and public relations teams by providing a centralized hub for managing multiple social channels.

The company’s product offerings include publishing and scheduling capabilities that allow users to plan and automate social content across networks such as Facebook, Instagram, Twitter, LinkedIn and Pinterest.

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United Natural Foods’ Risk-Reward Tradeoff Looks AppetizingSprout Social NASDAQ: SPT reported second-quarter revenue of $123.8 million, up 10.8% from a year earlier, as the social media management software provider continued to shift its business toward larger customers and expanded its artificial intelligence offerings.

Chief Executive Officer Ryan Barretto said the company posted a 12.9% non-GAAP operating margin, an increase of 370 basis points year over year, while non-GAAP free cash flow rose about 60% to $8.3 million. On a trailing 12-month basis, Sprout generated approximately $54 million in non-GAAP free cash flow, he said.

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Sprinklr Gets Targets Raised By Analysts, Here's Why Sprout also reported growth in remaining performance obligations, or RPO, as customers signed longer commitments. Current RPO increased 12.4% year over year to $202.7 million, while total RPO rose 15.5% to $400.8 million. The company said multi-year agreements accounted for nearly half of its contract mix, compared with about one-third two years earlier.

Focus on Larger Customers The company’s strategy remains centered on customers contributing at least $30,000 in annual recurring revenue. Approximated trailing 12-month subscription revenue from that group grew 20% year over year and represented more than 61% of total subscription revenue, according to Barretto.

How to Invest in Grocery StoresSprout ended the quarter with 3,926 customers contributing $30,000 or more in ARR, up 11% from a year earlier, and 2,127 customers contributing more than $50,000 in ARR, up 16%. The company added 51 net new customers in the $30,000-and-above segment during the quarter and 388 over the trailing 12 months. More than 10 net new customers in the quarter contributed at least $150,000 in ARR.

Barretto said the larger-customer cohort has stronger unit economics, retention and expansion characteristics than smaller customers, while also showing higher adoption of products including influencer marketing and NewsWhip.

Among the enterprise customer examples discussed on the call, Sprout cited a seven-figure new-business deal with a multinational manufacturer and distributor using products including Premium Analytics, Social Listening, Employee Advocacy, Influencer Marketing and NewsWhip. The company also said a Fortune 50 financial services client expanded a prior $1.65 million deal by $893,000, adding Sprout’s Service Cloud integration and Guardian compliance product.

Meanwhile, Sprout said customers below the $30,000 ARR threshold represented 39% of approximated subscription revenue in the trailing 12 months ended June 30, down from 59% four years earlier. The company expects continued pressure in that lower-end segment this year, with Barretto saying it expects the segment to decelerate to slightly negative growth before stabilizing in 2027.

AI Product Expansion Sprout expanded its Trellis AI offering during the quarter. Trellis enables users to query social data in natural language and receive insights without building reports or dashboards, according to the company. Sprout also introduced Trellis Studio, a no-code interface through which customers can create customized skills designed to surface relevant insights on a recurring basis.

All customers receive a base allotment of Trellis usage, while the paid Trellis Plus tier, which offers higher usage limits, launched in July. Barretto said the company has seen healthy growth in monthly active Trellis users and that customers with active Trellis usage retained at a higher rate during the second quarter than those without active users across all customer segments.

During the question-and-answer session, Barretto said the company has begun seeing customers upgrade to the paid Trellis Plus tier, though he emphasized that the offering remains early in its commercialization. He said Sprout views AI as a potential driver of new-business win rates, paid upsells and retention as customers use the technology across social listening, publishing and customer-care workflows.

The company also added predictive scoring for community platforms such as Reddit through NewsWhip, launched an AI dashboard builder, expanded Canva integration, added Snapchat scheduling and publishing, and introduced direct creator payments through PayPal and Lumanu.

Restructuring and Outlook On July 15, Sprout announced plans to reduce its workforce by about 20%. Barretto said the restructuring is intended to remove organizational layers, accelerate decision-making and focus spending on higher-return areas. The company expects to incur $18 million to $20 million in pretax restructuring charges, substantially all of which are expected in the third quarter.

Sprout expects the move to reduce its annualized non-GAAP cost structure by at least $50 million, although it does not expect to realize the full annualized savings until 2027. Barretto said the company believes it has adequate go-to-market capacity following the reductions and will evaluate future investments as it progresses through the organizational changes.

For the third quarter, Sprout forecast revenue of $123.3 million to $124.1 million, non-GAAP operating income of $17.5 million to $18.3 million, and non-GAAP earnings per share of $0.29 to $0.30.

For full-year 2026, the company projected revenue of $493 million to $495.6 million and non-GAAP operating income of $68.3 million to $70.3 million. The operating-income outlook represents a 20% increase at the midpoint from its prior forecast. Sprout forecast non-GAAP EPS of $1.11 to $1.15 for the year and said it expects to exit the fourth quarter with a non-GAAP operating margin near 17%.

The company reiterated its goal of reaching a Rule of 40 metric above 30% by the fourth quarter of 2027. It also said it plans to begin opportunistically repurchasing shares during the current quarter under its previously announced $50 million authorization, after restructuring and blackout periods limited repurchases in the second quarter.

Barretto said Sprout is not assuming an improvement in the demand environment and expects the acquisition anniversary of NewsWhip to create headwinds for revenue and RPO growth beginning in the third quarter.

About Sprout Social (NASDAQ:SPT)Sprout Social NASDAQ: SPT is a Chicago-based software company specializing in social media management solutions for businesses of all sizes. The company provides a cloud-based platform designed to help organizations improve their social media presence through a suite of tools for content scheduling, community engagement, social listening and analytics. Sprout Social's platform is built to streamline the workflows of marketing, customer care and public relations teams by providing a centralized hub for managing multiple social channels.

The company's product offerings include publishing and scheduling capabilities that allow users to plan and automate social content across networks such as Facebook, Instagram, Twitter, LinkedIn and Pinterest.

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Approximated TTM Subscription Revenue Contribution for ≥$30K ARR Customers Grew 20% year-over-year Approximated TTM Subscription Revenue Contribution for ≥$30K ARR Customers Grew 20% year-over-year

July 06, 2026 16:05 ET  | Source: Sprout Social, Inc

CHICAGO, July 06, 2026 (GLOBE NEWSWIRE) -- Sprout Social, Inc. (“Sprout Social”, the “Company”) (NASDAQ: SPT), a leading AI-powered Social Intelligence Platform, today announced that it will report its financial results for the second quarter ending June 30, 2026 after market close on Thursday, August 6, 2026.

The Company’s second quarter 2026 financial results and business highlights will be discussed on a conference call via webcast scheduled at 3:30 p.m. Central Time (4:30 p.m. Eastern Time) on Thursday, August 6, 2026. Online registration for the webcast can be found at https://events.q4inc.com/analyst/716300445?pwd=oLu9g49Z. The live audio webcast and investor presentation can be accessed from Sprout Social’s Investors website at http://investors.sproutsocial.com.

While not all of the information that the Company posts to the Sprout Social Investors website or to social media profiles is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Sprout Social to review the information that it shares at the Investors link located at the bottom of the page on www.sproutsocial.com and to regularly follow our social media profiles. Users may automatically receive email alerts and other information about Sprout Social when enrolling an email address by visiting "Email Alerts" in the "Shareholder Services" section of Sprout Social's Investor website at https://investors.sproutsocial.com/.

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Following completion of the events, a webcast replay will also be available at http://investors.sproutsocial.com for 12 months.

About Sprout Social

Sprout Social is a leading AI-powered Social Intelligence Platform, built on the belief that All Business is Social℠. Powered by Trellis, Sprout’s proprietary AI agent, the platform is designed to transform real-time social media signals into actionable insights that drive business forward. Consistently recognized as a top software by G2, Sprout enables brands to deliver smarter, faster business impact through a suite of solutions including comprehensive publishing and engagement, customer care, influencer marketing, advocacy and predictive media intelligence. Sprout’s software operates across all major social networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

Availability of Information on Sprout Social’s Website and Social Media Profiles

Investors and others should note that Sprout Social routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Sprout Social Investors website. We also intend to use the social media profiles listed below as a means of disclosing information about us to our customers, investors and the public.

Contact

Media:
Kaitlyn Gronek
Email: [email protected]
Phone: (773) 904-9674

Investors:
Alex Kurtz
Twitter: @SproutSocialIR
Email: [email protected]
Phone: (312) 528-9166

June 24, 2026 09:00 ET  | Source: Sprout Social, Inc

The new integration allows brands to seamlessly plan, schedule, and automatically publish to Snapchat directly from Sprout’s AI-powered Social Intelligence Platform. Social teams can now better leverage Snapchat’s unique high-attention environment to drive organic discovery and cultivate long-term brand affinity.This milestone launch will be featured today during an exclusive panel hosted by Snapchat at the Cannes Lions International Festival of Creativity.
CANNES, France, June 24, 2026 (GLOBE NEWSWIRE) -- Sprout Social (Nasdaq: SPT), a leading AI-powered Social Intelligence Platform, today announced the launch of its Snapchat publishing integration. Now available to all customers, the integration enables brands to plan, schedule, and automatically publish Stories and Spotlights directly to Snapchat from Sprout’s platform, strengthening omnichannel execution and expanding reach into one of social media’s most engaged audiences. This milestone launch will be featured at an exclusive panel hosted by Snapchat today at the Cannes Lions International Festival of Creativity.

Driven by frequent, intentional engagement, younger audiences open Snapchat over 30 times a day on average, creating a high-attention environment between brands and a sought-after audience. The new integration offers a more seamless way for brands to connect with engaged communities through Snapchat’s core formats. Spotlight drives algorithm-powered discovery of entertaining short-form content, while Stories enable the candid, time-sensitive storytelling that builds deep familiarity and long-term affinity.

"To stay ahead, brands need the infrastructure to show up consistently where their audience's attention lives, without sacrificing efficiency," said Scott Morris, Chief Marketing Officer at Sprout Social. “Snapchat offers brands a unique opportunity to build familiarity within highly engaged communities while also reaching new audiences in moments of discovery. By bringing Snapchat publishing directly into Sprout, we are helping to remove workflow complexity and supporting brands in maintaining a consistent presence across both of those dynamics. That combination of sustained connection and expanded reach helps turn attention into meaningful business impact.”

“As the relationship between brands and consumers becomes increasingly dynamic, marketers need new ways to create meaningful connections at scale. We believe the future belongs to brands that earn attention through creativity and cultural relevance, not interruption,” said Grace Kao, CMO, Snap Inc. “Our partnership with Sprout Social is rooted in that vision, helping marketers build stronger relationships with their audiences and drive long-term business impact.”

This expanded partnership follows a recent integration of Snapchat to Sprout Social Influencer Marketing. The full suite of capabilities with Snapchat now position marketers to:

Streamline Cross-Channel Publishing: Create, schedule, and manage Snapchat Stories and Spotlights directly within Sprout’s central calendar, eliminating the platform shuffle.Scale Content Efficiency: Maintain a consistent 24/7 presence with advanced scheduling while leveraging Sprout AI to accelerate production and variations.Optimize Creator Partnerships: Use Snapchat audience insights, Public Stories, and Spotlight data to find and activate the right creators to drive results for your brand.
In celebration of the launch, Sprout Social CMO Scott Morris and Snapchat CMO Grace Kao will speak at an exclusive fireside chat today at the Cannes Lions International Festival of Creativity. The discussion will explore how brands can earn attention and build meaningful presence on Snapchat, and how the new Sprout Social integration supports more consistent and efficient storytelling at scale.

To learn more about the integration, please visit: sproutsocial.com/integrations/snapchat/

About Sprout Social

Sprout Social is a leading AI-powered Social Intelligence Platform, built on the belief that All Business is Social℠. Powered by Trellis, Sprout’s proprietary AI agent, the platform is designed to transform real-time social media signals into actionable insights that drive business forward. Consistently recognized as a top software by G2, Sprout enables brands to deliver smarter, faster business impact through a suite of solutions including comprehensive publishing and engagement, customer care, influencer marketing, advocacy and predictive media intelligence. Sprout’s software operates across all major social networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

Social Media Profiles
www.x.com/SproutSocial
www.x.com/SproutSocialIR
www.facebook.com/SproutSocialInc
www.linkedin.com/company/sprout-social-inc-/
www.instagram.com/sproutsocial

Media Contact
Kaitlyn Gronek
Email: [email protected]
Phone: (773) 904-9674

The native integration into Sprout Social Influencer Marketing gives enterprise teams one workflow to run campaigns and pay creators, with Lumanu handling compliance, tax, and global payments behind the scenes.

, /PRNewswire/ -- Lumanu, the payments and compliance platform for the global creative economy, today announced a native integration with Sprout Social (Nasdaq: SPT), a leading AI-powered Social Intelligence Platform. The integration embeds Lumanu's financial infrastructure directly into Sprout Social Influencer Marketing, allowing marketers to pay creators within their campaign workflow while giving finance teams a single, audit-ready vendor to manage.

Enterprise influencer programs routinely stall at the final payout stage. While marketing teams drive creator strategy, finance operations rely on separate tech stacks to navigate procurement and international compliance. This operational disconnect compromises creator relationships through payment delays while burying marketing teams in back-office administration instead of campaign execution. The native integration between Sprout Social and Lumanu unifies these distinct corporate functions to keep enterprise creator programs moving at the speed of social.

The Gap Between Creator Marketing and Payments

"Enterprise influencer programs don't stall because the creative is bad or the strategy is wrong," said Tony Tran, CEO of Lumanu. "They often stall because marketing and finance are working off two completely different systems with two completely different goals. We built this integration so that marketing teams can move faster with fewer dependencies on other teams, while finance still maintains controls and compliance."

Lumanu's financial infrastructure is now directly integrated into Sprout Social's industry-leading influencer platform to accelerate campaign execution. This integration unifies the operational gap between corporate accounting and creator marketing workflows within a single system, removing the administrative bottlenecks caused by disconnected software. Organizations maintain strict financial control over their capital throughout the process: Sprout orchestrates the front-end campaign workflow, payments prompting, and tracking dashboard while Lumanu handles the backend financial execution.

What This Integration Delivers

This integration replaces manual procurement cycles with an automated workflow built for corporate compliance and global scale. Marketing teams can prompt payouts directly from the Sprout campaign workflow, while Lumanu manages the backend creator onboarding, tax validation across 200+ countries and territories, and ongoing creator support. Real-time status updates sync directly into a unified dashboard, providing immediate visibility for internal teams and creators.

Finance teams set up Lumanu once as a single master vendor, replacing individual creator onboarding loops with one consolidated funding invoice generated directly in Sprout.. To ensure capital safety and compliance, funds are held in dedicated bank accounts tied to a real-time, audit-ready ledger. Lumanu also manages the entire tax compliance lifecycle by validating tax IDs, collecting necessary forms, and filing consolidated reports at year end so global programs can issue local currency payouts through local rails.

"Influencer marketing has evolved from an emerging channel into a core driver of business growth, yet many organizations are still managing it with legacy workflows that were never designed for its current scale and complexity," said Ben Newell, Vice President of Product Management at Sprout Social. "As creator programs become larger and more strategic, success depends on an organization's ability to balance agility with accountability. Integrating Lumanu into Sprout is part of our broader vision to help brands scale creator investments with greater consistency, governance, and confidence."

Trusted at Scale

Lumanu processes over $1.5 billion in payments to more than 400,000 creators, contractors, and vendors globally. Brands and agencies including DoorDash, Warner Music Group, PepsiCo, and Notion rely on Lumanu to manage their creator payment process.

The integration is available for all existing and new Sprout Social Influencer Marketing customers.

To learn more or request access, visit lumanu.com/lumanu-sprout-social-influencer-integration.

About Lumanu

Lumanu powers payments for the global creative economy. As a merchant of record, Lumanu enables brands and agencies to easily pay anyone, anywhere, with no vendor setup, while staying fully compliant. Lumanu handles global payouts, tax reporting, vendor onboarding, and real-time spend visibility across marketing and finance. Learn more at lumanu.com.

About Sprout Social

Sprout Social is a leading AI-powered Social Intelligence Platform, built on the belief that All Business is Social℠. Powered by Trellis, Sprout's proprietary AI agent, the platform is designed to transform real-time social media signals into actionable insights that drive business forward. Consistently recognized as a top software by G2, Sprout enables brands to deliver smarter, faster business impact through a suite of solutions including comprehensive publishing and engagement, customer care, influencer marketing, advocacy and predictive media intelligence. Sprout's software operates across all major social networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

SOURCE Lumanu

March 18, 2026 09:00 ET  | Source: Sprout Social, Inc

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 leader badges across all business segments—from small business to enterprise—and spanning every global region.

Sprout Social ranked #1 in 59 individual G2 reports, including the Grid® Report for Social Media Listening Tools, the Enterprise Grid® Report for Social Media Analytics and the Grid® Report for Social Customer Service. Driven by verified customer reviews, these rankings demonstrate the increasing strategic value and impact of Sprout’s platform for brands navigating the evolving social landscape.

Social media has become an immediate and rich source of market and customer insight. This recognition comes as Sprout Social advances social intelligence and AI innovations that help brands move from reactive listening to predictive decision-making. By turning social data into forward-looking intelligence through tools such as Sprout AI and its proprietary AI agent Trellis, Sprout enables organizations to anticipate change, strengthen customer trust and drive sustained growth.

“Social media is increasingly central to how organizations understand markets, customers and culture, and the industry is moving toward AI-driven approaches to make sense of that volume and complexity,” said Scott Morris, chief marketing officer at Sprout Social. “We are proud to be recognized by G2, which reflects both our consistency in the market and the growing role of social as a vital business tool. Social intelligence is helping organizations move from reactive engagement to predictive insight, using social data to better understand their customers, the market and what comes next.”

Sprout Social earned its place on these lists because of customer feedback, including:

“Sprout Social is among the best tools out there in this space: It's a mature, full-featured social media management platform that excels in analytics, governance, team workflows and cross-platform publishing. It truly offers a robust enterprise-grade experience.”

“Sprout Social offers AI-driven insights that act like a mini strategy consultant, providing valuable guidance for identifying customer pain points.”

“Sprout is an indispensable tool for any modern social media marketing team. Its content management, scheduling, and reporting capabilities are all excellent, and the influencer marketing platform stands out as the best in the industry.”

“Sprout Social has become an essential part of our marketing toolkit. The reporting features are especially strong—clear, customizable, and easy to share with stakeholders. We also rely heavily on the listening tools, which help us stay ahead of conversations and understand our audience more deeply.”

For more information about Sprout Social and its award-winning platform, visit www.sproutsocial.com.

About Sprout Social

Sprout Social is a global leader in social media management and analytics software, built on the belief that All Business is Social℠. Sprout’s intuitive platform puts powerful social data into the hands of tens of thousands of brands so they can deliver smarter, faster business impact. Named the #1 Best Software Product by G2’s 2024 Best Software Award, Sprout offers comprehensive publishing and engagement functionality, customer care, influencer marketing, advocacy, and AI-powered business intelligence. Sprout’s software operates across all major social media networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

Social Media Profiles:
www.x.com/SproutSocial
www.x.com/SproutSocialIR
www.facebook.com/SproutSocialInc
www.linkedin.com/company/sprout-social-inc-/
www.instagram.com/sproutsocial

Contact
Media:
Kaitlyn Gronek
Email: [email protected]
Phone: (773) 904-9674

Investors:
Lexi Johnson
Email: [email protected]
Phone: (312) 528-9166

Sprout Social remains a Buy despite a 50% stock decline, as fundamentals have improved and the valuation is now more attractive at 0.7x P/S. SPT consistently beats and raises revenue guidance, with strong customer metrics and AI-driven product innovation expected to drive future growth above current guidance. AI initiatives like Listening Agent, Insights Agent, and Trellis Studio are set to enhance monetization through usage-based pricing and differentiated platform capabilities.

Macro factors currently driving the economy, such as inflation, interest rates, labor markets, supply chain issues and so forth have a varied impact on players in the extremely diverse Internet – Services industry, although a stronger economy is generally positive. Therefore, the ongoing war; declining consumer confidence mainly related to tariffs, inflation and jobs; and inflation-driven rising producer price index (PPI) may be considered negative for the Internet Services industry.

 Our picks are Zillow (Z - Free Report) and Sprout Social (SPT - Free Report) because of their growth prospects, AI adoption and cost cutting measures.

 Most industry players are heavily investing in artificial intelligence and machine learning as this allows them to provide additional features and differentiate their offerings. Being a capital-intensive industry with high fixed cost of operation and the fairly constant need to build infrastructure, a high interest rate isn’t very positive for it. Therefore, any rate cuts in 2026 would make us incrementally positive about the Internet Services industry.

 Valuation remains rich, but rising estimates indicate the existence of opportunities.

About the Industry Internet - Services companies are primarily those that rely on huge software and hardware infrastructure, referred to as their properties, to deliver various services to consumers. People can avail the services by accessing these properties with their personal connected devices from almost anywhere in the world.

Companies generally operate two models: an ad-based model and an ad-free model where the service is charged. Alphabet, Baidu and Akamai are some of the larger players while Crexendo, Upwork, Dropbox, Etsy, Shopify, Uber, Lyft and Trivago are some of the emerging players. Very large players (mainly Alphabet) tend to skew averages.

Because of the diversity of services offered, it is difficult to identify industrywide factors that could affect all players. The effect of macro factors such as inflation, rate hikes, supply chain issues and so forth vary.

Factors Determining Industry Performance Data is central to success in this industry, as it allows the players to build artificial intelligence (AI) models to improve the quality of services, create new technologies and services, and also to lower the cost of operation. AI is changing the way these companies operate: search is becoming conversational, content creation is becoming automated, AI agents are performing various tasks and personalized recommendations are now available at scale. Internet service providers are also able to differentiate their products based on the scale, flexibility and choice in AI-powered tools that they offer. The market is extremely competitive and smaller tools are getting commoditized. User interfaces across the web are being redesigned to adopt these changes. Larger companies often have the edge in AI because they have access to larger data sets that can be processed to further develop their AI.Monetization is increasingly shifting beyond traditional advertising as companies seek more stable and diversified revenue streams. While digital ads once dominated business models, growth in advertising has matured and become more cyclical, prompting platforms to expand into subscriptions, transaction fees, marketplaces and financial services. Companies now aim to capture value directly from user activity rather than only selling audience attention to advertisers. For example, platforms integrate payments, premium memberships, commerce tools, and enterprise software offerings to generate recurring or usage-based income. This transition improves revenue predictability, strengthens customer relationships, and reduces dependence on fluctuating ad markets.The internet services industry has undergone a major shift from prioritizing rapid user and revenue growth to emphasizing profitability and sustainable cash flow. During the low-interest-rate era, investors rewarded companies for expanding aggressively, even at the cost of large losses. However, higher interest rates and tighter capital markets have changed expectations, pushing companies to focus on operating efficiency, margin expansion and disciplined spending. Firms are now optimizing headcount, reducing customer acquisition costs and improving monetization of existing users rather than pursuing growth at any cost. This transition reflects a broader market preference for resilient business models capable of generating consistent earnings across economic cycles.Being a capital-intensive industry, there is the need to raise funds to build out costly infrastructure. Funds are also needed to maintain this infrastructure. Given the secular growth prospects, companies have continued infrastructure investments through 2023, 2024 and 2025 despite high interest rates. Most analysts expect interest rates to come down further in 2026, which would encourage further increase in capex. Ex-Alphabet PP&E displays some seasonality although the trend continues to swing upward, meaning that companies are investing heavily in their infrastructure.Regulation and antitrust pressure have become a defining force shaping the internet services industry as governments worldwide increase scrutiny of large digital platforms. Policymakers are focusing on issues such as market dominance, data privacy, algorithm transparency, app-store practices and digital advertising power. New regulations aim to limit anti-competitive behavior, protect consumer data and ensure fair access for smaller competitors, forcing companies to adjust business models, product design and expansion strategies. Compliance costs and legal risks are rising, while acquisitions and platform integrations face closer review. As a result, regulation is no longer a background risk but a core strategic factor influencing innovation, monetization and long-term growth decisions. Zacks Industry Rank Indicates Near-Term Pressure The Zacks Internet - Services industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #176, which places it among the bottom 28% of 243 Zacks-classified industries.

The group’s Zacks Industry Rank, which is basically the average rank of all the member stocks, indicates that there are several opportunities in the space.

Looking at the aggregate earnings estimate revisions over the past year, improvements in both the 2026 and 2027 estimates have been more or less consistent, remaining relatively stronger in the last two months. As a result, the aggregate estimates for 2026 and 2027 are up a respective 12.1% and 13% over the past year.

Historically, the top 50% of Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1. So the industry having moved into the bottom 50% indicates that investor sentiments remain muted.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry Valuation: Rich Over the past year, the industry has returned more than both the broader Technology sector and the S&P 500. It had been trading below both indexes up until July but started pulling ahead thereafter. It has widened the gap with both since September last year.

The industry’s net gain of 65.6% over the past year is more than the broader sector’s 28.6% and the S&P 500’s 17.6%.

One-Year Price Performance

Image Source: Zacks Investment Research

Industry Appears Somewhat Overvalued On the basis of forward 12-month price-to-earnings (P/E) ratio, we see that the industry is currently trading at a 23.90X multiple, which is more or less its median value of 23.89X over the past year. This is a 15.3% premium to the S&P 500’s 20.72X and a 5.3% premium to the sector’s 29.07X.

Over the past year, the industry has traded in the range of 17.22X to 29.74X, a much broader range than the S&P’s 20.63X to 23.8X. The sector has traded in the 22.7X to 29.9X range.

Forward 12 Month Price-to-Earnings (P/E) Ratio

Image Source: Zacks Investment Research

2 Solid Bets The Internet Services industry is not in a good place at the moment mainly because of an uncertain macro and persistently high interest rates. Since the industry is highly diverse, it is only to be expected that some players would be doing exceedingly well while others not so much. We currently have a Zacks #2 (Buy) rating on both Zillow and Sprout Social discussed below.

Zillow Group Inc. (Z - Free Report) : Zillow operates a digital real-estate marketplace that connects homebuyers, sellers, renters, real-estate agents, landlords, and mortgage providers across the US. Its platforms allow users to search property listings, view price estimates (Zestimates), schedule tours and contact agents. Z

illow generates revenue primarily through advertising and lead-generation services sold to real-estate professionals, rental marketplace fees and mortgage origination services. The company is evolving into an end-to-end “housing super-app,” integrating search, financing, touring, transaction support and rentals into a unified online ecosystem designed to streamline residential real-estate transactions from discovery through closing.

The shift away from a listings website to a platform marketplace reduces Zillow’s dependence on ad revenue and opens up the possibility of multiple fees per transaction, driving up revenue per home sold. The company is well positioned to capitalize on its enormous traffic, strong brand recognition and nationwide network to generate solid growth. Additionally, it is investing in AI-based home recommendations, automated valuations, smart agent matching and

conversational search, all of which should facilitate the transition. Its revenue model promises more stable margins and its asset-light model will allow it to capitalize on housing market upcycles with limited balance sheet impact.

The one major downside to the whole story is its dependence on the interest rate, which is expected to remain high relative to historical standards. This drives up mortgage rates and therefore, home prices, and dries up buying intent. The prospect of lower home sales naturally drives down earnings expectations and hits the share price.

The company beat earnings estimates by 3 cents. Both 2026 and 2027 estimaes are unchanged in the last 30 days although both are down compared with 60 days ago. Analysts are currently looking for 2026 revenue and earnings growth of 15.1% and 28.1%, respectively. For 2027, they’re expecting 13.4% revenue growth and 28.9% earnings growth.

The shares of this Zacks Rank #2 (Buy) stock are down 38.1% over the past year.

Price and Consensus: Z

Image Source: Zacks Investment Research

Sprout Social, Inc. (SPT - Free Report) : Sprout Social, Inc. is a cloud-based software company that provides businesses with tools to manage, analyze and optimize their social-media presence across platforms such as Instagram, LinkedIn, TikTok, Facebook and X. Its subscription platform integrates content publishing, message management, customer service, social listening, influencer marketing and performance analytics into a unified dashboard.

Companies use Sprout to schedule posts, respond to customers through a centralized inbox, monitor brand sentiment and generate data-driven marketing insights. The company increasingly embeds AI to automate workflows, interpret social data, and help organizations turn online conversations into measurable business intelligence and customer engagement strategies.

As social media evolves from a mere marketing channel to a platform supporting a range of functions, including customer care, brand monitoring, crisis management, sales discovery and reputation analytics, the demand for a SaaS platform that can handle all these aspects for brands is also on the rise. Sprout has been gradually increasing its large enterprise focus because the broader volumes and scale are make this an obvious choice to drive revenue and profitability.

Enterprises don’t generally hop from one vendor to another, which lowers churn, adds predictability to revenue streams and supports pricing power. There’s also the possibility of gradually expanding services within accounts. In general, software delivery costs grow at a slower pace than subscriptions. So once investments stabilize, there is significant operating leverage, which leads to solid margin expansion.

There is an ongoing debate about whether AI is really helpful for the company since it lowers barriers to entry and increases competition, including from large social media players’ inhouse developments, while also increasing cost of innovation as features are quickly commoditized. However, Sprout does have a competitive moat in the vast amounts of unstructured datasets across platforms that it already possesses, along with its normalization and analytics operations, which require the kind of infrastructure that cannot be built in a hurry. Historical datasets also improve AI accuracy.

Sprout processes massive social datasets and embeds AI into sentiment analysis, automated engagement and campaign optimization. Customer reviews and rankings continue placing Sprout as a leader in social listening and analytics tools.

Sprout topped estimates in the last quarter, with earnings beating by 25%. The 2026 estimate has not changed in the last 30 days while the 2027 estimate increased 5 cents (4.4%). At these levels, they represent a 7.8% increase in revenue and a 14.6% increase in earnings for 2026 and a 7% revenue increase and 27.1% earnings increase in the following year.

The shares of this Zacks Rank #2 (Buy) stock have lost 77.2% of their value over the past year.

Price and Consensus: SPT

Image Source: Zacks Investment Research

Posted by Defense World Staff on Apr 15th, 2026

Sprout Social, Inc. (NASDAQ:SPT – Get Free Report) insider Justyn Russell Howard sold 40,000 shares of Sprout Social stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $5.03, for a total value of $201,200.00. Following the sale, the insider owned 7,417 shares in the company, valued at $37,307.51. This represents a 84.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Justyn Russell Howard also recently made the following trade(s):

On Wednesday, March 11th, Justyn Russell Howard sold 40,000 shares of Sprout Social stock. The stock was sold at an average price of $5.96, for a total value of $238,400.00. On Tuesday, March 3rd, Justyn Russell Howard sold 23,855 shares of Sprout Social stock. The stock was sold at an average price of $6.76, for a total value of $161,259.80. Sprout Social Price Performance SPT stock opened at $5.24 on Wednesday. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 0.20. Sprout Social, Inc. has a 52-week low of $4.92 and a 52-week high of $25.48. The stock’s 50 day moving average is $6.33 and its two-hundred day moving average is $9.09. The company has a market capitalization of $312.09 million, a PE ratio of -7.08 and a beta of 1.00.

Sprout Social (NASDAQ:SPT – Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.04. Sprout Social had a negative return on equity of 16.10% and a negative net margin of 9.47%.The company had revenue of $120.89 million for the quarter, compared to the consensus estimate of $118.68 million. Sprout Social has set its FY 2026 guidance at 0.880-0.970 EPS and its Q1 2026 guidance at 0.150-0.160 EPS. Analysts predict that Sprout Social, Inc. will post -0.99 earnings per share for the current fiscal year.

Institutional Inflows and Outflows A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Diversified Trust Co boosted its position in Sprout Social by 6.1% during the 3rd quarter. Diversified Trust Co now owns 17,982 shares of the company’s stock valued at $232,000 after purchasing an additional 1,040 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Sprout Social by 2.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 53,127 shares of the company’s stock valued at $1,168,000 after purchasing an additional 1,265 shares during the period. Russell Investments Group Ltd. boosted its position in Sprout Social by 39.1% during the 4th quarter. Russell Investments Group Ltd. now owns 6,235 shares of the company’s stock valued at $70,000 after purchasing an additional 1,752 shares during the period. Tower Research Capital LLC TRC boosted its position in Sprout Social by 55.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,496 shares of the company’s stock valued at $115,000 after purchasing an additional 1,962 shares during the period. Finally, Summit Securities Group LLC boosted its position in Sprout Social by 399.0% during the 4th quarter. Summit Securities Group LLC now owns 2,520 shares of the company’s stock valued at $28,000 after purchasing an additional 2,015 shares during the period.

Analysts Set New Price Targets A number of equities research analysts have recently weighed in on SPT shares. Jefferies Financial Group lowered their price target on Sprout Social from $15.00 to $12.00 and set a “buy” rating for the company in a report on Tuesday, February 3rd. Barclays lowered their price target on Sprout Social from $26.00 to $13.00 and set an “overweight” rating for the company in a report on Monday, January 12th. Needham & Company LLC lowered their price objective on shares of Sprout Social from $32.00 to $14.00 and set a “buy” rating for the company in a research report on Friday, February 27th. KeyCorp lowered their price objective on shares of Sprout Social from $9.00 to $6.00 and set an “underweight” rating for the company in a research report on Friday, February 27th. Finally, Wall Street Zen raised shares of Sprout Social from a “hold” rating to a “buy” rating in a research report on Sunday, March 8th. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $13.67.

Get Our Latest Research Report on Sprout Social

Sprout Social Company Profile (Get Free Report)

Sprout Social (NASDAQ: SPT) is a Chicago-based software company specializing in social media management solutions for businesses of all sizes. The company provides a cloud-based platform designed to help organizations improve their social media presence through a suite of tools for content scheduling, community engagement, social listening and analytics. Sprout Social’s platform is built to streamline the workflows of marketing, customer care and public relations teams by providing a centralized hub for managing multiple social channels.

The company’s product offerings include publishing and scheduling capabilities that allow users to plan and automate social content across networks such as Facebook, Instagram, Twitter, LinkedIn and Pinterest.

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Approximated TTM Subscription Revenue Contribution for ≥$30K ARR Customers Grew 21% year-over-year
Announced Share Repurchase Program with Initial Authorization of $50 Million

CHICAGO, May 07, 2026 (GLOBE NEWSWIRE) -- Sprout Social, Inc. (“Sprout Social”, the “Company”) (Nasdaq: SPT), an industry-leading provider of cloud-based social media management software, today announced financial results for its first quarter ended March 31, 2026.

“We are pleased with our financial performance this quarter, highlighted by $24.7 million in non-GAAP free cash flow, strong non-GAAP profitability, and continued strength in our $30,000+ ARR customer cohort,” said Ryan Barretto, CEO of Sprout Social. “We are also excited to announce the company’s first ever share repurchase program with an initial authorization of $50 million, which highlights our disciplined approach to capital allocation.”

First Quarter 2026 Financial Highlights

Revenue

Revenue was $121.5 million, up 11% compared to the first quarter of 2025.Total remaining performance obligations (RPO) of $395.3 million as of March 31, 2026, up 10% year-over-year.Current remaining performance obligations (cRPO) of $281.7 million as of March 31, 2026, up 10% year-over-year. Operating Income (Loss)

GAAP operating loss was ($5.8) million, compared to ($11.2) million in the first quarter of 2025.Non-GAAP operating income was $14.1 million, compared to $12.5 million in the first quarter of 2025. Net Income (Loss)

GAAP net loss was ($6.3) million, compared to ($11.2) million in the first quarter of 2025.Non-GAAP net income was $13.6 million, compared to $12.5 million in the first quarter of 2025.GAAP net loss per share was ($0.11) based on 59.7 million weighted-average shares of common stock outstanding, compared to ($0.19) based on 57.9 million weighted-average shares of common stock outstanding in the first quarter of 2025.Non-GAAP net income per share was $0.23 based on 59.7 million weighted-average shares of common stock outstanding, compared to $0.22 based on 57.9 million weighted-average shares of common stock outstanding in the first quarter of 2025. Cash

Cash and cash equivalents totaled $111.6 million as of March 31, 2026, compared to $95.3 million as of December 31, 2025.Net cash provided by operating activities was $25.2 million, compared to $18.1 million in the first quarter of 2025.Non-GAAP free cash flow was $24.7 million, compared to $19.5 million in the first quarter of 2025. See “Use of Non-GAAP Financial Measures” below for definitions of Non-GAAP operating income (loss), Non-GAAP net income (loss), Non-GAAP net income (loss) per share and Non-GAAP free cash flow and the financial tables that accompany this release for reconciliations of our non-GAAP measures to their closest comparable GAAP measures. See “Key Business Metrics” below for how Sprout Social defines RPO, cRPO, the number of customers contributing $30,000 or more in ARR, the number of customers contributing $50,000 or more in ARR and approximated TTM subscription revenue contribution from customers contributing $30,000 or more in ARR.

Customer Metrics

Grew number of customers contributing $30,000 or more in ARR to 3,875 customers as of March 31, 2026, up 12% compared to March 31, 2025.Grew number of customers contributing $50,000 or more in ARR to 2,085 customers as of March 31, 2026, up 18% compared to March 31, 2025. Beginning in the fourth quarter of 2025, we replaced our disclosure of customers with ARR of $10,000 or more with customers with ARR of $30,000 or more. We believe this metric better reflects our strategic focus on larger customers and aligns with how management evaluates performance and allocates resources. Prior-period amounts have been presented for comparability.

 Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Number of customers contributing $30,000 or more in ARR3,1313,2263,3743,4513,5383,7113,8033,875Approximated TTM Subscription Revenue Contribution for ≥$30K ARR Customers (in millions)$191.1$206.2$219.2$231.8$243.3$255.2$268.0$280.1Approximated TTM Subscription Revenue Contribution for ≥$30K ARR Customers as a % of Total Subscription Revenue51.5%53.1%54.5%55.9%56.9%57.9%59.1%60.3%
Recent Customer Highlights

During the first quarter, we had the opportunity to grow with new and existing customers like Monster, Naterra International, CSL Behring, Reebok, and Roku. Recent Business Highlights

Sprout Social recently:

Released their 2026 Social Intelligence Report (link)Named the #1 social listening product in G2’s 2026 spring reports, achieving 59 top rankings (link)Hosted a platform overview and system of record and action webinar (link) Second Quarter and 2026 Financial Outlook

For the second quarter of 2026, the Company currently expects:

Total revenue between $121.7 million and $122.5 million.Non-GAAP operating income between $9.5 million and $10.3 million.Non-GAAP net income per share between $0.15 and $0.16 based on approximately 60.3 million weighted-average shares of common stock outstanding. For the full year 2026, the Company currently expects:

Total revenue between $492.5 million and $495.5 million.Non-GAAP operating income between $54.9 million and $60.4 million.Non-GAAP net income per share between $0.88 and $0.97 based on approximately 60.7 million weighted-average shares of common stock outstanding. The Company continues to expect a Non-GAAP operating margin of approximately 15% by the fourth quarter of fiscal 2026 and reiterates its 30% target for a Rule of 40 framework (as defined by year-over-year revenue growth plus current quarter non-GAAP operating margin) by the fourth quarter of fiscal 2027.

The Company’s second quarter and 2026 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to non-GAAP operating income, operating margin, the most directly comparable GAAP measure to non-GAAP operating margin, or net loss per share, the most directly comparable GAAP measure to non-GAAP net income per share, and similarly cannot provide a reconciliation between its forecasted non-GAAP operating income, non-GAAP operating margin and non-GAAP net income per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.

Share Repurchase Program

Today, the Company also announced that its board of directors (the “Board”) authorized a share repurchase program under which the Company may repurchase up to $50 million of its Class A common stock. The repurchase program authorizes the Company to repurchase its Class A common stock from time to time in the open market, in privately negotiated transactions, through block purchases, through Rule 10b5-1 trading plans, or by any combination of such methods, all in accordance with applicable securities laws and regulations. The timing and amount of any repurchase will be determined by the Company's management at its discretion. The repurchase program does not obligate the Company to repurchase any particular amount of Class A common stock, has no set termination date and may be modified, suspended or discontinued at any time at the Board’s discretion.

Conference Call Information

The financial results and business highlights will be discussed on a conference call and webcast scheduled at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) today, May 7, 2026. Online registration for this event conference call can be found at https://events.q4inc.com/analyst/. The live webcast of the conference call can be accessed from Sprout Social’s investor relations website at http://investors.sproutsocial.com.

Following completion of the events, a webcast replay will also be available at http://investors.sproutsocial.com for 12 months.

About Sprout Social

Sprout Social is a global leader in social media management and analytics software. Sprout’s intuitive platform puts powerful social data into the hands of tens of thousands of brands so they can deliver smarter, faster business impact. Named the #1 Best Software Product by G2’s 2024 Best Software Award, Sprout offers comprehensive publishing and engagement functionality, customer care, influencer marketing, advocacy, and AI-powered business intelligence. Sprout’s software operates across all major social media networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “explore,” ”future,” “intend,” “long-term model,” “may,” “medium to longer term goals,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q2 2026 and full year 2026 financial outlook, our plans and objectives for future operations, growth, initiatives or strategies, including our investments in research and development, and share repurchases, and other statements that are not historical fact. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others: we may not be able to sustain our revenue and customer growth rate in the future, including due to risks associated with our strategic focus on enterprise customers; price increases have negatively impacted and price increases and packaging changes may in the future negatively impact demand for our products, customer acquisition and retention and reduce the total number of customers or customer additions; our business would be harmed by any significant interruptions, delays or outages in services from our platform, our API providers, or certain social media platforms, or if we are unable to renew agreements governing access to the data provided by such APIs on terms acceptable to us or at all; if we are unable to attract potential customers through unpaid channels, or other sources of demand, including expansion opportunities from existing customers and outbound sales efforts or convert prospective customers and expansion opportunities into paid subscriptions, our business and results of operations may be adversely affected; technological advances in AI may in the future disrupt the social media industry, which could significantly reduce the demand for our services or otherwise adversely impact our business or reputation if we are unable to keep pace and navigate this evolving environment; we may be unable to successfully enter new markets, manage our international expansion and comply with any applicable international laws and regulations; we may be unable to integrate acquired businesses or technologies successfully or achieve the expected benefits of such acquisitions and investments; unstable market, economic, and geopolitical conditions, such as recession risks, effects of inflation, tariffs and trade tensions, changes in government spending, labor shortages, supply chain issues, geopolitical instability and uncertainty, and fluctuation in interest rates, have and could continue to adversely impact our business and that of our existing and prospective customers, which may result in reduced demand for our products; we may not be able to generate sufficient cash to service our indebtedness; covenants in our credit agreement may restrict our operations, and if we do not effectively manage our business to comply with these covenants, our financial condition could be adversely impacted; any cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely could negatively affect our business; changing regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and harm our brand; and risks related to ongoing legal proceedings. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 27, 2026 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, to be filed with the SEC, as well as any future reports that we file with the SEC. Moreover, you should interpret many of the risks identified in those reports as being heightened as a result of the current and ongoing instability in market, economic, and geopolitical conditions. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprout Social at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Sprout Social assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Use of Non-GAAP Financial Measures

We have provided in this press release certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Our management uses these non-GAAP financial measures internally in analyzing our financial results and believes that these non-GAAP financial measures are useful to investors as additional tools to evaluate ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial measures prepared in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

Non-GAAP gross profit. We define non-GAAP gross profit as GAAP gross profit, excluding stock-based compensation expense, amortization expense associated with the acquired developed technology from our acquisitions of Tagger Media, Inc. (“Tagger”) and NewsWhip Group Holdings Limited (“NewsWhip”), and restructuring charges. We believe non-GAAP gross profit provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

Non-GAAP operating income. We define non-GAAP operating income as GAAP loss from operations, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring charges and changes in the fair value of contingent consideration. We believe non-GAAP operating income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense, restructuring charges and changes in the fair value of contingent consideration, which are often unrelated to overall operating performance.

Non-GAAP operating margin. We define non-GAAP operating margin as non-GAAP operating income (loss) as a percentage of revenue.

Non-GAAP net income. We define non-GAAP net income as GAAP net loss, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring charges and changes in the fair value of contingent consideration. We believe non-GAAP net income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, amortization expense, restructuring charges and changes in the fair value of contingent consideration, which are often unrelated to overall operating performance.

Non-GAAP net income per share. We define non-GAAP net income per share as GAAP net loss per share attributable to common shareholders, basic and diluted, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring charges and changes in the fair value of contingent consideration. We believe non-GAAP net income per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, amortization expense, restructuring charges and changes in the fair value of contingent consideration, which are often unrelated to overall operating performance.

Non-GAAP free cash flow. We define non-GAAP free cash flow as net cash provided by operating activities, less expenditures for property and equipment, interest payments on our revolving credit facility and payments related to restructuring charges. Non-GAAP free cash flow does not reflect our future contractual obligations or represent the total increase or decrease in our cash balance for a given period. We believe non-GAAP free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash provided by our core operations that, after expenditures for property and equipment, interest payments on our revolving credit facility and payments related to restructuring charges, is available for strategic initiatives.

Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses. Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses are defined as sales and marketing expenses, research and development expenses and general and administrative expenses, respectively, less stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring charges and changes in the fair value of contingent consideration. We believe these non-GAAP measures provide our management and investors with insight into day-to-day operating expenses given that these measures eliminate the effect of stock-based compensation, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring charges and changes in the fair value of contingent consideration.

Key Business Metrics

Remaining performance obligations (“RPO”). RPO, or remaining performance obligations, represents contracted revenue that has not yet been recognized, and includes deferred revenue and amounts that will be invoiced and recognized in future periods.

Current remaining performance obligations (“cRPO”). cRPO, or current RPO, represents contracted revenue that has not yet been recognized, and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months.

30% target for a Rule of 40. We define this target as year-over-year revenue growth plus current quarter non-GAAP operating margin equal to 30%.

Number of customers contributing $30,000 or more in ARR. We define number of customers contributing $30,000 or more in ARR as those on a paid subscription plan that had $30,000 or more in ARR as of a period end. We view the number of customers that contribute $30,000 or more in ARR as a measure of our ability to scale with our customers and attract larger organizations. We believe this represents potential for future growth, including expanding within our current customer base.

Number of customers contributing $50,000 or more in ARR. We define number of customers contributing $50,000 or more in ARR as those on a paid subscription plan that had $50,000 or more in ARR as of a period end. We view the number of customers that contribute $50,000 or more in ARR as a measure of our ability to scale with large customers and attract sophisticated organizations. We believe this represents potential for future growth, including expanding within our current customer base.

Approximated TTM Subscription Revenue Contribution for ≥$30K ARR Customers. This metric depicts our approximation of the trailing twelve month subscription revenue contribution from customers contributing $30,000 or more in ARR. We calculate this metric by averaging the ARR of these customers as of the end of the applicable quarter and the immediately preceding quarter and dividing by four to derive a quarterly revenue contribution estimate for this customer cohort. This quarterly estimate is then summed over the preceding four quarters to approximate a trailing twelve month revenue contribution for this customer cohort, subject to minor adjustments for rounding.

We believe that customers contributing $30,000 or more in ARR represent those customers that can benefit the most from our platform given their more sophisticated needs for social media management software as compared to customers below this spending threshold. We believe this metric is useful in measuring our success in serving this particular customer cohort. This metric does not reflect the actual revenue contribution by these customers over the trailing twelve month period, and should not be viewed in isolation as a substitute for revenue or any of our other financial measures presented in accordance with GAAP. We use this metric to approximate revenue contribution over a specified period because the historical data and account mapping is not available to present the actual revenue generated by this cohort of customers over a historical period.

While we no longer believe that ARR and number of customers are key performance indicators of Sprout Social’s business, these metrics are necessary for an understanding of how we define number of customers contributing $30,000 or more in ARR and number of customers contributing $50,000 or more in ARR. For this purpose, we define ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last date of the specified period and we define a customer as a unique account, multiple accounts containing a common non-personal email domain, or multiple accounts governed by a single agreement or entity.

We no longer believe that the number of customers contributing $10,000 or more in ARR is a key performance indicator of Sprout Social’s business due to our evolving customer mix and we will no longer publicly disclose that metric. We believe that customers contributing $30,000 or more in ARR and approximated TTM subscription revenue contribution from customers contributing $30,000 or more in ARR are stronger indicators of Sprout Social’s performance in its target customer segments.

Availability of Information on Sprout Social’s Website and Social Media Profiles

Investors and others should note that Sprout Social routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Sprout Social Investors website. We also intend to use the social media profiles listed below as a means of disclosing information about us to our customers, investors and the public. While not all of the information that the Company posts to the Sprout Social Investors website or to social media profiles is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Sprout Social to review the information that it shares at the Investors link located at the bottom of the page on www.sproutsocial.com and to regularly follow our social media profiles. Users may automatically receive email alerts and other information about Sprout Social when enrolling an email address by visiting "Email Alerts" in the "Shareholder Services" section of Sprout Social's Investor website at https://investors.sproutsocial.com/.

Social Media Profiles:
www.twitter.com/SproutSocial
www.twitter.com/SproutSocialIR
www.facebook.com/SproutSocialInc
www.linkedin.com/company/sprout-social-inc-/
www.instagram.com/sproutsocial

Contact

Media:
Kaitlyn Gronek
Email: [email protected]
Phone: (773) 904-9674

Investors:
Alex Kurtz
Twitter: @SproutSocialIR
Email: [email protected]
Phone: (312) 528-9166

Sprout Social, Inc.Consolidated Statements of Operations (Unaudited)(in thousands, except share and per share data)     Three Months Ended March 31,  2026   2025 Revenue   Subscription$120,020  $108,680 Professional services and other 1,477   609 Total revenue 121,497   109,289 Cost of revenue(1)   Subscription 27,435   24,473 Professional services and other 556   365 Total cost of revenue 27,991   24,838 Gross profit 93,506   84,451 Operating expenses   Research and development(1) 26,947   23,229 Sales and marketing(1) 48,546   47,452 General and administrative(1) 23,859   24,972 Total operating expenses 99,352   95,653 Loss from operations (5,846)  (11,202)Interest expense (667)  (514)Interest income 751   895 Other expense, net (163)  (168)Loss before income taxes (5,925)  (10,989)Income tax expense 411   231 Net loss$(6,336) $(11,220)Net loss per share attributable to common shareholders, basic and diluted$(0.11) $(0.19)Weighted-average shares outstanding used to compute net loss per share, basic and diluted 59,735,864   57,890,898     (1) Includes stock-based compensation expense as follows:    Three Months Ended March 31,  2026   2025 Cost of revenue$574  $746 Research and development 5,925   6,206 Sales and marketing 5,010   5,936 General and administrative 6,638   6,907 Total stock-based compensation expense$18,147  $19,795  Sprout Social, Inc.Consolidated Balance Sheets (Unaudited)(in thousands, except share and per share data)       March 31, 2026 December 31, 2025Assets   Current assets   Cash and cash equivalents$111,620  $95,268 Accounts receivable, net of allowances of $2,204 and $2,719 at March 31, 2026 and December 31, 2025, respectively 69,415   100,996 Deferred Commissions 27,909   26,995 Prepaid expenses and other assets 16,971   13,945 Total current assets 225,915   237,204 Property and equipment, net 10,169   9,864 Deferred commissions, net of current portion 56,077   57,049 Operating lease, right-of-use asset 9,395   9,810 Goodwill 167,122   167,122 Intangible assets, net 37,325   39,733 Other assets, net 2,595   2,280 Total assets$508,598  $523,062 Liabilities and Stockholders' Equity   Current liabilities   Accounts payable$9,489  $10,115 Deferred revenue 194,335   205,639 Operating lease liability 2,741   2,664 Accrued wages and payroll related benefits 14,945   20,549 Accrued expenses and other 15,605   17,294 Total current liabilities 237,115   256,261 Revolving credit facility 32,500   40,000 Deferred revenue, net of current portion 1,065   752 Operating lease liability, net of current portion 11,314   12,055 Other non-current liabilities 11,414   10,572 Total liabilities 293,408   319,640     Stockholders' equity       Class A common stock, par value $0.0001 per share; 1,000,000,000 shares authorized; 57,261,096 and 54,253,382 shares issued and outstanding at March 31, 2026, respectively; 56,576,444 and 53,607,556 shares issued and outstanding at December 31, 2025, respectively 5   5         Class B common stock, par value $0.0001 per share; 25,000,000 shares authorized; 6,036,301 and 5,829,357 shares issued and outstanding at March 31, 2026, respectively; 6,156,301 and 5,949,357 shares issued and outstanding at December 31, 2025, respectively 1   1 Additional paid-in capital 657,261   638,894 Treasury stock, at cost (38,031)  (37,768)Accumulated other comprehensive income -   - Accumulated deficit (404,046)  (397,710)Total stockholders’ equity 215,190   203,422 Total liabilities and stockholders’ equity$508,598  $523,062  Sprout Social, Inc.Consolidated Statements of Cash Flows (Unaudited)(in thousands)     Three Months Ended March 31,  2026   2025 Cash flows from operating activities   Net loss$(6,336) $(11,220)Adjustments to reconcile net loss to net cash provided by operating activities   Depreciation and amortization of property, equipment and software 922   1,225 Amortization of line of credit issuance costs 59   52 Accretion of discount on marketable securities -   (7)Amortization of acquired intangible assets 2,408   1,293 Amortization of deferred commissions 7,020   5,283 Amortization of right-of-use operating lease asset 415   341 Stock-based compensation expense 18,147   19,795 Provision for accounts receivable allowances 278   1,129 Change in fair value of contingent consideration (493)  - Other (65)  - Changes in operating assets and liabilities, excluding impact from business acquisition   Accounts receivable 31,303   18,122 Prepaid expenses and other current assets (3,559)  (3,229)Deferred commissions (6,962)  (7,577)Accounts payable and accrued expenses (6,266)  (1,487)Deferred revenue (10,991)  (4,790)Lease liabilities (664)  (826)Net cash provided by operating activities 25,216   18,104 Cash flows from investing activities   Expenditures for property and equipment (1,099)  (1,357)Proceeds from maturity of marketable securities -   2,750 Net cash (used in) provided by investing activities (1,099)  1,393 Cash flows from financing activities   Repayments of line of credit (7,500)  (5,000)Employee taxes paid related to the net share settlement of stock-based awards (263)  - Net cash used in financing activities (7,763)  (5,000)Net increase in cash, cash equivalents, and restricted cash 16,354   14,497 Cash, cash equivalents, and restricted cash   Beginning of period 97,203   90,418 End of period$113,557  $104,915 
The following schedule reflects our non-GAAP financial measures and reconciles our non-GAAP financial measures to the related GAAP financial measures (in thousands, except per share data):

Reconciliation of Non-GAAP Financial Measures     Three Months Ended March 31,  2026   2025 Reconciliation of Non-GAAP gross profit   Gross profit$93,506  $84,451 Stock-based compensation expense 574   746 Amortization of acquired developed technology 1,125   705 Restructuring charges -   416 Non-GAAP gross profit$95,205  $86,318     Reconciliation of Non-GAAP operating income  Loss from operations$(5,846) $(11,202)Stock-based compensation expense 18,147   19,795 Amortization of acquired intangible assets 2,328   1,213 Restructuring charges -   2,731 Change in fair value of contingent consideration (493)  - Non-GAAP operating income$14,136  $12,537     Reconciliation of Non-GAAP net income   Net loss$(6,336) $(11,220)Stock-based compensation expense 18,147   19,795 Amortization of acquired intangible assets 2,328   1,213 Restructuring charges -   2,731 Change in fair value of contingent consideration (493)  - Non-GAAP net income$13,646  $12,519     Reconciliation of Non-GAAP net income per share  Net loss per share attributable to common shareholders, basic and diluted$(0.11) $(0.19)Stock-based compensation expense 0.31   0.34 Amortization of acquired intangible assets 0.04   0.02 Restructuring charges -   0.05 Change in fair value of contingent consideration (0.01)  - Non-GAAP net income per share$0.23  $0.22     Reconciliation of Non-GAAP free cash flow   Net cash provided by operating activities$25,216  $18,104 Expenditures for property and equipment (1,099)  (1,357)Interest paid on credit facility 629   484 Payments related to restructuring charges -   2,249 Non-GAAP free cash flow$24,746  $19,480 

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May 13, 2026 09:00 ET  | Source: Sprout Social, Inc

The next-generation platform is designed to bridge the gap between social data and business action, surfacing real-time market signals from social to inform product development, customer care, and more.Trellis will be integrated across the Sprout ecosystem to uncover insights and improve workflows across Publishing, Listening, the Smart Inbox, and Reporting.Trellis Studio introduces customizable AI workflows that can be tailored to users’ unique goals and operational needs.
CHICAGO, May 13, 2026 (GLOBE NEWSWIRE) -- Sprout Social (Nasdaq: SPT) today announced the unveiling of its AI-powered social intelligence platform, designed to help organizations operationalize real-time, unfiltered market conversations at scale. Central to this launch is the upcoming expansion of Trellis, Sprout’s proprietary agentic AI engine. Purpose-built for social, Trellis will be integrated across the Sprout ecosystem — Publishing, Listening, the Smart Inbox, and Reporting — to help transform fragmented social data into organization-wide action.

Available to all customers in July, Trellis will evolve beyond Listening to become a conversational intelligence layer for the platform. By synthesizing social data across networks and combining it with insights from across Sprout, Trellis is designed to help teams ask complex questions and surface relevant, actionable insights faster.

This rollout also debuts Trellis Studio, a dedicated environment where organizations will be able to build bespoke AI workflows. Trellis Studio is designed to help teams streamline recurring workflows, so that social intelligence can be tailored to their unique KPIs and operational needs.

“Social is the fastest reflection of what people are thinking and feeling, yet most organizations lack the infrastructure to act on that data in real time,” said Scott Morris, CMO of Sprout Social. “What changes with social intelligence is not just access to more data, but the ability to turn that signal into strategic action across the business. When organizations can do that, social moves from a downstream function to the heart of how a business anticipates change and drives growth. In today’s market, failing to act on these signals can create a direct constraint on performance.”

The shift toward social-led strategy is fueled by a growing reliance on real-time insights for high-stakes decision-making. Sprout’s latest research reveals that 71% of marketing directors expect social data to surpass traditional market research in shaping enterprise strategy by 2029. However, this evolution demands more than just access to information. It requires a fundamental organizational capability to bridge the gap between insight and execution at a moment's notice. With this launch, Sprout aims to close this gap, providing automation and agentic workflows built to turn signals into action faster across the business.

"AI is only as powerful as the data that informs it. Unlike general-purpose models, Trellis is uniquely valuable because of its access to real-time, native social data across multiple networks,” said Srinivas Somayajula, Chief Product Officer at Sprout Social. “When customer sentiment shifts or a competitive threat emerges, organizations cannot afford to miss the moment. Foundational models lack visibility into these signals in real time, but Trellis delivers, helping to transform network-native social data into decision-ready intelligence exactly when it matters most.”

Sprout’s AI-powered social intelligence platform focuses on four key pillars of value:

Predictive Media Intelligence: Leveraging agentic AI to help detect shifts in industry narratives as they emerge, allowing brands to respond proactively.Full-Funnel Social Optimization: Helping bridge the gap between social engagement and ROI through AI-powered insights designed to align social performance with broader business goals.Scalable Social Support: Moving beyond reactive replies to proactive engagement. AI helps surface the highest-priority interactions, enabling teams to provide personalized service at a global scale.Authentic Brand Amplification: Identifying high-affinity advocates and creators through AI-driven recommendations to extend brand reach with authenticity. These innovations, along with the findings of the 2026 Social Intelligence Report, will be showcased today during Breaking Ground, Sprout's quarterly showcase of the company's latest product updates and cutting-edge industry insights.

About Sprout Social

Sprout Social is a leading AI-powered social intelligence platform, built on the belief that All Business is Social℠. Powered by Trellis, Sprout’s proprietary AI agent, the platform is designed to transform real-time social media signals into actionable insights that drive business forward. Consistently recognized as a top software by G2, Sprout enables brands to deliver smarter, faster business impact through a suite of solutions including comprehensive publishing and engagement, customer care, influencer marketing, advocacy and predictive media intelligence. Sprout’s software operates across all major social networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

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Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “expect,” “explore,” ”future,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to the expected timing, availability and capabilities of our products and platform features, including Trellis and Trellis Studio; the anticipated benefits of our AI-powered social intelligence platform; statements about market trends, including the growing importance of social data in enterprise decision-making; our ability to develop and deliver AI-driven features and functionality; our market size and growth strategy, our plans and objectives for future operations, growth, initiatives or strategies, including our investments in research and development, and other statements that are not historical fact. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others: the expected timing and availability of product features, including Trellis and Trellis Studio, may be delayed or may not be released as described; new products and features may not perform as intended or achieve the market acceptance we anticipate; our AI-powered features depend on access to social media data from third-party platforms, which may be restricted, limited or terminated; our business would be harmed by any significant interruptions, delays or outages in services from our platform, our API providers, or certain social media platforms, or if we are unable to renew agreements governing access to the data provided by such APIs on terms acceptable to us or at all; technological advances in AI may in the future disrupt the social media industry, which could significantly reduce the demand for our services or otherwise adversely impact our business or reputation if we are unable to keep pace and navigate this evolving environment; the AI and machine learning models underlying our platform features may produce inaccurate or unexpected results; unstable market, economic, and geopolitical conditions, such as recession risks, effects of inflation, any cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely could negatively affect our business; changing regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and harm our brand; and rapidly evolving laws, regulations and industry standards relating to AI could affect or limit how we develop and deploy AI-powered features. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 27, 2026 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 8, 2026, as well as any future reports that we file with the SEC. Moreover, you should interpret many of the risks identified in those reports as being heightened as a result of the current and ongoing instability in market, economic, and geopolitical conditions. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprout Social at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Sprout Social assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Will digitizing the construction site or social media management provide better opportunities? Choosing between Procore Technologies (PCOR 3.08%) and Sprout Social (SPT +0.71%) requires understanding their distinct market niches.

Procore focuses on unifying the complex construction lifecycle through its cloud platform, while Sprout Social streamlines social media engagement and intelligence for brands. Both companies are navigating a shifting landscape where investors are increasingly prioritizing sustainable growth and profitability over raw expansion.

Procore provides a unified software platform that helps owners, contractors, and subcontractors manage everything from project design to completion. By centralizing data and communication, the company aims to reduce waste and improve safety among tech stocks serving industrial sectors. While specific major customers are not disclosed, the platform serves a diverse global market of nearly 18,000 organic customers.

In FY 2025, revenue reached nearly $1.3 billion, representing growth of approximately 14.8% compared to the prior year. Despite this growth, the company reported a net loss of roughly $100.8 million, though its net margin improved to negative 7.6% from negative 9.2% in FY 2024. This trend shows the business is narrowing its losses as it scales its operations.

As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.1x. This ratio measures total debt against shareholder equity, with a lower number suggesting the company relies less on borrowed money. The current ratio, which measures a company's ability to pay short-term obligations with short-term assets, is close to 1.3x. Free cash flow for the period was nearly $215.1 million. Note that stock-based compensation represented roughly 79.8% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

Sprout Social offers an AI-powered platform that centralizes social media publishing, analytics, and customer engagement for businesses. Its software helps brands understand social data and manage their online presence across multiple networks like LinkedIn and TikTok. The company serves roughly 30,000 customers, though it does not disclose specific major individual clients in its filings.

For FY 2025, the company generated revenue of approximately $457.5 million, which is an increase of nearly 12.7% year-over-year. It reported a net loss of close to $43.3 million for the same period. While still unprofitable, its net margin improved to negative 9.5% compared to negative 15.3% in the previous fiscal year.

Based on the December 2025 balance sheet, the debt-to-equity ratio is roughly 0.3x. This metric compares total debt to the value of shareholder equity to help investors understand how the business is funded. Its current ratio is approximately 0.9x, indicating the company has slightly fewer short-term assets than short-term liabilities. Free cash flow for FY 2025 was nearly $46 million. Note that stock-based compensation represented roughly 181.3% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.

Risk profile comparisonProcore Technologies faces significant risks from the cyclical nature of the construction industry, which can be slowed by high interest rates or rising material costs. The company is also involved in litigation, including a 2024 trade secret misappropriation lawsuit from Oracle. Furthermore, new regulations like the EU AI Act could impose heavy fines if the company fails to comply with strict artificial intelligence standards. Reliance on Amazon for infrastructure also creates operational risk if service disruptions occur.

Sprout Social is highly dependent on access to third-party social media platforms, and losing access to data from companies like Meta Platforms or X could harm its service. It also faces legal risks, including a 2024 securities class action lawsuit filed against its executives. Like many software firms, it relies on Amazon for cloud infrastructure, meaning any service outages could prevent customers from using the platform. Regulatory compliance with international data laws remains a constant cost and liability risk.

Valuation comparisonSprout Social appears significantly cheaper than Procore Technologies when looking at its P/S ratio and Forward P/E, which compare price to revenue and future earnings estimates respectively.

MetricProcore TechnologiesSprout SocialSector BenchmarkForward P/E27.2x7.5x32.2xP/S ratio5.2x0.9xSector benchmark uses the SPDR XLK sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?I'd go with Procore. These two companies serve completely different markets, but as standalone investments in 2026, the comparison isn't particularly close.

Procore dominates a massive, underpenetrated market. Construction is one of the least digitized industries in the world, and Procore is the clear platform of choice for managing it. The company is growing steadily, raising its outlook, generating meaningful free cash flow, and leaning into AI in a way that could meaningfully expand what the platform does for customers. That's an enticing long-term setup.

Sprout Social is doing fine, with revenue growing, profitability improving, and the company moving upmarket toward larger enterprise customers. But the social media management space is crowded and competitive, and the stock has really underperformed. Growth has leveled out, and while management has a credible path toward better margins, the urgency of the opportunity feels more limited.

Procore is playing in a bigger, less competitive sandbox, and it's executing well. For a long-term investor, that's the more exciting place to be.