Sprout Social, Inc. Class A (SPT)

Sprout Social reported its Q1 FY2025 earnings, exceeding expectations with revenue up 13% year-over-year and significant operating margin expansion. The company also announced its Q2 2025 earnings on August 6, 2025, reporting $0.18 EPS, beating the consensus estimate of $0.15, and revenue of $111.78 million, exceeding estimates of $110.93 million. The acquisition of NewsWhip closed after Q2 2025, enhancing Sprout Social's AI and crisis management capabilities and providing new upsell opportunities. Over the past six months, analysts have issued various ratings, with a consensus of "Hold" and an average price target of $27.36. The stock has experienced significant volatility, reaching a new 52-week low of $10.33. There have been insider sales, with Justyn Russell Howard selling 20,000 shares in October 2025, reducing his ownership by 72.95%.

The company's CFO clarified that cRPO, a good indicator of enterprise bookings growth, can be skewed by seasonality, with strong performance typically in Q4 and a burn-off in Q1. Recent research from August 2025 indicates a significant shift among marketing leaders, with 80% planning to reallocate funds from other channels to social media, and 87% planning to increase paid social spend. Sprout Social has been executing a strategic shift towards upmarket and larger customers, focusing on annual and multi-year deals, which could lead to more stable, less seasonal revenue streams over time.

Sprout Social designs, develops, and operates a web-based platform that centralizes social messaging, data, and workflows into a unified system for record-keeping, intelligence, and action. It offers AI and automation solutions, publishing and engagement tools, analytics and reporting features, social listening and business intelligence capabilities, influencer marketing solutions, employee advocacy platforms, social commerce tools, and reputation and review management features. The platform integrates with major social networks including X, Facebook, Instagram, TikTok, Pinterest, LinkedIn, Google, Reddit, Glassdoor, and YouTube.

Sprout Social, Inc. has a global presence, operating its web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions.

Sprout Social has maintained a strong brand reputation in the past year, marked by industry recognition and positive customer feedback. The company was named the #1 Best Software Product by G2's 2024 Best Software Award. A Forrester Consulting study in February 2025 revealed that Sprout Social enabled customers to achieve a 268% return on investment (ROI) and a net present value (NPV) of $1.3 million over three years, with a payback period of less than six months. Sprout Social has consistently introduced new features and AI-powered solutions. Sprout Social has strengthened its partnerships and integrations with platforms like Salesforce and Canva, further enhancing its offerings.

Major institutional owners of Sprout Social, Inc. include The Vanguard Group, Inc., Cadian Capital Management, LP, and BlackRock, Inc. Individual insiders own 6.49% of the stock, while institutions own 90.6%. Recent insider activity includes sales by company insiders totaling 50,566 shares valued at $695,181 in the last ninety days.