Sprout Social, Inc. (SPT) Stock

Sprout Social, Inc. (SPT) is a Technology stock trading at $10.00 (as of 2026-08-21), with a market capitalization of $602.42M. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Sprout Social, Inc. operates a web-based social media management platform that provides cloud software for social messaging, publishing, analytics and reporting, social listening, and workflow automation. Its tools support organizations such as marketing, customer service, and PR teams, serving customers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Understand Sprout Social, Inc.: how it makes money

Sprout Social builds and operates a web-based social media management platform, it makes money mainly by selling subscription software, with little to no revenue from professional services and other.

Because revenue is primarily subscription-based, the profit model is driven by ARR trajectory and retention (how much existing customers keep spending), with added contribution from premium product adoption.

Business quality (Weak): Strong gross margin (77.0%), but the latest quarter still showed an operating loss (operating margin -4.8%), so operating performance depends on whether subscription momentum and retention can translate into cost leverage.

Bull case

  • Subscription-led model with measurable visibility: Annual Recurring Revenue Exiting the Period is $0.39B, and Remaining Performance Obligations are 63% of Annual Recurring Revenue.
  • Customer economics appear stable: Dollar-Based Net Retention Rate is 100%, alongside Net New Customers of 132.
  • Premium packaging may support expansion: Premium products Annual Recurring Revenue is $0.09B, with Premium Product Attach Rate at 30% and Premium Module Attach Rate at 27%.

Bear case

  • Operating losses despite high gross margin: Operating margin is -4.8% for the quarter, indicating operating expenses outweigh gross profit.
  • Limited diversification away from subscriptions: Professional Services and Other Revenue is $0.0B in the segment breakdown provided.
  • Net retention at 100% suggests limited expansion headroom: With Dollar-Based Net Retention Rate at 100%, growth may depend more on new customer additions than on upsell to existing customers.
Valuation — source: SEC EDGAR (first-party)
Price$10.00
Market Cap$602.42M
Price / Book2.64
Price / Sales1.25
FCF Yield8.4%
DCF Value (model)$2.30
DCF Upside vs Price-77.0%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$457.55M
Net Margin-9.5%
Revenue Growth (YoY)10.8%
FCF Growth (YoY)87.6%
Financial Health — source: SEC EDGAR
Altman Z-Score0.59 (distress)
Piotroski F-Score4/9 (moderate)
Valuation vs Sector & Industry
Sector P/E (Technology)34.0
Industry P/E (Business Services)30.2
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($76.89M)
Institutional Holders Tracked10
Company
SectorTechnology
IndustryBusiness Services
CEORyan Paul Barretto
Employees1,322
CountryUS
IPO Date2019-12-13

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SPT earnings history · SPT institutional & insider holders · SPT KPIs & operating metrics · SPT financials · SPT investor presentations & press releases · SPT SEC filings · SPT peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.