Sprout Social Q3 revenue rises 8% on larger customer cohort
SPT•Sprout Social’s third-quarter revenue rose 8% year over year to $125.15 million, beating the $123.81 million analyst estimate. The company forecast fourth-quarter revenue of $124.2 million to $125.2 million and said it targets sustainable GAAP profitability beginning in Q4 2026.
1. Revenue and outlook
Sprout Social reported third-quarter revenue of $125.15 million, up 8% year over year and above the $123.81 million analyst estimate. The company reported a $6.45 million net loss and a non-GAAP loss per share of $0.11.
2. Customer growth and costs
Trailing 12-month subscription revenue from customers with at least $30,000 in annual recurring revenue rose 18% year over year, while the number of customers with at least $50,000 in annual recurring revenue grew 11%. Non-GAAP operating income nearly doubled from a year earlier; the CEO said cost discipline contributed to record non-GAAP operating income and margin.
3. Fourth-quarter targets
Sprout Social expects fourth-quarter revenue of $124.2 million to $125.2 million and non-GAAP net income per share of $0.36 to $0.38. It said it targets sustainable GAAP profitability beginning in Q4 2026 and repurchased more than $26 million of shares under a new $50 million buyback program.
