Sprout Social Q4 Revenue +12.9%, RPO Growth 14.9%, FCF Up 55%
Sprout Social reported Q4 revenue of $120.9 million, up 12.9% year-over-year, and total RPO of $404.0 million, rising 14.9%, contracts representing nearly half its mix. Non-GAAP free cash flow rose 55% to $10.9 million; management introduced a $30K+ subscription metric, a Rule of 40 target and Trellis AI expansion plan.
1. Q4 Financial Highlights
Sprout Social delivered $120.9 million in Q4 revenue, up 12.9% year-over-year, with subscription revenue of $118.5 million. Total RPO rose to $404.0 million (+14.9% yoy) and CRPO reached $284.7 million (+14.2% yoy, covering 70.5% of next 12 months). Non-GAAP free cash flow climbed 55% to $10.9 million, while non-GAAP operating margin improved to 9.5% in the quarter and 10.5% for the full year.
2. Upmarket Momentum and Subscription Metrics
Multi-year contracts now account for nearly half of Sprout’s contract mix, up from a third two years ago as the company pushes upmarket. Management rolled out a $30K+ subscription revenue metric, which grew 22% in FY2025 and comprised 59% of total subscription revenue, alongside an 18% increase in $50K+ ARR customer count and wins with enterprise brands such as GE Aerospace and Caesars Entertainment.
3. AI and Strategic Outlook
Sprout emphasized Trellis, its proprietary AI agent in beta, with plans to expand across core modules and introduce usage-based monetization. The company outlined a simplified self-serve strategy for sub-$30K customers and set a Rule of 40 target of 30% by Q4 2027. Guidance for Q1 fiscal 2026 revenue is $119.9 million to $120.7 million and full-year revenue of $490.2 million to $495.2 million.