Sprout Social Sees 14.9% RPO Growth to $404M and 55% FCF Gain
Sprout Social’s total RPO climbed 14.9% to $404 million and CRPO increased 14.2% to $284.7 million, while FY25 non-GAAP free cash flow rose 55% to $45.9 million. Subscription revenue from customers with over $30 K ARR grew 22% to 59% of total, and multi-year contracts now represent nearly half of the contract mix.
1. Upmarket Momentum and Contract Mix
Sprout Social introduced a new “$30K and above subscription revenue” metric showing that customers with at least $30 K ARR grew their subscription revenue contribution by 22% in FY25, accounting for 59% of total subscription sales. Multi-year contracts now make up nearly half of the contract mix, up from roughly one-third two years ago, enhancing forward visibility.
2. Revenue, RPO Growth and Cash Flow
In Q4, revenue reached $120.9 million (12.9% YoY growth) and subscription revenue was $118.5 million (up 12%). Total RPO rose 14.9% to $404.0 million and CRPO grew 14.2% to $284.7 million, while non-GAAP free cash flow hit $10.9 million in the quarter and $45.9 million for the year, boosting the non-GAAP operating margin to 10.5%.
3. AI Strategy and Sub-$30K Initiatives
The company highlighted its Trellis AI agent in early beta, now used by over 1,000 users to generate executive-ready insights, with broader rollout and usage-based monetization planned in 2026. To address its sub-$30 K segment, Sprout Social is developing a self-serve automation motion and simplified product packaging to lower customer acquisition costs and stabilize growth by 2027.
4. Guidance and Rule of 40 Objectives
Sprout Social issued Q1 fiscal 2026 revenue guidance of $119.9 million to $120.7 million and full-year revenue guidance of $490.2 million to $495.2 million. The company also set a Rule of 40-style objective targeting a combined 30% revenue growth plus non-GAAP operating margin by Q4 2027, driven by operating expense leverage and modest gross margin improvements.