Lumida
/SPT
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Sprout Social Inc

Sprout Social Inc

SPT
$8.62USD↑+0.00%+0.00 today

MARKET CAP

518.1M

P/E (TTM)

10.3x

FWD P/E

7.9x

DAY RANGE

$8 – $9

52W RANGE

$5
$20

AI Summary

Stalk
StalkMedium

SPT’s Stage 2 advancing set-up with mean-reversion permission and a bullish higher-highs & higher-lows pattern faces resistance at the declining 200 DMA amid extreme overbought conditions; execution is best deferred until a disciplined pullback into rising EMAs or a defined support zone.

  • ↑Q1 revenue $121.5M (+11.2% YoY) with 11.6% non-GAAP operating margin.
  • ↑Non-GAAP free cash flow $24.7M (+27% YoY), highest in company history.
  • ↓Weak profitability factors raise margin compression risk amid rising S&M spend.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Sprout Social Inc. (NASDAQ: SPT) operates in the social media management sector, providing essential tools and platforms that aid businesses in managing their social media presence and customer engagement. The company is strategically pivoting towards larger enterprises, leveraging emerging trends in AI-driven insights and analytics to enhance its product offerings. Sprout is part of the growing focus on leveraging social media for brand awareness and customer interactions, especially vital in a landscape where consumer behaviors are rapidly shifting towards digital channels.

Bull says

  • ↑Q1 revenue $121.5M (+11.2% YoY) with 11.6% non-GAAP operating margin.
  • ↑Non-GAAP free cash flow $24.7M (+27% YoY), highest in company history.
  • ↑Enterprise ARR >$30k cohort grew 21% YoY; multi-year clients fell below 10% of mix.
  • ↑Launched Trellis AI platform, boosting customer engagement and product stickiness.
  • ↑$50M share buyback authorised; strong 13F ownership underscores institutional backing.
  • ↑FY2026 revenue guidance of $492.5–495.5M indicates robust growth outlook.

Bear says

  • ↓Weak profitability factors raise margin compression risk amid rising S&M spend.
  • ↓Negative momentum and size factors suggest elevated stock price volatility.
  • ↓SMB segment (<$30k ARR) expected to decelerate, reducing growth contributions.
  • ↓Budget-constrained customers demand strong ROI, potentially delaying purchases.
  • ↓Retention challenges and churn risk in smaller accounts could increase.
  • ↓Volatile liquidity position may strain funding amid macroeconomic uncertainties.

Investment themes with SPT

Social Media↑ +0.09%

META · 0700.HK · 1024.HK

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-11-2026neutral

Transcript signals

Bull points

  • in terms of the AI features and resonating, you know, I'd say again, we're pretty early on here. The progress is being strong. from the standpoint that we were in beta for the end of last year going into this year, we went general availability at the end of the first quarter here. So pretty early on, too early to really call out any specific numbers, but I will say that it is differentiating us in conversations with customers. We're getting a lot of great feedback from new business customers and prospects.
  • Our first quarter results were highlighted by a quarterly non-GAAP operating margin of 11.6%, up 16 basis points year-over-year, and ongoing expansion of our 30K and above customer segment.
  • Total revenue was 121.5 million, representing 11.2% year-over-year growth.

Bear points

  • Early customer feedback on Trellis has been very strong, particularly around the speed and quality of insights.
  • While we continue to believe there is strong potential in the customer segment below 30K in approximated subscription revenue, it has clearly been a drag to the growth of Sprout over the last few years.
  • we do expect to see a modest deceleration in the sub 30k segment this year
Read full transcript analysis ›