Sprinklr, Inc. (CXM)
NYSEInformation TechnologySoftware - ApplicationSnapshot 2026-09-09
$5.32-4.14%
Close 2026-09-09 · 1-day change
NYSEInformation TechnologySoftware - ApplicationSnapshot 2026-09-09
Intact: The reason to own it still holds.
Sprinklr grows revenue about 7% yearly, reaching $219.5 million in Q1 2027. Profit improved from a loss to $10.6 million in Q1 2027. Free cash flow stays strong near $65.8 million. The company invests in AI and repurchases shares to boost value.
Revenue growth is slowing with a recent guidance cut. Operating cash flow dropped from $83.8 million to $70.4 million. Competitive pressure and soft outlook may hurt future growth and margins.
The price is about 57% below our fair value near $13, reflecting low 2% revenue growth expectations. Our view is more optimistic on revenue growth and margin improvement.
Breaks if: Repurchase program is canceled or materially delayed
Breaks if: Free cash flow falls below $50 million in 2027-Q1
Operating income falls below $0 in 2027-Q1
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on steady revenue growth. The current thesis state is intact, but there are mixed results in improving margins and cash flow.
The market appears to have priced in a justified valuation, with CXM being seen as cheap compared to its peers. There is a negative expectations gap, indicating that investors may not expect significant growth in the near term.
Management is on track with revenue growth, but operating income has declined, showing a mixed performance. Cash flow generation is variable, and while the miss probability is low, recent industry trends raise some caution.
The long-term thesis hinges on management's ability to improve operating income and cash flow while navigating potential risks from guidance changes. Additionally, external factors like Fed rate cuts and performance from sector leaders could influence CXM's trajectory.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The company reported a sharp drop in its stock. This suggests the market is changing its view on CXM. The latest earnings beat was overshadowed by concerns about revenue growth. Professional services margins are expected to remain negative. This raises doubts about future profitability.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Total revenue falls below $205 million in 2027-Q1
Continue growing total and subscription revenue year-over-year with focus on durable growth and enterprise adoption.
Stated as a priority in 4 of last 4 quarters. Total revenue grew modestly from $212.0 million in 2025-Q3 to $213.7 million in 2026-Q3 (+1.7%), with subscription revenue up 3.3% over the same period. Management consistently emphasizes durable growth and enterprise adoption, and the trajectory shows delivering steady revenue growth.
“Q2 total revenue of $213.7 million, up 1% year-over-year; subscription revenue up 3% year-over-year.”
“Q1 total revenue of $219.5 million, up 7% year-over-year; subscription revenue up 6% year-over-year.”
“Q4 total revenue of $220.6 million, up 9% year-over-year; subscription revenue up 6% year-over-year.”
“Q1 total revenue of $219.5 million, up 7% year-over-year; subscription revenue up 6% year-over-year.”
Overall, CXM's fundamentals show promise, but challenges remain. Not investment advice.