Sprout Social, Inc. (SPT)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-09
$10.13-3.06%
Close 2026-09-09 · 1-day change
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-09
Intact: The reason to own it still holds.
Sprout Social is growing revenue toward $494 million in 2026. Profit losses are shrinking, with operating income improving by $7.8 million since 2024-Q4. The company started a $50 million share buyback, showing confidence. Recent earnings beats support the growth story.
Profit margins remain negative and the company is still loss-making. CFO departures and soft guidance raise concerns. Revenue growth may slow below analyst expectations of 8.6%.
The price is about 24% below our fair value near $10.64. Analysts expect about 9% revenue growth, which is roughly in line with company guidance. Our view is cautious given the soft guidance and ongoing losses.
Breaks if: non-GAAP operating income remains negative or below $54.9 million in FY26
Breaks if: total revenue falls below $492.5 million in FY26
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 speculative growth opportunity. The company is currently loss-making, but management is focused on driving revenue growth and improving profitability.
The market appears to have priced in a low expectations gap, suggesting that investors are not overly optimistic about SPT's near-term performance. The valuation is considered cheap compared to peers, but the fundamentals are under scrutiny.
Management is on track with revenue growth and improving profitability, as evidenced by recent financial results. However, the company has a high risk profile and recent changes indicate a decline in overall quality.
The long-term thesis hinges on management's ability to maintain revenue growth and improve profitability, as well as external factors like Fed interest rate decisions and performance of sector leaders. A potential cut in guidance could negatively impact sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The company's AI system boosts customer retention and drives revenue growth. This improvement supports its objectives to expand its high-value customer base. There are no new threats identified that could weaken this outlook.
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: No meaningful share repurchases executed by end of 2026
In the next 1 to 3 years, SPT's performance will depend on management execution and market conditions. Not investment advice.