Sprout Social

SPT

Market cap $405M

Sprout Social trades at just over 7x forward earnings and is down 95% from 2021 highs, reflecting deep skepticism about SaaS resilience versus AI disruption. SPT's management is proactively integrating AI to enhance its platform, countering fears of SaaS obsolescence and leveraging a vast data set from two billion daily messages. Insider buying, a robust balance sheet, and potential M&A interest (e.g., Adobe) support a value thesis despite ongoing market concerns about AI replacement risk.

Sprout Social has lost ~75% of its value in the past year amid sector-wide software selloffs and AI-driven competitive fears. I downgrade SPT to neutral, as its bargain valuation is now common in software, and execution remains shaky despite upmarket customer growth. SPT targets a 'Rule of 30' by Q4 FY27, but current net retention is flat (~100%), and expansion has stalled, weighing on growth prospects.

Sprout Social Inc (NASDAQ: SPT) on Thursday reported upbeat earnings for the fourth quarter.

Sprout Social, Inc. (SPT) Q4 2025 Earnings Call Transcript

Sprout Social (SPT) came out with quarterly earnings of $0.2 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.19 per share a year ago.

Initiates Non-GAAP 30% Rule of 40 Target By the Fourth Quarter of 2027 Approximated Subscription Revenue Contribution for ≥$30K ARR Customers Grew 22% in 2025

CHICAGO, Feb. 19, 2026 (GLOBE NEWSWIRE) -- Sprout Social (Nasdaq: SPT), an industry-leading provider of social media management and analytics software, has been recognized by G2's 2026 Best Software Awards. This milestone marks the tenth consecutive year Sprout has received this honor, which ranks the world's most impactful software companies and products based on authentic, timely reviews from real users.

Sprout Social (SPT) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.

CHICAGO, Feb. 18, 2026 (GLOBE NEWSWIRE) -- Sprout Social (Nasdaq: SPT), an industry-leading provider of social media management and analytics software, today announced new AI-driven innovations and an expanded partnership to help brands reach people in the Answer Engine era. These updates empower organizations to create and scale the type of authentic content that consumers and AI answer engines value most. This release features an expanded Reddit partnership, a new AI-powered creator management tool called Recruit, and the Trellis Monitoring Agent for NewsWhip.

CHICAGO, Jan. 12, 2026 (GLOBE NEWSWIRE) -- Sprout Social, Inc. (“Sprout Social”, the “Company”) (Nasdaq: SPT), an industry-leading provider of cloud-based social media management software, today announced that it will report its financial results for the fourth quarter ending December 31, 2025 after market close on Thursday, February 26, 2026. The financial results and business highlights will be discussed on a conference call and webcast scheduled at 4:00 p.m.