Sprout Social Reports Strong Q4 Earnings, Outlines Plans to Improve Smaller Customer Segment

The social media management company saw double-digit revenue growth, expanding operating leverage, and increasing mix of multi-year contracts.

Published on Mar. 2, 2026

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Sprout Social (NASDAQ:SPT) reported strong fourth-quarter fiscal 2025 results, including double-digit revenue growth, expanding operating leverage, and an increasing mix of multi-year contracts. The company emphasized its push upmarket and outlined plans to improve efficiency in its smaller-customer segment. Sprout also introduced a new metric to provide more visibility into its 'socially sophisticated' customer base.

Why it matters

Sprout Social's performance highlights the growing demand for social media management tools as businesses continue to prioritize their online presence and engagement. The company's focus on larger customers and plans to address its smaller-customer segment suggest it is adapting to market trends and seeking to optimize its operations.

The details

Sprout Social reported Q4 revenue of $120.9 million, up 12.9% year-over-year, with subscription revenue of $118.5 million, up 12% year-over-year. The company also generated $10.9 million in non-GAAP free cash flow in the quarter and $45.9 million for fiscal 2025, an improvement of approximately 55% year-over-year. Sprout emphasized continued momentum with larger customers, noting 27% growth in approximated subscription revenue contribution for the $50K+ cohort in fiscal 2025. To address challenges with its smaller-customer segment, the company outlined plans to improve pricing and packaging for sub-$30K customers.

  • Sprout Social reported Q4 fiscal 2025 results on March 1, 2026.
  • The company plans to hold an investor webinar on March 11, 2026 to discuss its technical foundation and 'system of record and action' positioning.
  • Sprout expects a 'subdued' growth path for its sub-$30K customer segment in 2026, with stabilization in 2027.

The players

Sprout Social

A Chicago-based software company specializing in social media management solutions for businesses of all sizes.

Ryan Barretto

CEO of Sprout Social.

Joe DelPreto

CFO of Sprout Social.

Lori Jiménez

New Chief Revenue Officer of Sprout Social.

Alan Boyce

CTO of Sprout Social.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

Sprout Social plans to share more about the packaging and pricing of its new AI agent, Trellis, at its 'Breaking Ground' event in May 2026.

The takeaway

Sprout Social's strong Q4 performance and strategic initiatives highlight the company's ability to adapt to market trends and customer needs, as it continues to expand its foothold in the social media management space.