Sprout Social reported third‑quarter 2025 results that surpassed analyst expectations, with revenue of $115.6 million—up 13% year‑over‑year and beating the consensus estimate of $114.81 million by $0.79 million, a 0.7% upside. The company’s earnings per share rose to $0.23, a $0.07 increase over the $0.16 consensus, representing a 43.8% beat that reflects disciplined cost management and a favorable mix of high‑margin enterprise contracts.
Cumulative recurring performance obligations (cRPO) grew 17% to $454.9 million, the largest year‑over‑year increase in the company’s history. The jump is largely attributable to the acquisition of NewsWhip and the expansion of the enterprise customer base, which added 21% more customers contributing over $50,000 in annual recurring revenue. This shift toward larger, higher‑value accounts has helped lift the overall revenue mix and support margin expansion.
Operating income reached $10.5 million, giving a non‑GAAP operating margin of 11.9%, a record high and a 4.6‑percentage‑point increase from the 7.3% margin reported in the same quarter last year. The margin lift is driven by higher enterprise‑segment revenue, which carries a higher gross‑margin profile, and by effective cost controls that offset modest increases in support and sales expenses.
Management guided for Q4 revenue of $118.2 million to $119.0 million and non‑GAAP operating income of $9.5 million to $10.5 million, while full‑year revenue guidance was raised to $454.9 million to $455.7 million and adjusted EPS to $0.78. The upward revision signals confidence in continued demand for enterprise solutions and the ability to sustain profitability as the company scales its platform.
CEO Ryan Barretto highlighted the company’s “strong execution in the enterprise segment” and its commitment to “strengthening our enterprise presence through customer adoption, account expansion, and strategic partnerships.” The comments underscore the company’s focus on high‑margin, high‑growth accounts and its strategy to deepen relationships with existing customers while pursuing new enterprise opportunities.
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