Sprout Social announced the launch of Sprout AI, its first AI‑powered platform, on November 18, 2025. The platform centers on Trellis, a conversational agent that ingests billions of unstructured social‑media data points and delivers real‑time sentiment, trend, and competitive insights directly within Sprout’s existing interface. By turning raw social data into actionable intelligence, Sprout AI positions the company to deepen its enterprise focus and expand into new markets such as public relations and crisis monitoring.
The company also reported Q3 2025 earnings that beat expectations. Earnings per share rose to $0.23 from the consensus estimate of $0.16, a $0.07 or 44% beat, while revenue reached $115.59 million versus the $114.86 million forecast, a $0.73 million or 0.6% beat. The results were driven by a 460‑basis‑point expansion of the non‑GAAP operating margin to 11.9%, largely attributable to disciplined cost management and the higher mix of high‑margin AI‑enabled services. The company’s prior quarter, Q3 2024, saw EPS of $0.19 and revenue of $107.1 million, indicating a steady upward trajectory.
Sprout AI’s launch is a key milestone in the company’s long‑term AI strategy, which has been under development for more than a decade. The platform incorporates predictive media intelligence from the July 30, 2025 acquisition of NewsWhip, which was purchased for $55 million in cash plus up to $10 million in earnouts. By integrating NewsWhip’s real‑time foresight, Sprout AI can offer brands a competitive edge that blends social data with media trend analysis, a capability that differentiates it from other social‑media management vendors.
Scott Morris, Sprout’s chief marketing officer, said the platform “changes all of that” by providing teams with a single, AI‑driven view of signals in the noise of social data. CEO Ryan Barretto added that the NewsWhip acquisition “accelerates our vision of delivering an agentic, AI‑powered platform that seamlessly connects media foresight with social strategy to drive transformative outcomes for our customers.” These comments underscore the company’s focus on delivering proactive, enterprise‑ready AI tools that support product innovation, risk management, and customer engagement.
Investors responded positively to the earnings beat, but some concerns about future growth tempered enthusiasm. The company’s guidance for the next quarter remains unchanged, reflecting confidence in continued demand for AI‑enabled analytics while acknowledging the need to manage costs and invest in new capabilities.
With a customer base of roughly 30,000 brands and a recent G2 Best Software Award, Sprout Social is positioned to capitalize on the growing demand for AI‑powered social‑media intelligence. The launch of Sprout AI and Trellis marks a significant operational milestone that could accelerate the company’s transition to a high‑margin, AI‑centric business model.
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