Sprout Social announced the launch of Trellis, a conversational AI agent that ingests billions of unstructured social‑media posts and delivers real‑time sentiment analysis, trend detection, and predictive insights directly within its Sprout AI platform. The agent is positioned to replace static dashboards used by many competitors, offering brands instant, actionable intelligence that can be queried conversationally and integrated into day‑to‑day marketing, PR, and risk workflows.
The new capability is part of Sprout’s broader AI strategy, which also includes the recent acquisition of NewsWhip. The July 30, 2025 deal closed for $55 million in cash plus up to $10 million in earn‑outs, adding predictive media‑intelligence tools that feed into Trellis’s analytics engine. Together, the two initiatives create a unified, AI‑driven intelligence suite that can surface emerging stories, forecast audience engagement, and recommend content strategies in real time.
Sprout’s Q3 2025 financial results underscore the commercial impact of these investments. Revenue rose to $115.6 million, a 13% year‑over‑year increase, driven by a 21% growth in high‑value enterprise customers and a 15% lift in subscription renewals. Earnings per share reached $0.23, beating consensus of $0.16 by $0.07 (a 43% beat). The strong earnings were largely attributable to disciplined cost management and the high margin of the AI‑enabled subscription tier, which offset modest increases in support and professional services costs.
Management raised its full‑year 2025 guidance, projecting revenue of $454.9 million to $455.7 million and non‑GAAP operating income of $46.1 million to $47.1 million—an upward revision that reflects confidence in sustained demand for AI‑powered analytics and the expected revenue contribution from the NewsWhip integration. The company also highlighted a record non‑GAAP operating margin of nearly 12% in Q3, up from 7.3% a year earlier, signaling effective scaling of its high‑margin AI platform.
Analysts have adjusted their price targets downward in light of the earnings beat, but maintain a buy consensus, indicating that while the company’s fundamentals remain strong, some investors are exercising caution regarding future growth rates and competitive pressures in the AI‑driven social‑intelligence space.
The launch of Trellis, coupled with the NewsWhip acquisition, positions Sprout Social to capture a larger share of the enterprise social‑media analytics market, accelerate its AI roadmap, and deliver higher value to its customers through real‑time, conversational insights.
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