Sprout Social Reports Strong Q3 Growth with Revenue Up 13% YoY
As reported on GuruFocus, Sprout Social Inc (NASDAQ:SPT) has released its third-quarter earnings for 2025, showcasing impressive revenue growth and expansion into new markets. With a significant presence in the social media management industry, the company continues to innovate and adapt to changing market trends.
Revenue Growth and Expansion
Sprout Social’s quarterly revenue reached $115.6 million, representing a 13% year-over-year increase from the same period in 2024. This substantial growth demonstrates the company’s continued dominance in the social media management space. The expansion of subscription revenue also played a significant role in the overall growth, reaching $114.7 million – an impressive 13% YoY increase.
Key drivers behind this remarkable growth include:
- The integration of NewsWhip, which brought about more go-to-market momentum and increased deal sizes
- Strong partnerships with major brands, such as Fortune 500 companies and national convenience store chains
- Improved efficiency through AI-powered insights and automated workflow solutions
Operational Efficiency and Growth
The company’s non-GAAP operating margin reached a record high of nearly 12%, demonstrating remarkable improvement from the previous year. This achievement is largely attributed to revenue overperformance, increased internal AI use, and temporary benefits from delayed hiring decisions.
Further reinforcing this strong Q3 performance are the significant increases in key metrics:
- Current Remaining Performance Obligations (CRPO): Increased by 17% YoY to $258.5 million
- Run Rate: Rose 15% YoY to $357.1 million
These indicators signal sustained growth and a promising outlook for Sprout Social.
Q4 Guidance and Full-Year Projections
For the full year, Sprout Social expects robust revenue growth and expanded profitability:
- Q4 Revenue: Forecasted between $118.2 million and $119.0 million
- Non-GAAP Operating Margins:** Expected to expand significantly from 2024 levels, exceeding initial expectations
Long-term projection:
- Q1 2026 EPS (GAAP) Expectations: Above the estimated range at market close