Sprinklr's Q4 2025 Earnings Call: Contradictions in Go-to-Market Strategy, Federal Revenue, and AI Dynamics

These are the key contradictions discussed in Sprinklr's latest 2025Q4 earnings call, specifically including: Go-to-Market Strategy and Sales Model, Federal Government Revenue Impact, and AI Impact on Seat-Based Models:



Revenue Performance and Growth:
- Sprinklr reported total revenue of $202.5 million for Q4, up 4% year-over-year.
- Subscription revenue was $182.1 million, up 3% year-over-year.
- The growth was driven by a focus on improving operational efficiency and strategic investments in core and service products.

Operating Margin Improvements:
- The company achieved a non-GAAP operating margin of 13% in Q4, resulting in $25.9 million in non-GAAP operating income.
- These improvements were due to a reduction in workforce by approximately 15%, which has freed up resources for strategic investments.

Customer Base Expansion:
- Sprinklr ended the year with 149 customers contributing at least $1 million in subscription revenue, a 18% increase year-over-year.
- This expansion is attributed to targeted initiatives to engage and retain large enterprise customers.

Technical Debt Resolution and Product Innovation:
- The company is working on resolving technical debt across its platform, focusing on improving product delivery, functionality, security, and reliability.
- This is part of a broader strategy to enhance customer experience and accelerate product innovation.