Sprout Social 2025 Q2 Earnings Narrowed Losses with Revenue Growth

Sprout Social (SPT) reported its fiscal 2025 Q2 earnings on Aug 7, 2025. The company exceeded revenue expectations, posting $111.78 million, a 12.5% year-over-year increase. Despite improved profitability, the stock declined in after-hours trading. The company has posted losses for seven consecutive years in this quarter, though the magnitude of losses has decreased.

Sprout Social’s total revenue for 2025 Q2 reached $111.78 million, marking a 12.5% increase from $99.40 million in the same quarter of the previous year. The Subscription segment was the primary driver, contributing $111.11 million, while Professional services and other revenue added $668,000. This performance reflects the company’s continued focus on its core subscription-based offerings.

The company improved its profitability, reducing its net loss to $-11.98 million in 2025 Q2 compared to $-16.89 million in 2024 Q2, a 29% reduction. Earnings per share (EPS) also showed progress, narrowing losses to $0.21 from $0.30. However, the company has yet to achieve positive net income and has sustained losses for the past seven years. This suggests ongoing operational challenges, despite the recent progress.

The stock price of Sprout Social has experienced a significant decline, falling 14.90% during the latest trading day and 14.05% during the most recent full trading week. The stock has plummeted by 30.41% month-to-date, reflecting investor concerns over the company's long-term profitability. Despite the earnings beat, the stock closed lower in after-hours trading, indicating mixed investor sentiment.

Although the stock declined in after-hours trading, Sprout Social's revenue beat of $111.78 million exceeded the consensus estimate of $110.9 million. The positive revenue performance has historically shown favorable results for investors who buy and hold shares for 30 days post-earnings. Analysts remain optimistic, with an average price target of $27, significantly higher than the current share price of $16.73. The company’s strategic investments, particularly through the acquisition of NewsWhip, position it for potential growth in the long term.

CEO Ryan Barretto emphasized the company’s strong performance, highlighting a 12% revenue increase and improved profitability. He outlined a strategic focus on product development, enterprise adoption, and partnership expansion. Barretto’s comments reflect an optimistic tone, with a clear emphasis on long-term growth and competitive differentiation.

For Q3 2025, Sprout Social expects revenue between $114.4 million and $115.2 million, with Non-GAAP operating income ranging from $9.3 million to $10.3 million and Non-GAAP net income per share between $0.15 and $0.16. The company's full-year 2025 guidance includes revenue between $452.9 million and $455.9 million, with Non-GAAP operating income between $43.1 million and $45.1 million and Non-GAAP net income per share between $0.71 and $0.75. All figures are based on Non-GAAP measures and may be subject to change.

Additional News
Within the three weeks following Sprout Social’s August 7 earnings report, several key developments emerged. On July 11, 2024, Xinhua News reported on various global and domestic affairs, including advancements in technology and social policy. Notably, OpenAI’s announcement of GPT-5 marked a significant milestone in the AI industry, signaling potential growth in AI-driven sectors. In the automotive space, the debut of the all-new岚图知音 highlighted innovation in China’s EV market. Additionally, the acquisition of NewsWhip by Sprout Social was widely covered, emphasizing the company’s strategic move to enhance its social media platform capabilities. These events collectively indicate an evolving landscape for Sprout Social, with technological advancements and M&A activity shaping its future direction.