Sprout Social Q2 Earnings: Revenue Surges 12% to $111.8M, Beats Estimates

Sprout Social Inc reported Q2 revenue of $111.8 million, surpassing the analyst estimate of $110.92 million, a 12% increase YoY. The company's GAAP net loss was reduced to $12.0 million, while non-GAAP net income rose to $10.7 million. Total remaining performance obligations increased 18% YoY to $347.0 million.

Title: Sprout Social Reports Strong Q2 Performance

Sprout Social Inc. (NASDAQ:SPT) reported its Q2 2025 financial results, showing significant growth and improved profitability. The company's revenue for the quarter reached $111.8 million, surpassing the analyst estimate of $110.92 million, marking a 12% year-over-year (YoY) increase. Despite a GAAP net loss of $12.0 million, the company's non-GAAP net income rose to $10.7 million, indicating strong operational performance [1].

Sprout Social's total remaining performance obligations also increased by 18% YoY to $347.0 million, reflecting the company's commitment to its customer base and ongoing investments in its platform. This growth is particularly notable given the broader market concerns about growth deceleration in the tech sector [2].

The company's strategic acquisition of NewsWhip, a media intelligence platform, for $65 million in cash, further underscores its commitment to expanding its service offerings. The acquisition aims to complement Sprout Social's existing social media management capabilities, providing enhanced services to enterprise customers through AI-powered predictive media intelligence [2].

Looking ahead, Sprout Social provided financial guidance for Q3 2025 and the full fiscal year. For Q3, the company expects revenue between $114.4 million and $115.2 million, with Non-GAAP Operating Income between $9.3 million and $10.3 million. For the full year 2025, Sprout projects revenue of $452.9 million to $455.9 million and Non-GAAP Operating Income of $43.1 million to $45.1 million [2].

Sprout Social's long-term growth strategy focuses on winning enterprise customers, improving customer health and adoption, expanding partnerships and ecosystem, and increasing account penetration. The company aims to consolidate social media management into a single, integrated platform that serves multiple functions across organizations, leveraging AI and robust insights to drive efficiency and amplify ROI [2].

References:
[1] https://finance.yahoo.com/news/sprout-social-nasdaq-spt-q2-213635575.html
[2] https://za.investing.com/news/company-news/sprout-social-q2-fy2025-slides-revenue-up-12-acquires-newswhip-for-65m-93CH-3824072