Sprout Social Boosts 2025 Revenue Guidance to $455.9M with NewsWhip Acquisition

Sprout Social reported Q2 2025 revenue of $111.8 million, up 12% YoY, and raised 2025 revenue guidance to $455.9 million. The company's non-GAAP operating margin expanded by nearly 400 basis points. CEO Ryan Paul Barretto attributed the growth to the acquisition of NewsWhip, which has accelerated enterprise growth.

Sprout Social Inc. (SPT) reported robust financial results for the second quarter of 2025, with revenue reaching $111.8 million, a 12% year-over-year (YoY) increase. The company also raised its full-year revenue guidance to a range of $452.9 million to $455.9 million, up from the previous range of $448.9 million to $453.9 million [1]. CEO Ryan Paul Barretto attributed the growth to the acquisition of NewsWhip, which has accelerated enterprise growth and driven operational efficiency.

The company's non-GAAP operating margin expanded by nearly 400 basis points to 9.2%, driven by strategic wins with brands such as Honda, Cigna, and Smuckers, and industry recognition, including 164 leader badges in G2's latest reports and TrustRadius 2025 top-rated awards in 8 categories [1]. Barretto highlighted the integration of NewsWhip's AI-powered predictive media intelligence, which has seen adoption by over 70% of brand customers within a month of launch. The company expects this acquisition to enhance retention among large enterprise customers and open new markets in PR and crisis monitoring [1].

Sprout Social also introduced Guardian by Sprout Social, an AI-driven governance and brand safety platform, which has seen strong demand in regulated industries and a first deal closed within weeks of launch [1]. The company's customer metrics demonstrated continued success in moving upmarket, with the number of customers contributing more than $50,000 in annual recurring revenue (ARR) growing to 1,826, up from 1,545 a year earlier, representing an 18% increase [2].

Looking ahead, Sprout Social expects revenue in the range of $114.4 million to $115.2 million for the third quarter of 2025 and non-GAAP net income per share of between $0.15 and $0.16. For the full year 2025, the company now expects revenue in the range of $452.9 million to $455.9 million, with non-GAAP net income per share between $0.71 and $0.75 [1]. Management indicated that the updated full-year guidance primarily reflects the early contribution from NewsWhip and noted strong early interest from new and existing enterprise customers, including new conversations with globally recognized brands [1].

In summary, Sprout Social's Q2 2025 results reflect a strong performance driven by strategic acquisitions and operational improvements. The company's focus on AI-driven media intelligence and enterprise customer expansion positions it well for future growth.

References:
[1] https://seekingalpha.com/news/4480923-sprout-social-raises-2025-revenue-guidance-to-455_9m-as-newswhip-acquisition-accelerates
[2] https://www.investing.com/news/company-news/sprout-social-q2-fy2025-slides-revenue-up-12-acquires-newswhip-for-65m-93CH-4174687