Sprout Social's Q2 Earnings Call: Revenue Growth, Strategic Moves, and Industry Recognition

Sprout Social reported Q2 revenue of $111.8mln, up 12% YoY, and a non-GAAP operating margin expansion of nearly 400bps. The company experienced an 18% growth in its $50,000+ ARR customer cohort, secured industry recognition, and acquired NewsWhip to enhance its AI, Listening, and Care capabilities. Sprout Social raised its full-year revenue guidance to $452.9-$455.9mln and provided Q3 guidance of $114.4-$115.2mln in revenue.

Title: Sprout Social's Q2 2025 Performance: Revenue Growth, Profit Margin Expansion, and Strategic Acquisitions

Sprout Social (NASDAQ:SPT), a leading social media management software company, reported its Q2 2025 financial results, showcasing strong revenue growth and significant improvements in profitability. The company reported revenue of $111.8 million, up 12% year-over-year (YoY), surpassing analyst estimates of $110.9 million by 0.8% [1]. This quarter's performance was marked by a non-GAAP operating margin expansion of nearly 400 basis points, reaching 9% from 5% in the same period last year [2].

Sprout Social's customer base continued to grow, with an 18% increase in the number of customers contributing $50,000 or more in annual recurring revenue (ARR). The company now serves approximately 30,000 customers across more than 100 countries, demonstrating its ability to attract and retain high-value enterprise clients [2].

The company's strategic initiatives also played a significant role in its Q2 performance. Sprout Social acquired NewsWhip, a media intelligence platform, for $55 million in cash with up to $10 million in additional performance-based earnouts. The acquisition, which closed on July 30, 2025, aims to enhance Sprout's AI, Listening, and Care capabilities, providing rich context on emerging issues and unique metrics to predict the scale and impact of media stories [2].

Looking ahead, Sprout Social raised its full-year revenue guidance to $452.9 million to $455.9 million and provided Q3 2025 revenue guidance of $114.4 million to $115.2 million [2]. The company expects the NewsWhip acquisition to have a positive impact on its financial performance in the coming quarters.

In conclusion, Sprout Social's Q2 2025 results reflect strong revenue growth and improved profitability, supported by strategic acquisitions and a growing customer base. The company's forward-looking guidance indicates continued growth potential, making it an attractive investment opportunity for investors.

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