Quality Investor

Sprout Social, Inc.

Rank #33StartupWatchlistCompare with other stocks

SPT · Nasdaq · Technology

Sprout Social, Inc. (SPT) — Rank #33 by gross profitability (GP/assets 0.68) · ROE -19.0% · Piotroski F-Score 4 / 9.

As-of 2026-10-30 · CIK 0001517375 · all metrics point-in-time as of the filing date.

About

Sprout Social, Inc. designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

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The company provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action. It offers AI-powered solutions, such as publishing and scheduling, social customer care, reporting and analytics, social listening and business intelligence, reputation management, social commerce, influencer marketing, predictive media intelligence, employee advocacy, and automation and workflows. In addition, the company provides smart inbox, comprehensive case management, social customer relationship management, social monitoring and alerts, customer service tools, and automation; and centralized content planning, creation, and publishing, automated scheduling, content performance reporting, suggested content, message approval workflows, publishing permissions and governance, and content and asset libraries. Further, it offers social media; content performance, customer service and team, custom report builder, and reporting API; and market research, brand health, competitive insights, consumer trends, and product feedback; and reputation and review management, mobile applications, and chat bot creation and management. Additionally, the company offers professional services consisting of consulting and training services. It serves social and community management; public relations; marketing; influencer marketing; customer service and care; commerce, sales and customer acquisition; recruiting and hiring, product development, and business strategy; and small-and-medium-sized businesses, mid-market companies, enterprises, marketing agencies, government, non-profit, and educational institutions.

The company was incorporated in 2010 and is headquartered in Chicago, Illinois.

Industry
Software - Application
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/S is the primary valuation lens for pre-profit companies.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

1,362

Industry

Software - Application

Exchange

Nasdaq

11/12

Flags passed

SPT passes 11/12 quality flags

1 caution to review

  • CAUTION
    Dilution above 2%

    Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

  • PASS
    Gross margin holding
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Deferred revenue growing

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.68
Return on equity
-19.0%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.28
Current ratio
1.03×
Net cash
$79.93M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
17.2%

Growth

1/2 pass
Revenue growth
12.7%
Piotroski F-Score
4 / 9
Share dilution
3.0%

Burn rate (cash flow) is the primary read at this stage — TAM and product-market fit aren't metrics this dashboard tracks.

Profitability

Does it make money well?

No warning flags · GP/assets 97th percentile of 36 SIC 7372 peers

Gross profitability (GP / assets)

0.68

Primary signal (Novy-Marx).

97th pctl of 36 SIC 7372 peers

Return on equity

-19.0%

Gross margin

77.6%

74th pctl of 36 SIC 7372 peers

Revenue growth (YoY)

12.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

21.7%

Revenue CAGR (5Y)

28.0%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

64.4%

Cash Flow Health

Is the cash real?

No warning flags · FCF 191% above net income

Free cash flow

$39.32M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

190.8%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

17.2%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Caution: Dilution above 2% · net cash $79.93M, F-Score 4/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.28

10th pctl of 32 SIC 7372 peers (best = lowest)

Current ratio

1.03×

0th pctl of 36 SIC 7372 peers

Quick ratio

0.84×

Net cash

$79.93M

Cash & equivalents minus total debt.

Piotroski F-Score

4 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

2.7 / 5

Fair
Share count trend
3.0%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory
-1.9%3/5 Good

Lifecycle Phase History

20202025
Hypergrowth
Startup

Price History

SPT-91.8% · -39.3% CAGRSPY+82.9% · +12.8% CAGR