Quality Investor

Sprout Social, Inc.

Rank #34Startup

SPT · Nasdaq · Technology

Sprout Social, Inc. (SPT) — Rank #34 by gross profitability (GP/assets 0.68) · ROE -19.0% · Piotroski F-Score 4 / 9.

As-of 2026-09-15 · 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

Price History

SPT-91.6% · -39.0% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

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

Market Cap

$685.60M

P/E (annual)

P/S (annual)

1.5

P/B

3.0

P/OCF (annual)

15.8

Shareholder Yield

-3.0%

Employees

1,362

Industry

Software - Application

Exchange

Nasdaq

Signal Flags

1 green1 yellow
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

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%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

5.4%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 3.0% — per-share value needs a total required return of 8.4% once share-count change is priced in.

vs. own 6-year median revenue growth: 30.4%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

1.2%

r = 10% (base)

5.4%

r = 12%

9.0%

Net debt / market cap: -12.0%

Base FCF: $39.3M3Y mean FCF: $22.4M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

0.8xCheap
0.8xmed 7.3x13.6x

P / B

Price / book value per share

1.9xCheap
1.9xmed 17.0x24.6x

P / GP

Price / gross profit per share

1.1xCheap
1.1xmed 9.4x17.9x

P / FCF

Price / free cash flow per share

9.6xCheap
9.6xmed 230.0x810.6x

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

Profitability

Gross profitability (GP / assets)

0.68

Primary signal (Novy-Marx).

95th pctl of 38 SIC 7372 peers

Return on equity

-19.0%

Gross margin

77.6%

70th pctl of 38 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%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.28

12th pctl of 33 SIC 7372 peers (best = lowest)

Current ratio

1.03×

0th pctl of 38 SIC 7372 peers

Quick ratio

0.84×

Net cash

$79.93M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$39.32M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.91

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

17.2%

Stock-based comp intensity.

Piotroski F-Score

F-Score

4 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Startup