Sprout Social Inc Class A Common Stock (SPT)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a patient investor who wants a durable business, honest accounting, and a margin of safety. Sprout Social sells cloud software for social media management, a useful niche, but the filed record shows a company still searching for GAAP profits. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $123.8 million and net income was -$3.1 million, or diluted EPS -$0.05. That compares with revenue of $111.8 million and net income of -$12.0 million in fiscal Q2 2025, the quarter ended 2025-06-30. The trend is right: losses are shrinking. For fiscal 2025, the year ended 2025-12-31, revenue was $457.5 million and net loss was $43.3 million, better than fiscal 2024 revenue of $405.9 million and net loss of $62.0 million, and fiscal 2023 revenue of $333.6 million and net loss of $66.4 million. Free cash flow was $50.4 million on a trailing basis, which FairStock calculates as a 7.5% yield against the $674.7 million market cap at the 2026-10-13 close. Debt/equity is light at 0.20. But FairStock also shows negative ROE of -14.31%, negative ROCE of -3.57%, P/B of 2.97, Piotroski 6/9, and an Altman Z-Score of 0.52. The computed Lynch category is none because the company has lost money in each of the last four years. At $11.20, the stock is near the upper end of its 52-week range of $4.92 to $12.06. I see improvement, but not yet the consistent owner earnings and moat evidence I demand. The price is not absurd, but it is not a Graham bargain either. FairStock Score is 60/100.

In plain English: Sprout Social sells online software that helps businesses manage social media messages, publishing, and analytics. Sales are rising and losses are getting smaller, and the company produces some spare cash, but it has not yet made a full-year profit. At the recent price, the shares do not look like an obvious bargain or an obvious rip-off; much depends on whether profits finally arrive.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer