Sprinklr Reports 8% Revenue Growth to $212M and Significant Net Income Increase

Sprinklr, Inc. reported a total revenue of $212.0 million for the three months ended July 31, 2025, marking an 8% increase from $197.2 million in the same period last year. Subscription revenue rose to $188.5 million, up 6% from $177.9 million, while professional services revenue increased by 22% to $23.6 million from $19.3 million. The company achieved a net income of $12.6 million, significantly higher than the $1.8 million reported in the prior year, resulting in a net income per share of $0.05, compared to $0.01 in the same quarter of 2024.

In comparison to the previous fiscal period, Sprinklr's financial performance showed notable improvements. The company’s gross profit for the quarter was $144.6 million, slightly up from $143.2 million year-over-year, although the gross margin for subscription revenue decreased from 81% to 77% due to increased costs associated with third-party data and cloud infrastructure. Total operating expenses decreased to $128.3 million from $143.3 million, primarily due to a reduction in sales and marketing expenses following restructuring efforts.

Strategically, Sprinklr has focused on enhancing its Unified Customer Experience Management (Unified-CXM) platform, which includes four main product suites: Sprinklr Social, Sprinklr Insights, Sprinklr Marketing, and Sprinklr Service. The company reported having 149 large customers as of July 31, 2025, an increase from 145 a year earlier. The company also noted a Remaining Performance Obligation (RPO) of $923.8 million, with $597.1 million expected to be recognized as revenue over the next 12 months.

Operationally, Sprinklr's employee headcount has been impacted by a restructuring plan that reduced its workforce by approximately 12% to align costs with business needs. The company reported a decrease in accrued expenses and other current liabilities, reflecting the timing of commission and bonus payments. Additionally, cash provided by operating activities for the six months ended July 31, 2025, was $118.6 million, a significant increase from $63.0 million in the prior year, driven by improved collections and reduced accounts receivable.

Looking ahead, Sprinklr anticipates continued growth in its subscription and professional services revenue, although it acknowledges potential challenges from macroeconomic conditions, including inflation and geopolitical tensions. The company remains committed to investing in its platform and expanding its customer base while managing costs effectively.