Sprout Social, Inc. reported a revenue of $457.5 million for the fiscal year ending December 31, 2025, marking a 13% increase from $405.9 million in 2024 and a 22% increase from $333.6 million in 2023. Despite this growth, the company continued to experience net losses, reporting a loss of $43.3 million in 2025, an improvement from the $62.0 million loss in 2024 and $66.4 million in 2023. The losses were attributed to significant stock-based compensation expenses, which totaled $78.7 million in 2025, alongside increased operational costs associated with the company's growth strategy.
In terms of customer metrics, Sprout Social saw an increase in its higher-tier customer base, with the number of customers contributing $30,000 or more in annual recurring revenue (ARR) growing by 13% to 3,803, while those contributing $50,000 or more in ARR increased by 18% to 2,022. The company’s dollar-based net retention rate was 100% for 2025, down from 104% in 2024, indicating a slight decline in revenue growth from existing customers. The company also reported that 26% of its revenue came from international customers, reflecting its ongoing efforts to expand geographically.
Strategically, Sprout Social made significant acquisitions in 2023 and 2025, including Tagger Media, Inc. for $144 million and NewsWhip Group Holdings Limited for $64.1 million. These acquisitions are expected to enhance the company's capabilities in influencer marketing and media monitoring, respectively. The company funded these acquisitions through a combination of cash reserves and borrowings from a $100 million revolving credit facility, which had an outstanding balance of $40 million as of December 31, 2025.
Operationally, Sprout Social employed 1,362 full-time employees as of the end of 2025, with a focus on enhancing its research and development efforts to drive product innovation. The company’s total operating expenses increased to $398.3 million in 2025, up from $374.8 million in 2024, primarily due to higher personnel costs and investments in sales and marketing. The company anticipates continued investment in its growth strategy, which may lead to further operating losses in the near term.
Looking ahead, Sprout Social aims to capitalize on its market opportunities by focusing on enterprise customers and expanding its product offerings. The company expects to continue facing challenges related to macroeconomic conditions, which may impact customer spending and sales cycles. However, it remains optimistic about its growth trajectory, driven by increased adoption of its platform and the potential for upselling additional services to existing customers.
About Sprout Social, Inc.
Sprout Social is a social media management platform that enables organizations to engage, analyze, and optimize their social media presence. It offers tools for content publishing, customer care, social listening, analytics, reputation management, influencer marketing, and employee advocacy. Serving over 30,000 customers worldwide, the company leverages AI, integrations, and a user-friendly interface to drive growth, improve customer engagement, and deliver measurable business impact across diverse industries and enterprise sizes.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.