Sprout Social, Inc. reported its financial results for the second quarter of 2026, revealing a total revenue of $123.8 million, an increase of 11% from $111.8 million in the same period last year. For the first half of 2026, the company generated $245.3 million in revenue, also reflecting an 11% growth compared to $221.1 million in the first half of 2025. Subscription revenue, which constitutes 99% of total revenue, rose to $121.9 million for the quarter and $241.9 million for the six months, driven by an increase in customers contributing $30,000 or more in annual recurring revenue (ARR), which grew by 11% year-over-year.
Despite the revenue growth, Sprout Social reported a net loss of $3.1 million for the second quarter, a significant improvement from a net loss of $12.0 million in the same quarter of 2025. The loss for the first half of 2026 was $9.4 million, compared to $23.2 million in the prior year. The company attributed the reduced losses to lower operating expenses, which totaled $98.8 million for the quarter, down from $99.2 million a year earlier. Notably, stock-based compensation expenses decreased from $20.2 million in Q2 2025 to $15.9 million in Q2 2026.
In terms of strategic developments, Sprout Social has initiated a workforce reduction plan aimed at streamlining operations and aligning costs with its strategic priorities, particularly in AI-powered social intelligence. This plan, approved in July 2026, will reduce the workforce by approximately 20%, or about 260 employees, and is expected to incur pre-tax restructuring charges of $18.0 million to $20.0 million. The company anticipates that the majority of these charges will be recognized in the third quarter of 2026.
Operationally, Sprout Social continues to expand its customer base, with a total of 3,926 customers contributing $30,000 or more in ARR as of June 30, 2026, up from 3,538 a year prior. The company also reported a cash and cash equivalents balance of $119.9 million as of June 30, 2026, alongside net accounts receivable of $78.1 million. Looking ahead, Sprout Social remains focused on enhancing its product offerings and expanding its international presence, with approximately 26% of revenue generated from non-U.S. customers. The company expects to navigate macroeconomic challenges while continuing to invest in growth opportunities.
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.
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