Sprout Social Reports $111.8 Million Revenue in Q2 2025, Net Loss Improves

Sprout Social, Inc. reported a revenue of $111.8 million for the second quarter of 2025, marking a 12% increase from $99.4 million in the same period of 2024. For the first half of 2025, the company generated $221.1 million in revenue, up 13% from $196.2 million year-over-year. Subscription revenue, which constitutes 99% of total revenue, rose to $111.1 million in Q2 2025, compared to $98.5 million in Q2 2024. Despite the revenue growth, the company recorded a net loss of $12.0 million for the second quarter, an improvement from a loss of $16.9 million in the prior year. For the six months ending June 30, 2025, the net loss was $23.2 million, down from $30.5 million in the same period of 2024.

The company experienced a notable increase in its customer base, with the number of customers contributing over $10,000 in annual recurring revenue (ARR) growing by 6% to 9,517, while those contributing over $50,000 in ARR increased by 18% to 1,826. However, the total customer count decreased slightly, reflecting a strategic focus on higher-tier customers. Engagement metrics showed that the average sales cycle has lengthened, attributed to macroeconomic conditions affecting customer purchasing behavior.

In terms of operational changes, Sprout Social initiated a restructuring plan in November 2024, which continued into 2025, focusing on improving efficiency within its research and development and sales teams. This restructuring resulted in a 17% reduction in headcount within the research and development department. The company also reported a loss of approximately $1.2 million related to the early termination of a lease for part of its Chicago office space.

Looking ahead, Sprout Social completed the acquisition of NewsWhip Group Holdings Limited on July 30, 2025, for an upfront cash payment of $55 million, with additional contingent payments based on performance metrics. This acquisition is expected to enhance Sprout Social's capabilities in real-time media monitoring and predictive analytics, allowing entry into the public relations and crisis monitoring sectors. The company anticipates continued investment in growth and innovation, despite the expectation of ongoing net losses in the near term. As of June 30, 2025, Sprout Social had cash and cash equivalents of $101.5 million, which it believes will be sufficient to meet its operational needs for at least the next 12 months.