Sprinklr Inc. Reports Q1 2027 Financial Results: A Steady Recovery Amidst Economic Challenges
In its first-quarter financial report for 2027, Sprinklr Inc., a leader in Unified Customer Experience Management (Unified-CXM), has demonstrated a significant turnaround from the previous year. As the company continues to navigate an evolving economic landscape, it has shown resilience and adaptability, reflected in its financial performance.
1. Overview of Financial Performance
Sprinklr's Unified-CXM platform, which assists organizations in managing customer interactions across various channels, has seen continued demand despite macroeconomic challenges. For the three months ending April 30, 2027, the company reported a net income of $4.18 million, marking a notable recovery from a net loss of $1.56 million in the same period last year.
Revenue Growth
The company posted total revenue of $219.4 million, an increase from $205.5 million in Q1 2026. This growth was primarily driven by an increase in subscription revenue, as existing customers expanded their use of the platform. However, this growth was partially offset by non-renewals and budget adjustments among some clients.
Operating Expenses
Operating expenses for Sprinklr totaled $208.8 million, slightly up from $207.2 million in the previous year's first quarter. Key contributors included an increase in personnel costs within sales and marketing, as well as higher third-party cloud and data infrastructure expenses. Notably, research and development expenses remained stable at $23.36 million, reflecting the company's commitment to innovation.
| Jun 2025 | Jun 2026 | |
|---|---|---|
Net Income | 109.4M | 28.65M |
Profit | 109.4M | 28.62M |
Net Income Continuing | 109.4M | 28.62M |
Income Tax Expense | -69.21M | 49.28M |
Pretax Income | 40.25M | 77.91M |
Non-operating Income | 23.75M | 25.30M |
Operating Income | 16.50M | 52.60M |
Revenue | 805.9M | 871.1M |
Costs and Expenses | 789.4M | 818.5M |
Cost of Revenue | 233.5M | 293.2M |
Operating Expenses | 555.8M | 525.3M |
Research & Development | 92.27M | 96.55M |
Selling, General & Administrative | 447.2M | 428.9M |
Other Operating Expenses | 16.31M | -182K |
2. Key Business Metrics
Sprinklr reported a Remaining Performance Obligation (RPO) of $1,038.3 million, with a Current RPO (cRPO) of $627.1 million as of April 30, 2026. The Net Dollar Expansion Rate (NDE) was recorded at 103.5%, indicating solid revenue retention and expansion among existing customers.
3. Macroeconomic and Geopolitical Considerations
Despite facing headwinds from inflation, interest rate fluctuations, and geopolitical tensions, including the ongoing Russia-Ukraine war and the 2026 Iran conflict, Sprinklr has managed to maintain its operational integrity. The company acknowledged these challenges while also highlighting that inflationary pressures had not materially affected its operations in the short term.
4. Balance Sheet Overview
As of April 30, 2027, Sprinklr reported total assets of $1.06 billion, down from $1.18 billion in the previous year. The decrease was primarily due to a reduction in current assets, which now stand at $745.2 million. Total liabilities also increased slightly to $573.3 million, reflecting ongoing investment in growth and operations.
| Jun 2025 | Jun 2026 | |
|---|---|---|
Total Assets | 1.18B | 1.06B |
Total Current Assets | 862.1M | 745.2M |
Cash and Equivalents | 126.4M | 163.3M |
Short-term Investments | 443.8M | 279.4M |
Prepaid Expenses | 89.14M | 106.6M |
Other Current Assets | 202.7M | 195.7M |
Total Non-current Assets | 327.3M | 316.5M |
Intangible Assets | 50.14M | 50.19M |
Non-current Deferred Tax Assets | 87.72M | 64.28M |
Net PP&E | 30.82M | 34.41M |
Lease Assets | 46.84M | 40.33M |
Other Non-current Assets | 111.7M | 127.3M |
Total Liabilities and Equity | 1.18B | 1.06B |
Total Liabilities | 549.7M | 573.3M |
Total Current Liabilities | 495.4M | 519.8M |
Accounts Payable and Accrued Liabilities | 83.24M | 97.76M |
Current Debt | 8.39M | 7.89M |
Current Deferred Revenue | 403.8M | 414.2M |
Total Non-current Liabilities | 54.25M | 53.49M |
Non-current Deferred Revenue | 4.71M | 11.91M |
Other Non-current Liabilities | 49.53M | 41.57M |
Total Equity and Non-controlling Interests | 639.7M | 488.4M |
Total Equity | 639.7M | 488.4M |
Liquidity and Capital Resources
Sprinklr ended the quarter with $163.3 million in cash and cash equivalents, along with $279.5 million in marketable securities. The company is well-positioned to meet its working capital needs and capital expenditures over the next 12 months, with no immediate plans to repatriate funds held outside the U.S.
5. Cash Flow Analysis
The cash flow statement revealed a net change in cash of $364,000 for Q1 2027. Cash provided by operating activities was $70.4 million, influenced by positive operating profit and adjustments for non-cash expenses. In contrast, cash used in financing activities totaled $124.9 million, largely due to the share repurchase program initiated in March 2026.
| Jun 2025 | Jun 2026 | |
|---|---|---|
Net Change in Cash | -870K | 36.77M |
Effect of Exchange Rate Changes | 1.76M | -365K |
Net Cash from Operating Activities | 119.6M | 145.7M |
Operating Profit | 109.4M | 28.65M |
Adjustment to Operating Profit | 10.24M | 117.1M |
Net Cash from Investing Activities | 32.68M | 150.9M |
Investments | -48.93M | -169.6M |
Productive Assets | 16.24M | 18.51M |
Other Investing Activities | 0 | -262K |
Net Cash from Financing Activities | -154.9M | -259.5M |
Equity Issuance/Repurchase | -154.9M | -259.5M |
6. Share Repurchase Program
On March 11, 2026, Sprinklr's board authorized a share repurchase program allowing for the buyback of up to $200 million of Class A common stock. The program, which includes a $125 million accelerated share repurchase agreement, underscores the company's confidence in its long-term growth prospects.
7. Future Outlook
Looking ahead, Sprinklr remains focused on strategic growth initiatives, including potential acquisitions and further investments in its Unified-CXM platform. The company’s capital requirements will depend on various factors, including growth rates and expansions in its workforce.
As Sprinklr continues to enhance its services and expand its customer base, its leadership remains optimistic about navigating the current economic uncertainties while aiming for sustainable growth.
8. Conclusion
Sprinklr Inc.'s Q1 2027 financial results reflect a promising recovery trajectory for the company. With strong revenue growth, improved net income, and a robust balance sheet, Sprinklr is well-equipped to face ongoing economic challenges while providing exceptional value to its customers. As the demand for Unified-CXM solutions continues to rise, Sprinklr's innovative platform positions it as a key player in the customer engagement landscape.
