Sprout Social Reports Strong Q1 2026 Financial Results and Announces Share Repurchase Program

Sprout Social reported total revenue of $121.5 million for the first quarter of 2026, marking an 11% increase compared to the same period in the previous year. This growth reflects the company's ongoing success in attracting and retaining customers, particularly within its high-value $30,000+ Annual Recurring Revenue (ARR) customer cohort.

The company also reported a total remaining performance obligations (RPO) of $395.3 million as of March 31, 2026, which represents a 10% increase year-over-year. The current remaining performance obligations (cRPO) stood at $281.7 million, demonstrating a similar 10% growth compared to last year.

In terms of profitability, Sprout Social recorded a GAAP operating loss of ($5.8) million, a notable improvement from a loss of ($11.2) million in Q1 2025. Non-GAAP operating income, which excludes certain expenses, rose to $14.1 million, up from $12.5 million in the prior year, highlighting a potential shift towards more sustainable profitability.

The company reported a GAAP net loss of ($6.3) million for the first quarter, improving from ($11.2) million in the same quarter last year. On a non-GAAP basis, net income was $13.6 million, up from $12.5 million in Q1 2025. This resulted in a GAAP net loss per share of ($0.11) based on 59.7 million weighted-average shares outstanding, compared to ($0.19) per share a year ago. Non-GAAP net income per share was reported at $0.23, slightly up from $0.22 in the first quarter of 2025.

Sprout Social's cash and cash equivalents totaled $111.6 million at the end of Q1 2026, a significant increase from $95.3 million at the end of 2025. The company generated net cash from operating activities of $25.2 million, compared to $18.1 million in the previous year. Non-GAAP free cash flow also saw an uptick, reaching $24.7 million, up from $19.5 million in Q1 2025.

In a move to bolster shareholder value, Sprout Social announced its first-ever share repurchase program with an initial authorization of $50 million. CEO Ryan Barretto emphasized that this decision underscores the company's disciplined approach to capital allocation and reflects confidence in its long-term growth prospects.

Sprout Social's first-quarter results for 2026 indicate a healthy trajectory of growth and operational improvement. With strong revenue performance, reduced losses, and a strategic share repurchase program, the company appears poised to enhance shareholder value while continuing to strengthen its market position in the social media management space. As the year progresses, investors and analysts will be keenly watching how the company capitalizes on its momentum and navigates the evolving landscape of social media services.