Sprout Social beats Q3 estimates and targets first GAAP-profitable quarter
Sprout Social reported Q3 FY2026 revenue of $125.1M and non-GAAP EPS of $0.45 on November 3, 2026, exceeding analyst expectations. The company projected Q4 revenue of $124.2 million to $125.2 million and non-GAAP EPS of $0.36 to $0.38. CEO Ryan Barretto said Sprout expects its first-ever GAAP-profitable quarter in Q4, while management also highlighted a 21% Q3 non-GAAP operating margin and continued Trellis adoption.
Why it matters
The Q4 outlook gives investors a defined revenue and non-GAAP earnings range while management expects a shift to GAAP profitability. Sprout also repurchased shares during the quarter, reducing the outstanding share count by 2.6 million shares.
Key facts
- 1Q3 non-GAAP EPS was $0.45, and revenue reached $125.1M. seekingalpha.com
- 2Q4 revenue is projected at $124.2 million to $125.2 million, with non-GAAP EPS expected at $0.36 to $0.38. finance.yahoo.com
- 3Full-year 2026 revenue guidance is $494.7 million to $495.7 million, while non-GAAP operating income guidance is $77.8 million to $78.8 million. finance.yahoo.com
- 4Sprout repurchased 2.6 million shares at an average price of $10.25 per share during the quarter. finance.yahoo.com
- 5Q3 non-GAAP operating margin was 21%, compared with 12% in the year-earlier quarter. investing.com
Open questions
- Reported Q3 year-over-year revenue growth differs between materials, with 8.2% in material 1 and 8.3% in material 4.
- Material 4 reports full-year EPS guidance of $1.30, but the detailed outlook in material 6 does not provide a comparable full-year EPS figure.
Summary written by AlphAI AI Desk from 7 of 7 sources. Not investment advice. Figures are as stated by the linked sources.