Sprout Social (NASDAQ:SPT) Updates Q3 2025 Earnings Guidance

Key Points

• Sprout Social updated its Q3 2025 earnings guidance, forecasting EPS of 0.150-0.160, slightly below the consensus estimate of 0.165, while revenue guidance was set at $114.4 million to $115.2 million, exceeding the consensus of $113.6 million.
• Brokerage ratings have varied, with Cantor Fitzgerald maintaining a "neutral" rating and a $24 price target, while Needham & Company reaffirmed a "buy" rating with a target of $32.
• Insider trading activity shows significant selling, with two directors collectively offloading over 45,000 shares, indicating potential concerns about the company's stock performance.

Sprout Social (NASDAQ:SPT - Get Free Report) updated its third quarter 2025 earnings guidance on Thursday. The company provided earnings per share guidance of 0.150-0.160 for the period, compared to the consensus earnings per share estimate of 0.165. The company issued revenue guidance of $114.4 million-$115.2 million, compared to the consensus revenue estimate of $113.6 million. Sprout Social also updated its FY 2025 guidance to 0.710-0.750 EPS.

Sprout Social Price Performance

Shares of SPT traded down $0.45 during midday trading on Monday, hitting $13.49. The company's stock had a trading volume of 491,364 shares, compared to its average volume of 687,876. The stock has a market capitalization of $784.79 million, a price-to-earnings ratio of -14.21 and a beta of 0.99. Sprout Social has a one year low of $13.51 and a one year high of $36.30. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.08. The company's fifty day simple moving average is $19.66 and its two-hundred day simple moving average is $22.99.

Sprout Social (NASDAQ:SPT - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $0.18 EPS for the quarter, beating analysts' consensus estimates of $0.15 by $0.03. The business had revenue of $111.78 million during the quarter, compared to analyst estimates of $110.93 million. Sprout Social had a negative return on equity of 25.95% and a negative net margin of 12.70%. The firm's revenue was up 12.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.09 EPS. As a group, equities analysts expect that Sprout Social will post -0.99 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

SPT has been the topic of a number of recent research reports. Morgan Stanley reduced their price objective on Sprout Social from $30.00 to $22.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 16th. Barclays cut their target price on shares of Sprout Social from $34.00 to $26.00 and set an "overweight" rating for the company in a research report on Monday, April 21st. Needham & Company LLC restated a "buy" rating and issued a $32.00 price objective on shares of Sprout Social in a research note on Wednesday, May 28th. Oppenheimer dropped their target price on shares of Sprout Social from $32.00 to $23.00 and set an "outperform" rating for the company in a report on Thursday. Finally, Cantor Fitzgerald reiterated a "neutral" rating and issued a $24.00 price target on shares of Sprout Social in a research note on Tuesday, June 3rd. One analyst has rated the stock with a sell rating, five have assigned a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $27.42.

Insiders Place Their Bets

In other news, Director Karen Walker sold 5,000 shares of Sprout Social stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $19.05, for a total transaction of $95,250.00. Following the sale, the director owned 28,963 shares in the company, valued at $551,745.15. This trade represents a 14.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Justyn Russell Howard sold 40,000 shares of Sprout Social stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $21.12, for a total transaction of $844,800.00. Following the completion of the transaction, the insider directly owned 7,417 shares of the company's stock, valued at approximately $156,647.04. This represents a 84.36% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 112,375 shares of company stock valued at $2,389,535 in the last ninety days. Insiders own 10.12% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Empowered Funds LLC acquired a new position in Sprout Social during the 1st quarter valued at about $325,000. AQR Capital Management LLC bought a new position in Sprout Social in the first quarter valued at approximately $365,000. Brighton Jones LLC boosted its stake in shares of Sprout Social by 391.7% during the 4th quarter. Brighton Jones LLC now owns 35,985 shares of the company's stock worth $1,105,000 after acquiring an additional 28,667 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Sprout Social by 2.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 53,127 shares of the company's stock worth $1,168,000 after acquiring an additional 1,265 shares during the period. Finally, Goldman Sachs Group Inc. boosted its stake in Sprout Social by 23.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 325,750 shares of the company's stock valued at $7,163,000 after purchasing an additional 60,947 shares during the period.

About Sprout Social

Sprout Social, Inc designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action.