Sprinklr (CXM) Financials

Sprinklr’s latest quarter shows a company that is still growing revenue, generating positive operating cash flow, and sitting on a solid cash cushion — but profitability remains thin and the balance sheet has shifted toward lower net cash after heavy share repurchases.

For Q1 fiscal 2027, Sprinklr reported revenue of $219.5 million, up modestly from $220.6 million in the prior quarter and $205.5 million a year ago. Gross profit was strong at $143.0 million, and the company posted $4.2 million in net income. The bigger story, though, is cash flow: operating cash flow came in at $70.4 million, which is a healthy result for a software company.

At the same time, Q1 also showed why investors should be cautious. Sprinklr spent $125.0 million on share repurchases during the quarter, which more than offset operating cash generation and left net change in cash and equivalents essentially flat at just $0.4 million. Over a longer stretch, the company has moved from large losses to more consistent profits, but earnings remain modest relative to revenue.

Key trends over the last several years:

• Revenue has trended upward over time. Quarterly revenue grew from about $145.0 million in Q1 2023 to $219.5 million in Q1 2027, showing steady top-line expansion.
• Gross profit has remained strong. Recent gross margins have been healthy, with Q1 2027 gross profit of $143.0 million on $219.5 million of revenue.
• Operating cash flow is now consistently positive. Q1 2027 operating cash flow of $70.4 million compares favorably with much weaker periods in 2023 and early 2024.
• The company has maintained a substantial liquidity position. Q1 2027 showed $163.3 million in cash and equivalents plus $279.5 million in short-term investments.
• Net income has improved meaningfully versus the loss-making periods in 2023. Sprinklr moved from losses in several quarters of 2023 to positive earnings in recent quarters.
• Other income remains a meaningful contributor. In Q1 2027, other income was $5.7 million, which helped support bottom-line profitability.
• Deferred revenue is still large. Current deferred revenue of $414.2 million suggests a sizable backlog-like revenue base, though it also creates a current liability burden.
• Operating expenses remain high. In Q1 2027, total operating expenses were $132.4 million, leaving only $10.6 million in operating income.
• Share repurchases are consuming a lot of cash. The company repurchased $125.0 million of common equity in Q1 2027, a major use of capital.
• Liquidity is lower than it was a year ago. Total cash plus short-term investments fell from roughly $568.1 million in Q1 2025 to about $442.8 million in Q1 2027.

Balance sheet snapshot: As of Q1 2027, Sprinklr had $1.06 billion in total assets and $573.4 million in liabilities, leaving $488.5 million in common equity. That is a reasonably strong equity base, but the company’s retained earnings remain deeply negative at $(296.5) million, reflecting its history of losses.

Bottom line: Sprinklr appears to be moving in the right direction operationally, with improving profitability and solid cash generation. However, the business is still not producing large earnings relative to revenue, and aggressive buybacks are reducing balance-sheet flexibility. For retail investors, this looks like a company with improving fundamentals, but one that still needs to prove it can turn revenue growth into durable, scalable earnings.