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Jan 31

Sprinklr Q4 2025 Earnings Report

Sprinklr reported moderate revenue growth and a decline in operating income due to strategic investments.

Key Takeaways

Sprinklr reported Q4 FY25 revenue of $202.5 million, a 4% increase year-over-year, with subscription revenue rising 3% to $182.1 million. Operating income declined to $10.5 million from $18.5 million in the prior year, while non-GAAP operating income fell to $25.9 million. Net income per diluted share was $0.37, supported by a non-cash income tax benefit of $87.1 million. The company reported free cash flow of $1.5 million and saw an 18% increase in its large $1M+ customer base.

Total revenue increased 4% to $202.5 million, with subscription revenue up 3%.

GAAP operating income declined to $10.5 million, while non-GAAP operating income reached $25.9 million.

Net income per diluted share rose to $0.37, benefiting from a non-cash tax benefit.

Sprinklr now has 149 customers contributing over $1 million in revenue, an 18% year-over-year increase.

Total Revenue
$203M
Previous year: $194M
+4.3%
EPS
$0.1
Previous year: $0.12
-16.7%
Customers with >$1M Revenue
149
Previous year: 126
+18.3%
GAAP Operating Margin
5%
Previous year: 10%
-50.0%
Non-GAAP Operating Margin
13%
Previous year: 17%
-23.5%
Gross Profit
$144M
Previous year: $147M
-2.0%
Cash and Equivalents
$145M
Previous year: $164M
-11.4%
Free Cash Flow
$1.54M
Previous year: $12.3M
-87.4%
Total Assets
$1.18B
Previous year: $1.22B
-3.2%

Sprinklr

Sprinklr

Sprinklr Revenue by Segment

Forward Guidance

Sprinklr expects total revenue between $821.5M and $823.5M for FY26, with non-GAAP operating income in the range of $129M to $131M. Subscription revenue is projected between $741M and $743M. The company continues investing in innovation while managing expenses for profitable growth.

Positive Outlook

  • Projected total revenue growth to $821.5M-$823.5M in FY26.
  • Subscription revenue expected to reach $741M-$743M.
  • Non-GAAP operating income forecasted at $129M-$131M.
  • Continuing investment in AI-driven customer experience solutions.
  • Expansion of enterprise customer base supporting long-term growth.

Challenges Ahead

  • Macroeconomic conditions may impact enterprise software spending.
  • Declining GAAP operating margins pose profitability challenges.
  • Higher costs related to R&D and sales team expansion.
  • Potential currency fluctuations affecting international revenue.
  • Competitive landscape remains strong with increasing industry rivalry.

Revenue & Expenses

Visualization of income flow from segment revenue to net income