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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.
Sprinklr
Sprinklr
Sprinklr Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com 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