Sprout Social, Inc.
$7.24
-8.8%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. It provides cloud software that brings together social messaging, data, and workflows in a unified system of record, intelligence, and action. The company offers provides various integrated tools in a range of functions comprising social engagement/response, publishing, reporting and analytics, social listening and business intelligence, reputation management, employee advocacy, and automation and workflows. Its tools serve a range of use-cases within its customers' organizations, including social and community management, public relations, marketing, customer service and care, commerce, sales and customer acquisition, recruiting and hiring, product development, and business strategy. The company also offers professional services, which primarily consist of consulting and training services. It serves approximately more than 31,000 customers across small-and-medium-sized businesses, mid-market companies, enterprises, marketing agencies, government, non-profit, and educational institutions. The company was incorporated in 2010 and is headquartered in Chicago, Illinois.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -9.8).
Valuation inputs: P/E -9.8, earnings yield N/A, momentum -8.8%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -21.3%, ROIC -16.1%).
Profitability stack: net margin -9.5%, ROE -21.3%, ROIC -16.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +61.1%, momentum -8.8%, net margin -9.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Sprout Social, Inc. Market vs Earnings Trajectory
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Sprout Social, Inc. Fair Value Envelope
Sprout Social, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Sprout Social, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Sprout Social, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Financial Health Insight
Negative working capital but strong cash position suggests an efficient operating model (common in retail/subscription businesses) rather than financial distress.
Sprout Social, Inc. Street Expectations Map
Wall Street analysts project that SPT stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 57.40, with estimates ranging from a low of 21.00 to a high of 150.00.
The consensus 1-year price target stands at 57.40, with estimates ranging from a low of 21.00 to a high of 150.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
Sprout Social, Inc. Insider Positioning
During the last 12 months, insiders have purchased $2.01M and sold $2.37M worth of SPT shares, resulting in $361K of net selling activity.
3 Months
0
0.00
120.0K
702.58K
-703K
-$703K
3-6 Months
184.6K
2.01M
164.5K
1.47M
+544K
+$544K
6-9 Months
0
0.00
19.8K
202.61K
-203K
-$203K
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Rankin Aaron Edward Frederick
Director, 10 Percent Owner:
$1.01M
Barretto Ryan Paul
Director, Officer: Ceo
$1.00M
Top Sellers
Howard Justyn Russell
Director, 10 Percent Owner, Officer: Executive Chair
$2.14M
Del Preto Joseph
Officer: Cfo And Treasurer
$237K
Insider Activity Analysis
Net Insider Sentiment
Slightly bearish with $361K net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.
Buy/Sell Ratio
Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
2 insider buyers and 2 sellers. Equal participation suggests mixed or neutral insider views.
Insider Activity Insight
Balanced insider activity: Roughly equal buying and selling suggests normal portfolio management rather than strong directional signals. Look to other metrics for clearer investment insights.
No Dividend Yield Data
SPT has not reported any dividend yield values in the available annual periods.
spt Dividend History
Learning Layer
Related Guides
Build conviction on SPT by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.