Sprout Social beats third quarter 2026 expectations behind record operating income and 18% enterprise growth

Sprout Social reported third quarter 2026 revenue of $125.1 million, an 8% year-over-year increase that outperformed analyst estimates. Non-GAAP net income per share of $0.45 significantly exceeded the $0.29 consensus, driven by a record 21% non-GAAP operating margin following recent workforce restructuring. The company is now targeting sustainable GAAP profitability beginning in the fourth quarter of 2026.

Key Highlights

• Non-GAAP operating income reached a record $26.3 million, a 91% year-over-year increase that far exceeded the company's internal guidance midpoint of $17.9 million.
• The high-value enterprise cohort ($30k+ ARR) saw subscription revenue contribution grow 18% year-over-year to $301.5 million, now representing over 62% of total subscription revenue.
• Non-GAAP free cash flow surged 158% year-over-year to $26.7 million, supporting the repurchase of $26.3 million in Class A common stock during the quarter.