Sprout Social, Inc. (SPT) stock analysis

In our weekly check, Sprout Social, Inc. is graded C (A to F). Of 22 checks on debt, profit, cash flow and trend: 13 pass, warnings: 2, red flags: 7.

About Sprout Social, Inc.

Sprout Social, Inc. is a Technology company (Software - Application) based in the United States, listed on NASDAQ as SPT.

What our checks show for SPT

Red flags

• Operating profit does not cover the interest bill (-9.4x): interest is paid from cash or new debt.
• Earnings per share fell 21.2% a year over the last 3 years.
• The company is losing money: the net margin is -5.4%.
• The price swings a lot: 65.7% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 97% from a peak. Would you have held through that?
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 137% of free cash flow: it dilutes shareholders.

Warning signs

• A small company (market value $651 million): usually riskier and followed by fewer analysts.
• The stock is still below its previous peak.

Strengths

• Debt is low: 0.22x equity.
• The net margin rose by 9.9 points over 5 years, to -5.4%.
• The gross margin is 77.2% and has risen by 2.1 points: pricing power is holding.
• Operating cash flow is 1.63x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 94% a year over the next years.
• Analysts expect the net margin to improve by 26.6 points from today's -5.4%.

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Questions

What grade does Sprout Social, Inc. (SPT) have?

In our weekly check, Sprout Social, Inc. is graded C (A to F). Of 22 checks on debt, profit, cash flow and trend: 13 pass, warnings: 2, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SPT stock?

This week's biggest flags for Sprout Social, Inc.: Weak interest cover, Weak EPS growth, Thin margins. In total 9 of 22 checks show a warning or a red flag.

What does Sprout Social, Inc. do?

Sprout Social, Inc. is a Technology company (Software - Application) based in the United States, listed on NASDAQ as SPT.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-11-07

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