Sprout Social said on November 3 that third-quarter revenue was $125.1 million, up 8% on the third quarter of 2025.
What happened
In its third quarter results, Sprout Social put non-GAAP operating income at $26.3 million, a 21% margin, against $13.7 million a year earlier. GAAP operating loss was $6.9 million, compared with $9.1 million in the third quarter of 2025. Remaining performance obligations were $393.9 million, up 10%. CEO Ryan Barretto said “We are pleased with our financial performance this quarter, highlighted by a record non-GAAP operating income of $26.3 million, equating to a 21% non-GAAP operating margin.” The company started a $50 million buyback and guided full-year revenue to between $494.7 million and $495.7 million.
Why it matters
Sprout reported 3,925 customers paying $30,000 or more in annual recurring revenue, up 6% from a year ago. It estimates that cohort contributed $301.5 million of trailing twelve month subscription revenue, 62.3% of the total, up from 55.9% in the first quarter of 2025. Social tooling is being sold up the contract ladder at the same time that social platforms are changing what the work involves. We covered one example in Coda’s account of TikTok creator videos linking to Codashop, and another in Reddit’s third quarter ad revenue report.
One thing to ask
In our reading, the customer table is the part to take into a renewal. Sprout says that from the fourth quarter of 2025 it replaced its count of customers above $10,000 in annual recurring revenue with one above $30,000, because the new measure better reflects its focus on larger customers. A team on a smaller plan can ask its account manager which packaging, support and reporting changes are planned for the larger cohort, and get the answer in writing before the renewal date.
Source: Sprout Social
