Sprout Social Targets Q4 GAAP Profitability After $6.5 Million Loss

Sprout Social is targeting sustainable quarterly GAAP profitability beginning in the fourth quarter of 2026, following a third-quarter net loss of $6.5 million. The company forecast Q4 revenue of $124.2 million to $125.2 million and said its outlook is not assured.

Revenue for the quarter ended Sept. 30 was $125.1 million, up 8% from a year earlier. Sprout reported a GAAP net loss of $6.5 million and non-GAAP operating income of $26.3 million, equal to a 21% non-GAAP operating margin.

“Importantly, we are targeting GAAP profitability looking ahead, a significant milestone that reflects our focus on cost discipline,” CEO Ryan Barretto said.

For Q4, Sprout projected non-GAAP operating income of $21.4 million to $22.4 million and non-GAAP net income per share of 36 cents to 38 cents.

For full-year 2026, the company forecast revenue of $494.7 million to $495.7 million. Its full-year outlook also includes non-GAAP operating income of $77.8 million to $78.8 million and non-GAAP net income per share of $1.29 to $1.31.

Sprout did not provide forecasts for comparable GAAP earnings measures. It said there is no assurance it will achieve its outlook.