Sprinklr (CXM) Q3 2025 Financial Results Summary
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Sprinklr (CXM) Q3 2026 Financial Results Summary
Sprinklr (NYSE: CXM) announced its financial results for the third quarter of fiscal year 2026 on December 3, 2025, for the period ending October 31, 2025.
Third Quarter Fiscal 2026 Financial Highlights
- Total Revenue:
- $219.1 million
-
Up 9% year-over-year from $200.7 million
-
Subscription Revenue:
- $190.3 million
-
Up 5% year-over-year from $180.6 million
-
Net Cash Provided by Operating Activities:
-
$20.0 million
-
Free Cash Flow:
-
$15.5 million
-
Remaining Performance Obligations (RPO):
-
Down 5% year-over-year
-
Current Remaining Performance Obligations (cRPO):
-
Up 3% year-over-year
-
$1 million Customers:
- 145 customers
Operating Income and Margins
- GAAP Operating Income:
- $11.6 million
-
Up from $7.9 million year-over-year
-
Non-GAAP Operating Income:
- $33.5 million
-
Up from $23.0 million year-over-year
-
GAAP Operating Margin:
-
5% (up from 4% year-over-year)
-
Non-GAAP Operating Margin:
- 15% (up from 11% year-over-year)
Net Income and Share Metrics
- GAAP Net Income Per Share:
-
$0.01 (down from $0.04 year-over-year)
-
Non-GAAP Net Income Per Share:
- $0.12 (up from $0.10 year-over-year)
Cash and Securities
- Total Cash, Cash Equivalents, and Marketable Securities:
- $480.3 million as of October 31, 2025
Financial Outlook
- Fourth Quarter Fiscal 2026 Guidance:
- Subscription revenue between $191 million and $192 million
- Total revenue between $216.5 million and $217.5 million
- Non-GAAP operating income between $29 million and $30 million
-
Non-GAAP net income per share between $0.09 and $0.10
-
Full Fiscal Year 2026 Guidance:
- Subscription revenue between $754 million and $755 million
- Total revenue between $853 million and $854 million
- Non-GAAP operating income between $137.5 million and $138.5 million
- Non-GAAP net income per share between $0.43 and $0.44
Share Repurchase
- During the period, Sprinklr repurchased $152.3 million worth of Class A common shares.
Summary of Key Business Metrics
- Sprinklr experienced steady growth in total and subscription revenue, indicating ongoing demand for its customer experience management services.
- Operating metrics showed an improvement in both GAAP and non-GAAP measures, suggesting enhanced efficiency and financial health.
- The company is optimistic about its future performance, providing positive guidance for the fourth quarter and the full fiscal year.
- The decline in RPO indicates slight deterioration in deferred revenue but is contrasted by growth in cRPO, highlighting a more stable revenue outlook in the coming year.
Sprinklr recorded increased customer acquisitions with 145 large customers, reaffirming its market presence and ability to serve significant enterprises.
For full details and to participate in the earnings call, visit their Investor Relations website.
Note: Metrics referenced as “non-GAAP” are reconciled to their GAAP counterparts in the detailed financial statements provided by Sprinklr.
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |
|---|---|---|---|---|
| October 31, 2025 | October 31, 2024 | October 31, 2025 | October 31, 2024 | |
| Revenue: | ||||
| Subscription | $190,295 | $180,634 | $562,895 | $535,856 |
| Professional services | $28,773 | $20,055 | $73,713 | $57,999 |
| Total revenue | $219,068 | $200,689 | $636,608 | $593,855 |
| Costs of revenue: | ||||
| Costs of subscription | $45,400 | $35,723 | $130,763 | $102,599 |
| Costs of professional services(1) | $28,182 | $22,126 | $72,888 | $60,342 |
| Total costs of revenue | $73,582 | $57,849 | $203,651 | $162,941 |
| Gross profit | $145,486 | $142,840 | $432,957 | $430,914 |
| Operating expense: | ||||
| Research and development | $24,707 | $23,298 | $70,680 | $69,063 |
| Sales and marketing(1) | $75,011 | $78,395 | $216,665 | $243,369 |
| General and administrative | $33,687 | $34,123 | $103,685 | $102,006 |
| Restructuring | $530 | -$865 | $15,859 | $2,965 |
| Total operating expense | $133,935 | $134,951 | $406,889 | $417,403 |
| Operating income | $11,551 | $7,889 | $26,068 | $13,511 |
| Other income, net | $5,763 | $5,495 | $20,162 | $19,409 |
| Income before provision for income | $17,314 | $13,384 | $46,230 | $32,920 |
| taxes | ||||
| Provision for income taxes | $14,410 | $2,929 | $32,279 | $9,990 |
| Net income | $2,904 | $10,455 | $13,951 | $22,930 |
| Net income per share, basic | $0.01 | $0.04 | $0.06 | $0.09 |
| Weighted average shares used in computing net income per share, basic | 244,916 | 253,807 | 251,934 | 262,030 |
| Net income per share, diluted | $0.01 | $0.04 | $0.05 | $0.08 |
| Weighted average shares used in computing net income per share, diluted | 252,054 | 261,972 | 260,266 | 275,109 |
(1) Includes stock-based compensation expense, net of amounts capitalized, as follows:
| Assets | October 31, 2025 | January 31, 2025 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $189,591 | $145,270 |
| Marketable securities | $290,754 | $338,189 |
| Accounts receivable, net of allowance of $8.2 million and $8.1 million, respectively | $150,187 | $285,656 |
| Prepaid expenses and other current assets | $105,107 | $84,982 |
| Total current assets | $735,639 | $854,097 |
| Property and equipment, net | $33,023 | $31,591 |
| Goodwill and other intangible assets | $50,176 | $49,957 |
| Operating lease right-of-use assets | $44,848 | $44,626 |
| Deferred tax asset, non-current | $75,952 | $90,369 |
| Other non-current assets | $114,251 | $113,559 |
| Total assets | $1,053,889 | $1,184,199 |
| Liabilities and stockholders’ equity | ||
| Liabilities | ||
| Current liabilities: | ||
| Accounts payable | $22,649 | $27,353 |
| Accrued expenses and other current liabilities | $80,916 | $79,285 |
| Operating lease liabilities, current | $8,318 | $7,462 |
| Deferred revenue | $332,180 | $403,483 |
| Total current liabilities | $444,063 | $517,583 |
| Deferred revenue, non-current | $4,185 | $6,276 |
| Operating lease liabilities, non-current | $40,118 | $41,243 |
| Other liabilities, non-current | $7,438 | $7,034 |
| Total liabilities | $495,804 | $572,136 |
| Commitments and contingencies | ||
| Stockholders’ equity | ||
| Class A common stock | $4 | $4 |
| Class B common stock | $3 | $4 |
| Treasury stock | -$23,831 | -$23,831 |
| Additional paid-in capital | $1,350,506 | $1,268,920 |
| Accumulated other comprehensive loss | -$5,142 | -$6,969 |
| Accumulated deficit | -$763,455 | -$626,065 |
| Total stockholders’ equity | $558,085 | $612,063 |
| Total liabilities and stockholders’ equity | $1,053,889 | $1,184,199 |