Sprinklr Announces Third Quarter Fiscal 2026 Results

NEW YORK--( BUSINESS WIRE)--Sprinklr (NYSE: CXM), the unified customer experience management (Unified-CXM) platform for modern enterprises, today reported financial results for its third fiscal quarter ended October 31, 2025.

“Our Q3 results reflect continued progress in our transformation to better serve customers and partners. While there’s more work ahead, we’re encouraged by the improving quality of customer engagements and remain focused on closing the year with momentum to establish a strong foundation for FY27,” said Rory Read, Sprinklr President and CEO.

Third Quarter Fiscal 2026 Financial Highlights

* Free cash flow, non-GAAP operating income, non-GAAP operating margin and non-GAAP net income per share are non-GAAP financial measures defined under “Non-GAAP Financial Measures” and are reconciled to net cash provided by operating activities, operating income, net income or net income per share, as applicable, the closest comparable GAAP measure, at the end of this release.

Financial Outlook

Sprinklr is providing the following guidance for the fourth fiscal quarter ending January 31, 2026:

Sprinklr is providing the following guidance for the full fiscal year ending January 31, 2026:

Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. GAAP, we believe that the following non-GAAP financial measures associated with our condensed consolidated statements of operations are useful in evaluating our operating performance:

We define these non-GAAP financial measures as the respective U.S. GAAP measures, excluding, as applicable, stock-based compensation expense and related charges, amortization of stock-based compensation expense associated with capitalized internal-use software, amortization of acquired intangible assets, release of U.S. federal and state valuation allowances, and the estimated tax effect related to the non-GAAP items, as well as other one-time charges, such as restructuring charges, costs associated with acquisitions, non-recurring litigation costs and facility exit costs. We believe that it is useful to exclude these items in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies over multiple periods.

In addition, we believe that free cash flow is also a useful non-GAAP financial measure. Free cash flow is defined as net cash provided by operating activities less cash used for purchases of property and equipment and capitalized internal-use software. We believe that free cash flow is a useful indicator of liquidity as it measures our ability to generate cash, or our need to access additional sources of cash, to fund operations and investments. We expect our free cash flow to fluctuate in future periods with changes in our operating expenses and as we continue to invest in our growth. We typically experience higher billings in the fourth quarter compared to other quarters and experience higher collections of accounts receivable in the first half of the year, which results in a decrease in accounts receivable in the first half of the year.

However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by U.S. GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for our condensed consolidated financial statements presented in accordance with U.S. GAAP.

Sprinklr has not reconciled its financial outlook expectations as to non-GAAP operating income, or as to non-GAAP net income per share, to their respective most directly comparable U.S. GAAP measures as a result of the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future U.S. GAAP financial results. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Sprinklr’s results computed in accordance with U.S. GAAP.

Conference Call Information

Sprinklr will host a conference call today, December 3, 2025, to discuss third quarter fiscal 2026 financial results, as well as the fourth quarter and full year fiscal 2026 outlook, at 8:30 a.m. Eastern Time, 5:30 a.m. Pacific Time. Investors are invited to join the webcast by visiting: https://investors.sprinklr.com/. To access the call by phone, dial 877-459-3960 (domestic) or 201-689-8588 (international). The conference ID number is 13757184. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.

About Sprinklr, Inc.

Sprinklr is the definitive, AI-native platform for Unified Customer Experience Management (Unified-CXM), empowering brands to deliver extraordinary experiences at scale — across every customer touchpoint.

By combining human intelligence with the enhancements and insights of artificial intelligence, Sprinklr helps brands earn trust and loyalty through personalized, seamless, and efficient customer interactions. Sprinklr’s unified platform provides powerful solutions for every customer-facing team — spanning social media management, marketing, advertising, customer feedback, and omnichannel contact center management — enabling enterprises to unify data, break down silos, and act on real-time insights.

Today, 1,900+ enterprises — including Microsoft, P&G, Samsung, and 60% of the Fortune 100 — rely on Sprinklr to help them deliver consistent, trusted customer experiences worldwide.

Forward-Looking Statements

This press release contains express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the fourth quarter and full year fiscal 2026, our corporate strategies and business initiatives, our customer engagements and our ability to establish a strong foundation for fiscal 2027. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “target,” “explore,” “continue,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including: our rapid growth may not be indicative of our future growth; our revenue growth rate has fluctuated in prior periods; our ability to achieve or maintain profitability; we derive the substantial majority of our revenue from subscriptions to our Unified-CXM platform; our ability to manage our growth and organizational change; the market for Unified-CXM solutions is rapidly evolving; our ability to attract new customers in a manner that is cost-effective and assures customer success; our ability to attract and retain customers to use our products; our ability to drive customer subscription renewals and expand our sales to existing customers; our ability to effectively develop platform enhancements, introduce new products or keep pace with technological developments; the market in which we participate is new and rapidly evolving and our ability to compete effectively; our business and growth depend in part on the success of our strategic relationships with third parties; our ability to develop and maintain successful relationships with partners who provide access to data that enhances our Unified-CXM platform’s artificial intelligence capabilities; the majority of our customer base consists of large enterprises, and we currently generate a significant portion of our revenue from a relatively small number of enterprises; our investments in research and development; our ability to expand our sales and marketing capabilities; our sales cycle with enterprise and international clients can be long and unpredictable; certain of our results of operations and financial metrics may be difficult to predict; our ability to maintain data privacy and data security; we rely on third-party data centers and cloud computing providers; the sufficiency of our cash and cash equivalents to meet our liquidity needs; our ability to comply with modified or new laws and regulations applying to our business; our ability to successfully enter into new markets and manage our international expansion; the attraction and retention of qualified employees and key personnel; our ability to effectively manage our growth and future expenses and maintain our corporate culture; our ability to maintain, protect, and enhance our intellectual property rights; unstable economic, political and market conditions, including as a result of public health crises, fluctuations in inflation and interest rates, the imposition of tariffs in the U.S. and abroad, the recent and any future U.S. government shutdown, or geopolitical actions, such as war and terrorism or the perception that such hostilities may be imminent; and our ability to successfully defend litigation brought against us. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are or will be discussed in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2025, filed with the SEC on September 4, 2025, under the caption “Risk Factors,” and in other filings that we make from time to time with the SEC. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprinklr at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Sprinklr assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Key Business Metrics

RPO. RPO, or remaining performance obligations, represents contracted revenues that have not yet been recognized, and include deferred revenue and amounts that will be invoiced and recognized in future periods.

cRPO. cRPO, or current RPO, represents contracted revenues that have not yet been recognized, and include deferred revenue and amounts that will be invoiced and recognized in the next 12 months.

Sprinklr, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

October 31, 2025

January 31, 2025

Assets

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

Class B common stock

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

Sprinklr, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2025

2024

2025

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 (1)

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 (1)

24,707

23,298

70,680

69,063

Sales and marketing (1)

75,011

78,395

216,665

243,369

General and administrative (1)

33,687

34,123

103,685

102,006

Restructuring (1)

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 taxes

17,314

13,384

46,230

32,920

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:

Three Months Ended October 31,

Nine Months Ended October 31,

(in thousands)

2025

2024

2025

2024

Costs of subscription

312

335

800

945

Costs of professional services

844

400

1,962

1,081

Research and development

4,347

2,896

12,437

8,304

Sales and marketing

6,366

5,091

18,785

16,497

General and administrative

8,512

6,508

28,115

17,350

Restructuring

—

866

—

Stock-based compensation expense, net of amounts capitalized

20,381

15,230

62,965

44,177

Sprinklr, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Nine Months Ended October 31,

2025

2024

Cash flow from operating activities:

Net income

13,951

22,930

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization expense

14,126

13,815

Provision for credit losses

2,297

12,413

Stock-based compensation, net of amounts capitalized

62,965

44,177

Non-cash lease expense

5,952

6,186

Deferred income taxes

14,637

Net amortization/accretion on marketable securities

(4,605

)

(9,830

)

Other non-cash items, net

207

Changes in operating assets and liabilities:

Accounts receivable

133,432

80,653

Prepaid expenses and other current assets

(20,332

)

(9,129

)

Other non-current assets

(1,867

)

Accounts payable

(5,160

)

(1,653

)

Operating lease liabilities

(6,185

)

(3,928

)

Accrued expenses and other current liabilities

1,514

(21,929

)

Deferred revenue

(73,940

)

(60,462

)

Other liabilities

(225

)

604

Net cash provided by operating activities

138,528

72,225

Cash flow from investing activities:

Purchases of marketable securities

(363,947

)

(329,258

)

Proceeds from sales and maturities of marketable securities

415,976

453,863

Purchases of property and equipment

(839

)

(5,000

)

Capitalized internal-use software

(11,716

)

(9,609

)

Purchases of intangibles

(262

)

—

Net cash provided by investing activities

39,212

109,996

Cash flow from financing activities:

Proceeds from issuance of common stock upon exercise of stock options

13,884

18,919

Proceeds from issuance of common stock upon ESPP purchases

2,785

3,403

Payments for repurchase of Class A common shares and related excise tax

(152,263

)

(273,873

)

Net cash used in financing activities

(135,594

)

(251,551

)

Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash

2,378

(1,596

)

Net change in cash, cash equivalents and restricted cash

44,524

(70,926

)

Cash, cash equivalents and restricted cash at beginning of period

153,533

172,429

Cash, cash equivalents and restricted cash at end of period

198,057

101,503

Sprinklr, Inc.

Reconciliation of Non-GAAP Measures

(in thousands)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2025

2024

2025

2024

Non-GAAP gross profit and non-GAAP gross margin:

U.S. GAAP gross profit

145,486

142,840

432,957

430,914

Stock-based compensation expense and related charges (1)

1,163

740

2,788

2,064

Amortization of stock-based compensation expense - capitalized internal-use software

627

582

1,968

1,613

Non-GAAP gross profit

147,276

144,162

437,713

434,591

Gross margin

Non-GAAP gross margin

Non-GAAP operating income:

U.S. GAAP operating income

11,551

7,889

26,068

13,511

Stock-based compensation expense and related charges (2)

20,575

15,376

62,789

45,243

Amortization of acquired intangible assets

—

118

Amortization of stock-based compensation expense - capitalized internal-use software

627

582

1,968

1,613

Non-recurring litigation costs (3)

232

—

1,817

—

Restructuring costs (4)

530

(865

)

15,859

2,965

Non-GAAP operating income

33,515

23,000

108,501

63,450

Operating margin

Non-GAAP operating margin

Free cash flow:

Net cash provided by operating activities

19,961

9,191

138,528

72,225

Purchase of property and equipment

(185

)

(972

)

(839

)

(5,000

)

Capitalized internal-use software

(4,257

)

(3,318

)

(11,716

)

(9,609

)

Free cash flow

15,519

4,901

125,973

57,616

(1) Employer payroll tax related to stock-based compensation for the periods ended October 31, 2025 and 2024 was immaterial as it relates to the impact to gross profit.

(2) Includes $0.2 million and $0.1 million of employer payroll tax related to stock-based compensation expense for the three months ended October 31, 2025 and 2024, respectively, and $0.7 million and $1.1 million of employer payroll tax related to stock-based compensation expense for the nine months ended October 31, 2025 and 2024, respectively.

(3) Relates to costs associated with litigation that arise outside of the ordinary course of business.

(4) Includes $0.1 million and $0.8 million of employer payroll tax related to the February 2025 restructuring for the three and nine months ended October 31, 2025, respectively.

Three Months Ended October 31,

2025

2024

(in thousands)

Per Share-Basic

Per Share-Diluted

(in thousands)

Per Share-Basic

Per Share-Diluted

Non-GAAP net income reconciliation to net income

Net income

2,904

0.01

10,455

0.04

Add:

Stock-based compensation expense and related charges (1)

20,575

0.09

15,376

0.06

Amortization of acquired intangible assets

—

Amortization of stock-based compensation expense - capitalized internal-use software

627

—

582

—

Income tax expense (2)

4,198

0.02

—

Non-recurring litigation costs (3)

232

—

Restructuring costs (4)

530

—

(865

)

—

Total additions, net

26,162

0.11

15,111

0.06

Non-GAAP net income

29,066

0.12

25,566

0.10

Weighted-average shares outstanding

244,916

252,054

253,807

261,972

Nine Months Ended October 31,

2025

2024

(in thousands)

Per Share-Basic

Per Share-Diluted

(in thousands)

Per Share-Basic

Per Share-Diluted

Non-GAAP net income reconciliation to net income

Net income

13,951

0.06

0.05

22,930

0.09

0.08

Add:

Stock-based compensation expense and related charges (1)

62,789

0.24

45,243

0.17

Amortization of acquired intangible assets

—

118

—

Amortization of stock-based compensation expense - capitalized internal-use software

1,968

0.01

1,613

0.01

Income tax expense (2)

(1,173

)

0.00

—

Non-recurring litigation costs (3)

1,817

0.01

—

Restructuring costs (4)

15,859

0.06

2,965

0.01

Total additions, net

81,260

0.32

49,939

0.19

Non-GAAP net income

95,211

0.38

0.37

72,869

0.28

0.27

Weighted-average shares outstanding

251,934

260,266

262,030

275,109

(1) Includes $0.2 million and $0.1 million of employer payroll tax related to stock-based compensation expense for the three months ended October 31, 2025 and 2024, respectively, and $0.7 million and $1.1 million of employer payroll tax related to stock-based compensation expense for the nine months ended October 31, 2025 and 2024, respectively.

(2) Represents the Company’s current and deferred income tax expense commensurate with the non-GAAP measure of profitability using a non-GAAP tax rate of 26% for the three and nine months ended October 31, 2025. The Company uses an annual projected tax rate in its computation of the non-GAAP income tax provision, and excludes the direct impact of stock-based compensation, employer tax costs related to stock-based compensation, intangible amortization expense, amortization of stock-based compensation expense associated with capitalized internal-use software, non-recurring litigation costs and restructuring costs.

(3) Relates to costs associated with litigation that arise outside of the ordinary course of business.

(4) Includes $0.1 million and $0.8 million of employer payroll tax related to the February 2025 restructuring for the three and nine months ended October 31, 2025, respectively.