Sprinklr Inc (CXM) Q2 2025 Earnings Report

Sprinklr reported QQ2 2025 total revenue of $197.2 million, up 11% year over year, with subscription revenue of $177.9 million (+9% YoY) and services of $19.3 million. Non‑GAAP operating income was $15.2 million (8% margin), but this figure included a $10.1 million credit loss charge. Excluding the charge, non‑GAAP operating income would have been $25.3 million (13% margin), underscoring that the quarter benefited from solid top‑line growth but was weighed down by a material credit loss incurred as Sprinklr expands into newer international markets and launches additional products. Free cash flow was $16.5 million, delivering an 8% FCF margin, and the company finished QQ2 with a robust cash position and no debt. Management highlighted a deliberate turnaround plan to reaccelerate growth and expand margins through pricing optimization, organizational changes (including a renewals team and revamped GTM), and more disciplined investments in CCaaS delivery and geographies. The guidance implies modest near‑term growth and margin improvement, but remains exposed to macro softness and elevated churn, particularly in core suites. Sprinklr also emphasized AI as a core growth engine, illustrating meaningful customer outcomes (e.g., call deflection and AI self‑service improvements) while acknowledging execution risks and the need to simplify the product portfolio and pricing.