We reduced our global workforce by approximately 15%.
— Rory Read
03Detailed Report
CXM
Company CXM
Period
Q4 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
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Executive Summary
Sprinklr reported Q4 FY2025 total revenue of $202.5 million, up 4% year over year, with subscription revenue of $182.1 million, up 3% YoY. Non-GAAP operating income was $25.9 million, delivering a 13% non-GAAP operating margin for the quarter. Net income was $98.7 million in GAAP terms, aided by an approximately $87 million discrete tax benefit from the release of the U.S. valuation allowance, with no material cash taxes in the near term. Cash and marketable securities totaled $483.5 million with no debt, signaling strong liquidity to fund strategic investments. Remaining performance obligations (RPO) rose to $987.7 million (up 2% YoY) and current RPO (CRPO) to $612.5 million (up 4% YoY), indicating substantial revenue visibility. Calculated billings reached $298.6 million (up 10% YoY). At year-end FY25, Sprinklr boasted 149 customers generating at least $1 million in annual subscription revenue, up 18% YoY, including a cohort with $10–$20 million in trailing subscription revenue. Management framed FY26 as a transitional year focused on stabilizing the business, reducing costs (approximately 15% workforce reduction), realigning the go-to-market (GTM) coverage model, and accelerating product delivery and AI-enabled innovation to bend the cost base toward durable growth. The plan anticipates 3% subscription revenue growth in FY26, 3% total revenue growth, and a 15% free cash flow margin (~$120 million) for the full year, alongside a ~400bp negative drag to subscription gross margins from data/hosting costs as new cloud environments come online. The company expects to invest in GTM and R&D in H2 FY26 to position for acceleration in FY27 and beyond.
Key Performance Indicators
Revenue
Increasing
202.54M
QoQ: 0.92% | YoY: 4.29%
Gross Profit
Decreasing
143.72M
70.96% margin
QoQ: 0.60% | YoY: -1.97%
Operating Income
Decreasing
10.46M
QoQ: 32.58% | YoY: -43.03%
Net Income
Increasing
98.68M
QoQ: 843.85% | YoY: 366.72%
EPS
Increasing
0.39
QoQ: 846.60% | YoY: 405.18%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability highlights
- Q4 FY2025 total revenue: $202.5 million, up 4% YoY; subscription revenue: $182.1 million, up 3% YoY. Professional services: $20.5 million.
- Non-GAAP operating income: $25.9 million; non-GAAP operating margin: 13%. Non-GAAP net income per diluted share: $0.10 for the quarter (per CFO commentary); GAAP net income benefited from one-time tax items.
- Gross margins (non-GAAP): subscription gross margin 79%; professional services gross margin breakeven; total non-GAAP gross margin: 71%.
- EBITDA: $15.32 million; EBITDA margin: 7.56% (EBITDAR 7.56%).
- Net income: $98.7 million (GAAP) with net income margin of 48.7% driven by an $87 million discrete U.S. federal/state tax benefit; diluted GAAP EPS: $0.37; GAAP EPS: $0.39.
- Calculated billings: $298.6 million, up 10% YoY.
- RPO: $987.7 million (2% YoY); CRPO: $612.5 million (4% YoY).
- Cash and investments: $483.5 million on the balance sheet; debt: $0; net cash: approximately -$96.6 million (net cash).
- Free cash flow: $1.5 million in Q4; full-year FCF: $59.2 million (FCF margin: 7%).
- Customers: 149 customers generating at least $1 million in subscription revenue over the trailing 12 months, up 18% YoY; notable large deals in the quarter highlighted by multi-year, high-value renewals and acceleration of AI-enabled CX capabilities.
- Q4 revenue and profitability drivers: 4% top-line growth supported by core platform adoption; ongoing data/hosting investments tied to Sprinklr Service and AI-enabled capabilities.
Full-year FY25 snapshot
- Total revenue: $796.4 million, up 9% YoY; subscription revenue: $717.9 million, up 7% YoY; calculated billings: $831.1 million, up 6% YoY.
- Non-GAAP operating income: $84.8 million; non-GAAP diluted EPS: $0.35; non-GAAP operating margin: 11%; free cash flow: $59.2 million (FCF margin 7%).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
202.54M
4.29%
0.92%
Gross Profit
143.72M
-1.97%
0.60%
Operating Income
10.46M
-43.03%
32.58%
Net Income
98.68M
366.72%
843.85%
EPS
0.39
405.18%
846.60%
Key Financial Ratios
Gross Profit Margin
Excellent
71.00%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Fair
5.16%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Excellent
48.70%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Good
8.33%
Return on assets shows solid performance and effective asset utilization
Return on Equity
Good
16.10%
Return on equity shows solid performance and effective asset utilization
Current Ratio
Healthy
1.65
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.08
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Value
5.75x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Premium
3.71x
Trading at premium to book value, reflects strong intangibles or growth
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