Recent News
On July 29–30, 2025 Sprout Social closed its acquisition of NewsWhip for $55.0 million in cash plus up to $10.0 million of performance-based earnouts; the transaction funded with cash on hand and borrowings under the company’s revolving credit facility. The NewsWhip leadership team will join Sprout’s Listening business, with NewsWhip’s CEO named General Manager of that segment. The company stated the deal will accelerate its AI roadmap and expand predictive media intelligence capabilities.
Technical Analysis
ADX at 28.24 indicates a strong trend environment; trend strength raises the likelihood that prevailing directional forces will continue to matter for short-term price movement.
DI+ stands at 14.08 and shows a decreasing trend while DI- sits at 25.11 and has registered a dip-and-reversal. Both series point toward bearish directional pressure; that directional bias increases the risk of additional downside unless momentum indicators flip decisively.
MACD trades at -0.49 and recently crossed above its signal line (MACD signal = -0.56) following a dip-and-reversal. The crossover from negative territory signals nascent bullish momentum, though momentum remains limited while MACD stays below zero.
MRO reads -22.67 with a dip-and-reversal pattern, indicating the price sits notably below the model target and that the oscillator has turned higher from a deeper negative—implying measurable upside pressure toward the valuation implied target.
RSI at 40.16 shows an increasing trend, reflecting recovery from recent weakness but remaining below neutral. The recovery in RSI supports a potential mean reversion move toward short-term moving averages if buying interest sustains.
Price sits near $14.33, below the 50-day average of $15.95 and well below the 200-day average of $23.38, inside the 1x Bollinger band range ($13.95–$15.18). The 12-day EMA at $14.49 trends down; convergence between MRO-driven upside pressure and MACD recovery will determine whether price re-tests the 20–50 day averages or resumes the lower band.
Fundamental Analysis
Revenue totaled $111.78 million with revenue growth YoY at -15.635% and revenue growth QoQ at 10.911%. The QoQ acceleration contrasts with a full-year contraction versus the prior year, indicating recent momentum in sales that has not yet translated into sustained annual growth.
Gross margin stands at 77.69%, roughly in line with the industry peer mean of 72.32% and below the industry peer high, supporting strong unit economics on top-line activity.
Operating margin equals -11.02% with a QoQ improvement of 14.94% but a YoY decline of -30.329%. EBIT margin registers -9.85%, improving QoQ by 2.80% yet trailing the industry peer mean of 34.26% and industry peer median of 43.47%. Those gaps highlight persistent operating leverage still absorbing investment in product and go-to-market expansion.
Net income for the period recorded a loss of $11,985,000; EBITDA equaled -$8,575,000. Free cash flow reached $4,182,000, producing a free cash flow yield of 0.40% and free cash flow growth YoY of -11.117%. Operating cash flow totaled $5,090,000, while cash and short-term investments sat at $101,532,000.
Liquidity and capital structure show total debt of $30,904,000, debt to assets of 7.31%, and total equity of $184,559,000. Current ratio approximates 1.00. Return on equity registers -6.49% and return on assets -2.83%, both negative and reflecting ongoing investment ahead of sustained profitability.
EPS actual came in at $0.18 versus an estimate of $0.15, an EPS surprise of 20% (beat of $0.03). Forward EPS sits at $0.1775 with a forward P/E near 124.91x; trailing P/E stands at 112.85x. Book value per share at $3.14 and price-to-book near 5.68x indicate market assigns a premium to intangible-driven growth expectations.
WMDST values the stock as fair-valued given the combination of strong gross margins, accelerating product capabilities via the NewsWhip acquisition, modest free cash generation, and persistent negative operating profitability that compresses near-term fundamental upside.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-06 |
| NEXT REPORT DATE: | 2025-11-06 |
| CASH FLOW | Begin Period Cash Flow | $ 104.9 M |
| Operating Cash Flow | $ 5.1 M | |
| Capital Expenditures | $ -908.00 K | |
| Change In Working Capital | $ -13.51 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 640.0 K | |
| End Period Cash Flow | $ 105.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 111.8 M | |
| Forward Revenue | $ -24.34 M | |
| COSTS | ||
| Cost Of Revenue | $ 24.9 M | |
| Depreciation | $ 1.1 M | |
| Depreciation and Amortization | $ 2.4 M | |
| Research and Development | $ 24.6 M | |
| Total Operating Expenses | $ 124.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 86.8 M | |
| EBITDA | $ -8.57 M | |
| EBIT | $ -11.01 M | |
| Operating Income | $ -12.31 M | |
| Interest Income | $ 946.0 K | |
| Interest Expense | $ 409.0 K | |
| Net Interest Income | $ 537.0 K | |
| Income Before Tax | $ -11.42 M | |
| Tax Provision | $ 563.0 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ -11.98 M | |
| Net Income From Continuing Operations | $ -11.98 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.15 | |
| EPS Actual | $ 0.18 | |
| EPS Difference | $ 0.03 | |
| EPS Surprise | 20.0 % | |
| Forward EPS | $ 0.18 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 422.9 M | |
| Intangible Assets | $ 140.6 M | |
| Net Tangible Assets | $ 43.9 M | |
| Total Current Assets | $ 207.8 M | |
| Cash and Short-Term Investments | $ 101.5 M | |
| Cash | $ 101.5 M | |
| Net Receivables | $ 67.3 M | |
| Inventory | — | |
| Long-Term Investments | $ 1.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 11.4 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 208.6 M | |
| Net Debt | — | |
| Total Debt | $ 30.9 M | |
| Total Liabilities | $ 238.4 M | |
| EQUITY | ||
| Total Equity | $ 184.6 M | |
| Retained Earnings | $ -377.59 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 3.14 | |
| Shares Outstanding | 58.815 M | |
| Revenue Per-Share | $ 1.90 | |
| VALUATION | Market Capitalization | $ 1.0 B |
| Enterprise Value | $ 978.6 M | |
| Enterprise Multiple | -114.117 | |
| Enterprise Multiple QoQ | -33.885 % | |
| Enterprise Multiple YoY | -30.678 % | |
| Enterprise Multiple IPRWA | high: 634.148 mean: 93.004 median: 82.154 SPT: -114.117 low: -495.912 |
|
| EV/R | 8.754 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.292 | |
| Asset To Liability | 1.774 | |
| Debt To Capital | 0.143 | |
| Debt To Assets | 0.073 | |
| Debt To Assets QoQ | -17.173 % | |
| Debt To Assets YoY | 259.243 % | |
| Debt To Assets IPRWA | high: 1.095 mean: 0.161 median: 0.098 SPT: 0.073 low: 0.002 |
|
| Debt To Equity | 0.167 | |
| Debt To Equity QoQ | -21.642 % | |
| Debt To Equity YoY | 218.165 % | |
| Debt To Equity IPRWA | high: 3.008 mean: 0.299 median: 0.176 SPT: 0.167 low: -0.874 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.685 | |
| Price To Book QoQ | -27.729 % | |
| Price To Book YoY | -60.36 % | |
| Price To Book IPRWA | high: 34.07 mean: 12.069 median: 10.727 SPT: 5.685 low: -16.218 |
|
| Price To Earnings (P/E) | 112.847 | |
| Price To Earnings QoQ | 4.735 % | |
| Price To Earnings YoY | -73.427 % | |
| Price To Earnings IPRWA | high: 564.562 mean: 139.073 median: 130.187 SPT: 112.847 low: -357.639 |
|
| PE/G Ratio | -6.207 | |
| Price To Sales (P/S) | 9.386 | |
| Price To Sales QoQ | -25.61 % | |
| Price To Sales YoY | -57.236 % | |
| Price To Sales IPRWA | high: 113.355 median: 48.199 mean: 45.686 SPT: 9.386 low: 1.219 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 124.914 | |
| Forward PE/G | -6.87 | |
| Forward P/S | -43.103 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.255 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.264 | |
| Asset Turnover Ratio QoQ | 2.927 % | |
| Asset Turnover Ratio YoY | 3.957 % | |
| Asset Turnover Ratio IPRWA | high: 0.416 SPT: 0.264 mean: 0.13 median: 0.129 low: 0.0 |
|
| Receivables Turnover | 1.693 | |
| Receivables Turnover Ratio QoQ | 15.266 % | |
| Receivables Turnover Ratio YoY | -7.144 % | |
| Receivables Turnover Ratio IPRWA | high: 4.366 SPT: 1.693 mean: 1.421 median: 1.257 low: 0.131 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 53.898 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -136.648 | |
| CapEx To Revenue | -0.008 | |
| CapEx To Depreciation | -0.793 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 199.6 M | |
| Net Invested Capital | $ 199.6 M | |
| Invested Capital | $ 199.6 M | |
| Net Tangible Assets | $ 43.9 M | |
| Net Working Capital | $ -818.00 K | |
| LIQUIDITY | ||
| Cash Ratio | 0.487 | |
| Current Ratio | 0.996 | |
| Current Ratio QoQ | 2.752 % | |
| Current Ratio YoY | 1.802 % | |
| Current Ratio IPRWA | high: 9.787 mean: 1.695 median: 1.353 SPT: 0.996 low: 0.079 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -3.604 | |
| Cost Of Debt | 0.945 % | |
| Interest Coverage Ratio | -26.927 | |
| Interest Coverage Ratio QoQ | 32.127 % | |
| Interest Coverage Ratio YoY | 66.525 % | |
| Interest Coverage Ratio IPRWA | high: 181.115 median: 54.034 mean: 37.794 SPT: -26.927 low: -372.737 |
|
| Operating Cash Flow Ratio | -0.038 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 34.288 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.406 % | |
| Revenue Growth | 2.277 % | |
| Revenue Growth QoQ | 10.911 % | |
| Revenue Growth YoY | -15.635 % | |
| Revenue Growth IPRWA | high: 32.808 % median: 9.099 % mean: 6.946 % SPT: 2.277 % low: -21.897 % |
|
| Earnings Growth | -18.182 % | |
| Earnings Growth QoQ | -215.156 % | |
| Earnings Growth YoY | 81.82 % | |
| Earnings Growth IPRWA | high: 157.143 % median: 5.491 % mean: 4.78 % SPT: -18.182 % low: -200.0 % |
|
| MARGINS | ||
| Gross Margin | 77.693 % | |
| Gross Margin QoQ | 0.544 % | |
| Gross Margin YoY | 0.298 % | |
| Gross Margin IPRWA | high: 91.297 % SPT: 77.693 % mean: 72.322 % median: 68.585 % low: 33.069 % |
|
| EBIT Margin | -9.853 % | |
| EBIT Margin QoQ | 2.796 % | |
| EBIT Margin YoY | -37.691 % | |
| EBIT Margin IPRWA | high: 74.313 % median: 43.473 % mean: 34.26 % SPT: -9.853 % low: -124.558 % |
|
| Return On Sales (ROS) | -11.017 % | |
| Return On Sales QoQ | 14.94 % | |
| Return On Sales YoY | -30.329 % | |
| Return On Sales IPRWA | high: 76.082 % median: 44.901 % mean: 34.02 % SPT: -11.017 % low: -117.376 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 4.2 M | |
| Free Cash Flow Yield | 0.399 % | |
| Free Cash Flow Yield QoQ | -67.133 % | |
| Free Cash Flow Yield YoY | 454.167 % | |
| Free Cash Flow Yield IPRWA | high: 6.936 % median: 0.694 % mean: 0.528 % SPT: 0.399 % low: -13.154 % |
|
| Free Cash Growth | -75.028 % | |
| Free Cash Growth QoQ | -118.094 % | |
| Free Cash Growth YoY | -11.117 % | |
| Free Cash Growth IPRWA | high: 278.713 % median: 25.957 % mean: 12.19 % SPT: -75.028 % low: -316.997 % |
|
| Free Cash To Net Income | -0.349 | |
| Cash Flow Margin | -7.051 % | |
| Cash Flow To Earnings | 0.658 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -2.828 % | |
| Return On Assets QoQ | 7.488 % | |
| Return On Assets YoY | -34.416 % | |
| Return On Assets IPRWA | high: 14.05 % median: 4.609 % mean: 3.675 % SPT: -2.828 % low: -24.058 % |
|
| Return On Capital Employed (ROCE) | -5.138 % | |
| Return On Equity (ROE) | -0.065 | |
| Return On Equity QoQ | 1.469 % | |
| Return On Equity YoY | -41.517 % | |
| Return On Equity IPRWA | high: 0.214 median: 0.079 mean: 0.07 SPT: -0.065 low: -0.337 |
|
| DuPont ROE | -6.661 % | |
| Return On Invested Capital (ROIC) | -4.36 % | |
| Return On Invested Capital QoQ | 2.903 % | |
| Return On Invested Capital YoY | -129.918 % | |
| Return On Invested Capital IPRWA | high: 13.859 % median: 7.176 % mean: 5.443 % SPT: -4.36 % low: -11.068 % |
|