SPROUT SOCIAL C. DL-,0001

Sprout Social reported Q2 2026 revenue of $123.8 million, slightly topping estimates. Non-GAAP operating margin rose by 370 basis points to 12.9%, and non-GAAP free cash flow increased to $8.3 million. The company is shifting focus to larger customers, investing in AI product Trellis and planning a restructuring that will cut about 20% of jobs to achieve annual cost savings of at least $50 million. For Q3 Sprout expects revenue of $123.3–124.1 million and reaffirmed full-year targets of $493–495.6 million in revenue, as well as a targeted improvement in margins by Q4 2026. » More on de.investing.com

Sprout Social announced a broad restructuring plan affecting about 260 jobs (around 20% of the workforce); the board approved the plan on July 8 and notifications began on July 14. Investors see the move as a shift toward leaner operations and a stronger focus on the AI-driven social intelligence strategy, in particular investments in the AI agent Trellis and enterprise customer acquisition. Barclays maintains an Overweight rating with a $9 price target, and a positive market backdrop together with weaker inflation drivers is supporting today's share movement. » More on de.investing.com

Sprout Social informed employees of a reduction of about 260 positions (20% of the workforce) to streamline the organization and focus on strategic priorities, including investments in AI-powered social intelligence. Management approved the restructuring plan on July 8, 2026. The company expects pre-tax restructuring charges of $18.0 to $20.0 million, mostly cash outlays for severance and benefits and largely to be recorded in Q3 2026. Sprout Social plans to complete the measures by the end of Q3 2026, subject to local laws and consultations. » More on de.investing.com