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Sprout Social’s 20% Enterprise Growth — Could Larger Customers Change The Economics?

Sprout Social reported second quarter fiscal 2026 revenue of $123.8 million, up 10.8% year-over-year. Subscription revenue increased 9.7% to $121.9 million. Non-GAAP operating margin reached 12.9%, improving 370 basis points year-over-year as operating leverage strengthened. Remaining performance obligations totaled $400.8 million, up 15.5%, while current RPO grew 12.4%, supported by more longer-term contracts. Customers generating at least $30,000 in annual recurring revenue contributed over 61% of subscription revenue and grew 20% year-over-year. Customers below $30,000 ARR represented 39% of subscription revenue, down from 59% four years ago, reflecting greater focus on larger customers. The company continued expanding artificial intelligence capabilities through its proprietary Trellis platform, which supports real-time natural language queries and on-demand social media insights. Early feedback has been positive, with higher retention among customers using Trellis. Sprout Social also launched Trellis Plus, a paid tier targeting higher-usage customers, although adoption remains too early for broader conclusions.