Sprinklr's Q2 Net Income Soars 585% on Revenue Growth, Cost Cuts

TL;DR

**Sprinklr's Q2 profit jump is a bullish sign, showing they're finally turning the corner on profitability despite a mixed half-year.**

AI Summary

Sprinklr, Inc. (CXM) reported a significant increase in net income for the three months ended July 31, 2025, reaching $12.615 million, up from $1.841 million in the same period last year, representing a 585% increase. Total revenue grew to $212.040 million, a 7.5% increase from $197.208 million in the prior year, driven by subscription revenue of $188.473 million and professional services revenue of $23.567 million. Operating income saw a substantial turnaround, moving from a loss of $0.087 million in Q2 2024 to an income of $16.272 million in Q2 2025. Sales and marketing expenses decreased by 9% to $70.583 million, contributing to improved profitability. However, net income for the six months ended July 31, 2025, decreased to $11.047 million from $12.475 million in the prior year, primarily due to a significant restructuring charge of $15.329 million. Cash and cash equivalents decreased to $125.365 million from $145.270 million at January 31, 2025, while accounts receivable, net, decreased to $202.473 million from $285.656 million, indicating improved collections.

Why It Matters

Sprinklr's impressive Q2 net income surge and operating income turnaround signal strong operational efficiency and potential for sustained profitability, which is crucial for investors in the competitive customer experience management (CXM) software market. The reduction in sales and marketing expenses, alongside revenue growth, suggests a more disciplined approach to customer acquisition and retention, potentially improving long-term margins. For employees, this financial health could mean greater job security and opportunities, while customers benefit from a stable provider of AI-native Unified-CXM solutions. In a market dominated by giants and nimble startups, CXM's ability to grow revenue while significantly boosting profitability could position it as a more attractive investment compared to competitors still prioritizing growth over immediate earnings.

Risk Assessment

Risk Level: medium — While Sprinklr showed strong Q2 profitability, the six-month net income decreased to $11.047 million from $12.475 million, largely due to a $15.329 million restructuring charge. This indicates ongoing operational adjustments that could introduce short-term volatility. Additionally, cash and cash equivalents decreased by $19.702 million over six months, and the company engaged in significant share repurchases totaling $140.845 million, which, while potentially boosting EPS, also reduces cash reserves.

Analyst Insight

Investors should consider Sprinklr's improved Q2 profitability and operational efficiency as a positive indicator, but remain cautious about the impact of restructuring charges on full-year results. Monitor future filings for sustained net income growth and cash flow generation, especially given the significant share repurchases. A 'hold' position is advisable until a clear trend emerges from the restructuring efforts.

Financial Highlights

debt To Equity

1.00

revenue

$212.040M

operating Margin

7.7%

total Assets

$1,086.113M

total Debt

$542.676M

net Income

$12.615M

eps

$0.05

gross Margin

68.2%

cash Position

$125.365M

revenue Growth

+7.5%

Revenue Breakdown

Key Numbers

• $12.615M — Net Income (Q2 2025) (Increased 585% from $1.841M in Q2 2024)
• $212.040M — Total Revenue (Q2 2025) (Up 7.5% from $197.208M in Q2 2024)
• $188.473M — Subscription Revenue (Q2 2025) (Primary driver of total revenue growth)
• $16.272M — Operating Income (Q2 2025) (Turnaround from an operating loss of $0.087M in Q2 2024)
• $70.583M — Sales and Marketing Expense (Q2 2025) (Decreased 9% from $77.490M in Q2 2024)
• $11.047M — Net Income (Six Months 2025) (Decreased from $12.475M in Six Months 2024 due to restructuring)
• $15.329M — Restructuring Charge (Six Months 2025) (Significant impact on six-month net income)
• $125.365M — Cash and Cash Equivalents (July 31, 2025) (Decreased from $145.270M at January 31, 2025)
• $202.473M — Accounts Receivable, net (July 31, 2025) (Decreased from $285.656M at January 31, 2025, indicating improved collections)
• $140.845M — Share Repurchases (Six Months 2025) (Significant cash outflow for financing activities)

Key Players & Entities

• Sprinklr, Inc. (company) — provider of enterprise software products for unified customer experience management
• New York Stock Exchange (regulator) — exchange where Sprinklr's Class A common stock is registered
• SEC (regulator) — Securities and Exchange Commission, governing body for financial filings
• Unified-CXM (company) — Sprinklr's AI-native platform for unified customer experience management
• Chief Executive Officer (person) — Sprinklr's chief operating decision maker
• $12.615 million (dollar_amount) — net income for the three months ended July 31, 2025
• $1.841 million (dollar_amount) — net income for the three months ended July 31, 2024
• $212.040 million (dollar_amount) — total revenue for the three months ended July 31, 2025
• $15.329 million (dollar_amount) — restructuring charge for the six months ended July 31, 2025
• $140.845 million (dollar_amount) — payments for repurchase of Class A common shares and related excise tax for the six months ended July 31, 2025

FAQ

Risk Factors

• Dependence on Subscription Revenue [high — financial]: The company's revenue is heavily reliant on subscription fees. A slowdown in new subscriptions or churn in existing ones could significantly impact financial performance. Subscription revenue for Q2 2025 was $188.473M.
• Restructuring Charges Impacting Profitability [medium — operational]: A significant restructuring charge of $15.329 million in the six months ended July 31, 2025, negatively impacted net income, causing it to decrease to $11.047 million from $12.475 million in the prior year. This highlights potential operational inefficiencies or strategic shifts.
• Declining Cash and Cash Equivalents [medium — financial]: Cash and cash equivalents decreased to $125.365 million as of July 31, 2025, from $145.270 million at January 31, 2025. This reduction, coupled with $140.845M in share repurchases, warrants monitoring for liquidity.
• Intense Competition in CXM Market [high — market]: The Customer Experience Management (CXM) market is highly competitive, with numerous players offering similar solutions. Sprinklr faces pressure to innovate and maintain market share against established and emerging competitors.
• Sales and Marketing Expense Management [medium — operational]: While sales and marketing expenses decreased by 9% to $70.583 million in Q2 2025, this area remains a significant cost center. Continued effective management is crucial for profitability, especially given the competitive landscape.

Industry Context

Sprinklr operates in the competitive Customer Experience Management (CXM) software market. This sector is characterized by rapid technological advancements, increasing customer expectations for seamless interactions, and a growing demand for integrated solutions that span marketing, sales, and service.

Regulatory Implications

As a software-as-a-service (SaaS) provider, Sprinklr must comply with data privacy regulations like GDPR and CCPA, which govern the collection and use of customer data. Non-compliance can lead to significant fines and reputational damage.

What Investors Should Do

1. Monitor the impact of restructuring on future operational efficiency.
2. Analyze the sustainability of Q2 2025 net income growth.
3. Evaluate the company's cash flow and liquidity position.

Key Dates

• 2025-07-31: End of Second Quarter 2025 — Reported significant net income growth of 585% and revenue increase of 7.5% for the quarter, but a decrease in six-month net income due to restructuring.
• 2025-01-31: End of Fiscal Year 2025 — Previous balance sheet date, showing higher cash and cash equivalents ($145.270M) and accounts receivable ($285.656M) compared to July 31, 2025.

Glossary

CXM

Customer Experience Management, a set of practices and technologies used to manage and improve customer interactions across all touchpoints. (Sprinklr operates within the CXM market, and its financial performance is tied to the growth and dynamics of this industry.)

Deferred Revenue

Revenue that has been received by a company but not yet earned. It is recognized as revenue over time as the service is delivered or the product is used. (A significant portion of Sprinklr's liabilities ($395.059M current, $2.020M non-current) is deferred revenue, indicating a strong subscription-based model.)

Restructuring Charge

Costs associated with significant reorganizations within a company, such as layoffs, facility closures, or business unit divestitures. (A $15.329 million restructuring charge impacted Sprinklr's six-month net income, highlighting a period of significant internal change.)

Operating Lease Right-of-Use Assets

Assets recognized under accounting standards for leases, representing the right to use an asset for a specified period. (Represents Sprinklr's long-term commitments for leased assets, such as office spaces, with a balance of $44.318M as of July 31, 2025.)

Year-Over-Year Comparison

Compared to the previous fiscal year, Sprinklr has demonstrated strong revenue growth, with total revenue increasing by 7.5% to $212.040 million in Q2 2025. While Q2 net income saw a dramatic 585% increase, the six-month net income declined due to a substantial $15.329 million restructuring charge. Operating expenses, particularly sales and marketing, have been managed more effectively, decreasing by 9% in Q2 2025, contributing to improved operating income. Cash reserves have decreased, but accounts receivable have also seen a significant reduction, suggesting improved collection efficiency.

Key Financial Figures

• $0.00003 — stered Class A common stock, par value $0.00003 per share CXM New York Stock Exchange

Filing Documents

• cxm-20250731.htm (10-Q) — 1688KB
• a101-sprinklrincxamendedan.htm (EX-10.1) — 39KB
• a102-sprinklrxragythomastr.htm (EX-10.2) — 93KB
• a103-sharveyxsprinklrsepar.htm (EX-10.3) — 72KB
• q2fy26_ex311.htm (EX-31.1) — 12KB
• q2fy26_ex312.htm (EX-31.2) — 12KB
• q2fy26_ex321.htm (EX-32.1) — 8KB
• image_0.jpg (GRAPHIC) — 6KB
• image_01.jpg (GRAPHIC) — 6KB
• image_1.jpg (GRAPHIC) — 23KB
• image_2.jpg (GRAPHIC) — 23KB
• 0001569345-25-000048.txt ( ) — 7852KB
• cxm-20250731.xsd (EX-101.SCH) — 43KB
• cxm-20250731_cal.xml (EX-101.CAL) — 75KB
• cxm-20250731_def.xml (EX-101.DEF) — 238KB
• cxm-20250731_lab.xml (EX-101.LAB) — 628KB
• cxm-20250731_pre.xml (EX-101.PRE) — 448KB
• cxm-20250731_htm.xml (XML) — 976KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Comprehensive Income 6 Condensed Consolidated Statements of Stockholders ' Equity 7 Condensed Consolidated Statements of Cash Flows 9 Notes to Unaudited Condensed Consolidated Financial Statements 10

Management ' s Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 38

Controls and Procedures

Item 4. Controls and Procedures 38

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 39

Risk Factors

Item 1A. Risk Factors 40

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71 Item 5. Other Information 72

Exhibits

Item 6. Exhibits 73

Signatures

Signatures WHERE YOU CAN FIND MORE INFORMATION Investors and others should note that we announce material financial information to our investors using our investor relations website, press releases, SEC filings and public conference calls and webcasts. We also use Sprinklr's blog and the following social media channels as a means of disclosing information about the company, our products, our planned financials and other announcements and attendance at upcoming investor and industry conferences, and other matters. This is in compliance with our disclosure obligations under Regulation FD: Sprinklr Company Blog (http://sprinklr.com/blog) Sprinklr LinkedIn Page (http://www.linkedin.com/company/sprinklr) Sprinklr X (formerly known as Twitter) Account (https://x.com/sprinklr) Sprinklr Facebook Page (https://www.facebook.com/sprinklr/) Sprinklr Instagram Page (https://www.instagram.com/sprinklr) In addition, investors and others can view Sprinklr videos on YouTube (https://www.YouTube.com/c/sprinklr). Information posted through these social media channels may be deemed material. Accordingly, in addition to reviewing our press releases, SEC filings, public conference calls and webcasts, investors should monitor Sprinklr's blog and its other social media channels. The information we post through these channels is not a part of this Quarterly Report on Form 10-Q. The channel list on how to connect with us may be updated from time to time and is available on https://www.sprinklr.com and our investor relations website. 2 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (this "Form 10-Q") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this Form 10-Q other than statements of historical fact, including statements regarding our f

-FINANCIAL INFORMATION

PART I-FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. SPRINKLR, INC. Condensed Consolidated Balance Sheets (in thousands, except share data) (unaudited) July 31, 2025 January 31, 2025 Assets Current assets: Cash and cash equivalents $ 125,365 $ 145,270 Marketable securities 348,626 338,189 Accounts receivable, net of allowance of $ 9.1 million and $ 8.1 million, respectively 202,473 285,656 Prepaid expenses and other current assets 90,712 84,982 Total current assets 767,176 854,097 Property and equipment, net 31,599 31,591 Goodwill and other intangible assets 50,155 49,957 Operating lease right-of-use assets 44,318 44,626 Deferred tax asset, non-current 80,695 90,369 Other non-current assets 112,170 113,559 Total assets $ 1,086,113 $ 1,184,199 Liabilities and stockholders' equity Liabilities Current liabilities: Accounts payable $ 28,260 $ 27,353 Accrued expenses and other current liabilities 62,210 79,285 Operating lease liabilities, current 8,395 7,462 Deferred revenue 395,059 403,483 Total current liabilities 493,924 517,583 Deferred revenue, non-current 2,020 6,276 Operating lease liabilities, non-current 39,817 41,243 Other liabilities, non-current 6,915 7,034 Total liabilities 542,676 572,136 Commitments and contingencies (Note 8) Stockholders' equity: Class A common stock, $ 0.00003 par value, 2,000,000,000 shares authorized; 143,373,022 and 139,163,819 shares issued and outstanding as of July 31, 2025 and January 31, 2025, respectively 4 4 Class B common stock, $ 0.00003 par value, 310,000,000 shares authorized; 101,728,583 and 116,278,936 shares issued and outstanding as of July 31, 2025 and January 31, 2025, respectively 3 4 Treasury stock, at cost, 14,130,784 shares as of July 31, 2025 and January 31, 2025 ( 23,831 ) ( 23,831 ) Additional paid-in capital 1,328,449 1,268,920 Accumulated other comprehensive loss ( 4,742 ) ( 6,969 ) Accumulated deficit ( 756,446 ) ( 626,065 ) Total stockholders' equity 543,437 612,063 Total liabilit

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