Summary
Sprinklr closed fiscal 2025 with fourth quarter revenue of $202.54 million, up 4.3% from the prior-year quarter. Full-year revenue was $796.39 million, up 8.7%. The top line held up, but profitability moved in the opposite direction. Fourth quarter gross profit was $143.72 million, down 2.0%, while full-year gross profit was $574.32 million, up 3.9%. Fourth quarter gross margin was 71.0%, down 4.6 percentage points, and full-year gross margin was 72.1%, down 3.4 percentage points. Operating income was $10.46 million in the quarter, down 43.3%, and $23.97 million for the full year, down 29.4%. Operating margin was 5.2% in the quarter, down 4.3 percentage points, and 3.0% for the full year, down 1.6 percentage points. Net income was $98.68 million in the quarter, up 366.7%, and $121.61 million for the full year, up 136.6%. Diluted EPS for fiscal 2025 was $0.44, up $0.26. The tax line helped the net income comparison. Management attributes the lower full-year income tax provision to a valuation allowance release on U.S. federal and state deferred tax assets.
Cash generation was uneven. Fourth quarter operating cash flow was $5.36 million, down 69.0%, while full-year operating cash flow was $77.59 million, up 8.6%. Capital expenditures were $0.80 million in the quarter, down 61.0%, and $5.80 million for the full year, down 32.1%. Free cash flow, a non-GAAP measure, was $59.2 million for fiscal 2025. Contracted revenue indicators showed modest growth. Deferred revenue, current portion, was $403.48 million, up 7.7%. Remaining performance obligations were $987.70 million, up 2.2%. Current RPO was $612.5 million, compared with $587.0 million a year earlier. Sprinklr completed the full purchase authorization of $300 million under the 2024 Share Repurchase Program during the second quarter of fiscal 2025. The company states that it believes existing cash and marketable securities plus cash from operations will meet working capital needs for at least the next 12 months.
Customer metrics give a mixed read on demand. Sprinklr had 1,930 customers as of January 31, 2025, compared with 1,735 a year earlier. Large customers, defined as those with at least $1.0 million in trailing 12-month subscription revenue, rose to 149 from 126. The company says 60% of the Fortune 100 are customers, and its platform supports over 80 countries and 150 languages. Net dollar expansion rate was 103.6% for the trailing 12 months ended January 31, 2025, down from 117.7% in the prior-year period. Management attributes the decline to elevated churn, worsened by the macroeconomic environment.
Management's MD&A sets a cautious near-term tone on costs. The company expects gross margin to decline in the near term because of higher data and hosting costs, and to vary over time. It expects sales and marketing expense to decrease in the near term as it right sizes costs, and general and administrative expense to decrease in the near term from cost saving initiatives. The expense base still faces pressure from personnel, consulting and credit loss reserves. The MD&A flags macroeconomic risks including inflation, interest rates, the Russia-Ukraine and Israel-Hamas wars, slower information technology spending, longer collection cycles and increased credit losses.
Commitments and accounting estimates add to the risk profile. Sprinklr had minimum guaranteed purchase commitments of $324.8 million as of January 31, 2025, with $107.1 million due within twelve months. The company also cites judgment in revenue recognition and stock-based compensation, including historical common stock valuations and performance-based award valuations. The quarter shows a business with growing revenue and a larger customer base, but also weaker gross margin, lower operating income and a sharp drop in fourth quarter operating cash flow. Net income benefited from a large tax valuation allowance release, while the core operating trends were softer.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $202.5M | $200.7M | +0.9% | $194.2M | +4.3% |
| Gross profit | $143.7M | $142.9M | +0.6% | $146.7M | -2.0% |
| Gross margin | 71.0% | 71.2% | -0.2 pp | 75.5% | -4.6 pp |
| Research & development | $22.6M | $23.3M | -3.1% | $23.1M | -2.2% |
| Sales & marketing | $76.1M | $77.6M | -1.9% | $77.1M | -1.3% |
| General & administrative | $34.6M | $34.1M | +1.4% | $28.1M | +23.4% |
| Total operating expenses | $133.3M | $135.0M | -1.3% | $128.2M | +4.0% |
| Operating income (loss) | $10.5M | $7.9M | +32.6% | $18.5M | -43.3% |
| Operating margin | 5.2% | 3.9% | +1.2 pp | 9.5% | -4.3 pp |
| Net income (loss) | $98.7M | $10.5M | +843.8% | $21.1M | +366.7% |
| Net margin | 48.7% | 5.2% | +43.5 pp | 10.9% | +37.8 pp |
| Diluted EPS | $0.36 | $0.04 | +$0.32 | $0.07 | +$0.29 |
| Customers | 1,930 | — | — | 1,735 | +11.2% |
Risks
Net dollar expansion rate on a trailing 12-month basis was 103.6% for the period ended January 31, 2025, down from 117.7% for the prior-year period. MD&A attributes the decrease to elevated churn exacerbated by the macroeconomic environment, which threatens future subscription revenue growth.
Gross margin was 71.0% in FY2025 Q4, down 4.6 percentage points from 75.5% in FY2024 Q4, and 72.1% year to date, down 3.4 percentage points. MD&A expects gross margin to decline in the near term due to higher data and hosting costs, with subscription gross margin down three percentage points and professional services gross margin down five percentage points for FY2025.
The company has experienced difficulties managing implementation of certain larger CCaaS projects, resulting in increased customer dissatisfaction and loss of certain customers. This is tied to increased product and operational complexity and could harm renewals and growth.
Expanded AI risk disclosure covers EU AI Act compliance, potential inability to obtain U.S. copyright or patent protection for AI-generated works, third-party generative AI tools lacking warranties or indemnities, and customer reluctance to adopt AI in regulated industries. These could increase compliance costs and limit product adoption.
The company relies on negotiated data agreements, including an agreement with X (formerly Twitter) that expires on December 31, 2026. If it is not renewed on the same or similar terms, Sprinklr may not be able to provide the same level of Unified-CXM insights, materially harming results.
MD&A notes a $5.7 million increase in provision for credit losses for FY2025 due to increased reserves for certain customers deemed uncollectible and higher calculated loss rates. A higher-than-expected provision in Q2 FY2025 caused certain operating results to fall below guidance ranges.
Competition for executive, engineering, product, sales and other key talent is high, and recent decreases in stock price and market volatility have required additional equity awards and increased cash compensation to manage attrition, which may be dilutive or impact results.
Macroeconomic uncertainty, including inflation, interest rates, and geopolitical conflicts, may slow enterprise IT spending, lengthen collection cycles, and lead customers to request pricing concessions. MD&A says these effects may not be fully reflected until future periods.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
RPO
cRPO
Non-GAAP Gross Margin
Total customers
Summary, forecast, risks and KPIs are extracted from Sprinklr, Inc.'s SEC filings for Q4 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.