Sprinklr, a leader in unified customer experience management (Unified-CXM), reported its financial results for Q1 FY26. The results demonstrate continued transformation efforts, improved execution, and a strategic focus on delivering business value through its AI-native CXM platform.

• Total Revenue Growth:

  • Q1 FY26 total revenue reached $205.5 million, up 5% YoY from $196.0 million in Q1 FY25.

  • Subscription revenue was $184.1 million, a 4% YoY increase.

• Operating Income and Margin:

  • GAAP Operating Loss: $1.8 million (vs. $5.7 million income in Q1 FY25).

  • Non-GAAP Operating Income: $36.7 million, showing an increase from $20.9 million YoY.

  • GAAP Operating Margin: -1%.

  • Non-GAAP Operating Margin: Improved to 18%, up from 11% YoY.

• Earnings Per Share (EPS):

  • GAAP Net Loss Per Share: $(0.01), compared to $0.04 EPS YoY.

  • Non-GAAP EPS: $0.12, up from $0.09 in Q1 FY25.

• Liquidity Position:

  • Cash, cash equivalents, and marketable securities totaled $570.2 million as of April 30, 2025.

Outlook & Guidance

• Q2 FY26 Expectations:

  • Subscription revenue: $184M–$185M

  • Total revenue: $205M–$206M

  • Non-GAAP operating income: $33.5M–$34.5M

  • Non-GAAP EPS: ~$0.10 (based on 270M diluted shares)

• Full FY26 Forecast:

  • Subscription revenue: $741M–$743M

  • Total revenue: $825M–$827M

  • Non-GAAP operating income: $129M–$131M

  • Non-GAAP EPS: $0.39–$0.40 (based on 277M diluted shares)

Non-GAAP Financial Metrics Explained

• Purpose of Non-GAAP Reporting:

  • Adjusts for stock-based compensation, amortization, one-time costs, and tax effects.

  • Provides a clearer picture of Sprinklr’s core operating performance.

• Free Cash Flow as a Key Indicator:

  • Defined as net cash from operations minus capital expenditures.

  • Important for assessing liquidity and future investment capabilities.

  • Sprinklr generated record free cash flow in Q1 FY26.

• Limitations Acknowledged:

  • Non-GAAP metrics may vary by company.

  • Used solely for supplemental insights and not a replacement for GAAP measures.

Sprinklr's Q1 FY26 performance showcases its successful strategic shift, with robust non-GAAP profitability, record free cash flow, and continued growth in subscription revenue. While FY26 is a transitional year, Sprinklr’s positioning within the AI-native CXM space places it in a strong position for sustainable growth into FY27 and beyond.

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