Sprinklr Reports Q1 2026 Earnings: Revenue Grows Yet Net Loss Reflects Profitability Challenges

Sprinklr, Inc. (NYSE: CXM) - Q1 2026 Earnings Overview

In the latest earnings report for the quarter ended April 30, 2025, Sprinklr's performance reflected both progress in revenue streams and challenges in profitability. Below are the key highlights from the income statement:

• Total Revenue: $205.5 million, up 5% year-over-year from $196 million.
• Subscription Revenue: Increased by 4% to $184.1 million, driven by additional subscriptions from existing customers.
• Professional Services Revenue: Grew 15% to $21.4 million, due to increased managed services.
• Cost of Revenue: Increased 23% to $62.6 million, attributed to higher costs in data and cloud infrastructure.
• Gross Profit: Declined to $142.9 million from $144.8 million; gross margin decreased, indicating increased costs affecting profitability.
• Operating Expenses: Totaled $144.6 million, including significant restructuring costs of $16.3 million due to workforce reduction.
• Net Loss: Reported at $1.6 million compared to a profit of $10.6 million in the same quarter last year. This resulted in a net loss per share of $0.01.
• Provision for Income Taxes: Increased substantially to $6.7 million from $2.6 million, contributing to the net loss.

Positive Aspects:

• Strong revenue growth in both subscription and professional services.
• Active customer engagement, with an increase in large customers from 138 to 146 year-over-year.
• Return to significant cash flows from operating activities at $83.8 million.

Negative Aspects:

• Increased costs leading to lower gross margins, driven primarily by higher data hosting expenses.
• Net loss for the quarter indicates challenges in managing operational expenses effectively despite revenue growth.
• Uncertainties stemming from broader macroeconomic conditions that could impact customer renewal rates and expansion.

This earnings report positions Sprinklr strategically within a rapidly changing market, highlighting both the potential for growth in its Unified Customer Experience Management platform and the challenges it faces in sustaining profitability amid increased operational costs and macroeconomic pressures.