Sprinklr, Inc. (CXM)

Price$5.91Cached quoteAs of 2026-09-05 00:38 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong cash generation offsets weak reported profits.

At the observed price, Sprinklr’s equity is worth about $1.3 billion. Subtracting roughly $412 million of cash and marketable investments after debt leaves an operating-business value near $888 million. Trailing free cash flow—cash left after running and investing in the business—was about $128 million, so that value is roughly seven times cash flow. Yet trailing reported profit was only about $23 million, or roughly 56 times earnings, and stock compensation was large. Those conflicting signals support a fair-priced verdict, not an obvious bargain.

Big pictureRevenue still grows, but the latest quarter shows a sharp loss of momentum.

Revenue climbed from $386.9 million in fiscal 2021 to $857.2 million in fiscal 2026, averaging about 17% yearly growth. That history no longer matches the current pace: second-quarter revenue grew 1%, subscription revenue grew 3%, and yearly guidance of $866.5 million to $868.5 million implies only about 1% growth. Gross margin fell from 75.5% in fiscal 2024 to 67.4% in fiscal 2026 and 65.1% recently. Demand is not commodity-driven, but large customers’ budget and renewal schedules make sales and cash collections uneven.

Business strengthA cash-rich balance sheet and recurring sales provide support, while stock awards weaken profit quality.

Cash and marketable securities totaled $452.9 million against $41.4 million of debt, while current assets of $740.2 million exceeded current liabilities of $476.0 million. Contracted remaining obligations—revenue promised under signed contracts—were $1.03 billion, up 11%, supporting visibility. The catch is employee stock compensation: about $82 million over the trailing year, roughly 64% of free cash flow. Buybacks of $152.3 million in fiscal 2026 and $125 million in the following first quarter helped reduce shares by 4.7%, but they consumed cash while offsetting dilution.

What could change the storyRenewed subscription growth would create upside, while continued margin erosion would justify caution.

The valuation appears to assume cash generation survives and sales eventually return to modest growth; it does not require the old 17% pace. The strongest bull case would be subscription growth exceeding 5%, the 11% increase in contracted obligations becoming revenue, and gross margin recovering toward 70%. Then roughly one times guided revenue and seven times trailing free cash flow would look inexpensive. The bear case is revenue staying near 1% growth and margin near 65%, because reported profit remains small and stock awards absorb much of the apparent cash benefit.

AI: News

Second-quarter slowdownSecond-quarter growth slowed, and cautious forecasts reset expectations for a quick recovery.

On September 2, Sprinklr reported $213.7 million of revenue, up 1%, while subscription revenue rose 3% and free cash flow was $13.1 million. Third-quarter adjusted profit guidance was about $0.11 per share versus analysts’ $0.13 estimate, while yearly guidance was about $0.47 versus $0.49. The shares closed 8.6% lower that day. The timing and weaker outlook support—but cannot prove—that the report drove the decline. Contracted remaining obligations rising 11% offered a possible future-growth counterpoint.

First-quarter expectations resetA revenue beat could not erase concern after management set a much lower yearly sales target.

On June 3, first-quarter revenue reached $219.5 million, up 7%, and subscription revenue increased 6%. Free cash flow was strong at $65.8 million. However, management’s full-year revenue range centered on $867.5 million, well below the roughly $914.4 million analyst consensus reported at the time. The shares were nearly flat before trading opened, so there was no clear immediate price shock. The event still mattered because it established that Sprinklr’s recovery would likely be slower than investors had expected.

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Revenue

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2021

2022

2023

2024

2025

2026

Net income

2020

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2023

2024

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2026

Free cash flow

2020

2021

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Total cash / debt

CashTotal debt

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2026

Financial statements

	2026	2025	2024	2023	2022	2021	2020
Revenue	$857.2M	$796.4M	$732.4M	$618.2M	$492.4M	$386.9M	$324.3M
Gross profit	$577.8M	$574.6M	$553.0M	$454.5M	$344.8M	$264.8M	$201.1M
Gross margin	67.40%	72.15%	75.50%	73.52%	70.03%	68.45%	62.02%
Research & development	$96.0M	$91.6M	$91.3M	$76.7M	$60.6M	$40.3M	$32.5M
Operating expenses	$537.5M	$550.7M	$519.0M	$505.7M	$444.3M	$290.4M	$236.6M
Operating income	$40.2M	$24.0M	$33.9M	−$51.2M	−$99.5M	−$25.6M	−$35.5M
Operating margin	4.69%	3.01%	4.64%	−8.29%	−20.20%	−6.61%	−10.96%
EBITDA	$59.3M	$42.6M	$49.4M	−$39.2M	−$91.4M	−$19.9M	−$31.1M
EBITDA margin	6.92%	5.36%	6.75%	−6.34%	−18.56%	−5.14%	−9.59%
Net income	$22.9M	$121.6M	$51.4M	−$55.7M	−$111.5M	−$38.0M	−$39.8M
Net profit margin	2.67%	15.27%	7.02%	−9.02%	−22.64%	−9.81%	−12.26%
Basic EPSper basic share	$0.09	$0.47	$0.19	-$0.21	-$0.57	-$0.42	-$0.47
Diluted EPSper diluted share	$0.09	$0.44	$0.18	-$0.21	-$0.57	-$0.42	-$0.47

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈13.92%of listed shares

BlackRock, Inc.18.53M shares · Jun 30, 2026

View holders

Top 20 reported holders of CXM
Holder	% owned
BlackRock, Inc.	≈13.92%18.53M shares
TABORS R DAVID	≈10.58%14.08M shares
TOBIN SCOTT R	≈9.11%12.12M shares
Feldman Jesse	≈8.98%11.95M shares
H&F Corporate Investors IX, Ltd.	≈8.16%10.86M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈7.24%9.64M shares
PRIVATE MANAGEMENT GROUP INC	≈4.39%5.84M shares
Sixth Street Partners Management Company, L.P.	≈4.26%5.67M shares
STATE STREET CORP	≈3.84%5.11M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈3.42%4.56M shares
Solel Partners LP	≈2.74%3.65M shares
READ RORY P	≈2.57%3.42M shares
Agrawal Neeraj	≈2.45%3.26M shares
MORGAN STANLEY	≈2.27%3.02M shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.19%2.91M shares
FEDERATED HERMES, INC.	≈2.03%2.7M shares
CITIGROUP INC	≈1.86%2.48M shares
Elhafed Morad	≈1.84%2.45M shares
DIMENSIONAL FUND ADVISORS LP	≈1.83%2.44M shares
BATTERY MANAGEMENT CORP.	≈1.80%2.4M shares

Percentages use 133.1M shares of this listed class outstanding on May 31, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$152.00 disclosed value

Sells (SEC code S)114$106.40M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 22, 2026Form 4 · 10b5-1	Scott JacobGENERAL COUNSEL AND CORP. SEC.	SellClass A Common Stock	2.7K	$4.97	$13.5K	648.4K
Jun 17, 2026Form 4 · 10b5-1	Suri KarthikChief Product & CSO	SellClass A Common Stock	41.9K	$5.14	$215.1K	1.11M
Jun 16, 2026Form 4 · 10b5-1	Suri KarthikChief Product & CSO	SellClass A Common Stock	23.5K	$5.30	$124.6K	1.15M
Jun 16, 2026Form 4	Misra AmitabhChief Technology Officer	SellClass A Common Stock	29.2K	$5.30	$154.7K	854.8K
Jun 16, 2026Form 4	Scott JacobGENERAL COUNSEL AND CORP. SEC.	SellClass A Common Stock	16.4K	$5.30	$86.8K	651.1K