Is Sprout Social, Inc. (NASDAQ:SPT) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Sprout Social, Inc. at current levels.
A $683M social software company generating $104M in free cash flow is either a value trap or an acquisition target hiding in plain sight.
Where SPT is headed
Sprout Social sits in an uncomfortable spot heading into 2027. The company has done what SaaS investors have been screaming at every software name to do for three years, drag operating costs down, push free cash flow up, and stop torching shareholder money chasing growth that was never coming back. $104M of free cash flow on a $683M market cap is a 15% FCF yield for a software business with 77% gross margins. That is not how growth software is supposed to trade. It is how a run-off asset trades.
Read the full Compass Direction on SPT
The complete destination call, the overlooked angle, milestones, and bull, base, and bear price scenarios (around $11.28).
See the full SPT analysisGet calls like this, free
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Frequently asked questions
Is Sprout Social, Inc. (NASDAQ:SPT) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Sprout Social, Inc. at current levels. A $683M social software company generating $104M in free cash flow is either a value trap or an acquisition target hiding in plain sight.
What is SPT's Compass Score?
Sprout Social, Inc. scores 76/100 on Alexandria's Compass, placing it in the "Favorable" tier. Scores blend eight factors and update weekly.
What is the price target for SPT?
Alexandria's full Compass Direction includes bull, base, and bear price scenarios with the valuation math behind each. Read the full breakdown on the SPT page.
Compass verdicts are AI-generated, forward-looking editorial research from publicly available data, not investment advice or a recommendation regarding any security. Scores and verdicts update as the data changes.