Sprinklr reported fiscal second-quarter 2027 results highlighted by modest revenue growth, an expanding contracted revenue base and continued positive cash generation as the enterprise software company works to strengthen its recurring subscription business.
Total revenue increased 1% year over year to $213.7 million, while subscription revenue increased 3% to $194.8 million.
Subscription revenue represented approximately 91% of total quarterly revenue, underscoring the recurring nature of Sprinklr’s business model and providing the company with a relatively predictable base of customer revenue.
One of the more notable forward-looking indicators was remaining performance obligations.
Sprinklr’s total RPO increased 11% year over year to $1.03 billion, taking the company’s contracted backlog above the $1 billion level.
Current remaining performance obligations, representing contracted revenue expected to be recognized within the next 12 months, increased 3% year over year.
The significantly faster growth in total RPO compared with reported revenue suggests Sprinklr continues securing longer-term customer commitments even as near-term revenue growth remains relatively modest.
For a subscription software company, RPO can provide important visibility into future results because it reflects revenue already committed under customer contracts but not yet recognized.
Sprinklr’s $1.03 billion of RPO is nearly five times its quarterly revenue, providing a sizable contracted revenue base as the company moves through the remainder of fiscal 2027.
The company also remained cash-flow positive during the quarter.
Operating cash flow reached $18.2 million, while free cash flow was $13.1 million.
Positive free cash flow gives Sprinklr additional flexibility to fund product development, sales initiatives and other investments without depending entirely on external financing.
Sprinklr also maintained a substantial liquidity position.
The company ended the quarter with $452.9 million in cash, cash equivalents and marketable securities.
That balance provides a significant financial cushion relative to the company’s quarterly operating requirements and gives management flexibility around strategic investments and capital allocation.
Profitability was mixed compared with the prior-year period.
GAAP operating income declined to $10 million, compared with $16.3 million a year earlier.
The decline indicates that slower top-line growth and operating expenses weighed on reported profitability despite continued subscription revenue expansion.
On a non-GAAP basis, however, Sprinklr generated $31.3 million of operating income.
That implies a non-GAAP operating margin of approximately 14.6% of total revenue for the quarter.
GAAP diluted earnings per share were $0.03, while non-GAAP diluted EPS reached $0.11.
The difference between GAAP and adjusted profitability reflects expenses and other items excluded from Sprinklr’s non-GAAP measures.
Even with the decline in GAAP operating income, the company remained profitable on both a reported and adjusted basis while continuing to generate free cash flow.
Sprinklr’s business is built around enterprise software used to manage customer-facing activities across digital channels.
Its recurring subscription model means growth depends not only on adding new customers but also on expanding relationships with existing organizations over time.
The growth in remaining performance obligations is therefore an important metric alongside quarterly revenue.
An 11% increase in total RPO suggests that the amount of future contracted business is growing significantly faster than currently recognized revenue.
If those commitments convert into subscription revenue as scheduled, they could provide support for stronger growth over future periods.
Current RPO growth of 3% is more closely aligned with the company’s existing subscription growth rate, indicating that a meaningful portion of the acceleration in total RPO relates to commitments extending beyond the next 12 months.
That longer-duration backlog can improve revenue visibility while giving Sprinklr a stronger foundation for planning investments and operating expenses.
Management’s fiscal third-quarter guidance calls for continued gradual expansion.
Sprinklr expects total revenue between $215 million and $216 million.
At the midpoint, that implies approximately $215.5 million of quarterly revenue.
Subscription revenue is expected between $196 million and $197 million, with a midpoint of approximately $196.5 million.
The guidance indicates that subscription revenue should continue growing while remaining the dominant contributor to total sales.
Non-GAAP diluted EPS is expected to be approximately $0.11, consistent with the second-quarter result.
For the full fiscal year, Sprinklr expects total revenue between $866.5 million and $868.5 million.
At the midpoint, the outlook implies approximately $867.5 million of fiscal 2027 revenue.
The company also expects full-year non-GAAP operating income between $139 million and $141 million.
The midpoint of approximately $140 million implies a non-GAAP operating margin of roughly 16%, based on the midpoint of the company’s revenue guidance.
That would represent a higher margin than the approximately 14.6% generated during the second quarter and suggests management expects additional operating leverage over the remainder of the fiscal year.
Full-year non-GAAP diluted EPS is projected at approximately $0.47.
The guidance reflects a business that is prioritizing profitability and cash generation while working to improve growth across its recurring revenue base.
Sprinklr’s quarterly sales growth remains relatively modest at 1%, but several underlying metrics provide greater visibility into future performance.
Subscription revenue increased faster than total revenue, RPO growth reached double digits and the company maintained positive free cash flow.
The 11% increase in RPO to more than $1 billion stands out as one of the strongest indicators in the quarter because it points to a substantially larger pool of contracted future revenue.
Sprinklr’s strong cash position further reduces financial pressure while management works to convert that backlog into recognized sales.
With $452.9 million of cash and marketable securities, the company has resources to continue investing in its product platform even if near-term revenue growth remains measured.
Overall, Sprinklr’s fiscal second quarter showed a company balancing slower reported growth with an expanding long-term subscription backlog and continued profitability.
Revenue reached $213.7 million, subscription revenue increased to $194.8 million, RPO surpassed $1.03 billion, and the company generated $13.1 million of free cash flow.
Looking ahead, Sprinklr expects fiscal 2027 revenue to approach $868 million, with approximately $140 million of non-GAAP operating income at the midpoint and non-GAAP EPS of approximately $0.47.
The company’s ability to translate its faster-growing contracted backlog into stronger subscription revenue will be an important factor in determining whether revenue growth can accelerate from current levels.
KEY QUOTE:
“We delivered solid second quarter results and continued to strengthen the fundamentals of the business. We believe that the pace of our AI innovation, combined with new ARR growth, increasing enterprise adoption, and contracted demand underpinned by total RPO growth, demonstrate that we are making headway on our transformation and positioning Sprinklr for durable growth.”
Rory Read, President and CEO of Sprinklr
