Sprinklr, Inc. (NYSE: CXM) is a leading provider of unified customer experience management solutions designed for modern enterprises. The company reported its earnings for the fourth quarter and fiscal year ended January 31, 2025.

Sprinklr’s financial results indicate a stable condition with marginal growth. In the fourth quarter, total revenue reached $202.5 million, a 4% increase from $194.2 million during the same period last year. Subscription revenue was $182.1 million, growing 3% from $177.0 million year-over-year. The company generated non-GAAP operating income of $25.9 million, which corresponds to a non-GAAP operating margin of 13%. In the previous year, non-GAAP operating income was $32.4 million, resulting in a 17% margin.

For the full fiscal year 2025, total revenue amounted to $796.4 million, marking a 9% increase compared to $732.4 million in the prior year. Subscription revenue grew by 7% to $717.9 million, up from $668.5 million. The fiscal year recorded a non-GAAP operating income of $84.8 million, down from $92 million the year before. The non-GAAP operating margin for the year was 11%, compared to 13% in fiscal year 2024.

Sprinklr’s balance sheet reflected strength with total cash and marketable securities of $483.5 million and no debt outstanding. Free cash flow for the fourth quarter was $1.5 million, contributing to a full-year free cash flow of $59.2 million, representing a free cash flow margin of 7%.

In terms of guidance, for the first fiscal quarter of 2026, Sprinklr expects total revenue between $201.5 million and $202.5 million, with subscription revenue estimated to range from $182 million to $183 million. For the full year of fiscal 2026, the company projects total revenue between $821.5 million and $823.5 million, alongside subscription revenues estimated at $741 million to $743 million.

The guidance includes expectations for non-GAAP operating income of $31.5 million to $32.5 million in Q1 and a full-year estimate of $129 million to $131 million. The company anticipates a non-GAAP net income per share of approximately $0.10 for Q1 and between $0.38 and $0.39 for the full year, assuming respective diluted share counts of 269 million and 277 million.

Sprinklr also reported an RPO (Remaining Performance Obligations) of $987.7 million, which is a 2% increase year-over-year, and cRPO (current RPO) standing at $612.5 million, marking a 4% growth compared to the prior year. The subscription gross margin for Q4 was reported at 79%, while overall non-GAAP gross margin was 71%.

Overall, Sprinklr continues to execute its strategy for growth, yet operational and margin challenges persist as it navigates towards improved profitability and efficiency.