Sprinklr revenue misses as AI-led growth remains stuck near 1%

The quarter fell short of a modest consensus bar. Published expectations called for roughly $215.6 million of revenue and $0.11 in adjusted EPS; Sprinklr delivered $213.7 million and $0.11, respectively. The EPS result was in line, but revenue missed by about 0.9%, extending the growth slowdown investors were already watching.

The underlying operating picture weakened despite adjusted EPS holding steady. Subscription revenue grew only 3%, while non-GAAP operating income fell 18% and margin contracted three percentage points to 15%. The company’s $0.11 adjusted EPS therefore reflects profitability discipline and a sharply lower share count as much as business growth; diluted weighted-average shares fell to 237.8 million from 263.2 million. (Reconciliation of Non-GAAP Financial Measures)

Cash conversion was the clearest deterioration. Six-month operating cash flow fell to $88.5 million from $118.6 million, while free cash flow dropped to $78.9 million from $110.5 million. (Cash Flow statement; Free cash flow reconciliation) Sprinklr still ended July with $452.9 million of cash, cash equivalents, and marketable securities, but the weaker cash generation makes the transformation story less self-funding. (Balance Sheets)

Net: an earnings miss, not a disaster, but worse than the headline suggests. Adjusted EPS met expectations and operating income appears above the prior quarter’s Q2 guidance range of $29.5 million to $30.5 million, but the revenue miss, near-flat year-over-year growth, lower margins, and weaker free cash flow outweigh that cushion. The filing supports a negative read versus expectations rather than a clean AI-driven reacceleration.