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Sprout SocialSPT -2.49%67 Debt-to-Equity is 0.22 as of Mar. 2026, which is 29% above its 10-year median of 0.17. GuruFocus rates SPT with a GF Score™ of 67/100 and a GF Value™ of $36.61 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,245 Software companies, Sprout Social ranks worse than 52.12% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Sprout Social's Debt-to-Equity or its related term are showing as below:
SPT'
s Debt-to-Equity Range Over the Past 10 Years
Min: -0.05 Med: 0.17 Max: 2.7
Current: 0.22
During the past 9 years, the highest Debt-to-Equity Ratio of Sprout Social was 2.70. The lowest was -0.05. And the median was 0.17.
SPT's Debt-to-Equity is ranked worse than 52.12% of 2245
companies
in the Software industry
Industry Median: 0.19
vs SPT: 0.22
Sprout Social (NAS:SPT) Debt-to-Equity Explanation
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Sprout Social Debt-to-Equity Related Terms
Sprout Social Debt-to-Equity Historical Data
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The historical data trend for Sprout Social's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Sprout Social's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sprout Social Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Sprout Social's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Sprout Social's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sprout Social (SPT) has a Debt-to-Equity of 0.22 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Sprout Social and its competitors. This is 29% above median its historical median of 0.17. According to the industry distribution chart, Sprout Social ranks #1170 out of 2245 companies in the Software industry, placing it in the top 52.1%.
Is Sprout Social's Debt-to-Equity too high?
Sprout Social's current Debt-to-Equity of 0.22 is 29% above median its 10-year median of 0.17. The Software industry median Debt-to-Equity is 0.19. Sprout Social's value of 0.22 is 15.8% above this industry median. Based on the distribution chart, Sprout Social ranks #1170 out of 2245 companies in the Software industry, which is below the industry midpoint. Overall, Sprout Social has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sprout Social's Debt-to-Equity compare to BLND and MFI?
According to the Software industry distribution chart, Sprout Social ranks #1170 out of 2245 companies for Debt-to-Equity. This places Sprout Social in the lower half of its industry. The industry median Debt-to-Equity is 0.19. Sprout Social's value of 0.22 is 15.8% above this benchmark. While the company's 10-year median is 0.17 vs. the industry median of 0.19, Sprout Social has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.19, based on 2,245 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sprout Social's current Debt-to-Equity of 0.22 is 15.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Sprout Social and its competitors. For the Software industry, the median Debt-to-Equity is 0.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprout Social's current Debt-to-Equity is 0.22, which is 29% above median its own 10-year median of 0.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sprout Social stock overvalued right now?
Based on GuruFocus' analysis, Sprout Social (SPT) is currently considered Possible Value Trap. The stock's GF Value™ is $36.61, compared to a current price of $8.41 — trading 77% below its estimated fair value. The current Debt-to-Equity is 0.22, which is 29% above median its 10-year median of 0.17 and 15.8% above the Software industry median of 0.19. Sprout Social's overall GF Score™ is 67/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Sprout Social (SPT), the current Debt-to-Equity is 0.22 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sprout Social (SPT) Overvalued in 2026?
Based on GuruFocus' analysis, Sprout Social stock appears to be undervalued.
The current stock price of $8.41 is trading 77% below its estimated GF Value™ of $36.61.
GuruFocus considers Sprout Social to be Possible Value Trap.
Key valuation signals for SPT:
Debt-to-Equity: 0.22 (29% above median its 10-year median of 0.17)
GF Value™: $36.61 vs. price of $8.41 (77% below fair value)
Industry Position: 15.8% above the Software median (#1170 of 2245)
No single metric tells the full story. See the SPT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sprout Social Inc develops a cloud software that brings together social messaging, data and workflows in a unified system of record, intelligence, and action. It has a centralized, secure and powerful platform that can scale horizontally across an organization to drive maximum business value. The firm generates majority revenue from software subscriptions. Geographically, the company operates in Americas, EMEA, and Asia Pacific, of which it derives maximum revenue from Americas.
67GF Score
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