Sprout SocialSPT -0.67%66 Gross Margin % is 76.96% as of Mar. 2026, which is 1% above its 10-year median of 76.42. GuruFocus rates SPT with a GF Score™ of 66/100 and a GF Value™ of $36.47 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,683 Software companies, Sprout Social ranks better than 86.58% on this metric.
The historical rank and industry rank for Sprout Social's Gross Margin % or its related term are showing as below:
SPT'
s Gross Margin % Range Over the Past 10 Years
Min: 72.59 Med: 76.42 Max: 77.7
Current: 77.47
During the past 9 years, the highestGross Margin % of Sprout Social was 77.70%. The lowest was 72.59%. And the median was 76.42%.
SPT's Gross Margin % is ranked better than 86.58% of 2683
companies
in the Software industry
Industry Median: 40.45
vs SPT: 77.47
Sprout Social had a gross margin of 76.96% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sprout Social was 1.00% per year.
Sprout Social (NAS:SPT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Sprout Social had a gross margin of 76.96% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Sprout Social Gross Margin % Related Terms
Sprout Social Gross Margin % Historical Data
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The historical data trend for Sprout Social's Gross Margin % 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.
SPT vs GLOO, BLND, OOMA: Gross Margin % Comparison
For the Software - Application subindustry, Sprout Social's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Software Industry
For the Software industry and Technology sector, Sprout Social's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sprout Social's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Sprout Social (SPT) has a Gross Margin % of 76.96% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sprout Social and its competitors. This is near median its historical median of 76.42. Over the past decade, Sprout Social's Gross Margin % has ranged from 72.59 to 77.70. According to the industry distribution chart, Sprout Social ranks #360 out of 2683 companies in the Software industry, placing it in the top 13.4%.
Is Sprout Social's Gross Margin % too high?
Sprout Social's current Gross Margin % of 76.96% is near median its 10-year median of 76.42. Over the past 10 years, this metric has ranged from a low of 72.59 to a high of 77.70. The Software industry median Gross Margin % is 40.45. Sprout Social's value of 76.96% is 90.3% above this industry median. Based on the distribution chart, Sprout Social ranks #360 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Sprout Social has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sprout Social's Gross Margin % compare to GLOO and BLND?
According to the Software industry distribution chart, Sprout Social ranks #360 out of 2683 companies for Gross Margin %. This places Sprout Social in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Sprout Social's value of 76.96% is 90.3% above this benchmark. Historically, Sprout Social's own Gross Margin % has ranged from 72.59 to 77.70 over the past decade. While the company's 10-year median is 76.42 vs. the industry median of 40.45, 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 Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sprout Social's current Gross Margin % of 76.96% is 90.3% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Sprout Social and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprout Social's current Gross Margin % is 76.96%, which is near median its own 10-year median of 76.42. 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 $36.47, compared to a current price of $6.65 — trading 81.8% below its estimated fair value. The current Gross Margin % is 76.96%, which is near median its 10-year median of 76.42 and 90.3% above the Software industry median of 40.45. Sprout Social's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Sprout Social (SPT), the current Gross Margin % is 76.96% 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 $6.65 is trading 81.8% below its estimated GF Value™ of $36.47.
GuruFocus considers Sprout Social to be Possible Value Trap.
Key valuation signals for SPT:
Gross Margin %: 76.96% (near median its 10-year median of 76.42)
GF Value™: $36.47 vs. price of $6.65 (81.8% below fair value)
Industry Position: 90.3% above the Software median (#360 of 2683)
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.
66GF Score
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