Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Sprout Social's Pre-Tax Income for the
three
months ended in Mar. 2026 was $-5.9 Mil. Sprout Social's Revenue for the
three
months ended in Mar. 2026 was $121.5 Mil. Therefore, Sprout Social's pretax margin for the quarter that ended in Mar. 2026 was -4.88%.
The historical rank and industry rank for Sprout Social's Pretax Margin % or its related term are showing as below:
SPT'
s Pretax Margin % Range Over the Past 10 Years
Min: -48.89 Med: -19.72 Max: -8.02
Current: -8.02
SPT's Pretax Margin % is ranked worse than 69.32% of 2823
companies
in the Software industry
Industry Median: 3.53
vs SPT: -8.02
Sprout Social (NAS:SPT) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Sprout Social Pretax Margin % Related Terms
Sprout Social Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Sprout Social's Pretax 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: Pretax Margin % Comparison
For the Software - Application subindustry, Sprout Social's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Sprout Social's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Sprout Social's Pretax 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.
Sprout Social (SPT) has a Pretax Margin % of -4.88% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Sprout Social and its competitors. According to the industry distribution chart, Sprout Social ranks #1957 out of 2823 companies in the Software industry, placing it in the top 69.3%.
Is Sprout Social's Pretax Margin % too high?
Sprout Social's current Pretax Margin % is -4.88%. Based on the distribution chart, Sprout Social ranks #1957 out of 2823 companies in the Software industry, which is below the industry midpoint. 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 Pretax Margin % compare to GLOO and BLND?
According to the Software industry distribution chart, Sprout Social ranks #1957 out of 2823 companies for Pretax Margin %. This places Sprout Social in the lower half of its industry. The industry median Pretax Margin % is 3.53. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.53, based on 2,823 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Sprout Social and its competitors. For the Software industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprout Social's current Pretax Margin % is -4.88%. 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 $6.66 — trading 81.7% below its estimated fair value. The current Pretax Margin % is -4.88%. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Sprout Social (SPT), the current Pretax Margin % is -4.88% 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 $6.66 is trading 81.7% below its estimated GF Value™ of $36.47.
GuruFocus considers Sprout Social to be Possible Value Trap.
Key valuation signals for SPT:
Pretax Margin %: -4.88%
GF Value™: $36.47 vs. price of $6.66 (81.7% below fair value)
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
Get the complete analysis for SPT
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SPT has been successfully added to your 
