Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Sprout Social's 3-Year RORE % for the quarter that ended in Mar. 2026 was -20.00%.
The industry rank for Sprout Social's 3-Year RORE % or its related term are showing as below:
SPT's 3-Year RORE % is ranked worse than 66.48% of 2539
companies
in the Software industry
Industry Median: 2.7
vs SPT: -20.00
Sprout Social (NAS:SPT) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Sprout Social 3-Year RORE % Related Terms
Sprout Social 3-Year RORE % Historical Data
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The historical data trend for Sprout Social's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Software Industry
For the Software industry and Technology sector, Sprout Social's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Sprout Social's 3-Year RORE % 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.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Sprout Social (SPT) has a 3-Year RORE % of -20.00 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Sprout Social and its competitors. According to the industry distribution chart, Sprout Social ranks #1688 out of 2539 companies in the Software industry, placing it in the top 66.5%.
Is Sprout Social's 3-Year RORE % too high?
Sprout Social's current 3-Year RORE % is -20.00. Based on the distribution chart, Sprout Social ranks #1688 out of 2539 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 3-Year RORE % compare to BLND and MFI?
According to the Software industry distribution chart, Sprout Social ranks #1688 out of 2539 companies for 3-Year RORE %. This places Sprout Social in the lower half of its industry. The industry median 3-Year RORE % is 2.70. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Software company?
The median 3-Year RORE % among Software companies is 2.70, based on 2,539 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Sprout Social and its competitors. For the Software industry, the median 3-Year RORE % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprout Social's current 3-Year RORE % is -20.00. 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 $36.50, compared to a current price of $8.03 — trading 78% below its estimated fair value. The current 3-Year RORE % is -20.00. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Sprout Social (SPT), the current 3-Year RORE % is -20.00 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 $8.03 is trading 78% below its estimated GF Value™ of $36.50.
GuruFocus considers Sprout Social to be Possible Value Trap.
Key valuation signals for SPT:
3-Year RORE %: -20.00
GF Value™: $36.50 vs. price of $8.03 (78% 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.
67GF Score
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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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