Sprinklr, Inc.

Q1 total revenue was $219.5 million, up 7% year over year; subscription revenue was $194.8 million, up 6%; professional services revenue was $24.7 million. Non-GAAP operating income was $31.7 million, or a 14% margin, and non-GAAP net income was $0.11 per diluted share. Non-GAAP gross margin was 66%, with subscription gross margin at 74% and services gross margin breakeven. Free cash flow was $65.8 million, a 30% margin. Total RPO was $1.04 billion, up 10% year over year and up 5% quarter over quarter; current RPO was $627.1 million, up 5% year over year and up 1% quarter over quarter. Subscription revenue-based net dollar expansion was 104%, and the $1 million customer cohort NDR was 115%. For Q2 FY27, management guided total revenue to $214 million-$215 million, subscription revenue to $193.5 million-$194.5 million, professional services revenue to about $20.5 million, and non-GAAP EPS to about $0.10. For full-year FY27, guidance calls for total revenue of $866.5 million-$868.5 million, subscription revenue of $779.5 million-$781.5 million, non-GAAP operating income of $139 million-$141 million, non-GAAP EPS of $0.48-$0.49, and free cash flow of about $150 million.

Rory Read framed the quarter as evidence that Sprinklr’s multi-phase transformation is gaining traction, with the company now in its “transition and execution” phase and aiming for “acceleration” in FY28. He pointed to better renewals, larger multiyear deals, the largest software deal in company history, and a stronger AI-native platform as signs that the business is becoming more customer-centric and more predictable. His tone was confident and energized, but he repeatedly emphasized that the turnaround is still a multiquarter process and that the next few quarters are critical.

Anthony Coletta said Q1 beat expectations across the board, driven by better linearity, improving renewals, and more activity finishing large global projects. He cited 74% subscription gross margin, breakeven services gross margin, 66% total non-GAAP gross margin, $65.8 million of free cash flow, $442.8 million in cash and marketable securities, and no debt. He also noted the company repurchased 17.1 million shares in the quarter, has $75 million remaining on its $200 million repurchase authorization, and funded the ViralMoment acquisition with cash on hand; he said the deal is included in guidance. On guidance, he explained the Q2 and full-year operating income pressure comes from lower services revenue, higher data/cloud costs, and incremental AI investment, but expects improvement in the second half.

Analysts focused on the Middle East slowdown, the path to subscription growth reacceleration, and why Sprinklr is dropping the $1 million customer cohort disclosure. Management said Middle East disruption caused about $3 million to $4 million of slipped deals and some cloud delivery issues, but pipeline remains healthy and the region could normalize in 3Q and 4Q if conditions stabilize. On the disclosure change, management said the metric is not how they run the business internally; they care more about renewal rates, net dollar expansion, RPO, and share-of-wallet expansion. They also said the current AI SKU momentum and larger enterprise deals should become more visible as renewals and conversion improve over the next few quarters.