Sprout Social, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
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13. Restructuring
- Restructuring
Workforce Reduction Plan
On July 8, 2026, the Board approved a workforce reduction plan (the “Plan”) designed to streamline the Company’s organizational structure and align its cost base with its strategic priorities, including its ongoing investments in AI-powered social intelligence. As part of the Plan, the Company reduced its workforce by approximately 20%.
Restructuring charges incurred in connection with the Plan consisted primarily of employee severance and termination benefits. Restructuring charges for thethree andnine months ended September 30, 2026 were as follows (in thousands):
| Three Months Ended September 30, 2026 | Nine Months Ended September 30, 2026 | |
|---|---|---|
| Cost of revenue | $355 | $355 |
| Research and development | 5,799 | 5,799 |
| Sales and marketing | 9,684 | 9,684 |
| General and administrative | 1,683 | 2,499 |
| Total restructuring costs | $17,521 | $18,337 |
Sprout Social, Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
The Plan was substantially complete by the end of the third quarter of 2026. The following table summarizes the Company’s restructuring liability activity for the periods presented (in thousands):
| Three Months Ended September 30, 2026 | Nine Months Ended September 30, 2026 | |
|---|---|---|
| Beginning balance | $816 | $— |
| Restructuring charges | 17,521 | 18,337 |
| Cash payments | (15,946) | (15,946) |
| Ending balance (1) | $2,391 | $2,391 |
(1) As of September 30, 2026, $1.8 million of this amount was included in accrued expenses and other and $0.6 million was included in accrued wages and payroll related benefits on theunaudited condensed consolidated balance sheets.
The Company does not anticipate incurring material additional expenses in connection with the Plan. However, the Company may incur additional costs not currently contemplated due to events that may occur, or that are associated with, the Plan.
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