Sprinklr, Inc.

Previous wording

Remaining Performance Obligation (“RPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in future periods. Current RPO (“cRPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months. As of April 30, 2026, our RPO was $1,038.3 million, and our cRPO was $627.1 million.

Current wording

Remaining Performance Obligation (“RPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in future periods. Current RPO (“cRPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months. As of July 31, 2026, our RPO was $1,026.8 million, and our cRPO was $614.1 million.

Previous wording

We believe that net dollar expansion rate (“NDE”) is an indicator of the value that our platform delivers to customers. We calculate NDE to measure our ability to retain and expand subscription revenue from our existing customers. NDE compares our subscription revenue from the same set of customers across comparable periods and reflects customer renewals, expansion, contraction, and churn. We calculate NDE by dividing (i) subscription revenue in the trailing 12-month period from those customers who were on our platform during the most recent prior 12-month period by (ii) subscription revenue from the same customers in the preceding prior 12-month period. This calculation is net of upsells, contraction, cancellation, or expansion during the period, but excludes subscription revenue from new customers. Our NDE, on a trailing 12-month basis, was 103.5% and 101.8% for the 12-month periods ended April 30, 2026 and 2025, respectively.

Current wording

We believe that net dollar expansion rate (“NDE”) is an indicator of the value that our platform delivers to customers. We calculate NDE to measure our ability to retain and expand subscription revenue from our existing customers. NDE compares our subscription revenue from the same set of customers across comparable periods and reflects customer renewals, expansion, contraction, and churn. We calculate NDE by dividing (i) subscription revenue in the trailing 12-month period from those customers who were on our platform during the most recent prior 12-month period by (ii) subscription revenue from the same customers in the preceding prior 12-month period. This calculation is net of upsells, contraction, cancellation, or expansion during the period, but excludes subscription revenue from new customers. Our NDE, on a trailing 12-month basis, was 102.4% and 102.2% for the 12-month periods ended July 31, 2026 and 2025, respectively.

Previous wording

We generate revenue from the sale of subscriptions to our Unified-CXM cloud-based software platform and related professional services.

Current wording

We generate revenue from the sale of subscriptions to our Unified-CXM platform and related professional services.

Previous wording

Cost of subscription revenue consists primarily of costs to host our software platform; data costs, including cost of third-party data utilized in our platform; personnel-related expenses for our subscription and support operations personnel, including salaries, benefits, bonuses and stock-based compensation; professional fees; software costs; travel expenses; the amortization of our capitalized internal-use software; and allocated overhead expenses, including facilities costs for our subscription and support operations. We expect that cost of subscription revenue will increase in absolute dollars as we expand our customer base and make continued investments in our cloud infrastructure and support organization. Furthermore, we estimate that data and hosting costs with various partners may rise in the near term.

Current wording

Cost of subscription revenue consists primarily of costs to host our software platform; data costs, including cost of third-party data utilized in our platform; personnel-related expenses for our subscription and support operations personnel, including salaries, benefits, bonuses and stock-based compensation; professional fees; software costs; travel expenses; the amortization of our capitalized internal-use software; and allocated overhead expenses, including facilities costs for our subscription and support operations. We expect that cost of subscription revenue will increase in absolute dollars as we expand our customer base and make continued investments in our cloud infrastructure and support organization. Furthermore, we estimate that AI, data, and hosting costs with various partners may rise in the near term.

Previous wording

Our gross margin on subscription revenue is significantly higher than our gross margin on professional services revenue, and as a result, our gross margin may vary from period to period if our mix of revenue or cost of revenue fluctuates. In addition, because personnel-related expenses represent the largest component of cost of professional services revenue, we may experience changes in our professional services gross margin due to the timing of delivery of those services. We expect that our gross margin will decline in the near term due to higher data and hosting costs, coupled with higher service delivery costs, and, in the long term, will vary from period to period.

Current wording

Our gross margin on subscription revenue is significantly higher than our gross margin on professional services revenue, and as a result, our gross margin may vary from period to period if our mix of revenue or cost of revenue fluctuates. In addition, because personnel-related expenses represent the largest component of cost of professional services revenue, we may experience changes in our professional services gross margin due to the timing of delivery of those services. We expect that our gross margin will decline in the near term due to higher AI, data, and hosting costs, coupled with higher service delivery costs, and, in the long term, will vary from period to period.

Previous wording

Research and development expenses consist primarily of costs relating to the maintenance, continued development and enhancement of our cloud-based software platform and includes personnel-related expense for our research and development organization, including salaries, benefits, bonuses and stock-based compensation, professional fees, travel expenses and allocated overhead expenses, including facilities costs. Research and development expenses are expensed as incurred, except for internal-use software development costs that qualify for capitalization. We expect research and development expenses to generally increase in absolute dollars as we continue to innovate and invest in enhancing and expanding the capabilities of our Unified-CXM platform.

Current wording

Research and development expenses consist primarily of costs relating to the maintenance, continued development and enhancement of our Unified-CXM platform and includes personnel-related expense for our research and development organization, including salaries, benefits, bonuses and stock-based compensation, professional fees, travel expenses and allocated overhead expenses, including facilities costs. Research and development expenses are expensed as incurred, except for internal-use software development costs that qualify for capitalization. We expect research and development expenses to generally increase in absolute dollars as we continue to innovate and invest in enhancing and expanding the capabilities of our Unified-CXM platform.

Previous wording

Sales and marketing expenses consist primarily of personnel-related expenses for our sales and marketing organization, including salaries, benefits, bonuses and stock-based compensation, professional fees, software costs, advertising, marketing, promotional and brand awareness activities, travel expenses and allocated overhead expense, including facilities costs. Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer and are deferred and amortized on a straight-line basis over the expected period of benefit. We expect sales and marketing expenses to generally increase in absolute dollars as we continue to drive the growth of our business. We continue to optimize our sales and marketing expenses and seek efficiencies in our investments.

Current wording

Sales and marketing expenses consist primarily of personnel-related expenses for our sales and marketing organization, including salaries, commissions, stock-based compensation, benefits, payroll taxes, and bonuses, as well as advertising, marketing, promotional and brand awareness activities, travel expenses, software costs, allocated rent and facility expenses, and referral fees. Sales commissions and referral fees are considered incremental and recoverable costs of obtaining a contract with a customer and are deferred and amortized on a straight-line basis over the expected period of benefit. We expect sales and marketing expenses to generally increase in absolute dollars as we continue to drive the growth of our business. We continue to optimize our sales and marketing expenses and seek efficiencies in our investments.

Previous wording

Restructuring expenses include costs associated with the global workforce reductions implemented in fiscal year 2026. The majority of these costs consist of severance, benefits and the acceleration of equity awards. We do not expect to incur any further restructuring expenses with respect to the workforce reductions implemented in fiscal year 2026.

Current wording

Restructuring expenses include costs associated with the global workforce reductions implemented in fiscal year 2026. The majority of these costs consist of severance, benefits and the acceleration of equity awards.

Previous wording

The increase in subscription revenue was primarily attributable to growth from existing customers, driven by customers expanding their use of our platform, both by increasing their subscription volumes and adding new features. These gains were partially offset by non-renewals and reductions in contract size, particularly among customers adjusting budgets or deferring investments in response to broader economic pressures.

Current wording

The increase in subscription revenue was primarily attributable to growth from existing customers, driven by customers expanding their use of our platform, both by increasing their subscription volumes and adding new features, as well as growth from new customers. These gains were partially offset by reductions in contract size and non-renewals, particularly among customers adjusting budgets or deferring investments in response to broader economic pressures.

Previous wording

The increase in cost of subscription revenue was primarily due to (i) an increase of $5.7 million in third-party cloud, data and network infrastructure costs, partially attributable to increased customer demand, as well as higher rates from our third-party providers, and (ii) higher personnel-related costs of $1.7 million, partially driven by increased headcount.

Current wording

The increase in cost of subscription revenue was primarily due to (i) an increase of $4.3 million in third-party cloud, network infrastructure, AI, and data costs, partially attributable to increased customer demand, as well as higher rates from our third-party providers, and (ii) higher personnel-related costs of $1.6 million, partially driven by increased headcount.

Previous wording

Gross margin for subscription decreased by three percentage points, primarily driven by increased costs associated with third-party cloud, data, and network infrastructure. Gross margin for professional services decreased by eight percentage points, largely driven by higher delivery costs associated with complex implementations.

Current wording

Gross margin for subscription decreased by three percentage points, primarily driven by increased costs associated with third-party cloud, network infrastructure, AI, and data. Gross margin for professional services was (25)% and (3)% during the three months ended July 31, 2026 and 2025, respectively, largely driven by higher delivery costs associated with complex implementations.

Previous wording

Research and development expenses remained relatively flat compared to the prior year period.

Current wording

Sales and marketing expenses remained relatively flat compared to the prior year period.

Previous wording

The decrease in other income, net was primarily due to (i) lower interest income from money market and short-term investments, resulting from lower average balances and interest rates, and (ii) lower net foreign currency losses.

Current wording

The decrease in other income, net was primarily due to (i) higher net foreign currency losses and (ii) lower interest income from money market and short-term investments, resulting from lower average balances and interest rates.

Previous wording

The increase in provision for income tax relates primarily to increases in the income before provision for income taxes for the three months ended April 30, 2026 compared to the prior period. The provision for income tax for the three months ended April 30, 2026 also includes a $3.8 million discrete income tax charge for non-deductible stock-based compensation and a $2.3 million discrete income tax charge for changes to our uncertain tax positions related to our non-U.S. entities.

Current wording

The decrease in provision for income tax relates primarily to decreases in the income before provision for income taxes for the three months ended July 31, 2026 compared to the prior period. The provision for income tax for the three months ended July 31, 2026 includes a $(2.7) million discrete income tax charge for changes to our uncertain tax positions related to our non-U.S. entities.

Previous wording

The increase in cost of professional services revenue was primarily due to (i) a $3.2 million increase in subcontractor costs as a result of higher partner delivery costs and (ii) higher personnel-related costs of $1.6 million, partially driven by increased headcount.

Current wording

The increase in cost of professional services revenue was primarily due to (i) a $3.4 million increase in subcontractor costs as a result of higher partner delivery costs and (ii) higher personnel-related costs of $0.7 million, primarily driven by annual merit increases.

Previous wording

The increase in sales and marketing expenses was primarily due to an increase in personnel costs of $5.3 million, including higher amortization expense resulting from previously capitalized sales commissions, and was partially offset by lower operational costs.

Current wording

The increase in sales and marketing expenses was primarily due to a net increase in personnel costs of $5.7 million, largely driven by higher commission costs of $10.0 million from larger deals, partially offset by a $3.1 million decrease in stock-based compensation expense and a $1.3 million net increase in capitalized commissions.

Previous wording

The decrease in restructuring expenses was primarily attributable to workforce reduction initiatives implemented in the first quarter of fiscal year 2026, which were substantially completed during fiscal year 2026, whereas no comparable workforce reduction initiatives were undertaken in the first quarter of fiscal year 2027. Refer to Note 13, Restructuring Charges, included in “Part I. Item 1. Financial Statements” of this Form 10-Q for additional information related to our restructuring charges.

Current wording

The fiscal year 2027 amount reflects insurance recoveries and the favorable resolution of certain restructuring-related liabilities related to the global workforce reduction implemented in the first quarter of fiscal year 2026, while the fiscal year 2026 amount reflects costs incurred associated with the same workforce reduction initiative. Refer to Note 13, Restructuring Charges, included in “Part I. Item 1. Financial Statements” of this Form 10-Q for additional information related to our restructuring charges.

Previous wording

(2)Includes employer payroll tax related to stock-based compensation expense of $0.5 million and $0.4 million for the three months ended April 30, 2026 and 2025, respectively.

Current wording

(2)Includes employer payroll tax related to stock-based compensation expense of $0.3 million and $0.1 million for the three months ended July 31, 2026 and 2025, respectively, and $0.8 million and $0.5 million of employer payroll tax related to stock-based compensation expense for the six months ended July 31, 2026 and 2025, respectively.

Previous wording

(4)Includes employer payroll tax related to restructuring expenses of nil and $0.7 million for the three months ended April 30, 2026 and 2025, respectively. Refer to Note 13, Restructuring Charges, included in “Part I, Item 1. Financial Statements” of this Form 10-Q for additional information.

Current wording

(4)Includes employer payroll tax related to restructuring expenses of nil for both the three and six months ended July 31, 2026 and nil and $0.7 million for the three and six months ended July 31, 2025, respectively. Refer to Note 13, Restructuring Charges, included in “Part I, Item 1. Financial Statements” of this Form 10-Q for additional information.

Previous wording

(1)Includes employer payroll tax related to stock-based compensation expense of $0.5 million and $0.4 million for the three months ended April 30, 2026 and 2025, respectively.

Current wording

(1)Includes employer payroll tax related to stock-based compensation expense of $0.3 million and $0.1 million for the three months ended July 31, 2026 and 2025, respectively, and $0.8 million and $0.5 million for the six months ended July 31, 2026 and 2025, respectively.

Previous wording

(2)Represents the Company’s current and deferred income tax expense commensurate with the non-GAAP measure of profitability using a non-GAAP tax rate of 26% for both the three months ended April 30, 2026 and 2025. The Company uses an annual tax rate in its computation of the non-GAAP income taxprovision and excludes the direct impact of stock-based compensation expense, employer tax costs related to stock-based compensation, intangible amortization expense, amortization of stock-based compensation expense associated with capitalized internal-use software, non-recurring litigation costs, restructuring costs, and settlement of prior year tax positions.

Current wording

(2)Represents the Company’s current and deferred income tax expense commensurate with the non-GAAP measure of profitability using a non-GAAP tax rate of 26% for both the three and six months ended July 31, 2026 and 2025. The Company uses an annual tax rate in its computation of the non-GAAP income taxprovision and excludes the direct impact of stock-based compensation expense, employer tax costs related to stock-based compensation, intangible amortization expense, amortization of stock-based compensation expense associated with capitalized internal-use software, non-recurring litigation costs, restructuring costs, and settlement of prior year tax positions.

Previous wording

(4)Includes employer payroll tax related to restructuring expenses of nil and $0.7 million, for thethree months ended April 30, 2026 and 2025, respectively. Refer to Note 13, Restructuring Charges, included in “Part I, Item 1. Financial Statements” of this Form 10-Q for additional information.

Current wording

(4)Includes employer payroll tax related to restructuring expenses of nil for both the three and six months ended July 31, 2026 and nil and $0.7 million for the three and six months ended July 31, 2025, respectively. Refer to Note 13, Restructuring Charges, included in “Part I, Item 1. Financial Statements” of this Form 10-Q for additional information.

Previous wording

As of April 30, 2026, our principal sources of liquidity were $163.3 million of cash and cash equivalents and $279.5 million of highly liquid marketable securities. We believe that our existing cash, cash equivalents, marketable securities, and cash from operations will be sufficient to meet our working capital needs, capital expenditures, and financing obligations for at least the next 12 months and over the long term. The majority of our cash, cash equivalents, and marketable securities is held in the U.S., and we do not anticipate a need to repatriate cash held outside of the U.S. Further, it is our intent to indefinitely reinvest these funds outside the U.S., and, therefore, we have not provided for any U.S. income taxes.

Current wording

As of July 31, 2026, our principal sources of liquidity were $231.4 million of cash and cash equivalents and $221.5 million of highly liquid marketable securities. We believe that our existing cash, cash equivalents, marketable securities, and cash from operations will be sufficient to meet our working capital needs, capital expenditures, and financing obligations for at least the next 12 months and over the long term. The majority of our cash, cash equivalents, and marketable securities is held in the U.S., and we do not anticipate a need to repatriate cash held outside of the U.S. Further, it is our intent to indefinitely reinvest these funds outside the U.S., and, therefore, we have not provided for any U.S. income taxes.

Previous wording

We maintain cash collateral agreements in lieu of letter of credit facilities for certain leases and customer contracts. As of April 30, 2026, $8.5 million was outstanding under these cash collateral agreements. For additional information regarding our collateral agreements, see Note 8, Commitments and Contingencies, included in “Part I, Item 1. Financial Statements” of this Form 10-Q.

Current wording

We maintain cash collateral agreements in lieu of letter of credit facilities for certain leases and customer contracts. As of July 31, 2026, $8.7 million was outstanding under these cash collateral agreements. For additional information regarding our collateral agreements, see Note 8, Commitments and Contingencies, included in “Part I, Item 1. Financial Statements” of this Form 10-Q.

Previous wording

On March 11, 2026, we announced that our board of directors (the “Board”) had authorized and approved a share repurchase plan (the “2026 Share Repurchase Program”), whereby we were authorized to periodically repurchase up to $200 million of Class A common stock through March 15, 2027. The 2026 Share Repurchase program consists of the following components: (i) a variable tenor accelerated share repurchase agreement (“ASR Agreement”) for $125 million under the 2026 Share Repurchase Program, which was entered into on March 13, 2026, and (ii) an authorization to purchase up to an additional $75 million of Class A common stock at the Company’s discretion over the next year, subject to market conditions and other factors. Repurchases under the program are expected to be funded using cash on hand, cash equivalents, and marketable securities.

Current wording

On March 11, 2026, we announced that our board of directors (the “Board”) had authorized and approved a share repurchase plan (the “2026 Share Repurchase Program”), whereby we were authorized to periodically repurchase up to $200 million of Class A common stock through March 15, 2027. The 2026 Share Repurchase program consists of the following components: (i) a variable tenor accelerated share repurchase agreement (“ASR Agreement”) for $125 million under the 2026 Share Repurchase Program, which was entered into on March 13, 2026, and (ii) an authorization to purchase up to an additional $75 million of Class A common stock at the Company’s discretion over the next year, subject to market conditions and other factors. Repurchases under the program are expected to be funded using cash on hand, cash equivalents, and marketable securities. As of September 1, 2026, a total of 22,118,413 shares of Class A common stock were repurchased, completing the repurchases under the ASR Agreement.

Previous wording

Our net income (loss) and cash flows provided by operating activities are influenced significantly by our investments in headcount to support growth and by cost of revenue incurred to deliver our services. Non-cash charges primarily consist of depreciation and amortization, provision for credit losses, stock-based compensation, non-cash lease expense, deferred income taxes, and accretion on marketable securities. Our largest source of operating cash is collections from customers. Our primary uses of cash from operating activities include employee-related costs, costs to deliver our services, and marketing expenses.

Current wording

Our net income and cash flows provided by operating activities are influenced significantly by our investments in headcount to support growth and by cost of revenue incurred to deliver our services. Non-cash charges primarily consist of depreciation and amortization, provision for credit losses, stock-based compensation, non-cash lease expense, deferred income taxes, and accretion on marketable securities. Our largest source of operating cash is collections from customers. Our primary uses of cash from operating activities include employee-related costs, costs to deliver our services, and marketing expenses.

Previous wording

For the three months ended April 30, 2026, cash provided by operating activities was $70.4 million, which consisted of net income of $4.2 million, adjusted for non-cash expenses of $33.3 million and $32.9 million of net cash flows provided as a result of changes in operating assets and liabilities. The $32.9 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected an $81.6 million decrease in accounts receivable due to collections outpacing billings. This increase to cash flows from operations was partially offset by (i) a $30.7 million decrease in accrued expenses and other liabilities primarily due to the timing of bonus and commission payments, (ii) a $7.2 million decrease in deferred revenue as a result of recognized revenue exceeding billings, and (iii) a $6.7 million increase in prepaid expenses and other assets due to higher deferred contract costs and prepaid marketing expenses, partially offset by the timing of vendor prepayments, lower contract asset balances, and reduced prepaid software costs.

Current wording

For the six months ended July 31, 2026, cash provided by operating activities was $88.5 million, which consisted of net income of $11.3 million, adjusted for non-cash expenses of $63.9 million and $13.3 million of net cash flows provided as a result of changes in operating assets and liabilities. The $13.3 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected an $105.1 million decrease in accounts receivable due to collections outpacing billings. This increase to cash flows from operations was partially offset by (i) a $35.9 million decrease in accrued expenses and other liabilities primarily due to the timing of bonus, commission, and income tax payments, (ii) a $33.7 million decrease in deferred revenue as a result of recognized revenue exceeding billings, (iii) an $13.3 million increase in prepaid expenses and other assets primarily due to higher capitalized commissions, (iv) a $4.5 million decrease in operating lease liabilities due to ongoing payments for leased properties, and (v) a $4.3 million decrease in accounts payable due to timing of vendor payments.

Previous wording

For the three months ended April 30, 2025, cash provided by operating activities was $83.8 million, which consisted of net loss of $1.6 million, adjusted for non-cash expenses of $31.7 million and $53.7 million of net cash flows provided as a result of changes in operating assets and liabilities. The $53.7 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected an $81.2 million decrease in accounts receivable due to collections outpacing billings. This increase to cash flows from operations was partially offset by a $21.5 million decrease in accrued expenses and other liabilities primarily due to the timing of bonus and commission payments.

Current wording

For the six months ended July 31, 2025, cash provided by operating activities was $118.6 million, which consisted of net income of $11.0 million, adjusted for non-cash expenses of $64.6 million and $42.9 million of net cash flows provided as a result of changes in operating assets and liabilities. The $42.9 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected an $81.0 million decrease in accounts receivable due to collections outpacing billings. This increase to cash flows from operations was partially offset by (i) a $17.5 million decrease in accrued expenses and other liabilities primarily due to the timing of commission and bonus payments and (ii) a $13.2 million decrease in deferred revenue as a result of recognized revenue exceeding billings.

Previous wording

For the three months ended April 30, 2026, net cash provided by investing activities was $55.3 million and primarily consisted of $128.9 million of sales and maturities of marketable securities. This increase in cash flows from investing activities was partially offset by $69.0 million of purchases of marketable securities.

Current wording

For the six months ended July 31, 2026, net cash provided by investing activities was $104.2 million and primarily consisted of $187.7 million of sales and maturities of marketable securities. This increase in cash flows from investing activities was partially offset by $69.0 million of purchases of marketable securities.

Previous wording

For the three months ended April 30, 2025, net cash used in investing activities was $108.0 million and primarily consisted of $236.7 million of purchases of marketable securities, partially offset by $132.0 million of sales and maturities of marketable securities.

Current wording

For the six months ended July 31, 2025, net cash used in investing activities was $15.4 million and primarily consisted of $269.7 million of purchases of marketable securities and $7.5 million in capitalized internal-use software costs. These decreases in cash flows from investing activities were partially offset by $262.6 million of sales and maturities of marketable securities.

Previous wording

For the three months ended April 30, 2026, net cash used in financing activities was $124.9 million, which primarily consisted of the $125.0 million payment associated with the 2026 Share Repurchase Program.

Current wording

For the six months ended July 31, 2026, net cash used in financing activities was $122.4 million, which primarily consisted of $125.8 million of payments, including excise tax, associated with the 2025 and 2026 Share Repurchase Programs.

Previous wording

For the three months ended April 30, 2025, cash provided by financing activities was $2.8 million, which consisted solely of proceeds from the exercise of stock options.

Current wording

For the six months ended July 31, 2025, net cash used in financing activities was $125.1 million, which consisted of payments for the 2025 Share Repurchase Program of $140.8 million, partially offset by $12.9 million of proceeds from the exercise of stock options and proceeds from the purchase of stock under our 2021 Employee Stock Purchase Plan (“ESPP”) of $2.8 million.