Sprinklr shares fell 8.2% to $6.97 on Sept. 2. The latest six-month filing gives that move a plain backdrop: revenue barely grew, while the cost of delivering it climbed fast enough to cut into every major profit measure.
Revenue rose just 0.8% from the comparable six-month period, to $213.7 million. Gross profit fell 3.7% to $139.2 million, and operating income dropped 38.8% to $10.0 million. The business sold a little more and kept materially less of it.
The pressure sits close to the product. Subscription cost rose 19%, or $16.4 million, as Sprinklr spent more on cloud, network infrastructure, data, and AI. The company also said higher provider rates and personnel costs contributed.
The six-month filing puts the main receipt in unusually direct terms:
"The increase in cost of subscription revenue was primarily due to (i) an increase of $10.0 million in third-party cloud, network infrastructure, data, and AI costs, partially attributable to increased customer demand, as well as higher rates from our third-party providers, and (ii) higher personnel-related costs of $3.3 million, partially driven by increased headcount."
Sprinklr 10-Q, filed Sept. 3, 2026
That is the filing's central tension. Customer demand is part of the explanation for higher infrastructure spending, but the reported result is a subscription gross margin of 74%, down from 77% a year earlier. Growth is asking for more compute and people before it is producing more operating profit.
Professional services added another drag. Its gross margin went from positive 1% to negative 13% in the six-month comparison, with the company citing higher subcontractor and personnel costs. Management also says the timing of service delivery can move that margin around, which makes this line less predictable than the subscription business.
"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."
Sprinklr 10-Q, filed Sept. 3, 2026
Sales and marketing costs rose 3% even as revenue barely moved. Sprinklr attributed much of the increase to $10.0 million in higher commissions from larger deals, partly offset by lower stock compensation and more capitalized commissions. The company is paying more around growth, too.
Cash adds a second, less comfortable layer. Cash ended at $231.4 million, up sharply from $125.4 million, but operating cash flow fell 25.3% to $88.5 million. Sprinklr said the decline reflected timing of bonus, commission, tax, and vendor payments, plus a $33.7 million decrease in deferred revenue as recognized revenue exceeded billings. Cash on hand rose, while the period generated less cash from operations.
The annual record supplies some context without resolving the current squeeze. Revenue grew from $324.3 million in fiscal 2020 to $857.2 million in fiscal 2026, but annual gross margin also fell from 75.5% in fiscal 2024 to 67.4% in fiscal 2026. The latest six-month operating margin, at 4.7%, is back near that annual level after starting from 7.7% in the comparable period.
At a market capitalization of $1.8 billion, Sprinklr's latest annual P/E is 78.5x, alongside an 8.9% cash-flow yield. Those measures describe two different versions of the company: one priced on relatively thin earnings, another supported by cash generation that has just weakened in the latest six-month period.
Sprinklr's next quarterly report will put one number back under the microscope: operating cash flow, after the latest period's $88.5 million and the disclosed timing effects.
Source: Sprinklr's 10-Q filed Sept. 3, 2026, for the six months ended July 31, 2026.