CXMSprinklr, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (3.5×) and margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CXM?
Sprinklr, Inc. earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.7 points above what the capital costs: growth creates value
- Operating margin
- 5.3%
Operating margin · Software - Application median 6.4% · 12 months to Q2 2027
- Cash conversion
- 3.53×
Cash conversion · 5.13× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −9.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | −6.6% |
| FY2022 | −20% |
| FY2023 | −8.3% |
| FY2024 | 4.6% |
| FY2025 | 3.0% |
| FY2026 | 4.7% |
Details›
- Gross margin12 months to Q2 2027
- 66%
- Operating margin12 months to Q2 2027
- 5.3%
- Net margin12 months to Q2 2027
- 2.6%
- Free cash flow margin
- 15%
- R&D as % of revenue
- 11%
- Revenue, trailing twelve months
- $873M
- Free cash flow, trailing twelve months
- $128M
- Net income, trailing twelve months
- $23M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Application
Ranks #37 of 96 by RyuScore