SPROUT SOCIAL, INC., 10-K filed on 2/27/2026
Annual Report
v3.25.4
Cover - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Feb. 20, 2026
Jun. 30, 2025
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Document Transition Report false    
Entity File Number 001-39156    
Entity Registrant Name SPROUT SOCIAL, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 27-2404165    
Title of 12(b) Security Class A Common Stock, $0.0001 par value per share    
Trading Symbol SPT    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
ICFR Auditor Attestation Flag true    
Entity Public Float     $ 1,100.0
Documents Incorporated by Reference Portions of the registrant’s Definitive Proxy Statement for its 2026 Annual Meeting of Stockholders, which is expected to be held on May 20, 2026, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2025.    
Entity Central Index Key 0001517375    
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Entity Address, City or Town Chicago    
Entity Address, State or Province IL    
Entity Address, Address Line One 131 South Dearborn St.    
Entity Address, Address Line Two Suite 700    
Entity Address, Postal Zip Code 60603    
City Area Code (866)    
Local Phone Number 878-3231    
Current Fiscal Year End Date --12-31    
Document Financial Statement Error Correction [Flag] false    
Class A common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   53,690,940  
Class B common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   5,869,357  
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Chicago, Illinois
Auditor Firm ID 238
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets    
Cash and cash equivalents $ 95,268 $ 86,437
Marketable securities 0 3,745
Accounts receivable, net of allowances of $2,719 and $2,169 at December 31, 2025 and 2024, respectively 100,996 84,033
Deferred commissions 26,995 20,184
Prepaid expenses and other assets 13,945 15,816
Total current assets 237,204 210,215
Marketable securities, noncurrent 0 0
Property and equipment, net 9,864 10,951
Deferred commissions, net of current portion 57,049 51,653
Operating lease, right-of-use asset 9,810 11,326
Goodwill 167,122 121,315
Intangible assets, net 39,733 21,914
Other assets, net 2,280 967
Total assets 523,062 428,341
Current liabilities    
Accounts payable 10,115 6,984
Deferred revenue 205,639 178,585
Operating lease liability 2,664 3,747
Accrued wages and payroll related benefits 20,549 20,567
Accrued expenses and other 17,294 10,869
Total current liabilities 256,261 220,752
Revolving credit facility 40,000 25,000
Deferred revenue, net of current portion 752 1,101
Operating lease liability, net of current portion 12,055 14,543
Other noncurrent liabilities 10,572 351
Total liabilities 319,640 261,747
Commitments and contingencies (Note 11)
Stockholders’ equity    
Additional paid-in capital 638,894 558,391
Treasury stock, at cost (37,768) (37,422)
Accumulated other comprehensive loss 0 3
Accumulated deficit (397,710) (354,383)
Total stockholders’ equity 203,422 166,594
Total liabilities and stockholders’ equity 523,062 428,341
Class A common stock    
Stockholders’ equity    
Common stock 5 4
Class B common stock    
Stockholders’ equity    
Common stock $ 1 $ 1
v3.25.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Allowance for doubtful accounts $ 2,719 $ 2,169
Class A common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common Stock, shares authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, shares issued (in shares) 56,576,444 54,219,684
Common stock, shares outstanding (in shares) 53,607,556 51,277,740
Class B common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common Stock, shares authorized (in shares) 25,000,000 25,000,000
Common stock, shares issued (in shares) 6,156,301 6,687,582
Common stock, shares outstanding (in shares) 5,949,357 6,480,638
v3.25.4
Consolidated Statements of Operations - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue      
Total revenue $ 457,547 $ 405,908 $ 333,643
Cost of revenue      
Total cost of revenue 102,695 91,475 76,268
Gross profit 354,852 314,433 257,375
Operating expenses      
Research and development 101,279 102,794 79,550
Sales and marketing 190,559 184,122 168,091
General and administrative 106,467 87,873 79,011
Total operating expenses 398,305 374,789 326,652
Loss from operations (43,453) (60,356) (69,277)
Interest expense (2,501) (3,525) (2,754)
Interest income 3,418 3,973 7,021
Other (expense) income, net (204) (1,393) (768)
Loss before income taxes (42,740) (61,301) (65,778)
Income tax expense 587 670 649
Net loss $ (43,327) $ (61,971) $ (66,427)
Net loss per share attributable to common shareholders, basic and diluted $ (0.74) $ (1.09) $ (1.19)
Weighted Average Number of Shares Outstanding, Diluted 58,625,925 56,935,910 55,664,404
Subscription      
Revenue      
Total revenue $ 453,014 $ 402,022 $ 330,458
Cost of revenue      
Total cost of revenue 101,119 90,305 75,076
Professional services and other      
Revenue      
Total revenue 4,533 3,886 3,185
Cost of revenue      
Total cost of revenue $ 1,576 $ 1,170 $ 1,192
v3.25.4
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net loss $ (43,327) $ (61,971) $ (66,427)
Net unrealized gain (loss) on available-for-sale securities, net of tax (3) 80 292
Comprehensive loss $ (43,330) $ (61,891) $ (66,135)
v3.25.4
Consolidated Statements of Stockholders Equity - USD ($)
$ in Thousands
Total
Voting Common Stock
Additional Paid-in Capital
Treasury Stock
Accumulated Other Comprehensive Income
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Treasury Shares Balance       3,057,448    
Beginning balance (in shares) at Dec. 31, 2022   55,023,343        
Beginning balance at Dec. 31, 2022 $ 142,337 $ 5 $ 401,419 $ (32,733) $ (369) $ (225,985)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Exercise of stock options (in shares)   30,000        
Exercise of stock options 29   29    
Stock-based compensation expense 68,002   68,002      
Issuance of common stock from settlement of equity award (in shares)   1,122,902        
Issuance of common stock from settlement of equity awards 0          
Taxes paid related to net share settlement of equity awards (in shares)       41,527    
Taxes paid related to net share settlement of equity awards (2,380)     $ (2,380)    
Stock Issued During Period, Shares, Employee Stock Purchase Plans   59,514        
Stock Issued During Period, Value, Employee Stock Purchase Plan 2,339   2,339      
Other comprehensive gain, net of tax 292       292  
Net loss (66,427)         (66,427)
Ending balance (in shares) at Dec. 31, 2023   56,235,759        
Ending balance at Dec. 31, 2023 144,192 $ 5 471,789 $ (35,113) (77) (292,412)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Treasury Shares Balance       3,098,975    
Exercise of stock options (in shares)   27,010        
Exercise of stock options 29   29      
Stock-based compensation expense 84,617   84,617      
Issuance of common stock from settlement of equity award (in shares)   1,427,291        
Issuance of common stock from settlement of equity awards 0          
Taxes paid related to net share settlement of equity awards (in shares)       49,913    
Taxes paid related to net share settlement of equity awards (2,309)     $ (2,309)    
Stock Issued During Period, Shares, Employee Stock Purchase Plans   68,318        
Stock Issued During Period, Value, Employee Stock Purchase Plan 1,956   1,956      
Other comprehensive gain, net of tax 80       80  
Net loss (61,971)         (61,971)
Ending balance (in shares) at Dec. 31, 2024   57,758,378        
Ending balance at Dec. 31, 2024 166,594 $ 5 558,391 $ (37,422) 3 (354,383)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Treasury Shares Balance       3,148,888    
Stock-based compensation expense 79,167   79,167      
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures   $ 1        
Issuance of common stock from settlement of equity award (in shares)   1,704,430        
Issuance of common stock from settlement of equity awards 1          
Taxes paid related to net share settlement of equity awards (in shares)       26,944    
Taxes paid related to net share settlement of equity awards (346)     $ (346)    
Stock Issued During Period, Shares, Employee Stock Purchase Plans   94,105        
Stock Issued During Period, Value, Employee Stock Purchase Plan 1,336   1,336      
Other comprehensive gain, net of tax (3)       (3)  
Net loss (43,327)         (43,327)
Ending balance (in shares) at Dec. 31, 2025   59,556,913        
Ending balance at Dec. 31, 2025 $ 203,422 $ 6 $ 638,894 $ (37,768) $ 0 $ (397,710)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Treasury Shares Balance       3,175,832    
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities      
Net loss $ (43,327) $ (61,971) $ (66,427)
Adjustments to reconcile net loss to net cash provided by operating activities      
Depreciation and amortization of property, equipment and software 3,783 3,890 3,137
Amortization of line of credit issuance costs 229 206 86
Accretion of discount on marketable securities (7) (406) (3,203)
Amortization of acquired intangible assets 7,030 6,151 3,541
Amortization of deferred commissions 24,077 16,347 26,582
Amortization of right-of-use operating lease asset 1,517 1,827 1,553
Stock-based compensation expense 78,719 84,303 67,704
Provision for accounts receivable allowances 3,559 1,709 2,418
Loss on lease termination - net 1,175    
Gain on lease modification   (1,570) 0
Accretion Expense 423 0 0
Other (505) 0 0
Changes in operating assets and liabilities, excluding impact from business acquisition      
Accounts receivable (18,267) (22,253) (26,982)
Prepaid expenses and other current assets 1,514 (5,452) 444
Deferred commissions (36,284) (34,219) (40,540)
Accounts payable and accrued expenses 626 3,124 (226)
Deferred revenue 22,482 38,230 41,918
Lease liabilities (3,317) (3,595) (3,549)
Net cash provided by operating activities 43,427 26,321 6,456
Cash flows from investing activities      
Expenditures for property and equipment (4,106) (2,950) (2,073)
Payments for business acquisition, net of cash acquired (51,790) (1,409) (145,636)
Purchases of marketable securities 0 0 (63,085)
Proceeds from maturity of marketable securities 3,750 45,085 118,621
Proceeds from sale of marketable securities 0 0 5,538
Net cash (used in) provided by investing activities (52,146) 40,726 (86,635)
Cash flows from financing activities      
Borrowings from line of credit 32,000 0 75,000
Repayments of line of credit (17,000) (30,000) (20,000)
Payments for line of credit issuance costs (486) 0 (1,031)
Proceeds from exercise of stock options 0 29 29
Proceeds from employee stock purchase plan 1,336 1,956 2,339
Employee taxes paid related to the net share settlement of stock-based awards (346) (2,309) (2,380)
Net cash provided by (used in) financing activities 15,504 (30,324) 53,957
Net increase (decrease) in cash, cash equivalents and restricted cash 6,785 36,723 (26,222)
Cash and cash equivalents      
Beginning of year 90,418 53,695 79,917
End of year 97,203 90,418 53,695
Supplemental cash flow information      
Cash paid for interest 1,889 3,635 1,588
Income Taxes Paid, Net 1,371 800 700
Fair value of contingent consideration in connection with business acquisition 8,450 0 0
Deferred consideration in connection with business acquisition 1,908 0 0
ROU asset obtained in exchange for operating lease liability 0 629 795
Non-cash adjustment to operating lease right-of-use assets from lease modifications 0 3,795 0
Capital expenditures incurred but not yet paid 92 375 137
Stock-based Compensation Expense Capitalized In Internal-use Software 448 314 298
Cash and cash equivalents 95,268 86,437 49,760
Restricted Cash $ 1,935 $ 3,981 $ 3,935
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations
Sprout Social, Inc. (“Sprout Social” or the “Company”), a Delaware corporation, began operating on April 21, 2010 to design, develop and operate a web-based comprehensive social media management tool enabling companies to manage and measure their online presence. Customers access their accounts online via a web-based interface or a mobile application. Some customers also purchase the Company’s professional services, which primarily consist of consulting and training services. The Company’s fiscal year end is December 31. The Company’s customers are primarily located throughout the United States, and a portion of customers are located in foreign countries. The Company is headquartered in Chicago, Illinois.
Principles of Consolidation and Basis of Presentation
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s estimates and judgments include, but are not limited to, the estimated period of benefit for incremental costs of obtaining a contract with a customer, the incremental borrowing rate for operating leases, calculation of allowance for credit losses, valuation of assets and liabilities acquired as part of business combinations, useful lives of long-lived assets, stock-based compensation, income taxes, commitments and contingencies and litigation, among others.
Segment Information
The Company operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information for purposes of making operating decisions, assessing financial performance and allocating resources. The Company’s CODM evaluates financial information on a consolidated basis and considers Net Loss within the consolidated statements of operations to be a key measurement of profitability in evaluating financial performance, comparing budget to actuals, and making resource allocation decisions. Further, the CODM reviews and utilizes functional expenses (cost of revenues, sales and marketing, research and development, and general and administrative) at the consolidated level to manage the Company’s operations. Other segment items included in consolidated net loss are interest expense, interest income, other expense, net, and the provision for (benefit from) income taxes, which are reflected in the consolidated statements of operations. As the Company operates as one operating segment, all required segment financial information is found in the consolidated financial statements.
Fair Value of Financial Instruments
The Company has the following financial instruments: cash, cash equivalents, accounts receivable, accounts payable, accrued liabilities and contingent consideration related to acquisitions. In recent periods, the Company has also had marketable securities. The carrying value of the Company’s cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value due to their short-term nature. See Note 14, Fair Value Measurements, for additional information regarding the valuation methodology for contingent consideration liabilities.
Cash and Cash Equivalents
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. Interest earned on cash and cash equivalents is recorded as interest income in the consolidated statements of operations.
Restricted Cash
As of December 31, 2025 and 2024, the Company’s restricted cash balance was $1.9 million and $4.0 million, respectively. Restricted cash represents cash that is held as collateral in relation to the Company’s letters of credit that are required as security for certain office lease arrangements and reserves held by the Company’s credit card processor. Restricted cash is included in Prepaid expenses and other current assets within the consolidated balance sheets.
Marketable Securities
Marketable securities consist of corporate bonds, commercial paper, U.S. Treasury securities, asset-backed securities, and agency securities. The Company classifies marketable securities as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. All marketable securities are recorded at their estimated fair values. The Company’s remaining marketable securities matured during 2025. Unrealized gains and losses for the available-for-sale debt securities that are unrelated to credit loss factors are recorded in accumulated other comprehensive income (loss), or AOCI. The Company’s AOCI balance was zero as of December 31, 2025 and an immaterial balance as of December 31, 2024. Unrealized losses determined to be credit-related are recorded as Other (expense) income, net in the consolidated statements of operations and comprehensive loss and as an allowance for credit losses on Marketable securities on the consolidated balance sheets. As of December 31, 2025 and 2024, The gross unrealized gains and losses on available-for-sale debt securities was zero as of December 31, 2025 and immaterial as of December 31, 2024, and there were no expected credit losses related to the Company's available-for-sale debt securities.
Accounts Receivable and Allowance for Credit Losses
Accounts receivable primarily consist of amounts billed and currently due from customers, net of an allowance for credit losses. Subscription fees billed in advance of the related subscription term represent contract liabilities and are presented as accounts receivable and deferred revenues upon establishment of an unconditional right to payment under non-cancellable contracts. Our typical payment terms provide for customer payment within 30 days of the date of the contract.
Accounts receivable are subject to collection risk. The Company performs evaluations of its customers’ financial positions and generally extends credit on account, without collateral. The Company determines the need for an allowance for credit losses based upon various factors, including past
collection experience, credit quality of the customer, age of the receivable balance and current economic conditions.
If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Amounts are charged against the allowance for credit losses once collection efforts are unsuccessful. Credit losses on accounts receivable were $3.6 million, $1.7 million and $2.4 million for the years ended December 31, 2025, 2024 and 2023, respectively. The allowance for credit losses was $2.7 million and $2.2 million as of December 31, 2025 and 2024, respectively. The activity related to the allowance for credit losses for the years ended December 31, 2025, 2024 and 2023 was as follows (in thousands):
Balance at December 31, 2022$1,789 
Additions2,418 
Write-offs, net of recoveries(2,030)
Balance at December 31, 2023$2,177 
Additions1,709 
Write-offs, net of recoveries(1,717)
Balance at December 31, 20242,169 
Additions3,559 
Write-offs, net of recoveries(3,009)
Balance at December 31, 2025$2,719 
Concentration of Credit Risk
Financial instruments that potentially expose the Company to concentrations of credit risk are primarily cash and cash equivalents, accounts receivable and marketable securities. The Company's cash and cash equivalents are generally held with large financial institutions. Although the Company's deposits may exceed federally insured limits, the financial institutions that the Company uses have high investment-grade credit ratings and, as a result, the Company believes that, as of December 31, 2025, its risk relating to deposits exceeding federally insured limits was not significant.
The Company has credit risk regarding trade accounts receivable as the Company generally does not require collateral. Allowances are maintained for potential credit losses. As of December 31, 2025 and 2024, there were no individual customers that accounted for more than 10% of the Company’s total revenue or net accounts receivable.
The Company’s marketable securities, all of which matured during 2025, consisted of investment-grade corporate bonds, commercial paper, U.S. Treasury securities, asset-backed securities, and agency securities. In recent periods, the Company has limited the amount of investments in any single issuer to minimize credit risk exposure related to marketable securities.
Property and Equipment
Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the following estimated useful lives:
Computer equipment and hardware
3-5 years
Furniture and fixtures
3-7 years
Internal-use software
3 years
Leasehold improvementsLesser of useful life or remaining lease term
Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Upon retirement or sale, the cost of assets disposed and the related accumulated depreciation are written off, and any resulting gain or loss is credited or charged to income.
Goodwill
Goodwill consists of the excess purchase price over the fair value of net assets acquired in purchase business combinations. The Company conducts a test for the impairment of goodwill on at least an annual basis as of October 1st or sooner if indicators of impairment arise. The Company first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired. As part of the qualitative assessment, the Company evaluates factors including macroeconomic conditions, industry and market considerations, cost factors and overall financial performance of its reporting unit.
The Company has a single reporting unit. If the Company concludes that it is more-likely-than-not that its single reporting unit is impaired or if the Company elects not to perform the optional qualitative assessment, a quantitative assessment is performed. For the quantitative assessment, the fair value of the Company’s reporting unit is compared with the carrying amount of net assets, including goodwill, related to the reporting unit. The Company recognizes an impairment charge for the amount, if any, by which the carrying amount of a reporting unit exceeds the fair value of the reporting unit. The Company did not record any impairment loss during the years ended December 31, 2025, 2024 and 2023.
Impairment of Long-Lived Assets
The Company evaluates the recoverability of its long-lived assets, which includes property and equipment and intangible assets, whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. Recoverability of an asset is measured by comparison of its carrying amount to the anticipated future undiscounted cash flows that the asset is expected to generate. If that comparison indicates that the carrying amount is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset exceeds its fair value. The Company did not record any impairment loss during the years ended December 31, 2025, 2024 and 2023.
Revenue Recognition
The Company generates revenues from subscriptions to the Company’s web-based social media management platform under a software-as-a-service model. Our subscriptions can range from monthly to one-year or multi-year arrangements and are generally non-cancellable. The Company’s customers do not have the right to take possession of the online software solution.
The Company commences revenue recognition when control of these products is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for such products.
The Company determines revenue recognition through the following steps:
•identify the contract with a customer;
•identify the performance obligations in a contract;
•determination of the transaction price;
•allocate the transaction price to the performance obligations identified in the contract; and
•recognize revenue when (or as) performance obligations are satisfied.
Identify the contract with a customer
A customer contract is generally identified when the Company and a customer have executed an agreement or online acceptance that requires the Company to grant access to its online software products and provide professional services in exchange for consideration from the customer.
Identify the performance obligations in a contract
A performance obligation is a promise to provide a distinct service or a series of distinct services. A service that is promised to a customer is distinct if the customer can benefit from the service either on its own or together with other readily available resources, and a company’s promise to transfer the service to the customer is separately identifiable from other promises in the contract.
The Company has determined that subscriptions for its online software products are a distinct performance obligation, because no implementation work is required and the online software product is fully functional once a customer has access.
In addition, the Company sells professional services consisting of, but not limited to, implementation fees, specialized training, one-time reporting services and recurring periodic reporting services. Professional services are distinct, as they are sold separately, and the customer can benefit from the services to make better use of the online product purchased.
Determination of the transaction price
The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company estimates any variable consideration it will be entitled at contract inception and will reassess as circumstances change, when determining the transaction price. The transaction price for subscription and professional services is generally fixed at contract inception; therefore, the Company’s contracts do not contain a significant amount of variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in previous periods due to changes in the transaction price was not material.
Allocate the transaction price to the performance obligations identified in the contract
If the contract contains a single performance obligation, the Company allocates the entire transaction price to the single performance obligation. For contracts containing multiple performance
obligations, the transaction price is allocated to each performance obligation based on the relative standalone selling price (“SSP”) of the services provided to the customer. The Company determines the SSP based upon the prices at which the Company separately sells subscription and various professional services, and based on the Company’s overall pricing objectives, taking into consideration market conditions, value of the Company’s contracts, the types of offerings sold, customer demographics and other factors.
Recognize revenue when (or as) performance obligations are satisfied
Subscription revenues are recognized ratably over the contract terms beginning on the date the Company’s service is made available to customers, which typically begins on the commencement date of each contract as no implementation work is required. The Company’s customers do not have the right to take possession of the online software solution. The Company’s subscription service arrangements are generally non-cancellable and do not provide for refund of subscription fees.
Professional services are typically provided for a fixed fee, and revenue is generally recognized for these contracts at the time these services are provided to the customer. Professional services revenue represents less than 1% of revenue for the periods presented.
Sales Commissions
Sales commissions earned by our sales force are considered incremental costs of obtaining a contract with a customer. Sales commissions are paid on initial contracts with new customers and for expansion of contracts with existing customers. Commissions are not paid on customer renewals. Sales commissions are deferred and amortized on a straight-line basis over a period of benefit that the Company has determined to be five years. On an annual basis and whenever events or changes in circumstances occur that could impact the recoverability of these assets, the Company assesses the expected period of benefit by taking into consideration the products sold, mix of customers, expected customer life, expected contract renewals, technology life cycle and other factors.
Based on the assessment performed during the first quarter of 2024, the Company updated the period of benefit from three years to five years. This change in accounting estimate was effective January 1, 2024 and is being accounted for prospectively in the consolidated financial statements. For the year ended December 31, 2024, the change in amortization period resulted in a $14.3 million reduction to sales and marketing expense, or an increase of $0.25 per share, basic and diluted. The effects of this change in estimate were calculated based on the carrying value of deferred commissions as of December 31, 2023.
Deferred commissions during the year ended December 31, 2025 increased $12.2 million as a result of deferring incremental costs of obtaining contracts with customers of $36.3 million, which was offset by $24.1 million of amortization. Deferred commissions during the year ended December 31, 2024 increased $17.9 million as a result of deferring incremental costs of obtaining contracts with customers of $34.2 million, which was offset by $16.3 million of amortization. The Company periodically reviews the deferred sales commissions for impairment and noted no impairment loss for the years ended December 31, 2025, 2024 and 2023.
Cost of Revenues
Cost of revenues primarily consist of expenses related to hosting the Company’s service and providing support to customers, depreciation associated with computers and hardware and amortization expense related to acquired developed technologies that directly benefit sales. These expenses are comprised of hosted data center global costs, fees paid to third-party data providers and personnel-
related costs directly associated with cloud infrastructure and customer support, including salaries, benefits, bonuses and allocated overhead. Overhead associated with facilities and information technology is allocated to cost of revenue and operating expenses based on headcount.
Advertising Costs
Advertising costs primarily include online advertising on search engines. Advertising costs are expensed as incurred and included as a component of sales and marketing expenses. The Company incurred approximately $7.9 million, $6.1 million and $5.1 million in advertising costs during the years ended December 31, 2025, 2024 and 2023, respectively.
Research and Development Costs
Research and development expenses include payroll, employee benefits and other expenses associated with product development.
Capitalized Internal-Use Software Costs
Certain payroll and stock compensation costs incurred to develop functionality for the Company’s platform, as well as certain upgrades and enhancements that are expected to result in enhanced functionality are capitalized during the development stage. Costs incurred in the preliminary stages of development are expensed as incurred. Once software has reached the development stage, direct and incremental costs are capitalized until the software is substantially complete and ready for its intended use. Capitalized internal-use software costs are included within property and equipment, net on the consolidated balance sheets, and are amortized over the estimated useful life of the software, which is typically three years.
Stock-Based Compensation
The Company recognizes compensation expense for equity awards based on the grant‐date fair value over the remaining requisite service period for the award. For equity awards with only service conditions, the Company recognizes compensation expense on a straight-line basis over the remaining requisite service period for the award. For equity awards with both service and performance conditions, compensation expense is recognized on a graded vesting basis over the requisite service period once the achievement of the performance condition is considered probable. The Company recognizes forfeitures as they occur.
Foreign Currency
The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Accordingly, monetary balance sheet accounts are remeasured using exchange rates in effect at the balance sheet dates and non-monetary items are remeasured at historical exchange rates. Expenses are generally remeasured at the average exchange rates for the period. Foreign currency related gains and losses have been immaterial during the periods presented.
Leases
The Company determines if an arrangement is a lease at inception, and all significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use, or ROU, assets and operating lease liabilities are recognized at commencement based on the present value of fixed payments not yet paid over the remaining lease term. ROU assets also include any initial indirect costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. For short-term leases of 12 months or less, no ROU asset or lease liability is
recorded. The Company records rent expense in its consolidated statements of operations on a straight-line basis over the term of the lease and records variable lease payments as incurred. Additionally, the Company has elected to combine lease and non-lease components and account for them as a single component. ROU assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent its obligations to make lease payments arising from the lease. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise the option. The Company uses its incremental borrowing rate in determining the lease liabilities, as its leases generally do not provide an implicit rate. The incremental borrowing rate is an estimate of the collateralized borrowing rate the Company would incur on future lease payments over a similar term based on the information available at the commencement date. The Company does not have any finance leases.
Commitments and Contingencies
The Company evaluates all pending or threatened commitments and contingencies, if any, that are reasonably likely to have a material effect on its operations or financial position. The Company assesses the probability of an adverse outcome and records a provision for a liability when management believes that it is probable that a liability has been incurred and the amount can be reasonably estimated.
Income Taxes
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
The Company recognizes deferred tax assets to the extent that these assets are believed to be more likely than not to be realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations.
Tax benefits for uncertain tax positions are based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, a tax benefit must be at least more-likely-than-not of being sustained based on technical merits. The benefit for positions meeting the recognition threshold is measured as the largest benefit more-likely-than-not of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of provision for income taxes. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheets, as applicable.
Net Loss per Share
The Company calculates basic net loss per share by dividing net loss attributable to common shareholders by the weighted-average number of the Company’s common stock shares outstanding during the respective period. Net loss attributable to common shareholders is net loss minus convertible preferred stock dividends declared, of which there were none during the periods presented.
The Company calculates diluted net loss per share using the treasury stock and if-converted methods, which consider the potential impacts of outstanding stock options and RSUs. Under these methods, the numerator and denominator of the net loss per share calculation are adjusted for these securities if the impact of doing so increases net loss per share. During the periods presented, the impact is to decrease net loss per share and therefore the Company is precluded from adjusting its calculation for these securities. As a result, diluted net loss per share is calculating using the same formula as basic net loss per share.
Business Combinations
The Company recognizes and measures the assets acquired, liabilities assumed and any contingent consideration in a business combination based on their estimated fair values at the acquisition date. Any excess or deficiency of the purchase consideration, including the fair value of contingent consideration, when compared to the fair value of the net assets acquired, if any, is recorded as goodwill or gain from a bargain purchase.
Such valuations require that management make estimates and assumptions, especially with respect to the identifiable intangible assets and contingent consideration. The estimates and assumptions in valuing intangible assets include, but are not limited to, the selection of valuation methodologies, estimates of future revenue and cash flows, the time and expense to recreate the intangible assets, useful lives, customer attrition rate, royalty rate, obsolescence rate and discount rates.
The estimates are inherently uncertain and subject to revision as additional information is obtained during the measurement period for an acquisition, which may last up to one year from the acquisition date. During the measurement period, the Company may record adjustments to the fair value of tangible and intangible assets acquired and liabilities assumed, with a corresponding offset to goodwill. After the conclusion of the measurement period or the final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to earnings. Contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. Changes in the fair value of contingent consideration, other than measurement period adjustments, are recorded to earnings.
Restructuring
Restructuring charges consist primarily of employee severance, one-time termination benefits related to the reduction of the Company’s workforce, and other costs. The Company accounts for one-time employment benefit arrangements in accordance with ASC Topic 420, Exit or Disposal Cost Obligations. One-time termination benefits and other costs are generally recognized in the period in which the liability is incurred.
In November 2024, the Company initiated a restructuring plan to improve the efficiency and effectiveness of the research and development organization. In February 2025, the Company initiated a restructuring plan with a primary focus on its Sales and Customer Experience teams. For the year ended December 31, 2025, the Company incurred $2.7 million in restructuring charges, of which $2.3 million and $0.4 million are recorded within sales and marketing expense and cost of revenue, respectively. For the year ended December 31, 2024, the Company incurred $3.0 million of restructuring charges, of which $2.9 million and $0.1 million million are recorded within research and development expense and cost of revenue, respectively. Cash payments totaling $2.9 million and $2.7 million were made related to the restructuring during the years ended December 31, 2025 and 2024, respectively. All amounts incurred as of December 31, 2025 have been paid and no additional costs related to the restructuring plans are expected to be incurred.
Recently Adopted Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures. The ASU is effective for fiscal years beginning after December 31, 2024, with early adoption permitted. Entities may apply the amendments prospectively or may elect retrospective application. The Company adopted the ASU for the year ended December 31, 2025, and applied the new disclosure requirements on a prospective basis.
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The ASU requires the disclosure of more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the statement of operations. The ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact that this standard may have on its consolidated financial statements and related disclosures.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU 2025-05 provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. The ASU is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, on a prospective basis, with early adoption permitted. The Company is currently evaluating the impact of electing the practical expedient and the impact it may have on its consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40, including removing stage-based rules and replacing them with a principles-based framework to be more aligned with modern software development practices. The ASU is effective for all entities for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
v3.25.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Disaggregation of Revenue
The Company provides disaggregation of revenue based on geographic region in Note 12 and based on the subscription versus professional services and other classification on the consolidated statements of operations, as it believes these best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Deferred Revenue
Deferred revenue is recorded upon establishment of unconditional right to payment under non-cancellable contracts and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in advance in monthly, quarterly, semi-annual and annual installments. The deferred revenue balance is influenced by several factors, including the compounding effects of renewals, invoice duration, timing and size.
The balance of deferred revenue, including current and non-current balances, as of December 31, 2025 and 2024 were $206.4 million and $179.7 million, respectively. For the year ended December 31, 2025, the additions to our deferred revenue balance were due to $480.0 million of additional invoicing and $4.2 million of deferred revenue acquired from the NewsWhip acquisition, which was offset by $457.5 million of revenue recognized during the same period. Deferred revenue during the year ended December 31, 2024, increased $38.2 million as a result of $444.1 million of additional invoicing, which was offset by $405.9 million of revenue recognized during the same period. The amount of revenue recognized during the years ended December 31, 2025 and 2024 that was included in deferred revenue at the beginning of each period was $175.8 million and $137.9 million, respectively.
As of December 31, 2025, including amounts already invoiced and amounts contracted but not yet invoiced, $404.0 million of revenue is expected to be recognized from remaining performance obligations, of which 70% is expected to be recognized in the next 12 months, with the remainder thereafter.
v3.25.4
Property and Equipment
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment
As of the dates specified below, property and equipment consisted of the following (in thousands):
As of December 31,
20252024
Leasehold improvements$11,625 $18,733 
Furniture and fixtures4,333 4,201 
Computer equipment and hardware6,062 5,144 
Internal-use software6,210 3,865 
Total property and equipment28,230 31,943 
Less: Accumulated depreciation and amortization(18,366)(20,992)
Total property and equipment, net$9,864 $10,951 
The Company recognized depreciation and amortization expense on property and equipment of $3.8 million, $3.9 million and $3.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
Business Combinations and Asset Acquisitions
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Combination
NewsWhip Group Holdings Limited
On July 30, 2025, the Company completed its acquisition of all of the outstanding voting shares of NewsWhip, a company incorporated in Ireland that provides real-time social intelligence. NewsWhip’s
proprietary real-time media monitoring and predictive analytics provide insights into emerging trends and narratives, enabling the Company to enter the public relations and crisis monitoring space.
Consideration for the acquisition of NewsWhip consisted of an upfront cash payment of $52.3 million, subject to adjustment for cash, indebtedness and working capital, deferred consideration of $3.2 million and up to $10.0 million of an earnout, which is contingent upon NewsWhip’s achievement of financial performance metrics through June 30, 2027. The earnout is payable in cash in two installments, one in 2026 and the second in 2027. The earnout is considered contingent consideration and is accounted for as a liability initially measured at fair value. The fair value of the contingent consideration as of the acquisition date was $8.5 million, of which $4.5 million was recorded within Accrued expenses and other and $4.0 million was recorded within Other noncurrent liabilities in the consolidated balance sheets. See Note 14 for additional information regarding the fair value determination of the contingent consideration. The deferred consideration includes $1.9 million of certain research and development tax credits that were generated by NewsWhip prior to the acquisition date, additional deferred consideration of $0.8 million and a $0.5 million holdback amount.
The net working capital adjustment for the acquisition was finalized in October 2025, resulting in an increase to the purchase price of $0.1 million, which was recorded to goodwill. The purchase price holdback and additional deferred consideration were paid during the fourth quarter of 2025. As of December 31, 2025, the remaining deferred consideration balance of $1.9 million is included in Other noncurrent liabilities in the consolidated balance sheets.
The Company funded the upfront cash payment with a combination of cash on hand and $32.0 million borrowed under the Facility further described in Note 8. For the year ended December 31, 2025, the Company incurred $1.8 million of acquisition-related costs, which were primarily related to advisory and legal costs, and were recorded within General and administrative expense in the consolidated statements of operations.
The excess of purchase consideration over the fair value of net assets acquired was recorded as goodwill, and is primarily attributable to expanded market opportunities from integrating the acquired developed technologies with the Company’s offerings. The goodwill is not deductible for income tax purposes.
The fair values of the tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. These estimates are based on preliminary information and may be subject to further revision as additional information is obtained during the measurement period, which may last up to 12 months from the date of the acquisition. The primary area that remains preliminary as of December 31, 2025 relates to deferred taxes. The Company expects to finalize the fair value measurements as soon as practicable, but not later than 12 months from the date of acquisition.
The following table summarizes the preliminary allocation of purchase price to the estimated fair values of assets acquired and liabilities assumed as of the acquisition date (in thousands):
July 30, 2025
Consideration:
Cash$52,313 
Contingent consideration at fair value8,450 
Deferred consideration3,215 
Additional payment for net working capital adjustment (1)
150 
Total purchase consideration$64,128 
Recognized amount of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents$1,980 
Accounts receivable2,255 
Other current and noncurrent assets2,335 
Intangible assets24,850 
Accounts payable, accrued expenses and other liabilities(4,661)
Deferred revenue(4,222)
Deferred tax liabilities(4,216)
Net assets acquired, excluding Goodwill18,321 
Goodwill45,807 
Total purchase price allocation$64,128 
Cash and cash equivalents acquired(1,980)
Total consideration, net of cash acquired$62,148 
(1) Additional amount paid in the fourth quarter of 2025 upon completion of the review of the working capital assets acquired and liabilities assumed.
The Company engaged a third-party valuation expert to aid its analysis of the identifiable intangible assets acquired. All estimates, key assumptions and forecasts were either provided by or reviewed by the Company. While the Company chose to utilize a third-party valuation expert for assistance, the fair value analysis and related valuations reflect the conclusions of management and not those of any third party.
The fair values of the acquired technology and the trademark identified intangible assets were determined utilizing the relief from royalty method under the income approach. The fair values of the customer relationships and contract backlog were valued using the multi-period excess-earnings method. The Company applied judgment which involved the use of assumptions with respect to revenue growth rates, customer attrition rate, discount rate, royalty rate, obsolescence rate and total operating expenses.
The fair value of the contingent consideration was determined using a scenario-based approach. This fair value measurement was based on unobservable inputs, including management estimates and assumptions about future revenues and a discount rate, and is, therefore, classified as Level 3 within the fair value hierarchy presented in Note 14. The contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. Changes in the fair value of contingent consideration, other than measurement period adjustments, are recorded within General and administrative expenses within the consolidated statements of operations.
Acquired intangible assets are being amortized over the estimated useful lives on a straight-line basis. The following table summarizes the estimated preliminary fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date:
Fair ValueExpected Useful Life
Customer Relationships$15,200 7 years
Acquired Technology8,400 5 years
Trademark800 5 years
Contract Backlog450 1 year
$24,850 
The Company has included the financial results of NewsWhip in its consolidated financial statements from the date of acquisition. Separate financial results and pro forma financial information for NewsWhip have not been presented as the effect of this acquisition was not material to the Company’s financial results.
Tagger Media, Inc.
On August 2, 2023, the Company completed its acquisition of all the outstanding equity of Tagger Media, Inc. (“Tagger”), an influencer marketing and social intelligence platform. The Company acquired Tagger in order to expand into the influencer marketing category. Tagger’s platform enables marketers to discover influencers, plan and manage campaigns, analyze competitor strategies, report on trends and measure return on investment.
The Company acquired Tagger for a total final purchase consideration of $144 million in cash, which incorporates the impact of various customary adjustments such as working capital, cash and indebtedness. The Company funded the purchase consideration with a combination of cash on hand and $75 million borrowed under the Facility further described in Note 8. For the year ended December 31, 2023, the Company incurred $4.3 million acquisition-related costs, which primarily related to advisory and legal costs, and were recorded within General and administrative expense in the consolidated statements of operations.
The excess of purchase consideration over the fair value of net assets acquired was recorded as goodwill, and is primarily attributable to expanded market opportunities from integrating the acquired developed technologies with the Company’s offerings. The goodwill is not deductible for income tax purposes.
The fair values of the tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The allocation of fair value of purchase consideration was finalized in the second quarter of 2024.
The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
August 2, 2023
Cash and cash equivalents$4,648 
Accounts receivable2,979 
Other current and noncurrent assets932 
Intangible assets27,800 
Accounts payable, accrued expenses and other liabilities(1,758)
Deferred revenue(3,243)
Net assets acquired, excluding Goodwill31,358 
Goodwill112,405 
Total consideration$143,763 
Cash and cash equivalents acquired(4,648)
Cash paid for acquisition of business, net of cash acquired$139,115 
The Company engaged a third-party valuation expert to aid its analysis of the acquired identifiable intangible assets. All estimates, key assumptions and forecasts were either provided by or reviewed by the Company. While the Company chose to utilize a third-party valuation expert for assistance, the fair value analysis and related valuations reflect the conclusions of management and not those of any third party.
The fair values of the acquired technology and the trademark identified intangible assets were determined utilizing the relief from royalty method under the income approach. The fair values of the customer relationships were valued using the multi-period excess-earnings method. The Company applied judgment which involved the use of the assumptions with respect to revenue growth rates, customer attrition rate, discount rate, royalty rate, obsolescence rate and total operating expenses.
Acquired intangible assets are being amortized over the estimated useful lives on a straight-line basis. The following table summarizes the estimated fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date:
Fair ValueExpected Useful Life
Customer Relationships$12,400 7 years
Acquired Technology14,100 5 years
Trademark1,300 5 years
$27,800 
The Company has included the financial results of Tagger in its consolidated financial statements from the date of acquisition. Separate financial results and pro forma financial information for Tagger have not been presented as the effect of this acquisition was not material to the Company’s financial results.
Repustate, Inc.
On January 19, 2023, the Company completed the acquisition of all the outstanding equity of Repustate, Inc. The acquisition has increased the Company’s power, breadth and automation of social
listening, messaging, and customer care capabilities with added sentiment analysis, natural language processing (NLP) and artificial-intelligence (AI).
The total final purchase consideration for the acquisition was $8.3 million, consisting of approximately $6.8 million in cash paid at the closing of the acquisition and a holdback of $1.5 million in cash to be paid as purchase consideration after the one-year anniversary of the closing of the acquisition, assuming no claims by the Company against the holdback amount for post-closing purchase price adjustments or indemnification matters. The purchase price holdback was paid in full in January 2024.
The excess of purchase consideration over the fair value of net assets acquired was recorded as goodwill, and is primarily attributable to expected post-acquisition synergies from integrating the technology into Sprout Social’s platform. The goodwill is not deductible for income tax purposes.
The fair values of the tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The allocation of fair value of purchase consideration was finalized in the fourth quarter of 2023.
The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
January 19, 2023
Cash and cash equivalents$366 
Intangible assets1,800 
Deferred tax liability(477)
Other net tangible assets and liabilities assumed(4)
Net assets acquired, excluding Goodwill1,685 
Goodwill6,611 
Total consideration$8,296 
Deferred consideration related to holdback(1,498)
Cash and cash equivalents acquired(366)
Cash paid for acquisition of business, net of cash acquired$6,432 
The following table summarizes the estimated fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date:
Fair ValueExpected Useful Life
Customer Relationships$200 1 year
Acquired Technology1,600 5 years
$1,800 
The Company has included the financial results of Repustate in its consolidated financial statements from the date of acquisition. Separate financial results and pro forma financial information for Repustate have not been presented as the effect of this acquisition was not material to the Company’s financial results.
Goodwill
The changes in the carrying amount of goodwill during the year ended December 31, 2025 were as follows (in thousands):
Goodwill balance as of December 31, 2024
$121,315 
Addition - NewsWhip acquisition45,807 
Goodwill balance as of December 31, 2025
$167,122 
v3.25.4
Intangible Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
As of the dates specified below, intangible assets, net consisted of the following (in thousands):
As of December 31,
20252024
Customer relationships35,100 19,900 
Acquired Technology24,100 15,700 
Trademark2,100 1,300 
Contract backlog450 — 
61,750 36,900 
Less: Accumulated amortization
Customer relationships(12,685)(10,010)
Acquired Technology(8,449)(4,608)
Trademark(695)(368)
Contract backlog(188)— 
(22,017)(14,986)
Intangible assets, net$39,733 $21,914 

Intangible assets are all finite-lived and are being amortized on a straight-line basis over their expected useful lives. Amortization of intangible assets totaled $7.0 million, $6.2 million, and $3.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. The expected future amortization of intangible assets as of December 31, 2025 is summarized as follows (in thousands):
Years Ending December 31,Amortization Expense
20269,445 
20279,183 
20287,606 
20295,783 
20304,278 
Thereafter3,438 
$39,733 
The following table sets forth the weighted-average amortization period, in total and by major intangible asset class:
Asset ClassWeighted-Average Amortization Period
(in years)
Customer relationships7.0
Acquired Technology5.0
Trademark5.0
Contract backlog1.0
All Intangible Assets6.1
v3.25.4
Operating Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Operating Leases
The Company has operating lease agreements for offices in Chicago, Illinois; Seattle, Washington; Dublin, Ireland; and Kraków, Poland. The operating lease for an office in Santa Monica, California expired in January 2025. The Chicago lease expires in December 2032, the Seattle lease expires in January 2031, the Dublin lease expires in June 2027, and the Kraków lease expires in December 2029. These operating leases require monthly rental payments ranging from approximately $26,000 to $142,000. Under the terms of the lease agreements, the Company is also responsible for its proportionate share of taxes and operating costs, which are treated as variable lease costs. The Company’s operating leases typically contain options to extend or terminate the term of the lease. The Company currently does not include any options to extend leases in its lease terms as it is not reasonably certain to exercise them. As such, it has recorded lease obligations only through the initial optional termination dates above.
In April 2025, the Company entered into an amendment to its Chicago office lease agreement providing for the early termination of one floor of the leased space. Following the early termination, the Company’s office space was reduced from approximately 128,000 square feet to approximately 64,000 square feet. The Company determined that the amendment will be treated as a lease termination. As a result of the termination, the Company recorded a net loss of approximately $1.2 million, consisting of a gain of approximately $0.2 million associated with the write-off of the lease liability and a loss on disposal of leasehold improvements of approximately $1.4 million. These amounts were recorded in General and administrative expenses in the consolidated statements of operations.
The following table provides a summary of operating lease assets and liabilities as of December 31, 2025 (in thousands):
Assets
Operating lease right-of-use assets$9,810 
Liabilities
Operating lease liabilities2,664 
Operating lease liabilities, non-current12,055 
Total operating lease liabilities$14,719 
The following table provides information about leases in the consolidated statements of operations (in thousands):
Years Ended December 31,
202520242023
Operating lease expense$2,645 $2,806 $2,659 
Variable lease expense2,249 3,451 3,572 
Within the consolidated statements of operations, operating and variable lease expense are recorded in General and administrative expenses. Cash payments related to operating leases for the year ended December 31, 2025, 2024 and 2023 were $6.0 million, $8.3 million and $8.2 million, respectively. There was no sublease rental income recognized for any of the periods presented.
As of December 31, 2025, the weighted-average remaining lease term is 5.8 years and the weighted-average discount rate is 7.0%.
Remaining maturities of operating lease liabilities as of December 31, 2025 are as follows (in thousands):
Years ending December 31,
2026$3,586 
20273,364 
20282,708 
20292,757 
20302,508 
Thereafter2,926 
Total future minimum lease payments$17,849 
Less: imputed interest(3,130)
Total operating lease liabilities$14,719 
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
The components of loss before income taxes are as follows (in thousands):
Year Ended December 31,
202520242023
Domestic$(44,078)$(63,221)$(64,497)
Foreign1,338 1,920 (1,281)
Loss before income taxes$(42,740)$(61,301)$(65,778)
The components of income tax expense (benefit) are as follows (in thousands):
Year Ended December 31,
202520242023
Current taxes
Federal$28 $— $— 
State262 13 — 
Foreign888 657 820 
Current tax expense (benefit)1,178 670 820 
Deferred taxes
Federal115 86 — 
State(12)— — 
Foreign(694)(86)(171)
Deferred tax expense (benefit)(591)— (171)
Income tax expense (benefit)$587 $670 $649 
A reconciliation of the difference between the federal statutory rate and the effective income tax rate as a percentage of income before taxes after the adoption of ASU 2023-09 is as follows (in thousands):
Year Ended December 31,
2025
AmountTax Rate
Federal statutory income tax$(8,975)21.00 %
State and local income taxes (1)
250 (0.59)
Foreign tax effects
Philippines
Changes in valuation allowance(521)1.22 
Other60 (0.14)
Other foreign jurisdictions530 (1.24)
Effects of cross-border tax laws:
Global intangible low-taxed income463 (1.08)
Other175 (0.41)
Tax credits
Research and development credits(1,524)3.56 
Changes in valuation allowance(2,800)6.55 
Nontaxable and Nondeductible items
Stock-based compensation12,172 (28.48)
Section 162(m) limitation608 (1.42)
Other417 (0.98)
Other adjustments(268)0.64 
Effective income tax rate$587 (1.4)%
(1) The majority of the tax effect within the state and local income tax category relates to California.
A reconciliation of the difference between the federal statutory rate and the effective income tax rate as a percentage of income before taxes for years prior to the adoption of ASU 2023-09 is as follows (in thousands):
Year Ended December 31,
20242023
AmountTax RateAmountTax Rate
Federal statutory income tax$(12,873)21.00 %$(13,813)21.00 %
State income tax, net of federal tax benefit(329)0.54 (2,423)3.68 
Foreign tax79 (0.13)(75)0.11 
Section 162(m) limitation845 (1.38)1,693 (2.57)
Other337 (0.54)304 (0.46)
Valuation allowance net of deferred tax assets5,367 (8.76)18,389 (27.96)
Stock-based compensation10,817 (17.65)2,051 (3.12)
R&D Credit(2,696)4.40 (6,100)9.27 
Acquisitions— — 603 (0.92)
Return to provision(877)1.43 20 (0.03)
Effective income tax rate$670 (1.1)%$649 (1.0)%
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax
purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows (in thousands):
As of December 31,
20252024
Deferred tax assets
Net operating loss carryforwards$84,758 $79,172 
Research & Development Costs17,947 22,629 
Operating lease liability3,539 4,487 
Stock-based compensation3,080 4,555 
Research & Development Credits11,285 9,753 
Other3,178 2,543 
Total deferred tax assets123,787 123,139 
Deferred tax liabilities
Fixed assets(754)(1,747)
Intangible assets(7,680)(4,939)
Deferred commissions and bonus(21,734)(18,634)
Operating lease right-of-use asset(2,407)(2,785)
Other(1,367)(1,303)
Total deferred tax liabilities(33,942)(29,408)
Less: Valuation allowance(93,861)(94,037)
Net deferred tax asset (liability)$(4,016)$(306)
The Company assesses all available positive and negative evidence to evaluate the realizability of its deferred tax assets and whether or not a valuation allowance is necessary. The Company’s three-year cumulative loss position was significant negative evidence in assessing the need for a valuation allowance. The weight given to positive and negative evidence is commensurate with the extent such evidence may be objectively verified. Given the weight of objectively verifiable historical losses from operations, the Company has recorded a full valuation allowance on its domestic deferred tax assets except for those from the Company’s NewsWhip acquisition in 2025, which do not have a valuation allowance. Due to the Company’s cost-plus intercompany transactions, no valuation allowance is recorded on the Company’s foreign deferred tax assets except for its Ireland net operating loss deferred tax asset that resulted from the Company’s NewsWhip acquisition in 2025. The Company may be able to reverse the valuation allowance on its domestic deferred tax assets when sufficient positive evidence exists to support the reversal of the valuation allowance.
The net change in the valuation allowance for deferred tax assets was approximately $0.2 million decrease for the year ended December 31, 2025, $5.4 million increase for the year ended December 31, 2024, and $19.4 million increase for the year ended December 31, 2023. The net change during 2025 was primarily due to a decrease in capitalized research and development (R&D) costs and stock-based compensation deferred tax assets, as well as an increase in the deferred tax liabilities with known reversal periods that will generate future sources of taxable income. The net change during 2025 also included a $3.8 million increase related to acquired Ireland net operating losses that were brought into NewsWhip purchase accounting with a full valuation allowance.
The Company elected to account for Global Intangible Low-Taxed Income (“GILTI”) as a current-period expense when incurred. As of December 31, 2025, the Company does not expect to incur material additional income taxes upon the distribution of earnings from its foreign subsidiaries. While the Company intends to repatriate these foreign earnings, there may be local withholding taxes due to various foreign countries and/or U.S. state taxes payable upon distribution of certain lower-tier earnings. The estimated impact of these taxes is currently immaterial to the Company’s consolidated financial statements.
As of December 31, 2025, the Company has gross federal net operating losses of $316.2 million which begin to expire in 2030, state net operating losses of $217.8 million which begin to expire in 2027, and foreign net operating losses of $33.1 million which begin to expire in 2026. The increase in foreign net operating losses was primarily driven by acquired Ireland net operating losses from the NewsWhip acquisition. Net operating loss carryforwards may be limited due to a change in control in the Company’s ownership as defined by the Internal Revenue Code Section 382. Any future changes in the Company’s ownership may limit the use of such carryforward benefits.
The Company recognizes tax benefits from uncertain tax positions if it is more likely than not that the tax position will be sustained by the tax authority upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not threshold, the Company measures the tax position as the largest amount of benefit that is greater than 50% likely to be realized upon ultimate settlement.
The reconciliation of uncertain tax positions at the beginning and end of the years below is as follows (in thousands):
As of December 31,
202520242023
Beginning balance3,354 2,456 — 
Gross increase (decrease) related to prior year positions(100)— — 
Gross decrease related to settlements— — — 
Gross increase related to current year positions508 898 2,456 
Ending balance3,762 3,354 2,456 
At December 31, 2025, approximately $3.8 million would reduce the Company’s annual effective tax rate, if recognized. The Company recognizes interest and, if applicable, penalties for any uncertain tax positions. Interest and penalties related to uncertain tax positions are recorded as a component of income tax expense. In the years ended December 31, 2025, 2024, and 2023, the Company did not have any accrued interest or penalties associated with any unrecognized tax benefits.
The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Due to its operating loss carryforwards, the U.S. federal statute of limitations remains open for tax year 2010 and onward and the Company continues to be subject to examination by the Internal Revenue Service for tax years 2010 and later. The resolutions of any examinations are not expected to be material to these financial statements.
The amounts of cash income taxes paid (net of refunds) by the Company were as follows (in thousands):
Year Ended December 31,
2025
Canada$648 
Other jurisdictions (1)
723
Income taxes, net of amounts refunded$1,371 
(1) Income taxes paid to other jurisdictions are individually immaterial.
The amount of cash income taxes paid by the Company during the years ended December 31, 2024 and 2023 was $0.8 million and $0.7 million, respectively.
Enactment of the One Big Beautiful Bill Act of 2025
On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law, extending key provisions of the 2017 Tax Cuts and Jobs Act including, but not limited to, deductions for domestic research and development expenditures. For the year ended December 31, 2025, the impact of the OBBBA on our consolidated financial statements was not material. The Company will continue to monitor any forthcoming guidance or interpretations of the Act that could affect its financial position, results of operations, and cash flows.
v3.25.4
Revolving Line of Credit
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Revolving Line of Credit
On August 1, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) by and among the Company, the banks and other financial institutions or entities party thereto as lenders and MUFG Bank, LTD. as administrative agent and collateral agent. The Credit Agreement provides for a $100 million senior secured revolving credit facility (the “Facility”). Borrowings under the Facility may be used to finance acquisitions and other investments permitted under the terms of the Credit Agreement, to pay related fees and expenses and for general corporate purposes.
On April 4, 2025, the Company entered into the First Amendment to Credit Agreement (the “Amendment”, and the Credit Agreement as amended thereby, the “Amended Credit Agreement”) which, among other things, extended the maturity date of the Facility from August 1, 2028 to April 4, 2030 and revised the manner in which the applicable interest rate is determined from a liquidity based determination to a leverage based determination. In addition, the Amendment removed the minimum liquidity and annual recurring revenue covenants contained in the Credit Agreement and replaced them with financial covenants as to (i) maximum Consolidated Senior Net Leverage Ratio and (ii) minimum Consolidated Interest Coverage Ratio (each as defined in the Amended Credit Agreement). As of December 31, 2025, the Company was in compliance with such financial covenants in the Amended Credit Agreement.
Pursuant to the Amended Credit Agreement, borrowings under the Facility may be designated as SOFR Loans or ABR Loans (each as defined in the Amended Credit Agreement), subject to certain terms and conditions under the Amended Credit Agreement, and bear interest at a rate of either (i) SOFR (subject to a 1.0% floor), plus 0.10%, plus a margin ranging from 2.25% to 2.75% based on the Company’s Consolidated Senior Net Leverage Ratio or (ii) ABR (subject to a 2.0% floor) plus a margin ranging from 1.25% to 1.75% based on the Company’s Consolidated Senior Net Leverage Ratio. For the twelve months ended December 31, 2025, the borrowings under the Facility were designated as SOFR Loans and the weighted average interest rate in effect for the outstanding balance was approximately
6.71%. The Facility also includes a quarterly commitment fee on the unused portion of the Facility of 0.30% or 0.35% based on the Company’s Consolidated Senior Net Leverage Ratio.
The Amended Credit Agreement includes customary conditions to credit extensions, covenants and customary events of default, including restrictions on the Company’s ability to incur liens, incur indebtedness, make or hold investments, execute certain change of control transactions, business combinations or other fundamental changes to its business, dispose of assets, make certain types of restricted payments, including dividends and other distributions to stockholders, enter into certain related party transactions or amend or terminate certain contracts, subject to customary exceptions.
As of December 31, 2025, the Company had an outstanding balance of $40 million under the Amended Credit Agreement.
Debt issuance costs associated with the Facility were recorded to Other assets, net within the consolidated balance sheets and are being amortized as interest expense on a straight-line basis over the term of the Facility.
The Company is contingently liable under two standby letters of credit which are required as security for the Company’s current office leases (refer to Note 6). The agreements allow the Company to elect to secure the letters of credit with restricted cash or by reducing the revolving credit facility borrowing capacity under the Facility. As of December 31, 2025 and 2024, the Company had $2.7 million in secured letters of credit outstanding, respectively. At December 31, 2025, $2.0 million of the outstanding letters of credit were secured through a reduction in the Facility’s borrowing capacity, with the remaining amount secured by restricted cash.
v3.25.4
Stockholders Equity
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Convertible Preferred Stock and Stockholders Equity
Common Stock
As of December 31, 2025, the Company has authorized 1,000,000,000 shares of Class A common stock with a par value of $0.0001 per share and 25,000,000 shares of Class B common stock with a par value of $0.0001 per share. Each holder of Class A and Class B common stock shall be entitled to one and ten votes, respectively, for each share held as of the record date and shall be entitled to receive dividends, when, as and if declared by the Board of Directors. Each share of Class B common stock is convertible into one share of Class A common stock at any time and will convert automatically upon certain transfers and upon the earlier of (i) the first date on which the voting power of all then outstanding shares of Class B common stock represents less than 10% of the combined voting power of all then outstanding shares of Class A common stock and Class B common stock, (ii) the date that is seven (7) years from the closing of the IPO on December 17, 2019 and (iii) the date specified by a vote of the holders of a majority of the then outstanding shares of Class B common stock, voting as a separate class. Following such conversion, each share of Class A common stock will have one vote per share and the rights of the holders of all outstanding shares of common stock will be identical. The total Class A and Class B common stock outstanding as of December 31, 2025 is 53,607,556 and 5,949,357 shares, respectively.
v3.25.4
Incentive Stock Plan
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Incentive Stock Plan
Effective October 17, 2019, the Company established the Sprout Social, Inc. 2019 Incentive Award Plan (the “2019 Plan”), under which awards, including options, stock appreciation rights, restricted stock awards, restricted stock unit awards, other stock or cash based awards and dividend equivalent
awards, for up to 5,293,497 shares of Class A common stock may, at the discretion of the Board of Directors, be issued to employees, consultants, and directors of the Company.
Effective December 12, 2019, the Company established the Sprout Social, Inc. 2019 Class B Incentive Award Plan (the “Class B Plan”), under which cash and equity incentive awards, for up to 550,000 shares of Class B common stock were, at the discretion of the Board of Directors, issued to employees, consultants, and directors of the Company, with the expectation that shares would only be issued to the Company’s CEO depending on the valuation of the Company in connection with the IPO and the achievement of market capitalization thresholds thereafter. There are no further grants authorized under the Class B Plan.
The only awards granted as of December 31, 2025 are restricted stock units.
Stock-based Compensation Expense
    Stock-based compensation expense is included in the consolidated statements of operations as follows (in thousands):
Years Ended December 31,
202520242023
Cost of revenue$2,802 $3,936 $3,224 
Research and development25,162 25,619 18,478 
Sales and marketing22,783 31,544 30,116 
General and administrative27,972 23,204 15,886 
Total stock-based compensation expense$78,719 $84,303 $67,704 

For the periods presented, stock-based compensation expense consisted of expense from restricted stock units. There was no expense related to stock options.
Restricted Stock Units
The Company issues restricted stock units to executives and employees. The general terms of the restricted stock units issued under the 2019 Plan require only a service condition to be satisfied prior to vesting. However, certain executive grants issued under the 2019 Plan require both the satisfaction of a service condition and a performance condition which includes the achievement of subscription revenue targets, prior to vesting.
The table below summarizes the activity regarding unvested restricted stock units for the year ended December 31, 2025:
Restricted
Stock Units		Weighted
Average Grant
Date Fair Value
Unvested at December 31, 20244,661,191 $47.34 
Granted6,355,991 16.18 
Vested(1,731,374)51.15 
Forfeited(1,375,264)36.90 
Unvested at December 31, 20257,910,544 $23.28 
The weighted-average grant date fair value per share for restricted stock units granted during the years ended December 31, 2025, 2024 and 2023 was $16.18, $40.79 and $50.75, respectively. The total unrecognized stock-based compensation expense relating to these awards as of December 31, 2025 was $164.8 million, which is expected to be recognized over a weighted-average period of 2.8 years.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Contractual Obligations
The Company has non-cancellable minimum guaranteed purchase commitments for data and services. Material contractual commitments as of December 31, 2025 that are not disclosed elsewhere are as follows (in thousands):
Years ending December 31,
2026$86,842 
202716,207 
202812,612 
2029— 
2030— 
Thereafter— 
Total contractual obligations$115,661 

Legal Matters
From time to time in the normal course of business, the Company may be subject to various legal matters such as threatened or pending claims or proceedings.
Beginning on May 13, 2024, the Company and certain of its executives were named in two putative securities fraud class action cases filed in the United States District Court for the Northern District of Illinois asserting claims under Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5. The first action, captioned Munch v. Sprout Social, Inc., et al. was filed on May 13, 2024 and alleged that the defendants made false or misleading statements and omissions of fact relating to the Company’s business, operations and prospects, including (i) purported integration challenges arising from the Company’s August 2023 acquisition of Tagger Media, Inc. (“Tagger”), (ii) the Company’s ability to service (and the viability of its strategic plan to focus on) the enterprise market, and (iii) as a result, the Company’s 2024 financial guidance was required to be adjusted downward. The Munch complaint sought damages and costs on behalf of a putative class of Company stockholders from November 3, 2023 through and including May 2, 2024. The second case, captioned City of Hollywood Police Officers’
Retirement System v. Sprout Social, Inc., et al (the “City of Hollywood Action”), was filed in the United States District Court for the Northern District of Illinois on July 2, 2024. It asserted claims under the same statutory provisions based on substantially similar allegations of misconduct as its predecessor, but alleged a class period beginning on November 3, 2021 and ending on May 2, 2024.

On November 12, 2024, the court appointed the Employees’ Retirement System for the City of Baltimore (the “City of Baltimore”), who had been substituted as the named plaintiff in the City of Hollywood action, as the Lead Plaintiff under the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The court subsequently consolidated the two cases (the “Consolidated Securities Action”) on December 13, 2024.

On January 24, 2025, the City of Baltimore filed an amended Consolidated Class Action Complaint (the “AC”). The AC retains the original defendants, but adds Jason Rechel, Sprout Social’s former head of Investor Relations, as an individual defendant.

The AC makes similar allegations to those asserted in the City of Hollywood Action and adds additional allegations, including purported statements attributed to 15 anonymous confidential witnesses. Most of these individuals are described in the AC as former Sprout Social sales representatives. It claims that the defendants failed to disclose that the Company lacked the infrastructure to successfully implement its strategic shift to the enterprise business market, which purportedly rendered positive statements about enterprise business generation and prospects, and Sprout Social’s financials, misleading. More specifically, the AC alleges that (1) Sprout Social’s “inbound” sales strategy model, which it also applied to enterprise sales efforts, was not effective for generating enterprise business; (2) Sprout Social’s platform lacked certain features valued by large clients; (3) Sprout Social’s partnership with Salesforce would not necessarily increase Sprout Social’s enterprise business; and (4) Sprout Social’s emphasis on ARR as a key metric for financial performance was misleading, given Sprout Social’s own abandonment of the metric as a viable performance indicator.
The AC alleges a slightly longer class period than that alleged in the City of Hollywood Action, beginning on September 22, 2021, and ending on May 2, 2024 (the City of Hollywood Action alleged class period that began on November 3, 2021 and ended on May 2, 2024).
On March 25, 2025, defendants filed a Motion to Dismiss (the “Motion”) the AC in its entirety. On May 23, 2025, Lead Plaintiff filed a brief in opposition to this Motion. Defendants filed a reply brief in further support of the Motion on July 17, 2025. The court has yet to issue any ruling on the Motion. Under the PSLRA, discovery and other proceedings in the Consolidated Securities Action are automatically stayed pending such a ruling.
On September 3, 2024, a putative stockholder derivative lawsuit captioned Hannaway v. Sprout Social, Inc. et al. (the “Hannaway Derivative Action”) was filed in the United States District Court for the Northern District of Illinois against the Company’s directors and certain officers. The complaint alleges that the defendants failed to disclose (or misrepresented) facts about the Company’s business, operations and prospects, including that (i) the Company’s sales and revenue results were not indicative of its growth as it transitioned to an enterprise sales cycle, (ii) the Company was unable to sell to enterprise customers and thus overpaid for, and faced integration challenges with respect to, Tagger, and (iii) as a result, the Company faced longer sales cycles and a slowing pipeline, requiring a downward revision of its 2024 guidance. Based on these allegations, the complaint asserts federal claims under Sections 10(b), 14(a) and 21D of the Exchange Act and Rules 10b-5 and 14a-9, and state law claims for breach of fiduciary duties, unjust enrichment, corporate waste, aiding and abetting and insider selling, and seeks damages in an unspecified amount on the Company’s behalf. On October 23, 2024, the court entered a stipulation and order staying the action until the earliest of (i) entry of a final, non-appealable
order on any summary judgment motions in the Consolidated Securities Action; (ii) a settlement or other mediated resolution in the Consolidated Securities Action; or (iii) as otherwise agreed to by the Parties (the “Stay Order”). Under the Stay Order, any supplemental derivative action filed in the same court will be consolidated with the Hannaway Derivative Action and subject to the terms of the Stay Order.
On December 17, 2024, a second putative derivative action captioned Munch v. Howard et al. (the “Munch Derivative Action”) was filed in the United States District Court for the Northern District of Illinois against the same defendants. This complaint alleges that, beginning in November 2021, the defendants failed to disclose (or misrepresented) facts about the Company’s business, operations and prospects, including that (i) the Company was neither well-equipped to grow enterprise sales nor executing on its go to market strategy to grow enterprise business; (ii) marketing to enterprise customers would elongate the Company’s sales cycles, and (iii) as a result, the Company was required to adjust its 2024 financial guidance downward. Based on these allegations, plaintiff asserts federal claims under Section 14(a) of the Exchange Act and a state law claim for breach of fiduciary duty, and seeks damages in an unspecified amount on the Company’s behalf. On February 14, 2025, the court consolidated the Munch Derivative Action with the Hannaway Derivative Action (the “Consolidated Derivative Action”) and stayed the Consolidated Derivative Action under the terms of the Stay Order.
The Company intends to vigorously defend against the claims asserted in the foregoing actions. The outcomes of these actions are subject to inherent uncertainties, and the actual defense and disposition costs will depend upon many unknown factors. The Company could be forced to expend significant resources in the defense of these actions and may not prevail. The Company currently is not able to estimate the possible cost from these matters, which are at an early stage, and the Company cannot be certain how long it may take to resolve these actions or the possible amount of any damages that the Company may be required to pay. Such amounts could be material to the Company’s financial statements. The Company has not established any accrual for any potential liability relating to these actions. It is possible that the Company could, in the future, incur a judgment for monetary damages and/or enter into a settlement(s) in connection therewith, which could be material to the Company’s results of operations, financial position and cash flows.
Indemnification
In the ordinary course of business, the Company often includes standard indemnification provisions in its arrangements with third parties, including vendors, customers, investors and the Company’s directors and officers. Pursuant to these provisions, the Company may be obligated to indemnify such parties for losses or claims suffered or incurred. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. Historically, the Company has not incurred any significant costs as a result of such indemnification.
v3.25.4
Geographic Data
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Geographic Data
As described in the Summary of Significant Accounting Policies, the Company operates as one operating segment.
Long-lived assets by geographical region are based on the location of the legal entity that owns the assets. As of December 31, 2025 and 2024, there were no significant long-lived assets held by entities outside of the United States.
Revenue by geographical region is determined by location of the Company’s customers. Revenue from customers outside of the United States was approximately 26%, 27% and 28% for each of
the years ended December 31, 2025, 2024 and 2023, respectively. Revenue by geographical region is as follows (in thousands):
Year Ended December 31,
202520242023
Americas$365,417 $322,209 $262,290 
EMEA69,996 63,527 54,753 
Asia Pacific22,134 20,172 16,600 
Total$457,547 $405,908 $333,643 
v3.25.4
Net Loss per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Net Loss per Share
Basic net loss per share is calculated by dividing the net loss by the weighted average number of outstanding shares of common stock each period. Diluted net loss per share is calculated by giving effect to all potential dilutive common stock equivalents, which includes stock options and restricted stock units. Because the Company incurred net losses each period, the basic and diluted calculations are the same. Basic and diluted net loss per share are the same for each class of common stock, as both Class A and Class B stockholders are entitled to the same liquidation and dividend rights.
The following table presents the calculation for basic and diluted net loss per share (in thousands, except share and per share data):
Year Ended December 31,
202520242023
Net loss attributable to common shareholders$(43,327)$(61,971)$(66,427)
Weighted average common shares outstanding58,625,925 56,935,910 55,664,404 
Net loss per share, basic and diluted$(0.74)$(1.09)$(1.19)
The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share for each period, as the impact of including them would have been anti-dilutive.
As of December 31,
202520242023
Stock options outstanding——27,010
RSUs outstanding7,910,5444,661,191 3,724,707
Total potentially dilutive shares7,910,544 4,661,191 3,751,717 
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:
•Level 1: Quoted prices in active markets for identical assets or liabilities.
•Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3: Unobservable inputs that are supported by little or no market activity.
The following tables present information about the Company’s financial assets and liabilities that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands):
December 31, 2025
Level 1Level 2Level 3Total
Liabilities:
  Contingent consideration— — 8,873 8,873 
Total liabilities$— $— $8,873 $8,873 
December 31, 2024
Level 1Level 2Level 3Total
Assets:
Marketable Securities:
  Corporate bonds— 3,745 — 3,745 
Total assets$— $3,745 $— $3,745 
There were no transfers of financial instruments between Level 1, Level 2, and Level 3 during the periods presented.
The contingent consideration as presented in the fair value table above relates to the NewsWhip acquisition, and represents the future potential earnout payments based on the achievement of specified financial performance metrics through June 30, 2027. Refer to Note 4 for further discussion of the acquisition.
The fair value of the contingent consideration was determined using a scenario-based approach. The model includes significant unobservable inputs including the discount rate and projected revenues
over the earn-out period. The contingent consideration was classified as Level 3 within the fair value hierarchy.
The contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. Changes in the fair value of contingent consideration, other than measurement period adjustments, are recorded within General and administrative expenses within the consolidated statements of operations. The current and non-current portions of contingent consideration are recorded to Accrued expenses and other and Other noncurrent liabilities, respectively, within the consolidated balance sheets.
The change in fair value of the contingent consideration (a Level 3 input) was as follows (in thousands):
Contingent consideration liability as of NewsWhip acquisition date$8,450 
Change due to accretion423 
Contingent consideration liability as of December 31, 2025
$8,873 
Marketable securities are classified within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market. The Company’s marketable securities, which were accounted for as available-for-sale securities, matured as of June 30, 2025. There was not a significant difference between the amortized cost and fair value of these securities in the periods presented, and the gross unrealized gains and losses associated with these securities were immaterial. There were no available-for-sale securities as of December 31, 2025.
The carrying amounts of certain financial instruments, including cash held in banks, cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their short-term maturities and are excluded from the fair value tables above.
v3.25.4
Employee Benefit Plan
 12 Months Ended
Dec. 31, 2025
Postemployment Benefits [Abstract]  
Employee Benefit Plan
The Company sponsors a qualified 401(k) defined contribution plan for the benefit of its employees. The Company made matching contributions to the plan totaling $3.6 million, $4.2 million and $3.7 million for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Item 1C. Cybersecurity
Risk Management and Strategy
As a cloud service provider, Sprout Social believes keeping data secure is important and takes steps designed to do so.
We implement and maintain various information security processes designed to identify, assess, and manage material risks from cybersecurity threats to our critical infrastructure, communications systems, hardware and software, and our critical data, including intellectual property, confidential information that is proprietary, strategic or competitive in nature, and data related to our employees and customers (“Information Systems and Data”).
Security Program Structure
Sprout Social maintains an overarching security program comprising several teams including (1) Security Operations, (2) Information Technology, (3) Application Security, (4) Infrastructure Security, and (5) Governance, Risk, and Compliance. Together, these teams help identify, assess and manage the Company’s cybersecurity threats and risks using various methods including, for example, internal and external audits, automated and manual tools, threat assessments for internal and external threats, software and services that identify cybersecurity threats, third party threat assessments, a vulnerability management policy and program, incident response exercises, and evaluating threats reported to us through an external bug bounty program.
Our security program is designed to align with the ISO 27001:2022 (International Organization for Standardization) standard and ISO 27701:2019 (privacy extension), incorporates elements from the National Institute of Standards and Technology (NIST) Cybersecurity Framework, and is regularly reviewed and audited by independent external third-party auditors.
Technical and Organizational Measures
As part of our security program, we implement and maintain various technical, physical, and organizational measures, processes, standards and policies designed to manage and mitigate material risks from cybersecurity threats to our Information Systems and Data, including, for example, a general information security policy, incident response plan and incident response policy, data classification, protection, retention, and destruction policy, server protection and logging standards, vulnerability management program, vendor selection and security standard, business continuity and disaster recovery plan, employee onboarding, offboarding, and access escalation policy, risk management and audit policy, regular penetration testing of our production networks and applications, maintaining industry recognized certifications, cybersecurity insurance, and dedicated cybersecurity staff.
Enterprise Risk Integration
Our assessment and management of material risks from cybersecurity threats are integrated into the Company’s overall risk management processes. For example, cybersecurity risk is addressed as a component of the Company’s enterprise risk management program and identified in the Company’s risk register. The security team works with management to help identify, discuss, and prioritize our risk management processes and mitigate cybersecurity threats that are more likely to lead to a material impact to our business.
Third-Party Assessments and Support
We use third-party service providers to assist us from time to time in reviewing our policies, standards and procedures, identifying and assessing material risks from cybersecurity threats, and making recommendations to improve our security program, including, for example, professional services firms, external legal counsel, penetration testing firms, cybersecurity consultants, and cybersecurity software providers.
We use third-party service providers to perform a variety of functions throughout our business, such as application providers, hosting companies, and other types of third-party service providers for critical business operations. Our vendor management process includes security assessments for vendors handling sensitive data, ongoing monitoring based on risk tier, and requirements that certain vendors maintain appropriate security certifications. We require information security-related contractual provisions in our vendor agreements.
For a description of the risks from cybersecurity threats that may materially affect the Company and how they may do so, see our risk factors under Part 1. Item 1A. Risk Factors in this Annual Report on Form 10-K, including the sections of our risk factors titled “Risks Related to the Use of Technology” and “Legal and Regulatory Risks.”
Governance
Board Oversight
Our Board of Directors is responsible for overseeing the Company's cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats. The Board receives updates on cybersecurity matters twice per year, during which management presents information regarding the Company's cybersecurity program, risk assessments, threat landscape developments, security control effectiveness, third-party assessments, and material security events or incidents.
Management Responsibilities
Our overarching security program, enterprise-wide cybersecurity strategy, risk management program, and related security policies, standards, and processes are managed by the Vice President of Information Technology, Security, and Compliance and the Chief Technology Officer. The Vice President of Information Technology, Security, and Compliance has over 15 years of experience leading information technology and security teams and holds a Certified Information Systems Security Professional (CISSP) certification. The Vice President of Information Technology, Security, and Compliance reports to the Chief Technology Officer. They are responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into the Company’s business strategy, communicating key priorities to relevant personnel, approving budgets, preparing for cybersecurity incidents, approving cybersecurity policies, and reviewing internal and external security assessments and other security-related reports. They also report on our risk management program, overall security posture, progress on maturing the security program, and new or emerging risks to senior management and the Board of Directors.
Incident Response and Escalation
Our cybersecurity incident response plan is designed to escalate certain cybersecurity incidents to members of management based on predefined criteria, including, for example, to our Vice President of Information Technology, Security, and Compliance, General Counsel, and Chief Technology Officer. Senior managers work with the Company’s incident response team to help the Company mitigate and remediate certain cybersecurity incidents of which they are notified. The Company's incident response plan includes reporting to the Board of Directors, regulators, and law enforcement for incidents meeting defined thresholds based on incident severity and potential impact.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Board Oversight
Our Board of Directors is responsible for overseeing the Company's cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats. The Board receives updates on cybersecurity matters twice per year, during which management presents information regarding the Company's cybersecurity program, risk assessments, threat landscape developments, security control effectiveness, third-party assessments, and material security events or incidents.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board of Directors is responsible for overseeing the Company's cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats.
Cybersecurity Risk Role of Management [Text Block]
Management Responsibilities
Our overarching security program, enterprise-wide cybersecurity strategy, risk management program, and related security policies, standards, and processes are managed by the Vice President of Information Technology, Security, and Compliance and the Chief Technology Officer. The Vice President of Information Technology, Security, and Compliance has over 15 years of experience leading information technology and security teams and holds a Certified Information Systems Security Professional (CISSP) certification. The Vice President of Information Technology, Security, and Compliance reports to the Chief Technology Officer. They are responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into the Company’s business strategy, communicating key priorities to relevant personnel, approving budgets, preparing for cybersecurity incidents, approving cybersecurity policies, and reviewing internal and external security assessments and other security-related reports. They also report on our risk management program, overall security posture, progress on maturing the security program, and new or emerging risks to senior management and the Board of Directors.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] The Vice President of Information Technology, Security, and Compliance has over 15 years of experience leading information technology and security teams and holds a Certified Information Systems Security Professional (CISSP) certification.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] They are responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into the Company’s business strategy, communicating key priorities to relevant personnel, approving budgets, preparing for cybersecurity incidents, approving cybersecurity policies, and reviewing internal and external security assessments and other security-related reports.
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.
Basis of Presentation The consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s estimates and judgments include, but are not limited to, the estimated period of benefit for incremental costs of obtaining a contract with a customer, the incremental borrowing rate for operating leases, calculation of allowance for credit losses, valuation of assets and liabilities acquired as part of business combinations, useful lives of long-lived assets, stock-based compensation, income taxes, commitments and contingencies and litigation, among others.
Segment Information
Segment Information
The Company operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information for purposes of making operating decisions, assessing financial performance and allocating resources. The Company’s CODM evaluates financial information on a consolidated basis and considers Net Loss within the consolidated statements of operations to be a key measurement of profitability in evaluating financial performance, comparing budget to actuals, and making resource allocation decisions. Further, the CODM reviews and utilizes functional expenses (cost of revenues, sales and marketing, research and development, and general and administrative) at the consolidated level to manage the Company’s operations. Other segment items included in consolidated net loss are interest expense, interest income, other expense, net, and the provision for (benefit from) income taxes, which are reflected in the consolidated statements of operations. As the Company operates as one operating segment, all required segment financial information is found in the consolidated financial statements.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
The Company has the following financial instruments: cash, cash equivalents, accounts receivable, accounts payable, accrued liabilities and contingent consideration related to acquisitions. In recent periods, the Company has also had marketable securities. The carrying value of the Company’s cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value due to their short-term nature. See Note 14, Fair Value Measurements, for additional information regarding the valuation methodology for contingent consideration liabilities.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. Interest earned on cash and cash equivalents is recorded as interest income in the consolidated statements of operations.
Restricted Cash
As of December 31, 2025 and 2024, the Company’s restricted cash balance was $1.9 million and $4.0 million, respectively. Restricted cash represents cash that is held as collateral in relation to the Company’s letters of credit that are required as security for certain office lease arrangements and reserves held by the Company’s credit card processor. Restricted cash is included in Prepaid expenses and other current assets within the consolidated balance sheets.
Marketable Securities
Marketable Securities
Marketable securities consist of corporate bonds, commercial paper, U.S. Treasury securities, asset-backed securities, and agency securities. The Company classifies marketable securities as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. All marketable securities are recorded at their estimated fair values. The Company’s remaining marketable securities matured during 2025. Unrealized gains and losses for the available-for-sale debt securities that are unrelated to credit loss factors are recorded in accumulated other comprehensive income (loss), or AOCI. The Company’s AOCI balance was zero as of December 31, 2025 and an immaterial balance as of December 31, 2024. Unrealized losses determined to be credit-related are recorded as Other (expense) income, net in the consolidated statements of operations and comprehensive loss and as an allowance for credit losses on Marketable securities on the consolidated balance sheets. As of December 31, 2025 and 2024, The gross unrealized gains and losses on available-for-sale debt securities was zero as of December 31, 2025 and immaterial as of December 31, 2024, and there were no expected credit losses related to the Company's available-for-sale debt securities.
Accounts Receivable
Accounts Receivable and Allowance for Credit Losses
Accounts receivable primarily consist of amounts billed and currently due from customers, net of an allowance for credit losses. Subscription fees billed in advance of the related subscription term represent contract liabilities and are presented as accounts receivable and deferred revenues upon establishment of an unconditional right to payment under non-cancellable contracts. Our typical payment terms provide for customer payment within 30 days of the date of the contract.
Allowance for Doubtful Accounts
Accounts receivable are subject to collection risk. The Company performs evaluations of its customers’ financial positions and generally extends credit on account, without collateral. The Company determines the need for an allowance for credit losses based upon various factors, including past
collection experience, credit quality of the customer, age of the receivable balance and current economic conditions.
If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Amounts are charged against the allowance for credit losses once collection efforts are unsuccessful.
Concentration of Credit Risk
Concentration of Credit Risk
Financial instruments that potentially expose the Company to concentrations of credit risk are primarily cash and cash equivalents, accounts receivable and marketable securities. The Company's cash and cash equivalents are generally held with large financial institutions. Although the Company's deposits may exceed federally insured limits, the financial institutions that the Company uses have high investment-grade credit ratings and, as a result, the Company believes that, as of December 31, 2025, its risk relating to deposits exceeding federally insured limits was not significant.
The Company has credit risk regarding trade accounts receivable as the Company generally does not require collateral. Allowances are maintained for potential credit losses. As of December 31, 2025 and 2024, there were no individual customers that accounted for more than 10% of the Company’s total revenue or net accounts receivable.
The Company’s marketable securities, all of which matured during 2025, consisted of investment-grade corporate bonds, commercial paper, U.S. Treasury securities, asset-backed securities, and agency securities. In recent periods, the Company has limited the amount of investments in any single issuer to minimize credit risk exposure related to marketable securities.
Property and Equipment
Property and Equipment
Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the following estimated useful lives:
Computer equipment and hardware
3-5 years
Furniture and fixtures
3-7 years
Internal-use software
3 years
Leasehold improvementsLesser of useful life or remaining lease term
Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Upon retirement or sale, the cost of assets disposed and the related accumulated depreciation are written off, and any resulting gain or loss is credited or charged to income.
Goodwill
Goodwill
Goodwill consists of the excess purchase price over the fair value of net assets acquired in purchase business combinations. The Company conducts a test for the impairment of goodwill on at least an annual basis as of October 1st or sooner if indicators of impairment arise. The Company first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired. As part of the qualitative assessment, the Company evaluates factors including macroeconomic conditions, industry and market considerations, cost factors and overall financial performance of its reporting unit.
The Company has a single reporting unit. If the Company concludes that it is more-likely-than-not that its single reporting unit is impaired or if the Company elects not to perform the optional qualitative assessment, a quantitative assessment is performed. For the quantitative assessment, the fair value of the Company’s reporting unit is compared with the carrying amount of net assets, including goodwill, related to the reporting unit. The Company recognizes an impairment charge for the amount, if any, by which the carrying amount of a reporting unit exceeds the fair value of the reporting unit.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
The Company evaluates the recoverability of its long-lived assets, which includes property and equipment and intangible assets, whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. Recoverability of an asset is measured by comparison of its carrying amount to the anticipated future undiscounted cash flows that the asset is expected to generate. If that comparison indicates that the carrying amount is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset exceeds its fair value.
Revenue Recognition
Revenue Recognition
The Company generates revenues from subscriptions to the Company’s web-based social media management platform under a software-as-a-service model. Our subscriptions can range from monthly to one-year or multi-year arrangements and are generally non-cancellable. The Company’s customers do not have the right to take possession of the online software solution.
The Company commences revenue recognition when control of these products is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for such products.
The Company determines revenue recognition through the following steps:
•identify the contract with a customer;
•identify the performance obligations in a contract;
•determination of the transaction price;
•allocate the transaction price to the performance obligations identified in the contract; and
•recognize revenue when (or as) performance obligations are satisfied.
Identify the contract with a customer
A customer contract is generally identified when the Company and a customer have executed an agreement or online acceptance that requires the Company to grant access to its online software products and provide professional services in exchange for consideration from the customer.
Identify the performance obligations in a contract
A performance obligation is a promise to provide a distinct service or a series of distinct services. A service that is promised to a customer is distinct if the customer can benefit from the service either on its own or together with other readily available resources, and a company’s promise to transfer the service to the customer is separately identifiable from other promises in the contract.
The Company has determined that subscriptions for its online software products are a distinct performance obligation, because no implementation work is required and the online software product is fully functional once a customer has access.
In addition, the Company sells professional services consisting of, but not limited to, implementation fees, specialized training, one-time reporting services and recurring periodic reporting services. Professional services are distinct, as they are sold separately, and the customer can benefit from the services to make better use of the online product purchased.
Determination of the transaction price
The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company estimates any variable consideration it will be entitled at contract inception and will reassess as circumstances change, when determining the transaction price. The transaction price for subscription and professional services is generally fixed at contract inception; therefore, the Company’s contracts do not contain a significant amount of variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in previous periods due to changes in the transaction price was not material.
Allocate the transaction price to the performance obligations identified in the contract
If the contract contains a single performance obligation, the Company allocates the entire transaction price to the single performance obligation. For contracts containing multiple performance
obligations, the transaction price is allocated to each performance obligation based on the relative standalone selling price (“SSP”) of the services provided to the customer. The Company determines the SSP based upon the prices at which the Company separately sells subscription and various professional services, and based on the Company’s overall pricing objectives, taking into consideration market conditions, value of the Company’s contracts, the types of offerings sold, customer demographics and other factors.
Recognize revenue when (or as) performance obligations are satisfied
Subscription revenues are recognized ratably over the contract terms beginning on the date the Company’s service is made available to customers, which typically begins on the commencement date of each contract as no implementation work is required. The Company’s customers do not have the right to take possession of the online software solution. The Company’s subscription service arrangements are generally non-cancellable and do not provide for refund of subscription fees.
Professional services are typically provided for a fixed fee, and revenue is generally recognized for these contracts at the time these services are provided to the customer. Professional services revenue represents less than 1% of revenue for the periods presented.
Sales Commissions
Sales Commissions
Sales commissions earned by our sales force are considered incremental costs of obtaining a contract with a customer. Sales commissions are paid on initial contracts with new customers and for expansion of contracts with existing customers. Commissions are not paid on customer renewals. Sales commissions are deferred and amortized on a straight-line basis over a period of benefit that the Company has determined to be five years. On an annual basis and whenever events or changes in circumstances occur that could impact the recoverability of these assets, the Company assesses the expected period of benefit by taking into consideration the products sold, mix of customers, expected customer life, expected contract renewals, technology life cycle and other factors.
Based on the assessment performed during the first quarter of 2024, the Company updated the period of benefit from three years to five years. This change in accounting estimate was effective January 1, 2024 and is being accounted for prospectively in the consolidated financial statements. For the year ended December 31, 2024, the change in amortization period resulted in a $14.3 million reduction to sales and marketing expense, or an increase of $0.25 per share, basic and diluted. The effects of this change in estimate were calculated based on the carrying value of deferred commissions as of December 31, 2023.
Cost of Revenues
Cost of Revenues
Cost of revenues primarily consist of expenses related to hosting the Company’s service and providing support to customers, depreciation associated with computers and hardware and amortization expense related to acquired developed technologies that directly benefit sales. These expenses are comprised of hosted data center global costs, fees paid to third-party data providers and personnel-
related costs directly associated with cloud infrastructure and customer support, including salaries, benefits, bonuses and allocated overhead. Overhead associated with facilities and information technology is allocated to cost of revenue and operating expenses based on headcount.
Advertising Costs
Advertising Costs
Advertising costs primarily include online advertising on search engines. Advertising costs are expensed as incurred and included as a component of sales and marketing expenses.
Research and Development Costs
Research and Development Costs
Research and development expenses include payroll, employee benefits and other expenses associated with product development.
Internal Use Software, Policy
Capitalized Internal-Use Software Costs
Certain payroll and stock compensation costs incurred to develop functionality for the Company’s platform, as well as certain upgrades and enhancements that are expected to result in enhanced functionality are capitalized during the development stage. Costs incurred in the preliminary stages of development are expensed as incurred. Once software has reached the development stage, direct and incremental costs are capitalized until the software is substantially complete and ready for its intended use. Capitalized internal-use software costs are included within property and equipment, net on the consolidated balance sheets, and are amortized over the estimated useful life of the software, which is typically three years.
Share-Based Compensation
Stock-Based Compensation
The Company recognizes compensation expense for equity awards based on the grant‐date fair value over the remaining requisite service period for the award. For equity awards with only service conditions, the Company recognizes compensation expense on a straight-line basis over the remaining requisite service period for the award. For equity awards with both service and performance conditions, compensation expense is recognized on a graded vesting basis over the requisite service period once the achievement of the performance condition is considered probable. The Company recognizes forfeitures as they occur.
Foreign Currency
Foreign Currency
The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Accordingly, monetary balance sheet accounts are remeasured using exchange rates in effect at the balance sheet dates and non-monetary items are remeasured at historical exchange rates. Expenses are generally remeasured at the average exchange rates for the period. Foreign currency related gains and losses have been immaterial during the periods presented.
Leases
Leases
The Company determines if an arrangement is a lease at inception, and all significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use, or ROU, assets and operating lease liabilities are recognized at commencement based on the present value of fixed payments not yet paid over the remaining lease term. ROU assets also include any initial indirect costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. For short-term leases of 12 months or less, no ROU asset or lease liability is
recorded. The Company records rent expense in its consolidated statements of operations on a straight-line basis over the term of the lease and records variable lease payments as incurred. Additionally, the Company has elected to combine lease and non-lease components and account for them as a single component. ROU assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent its obligations to make lease payments arising from the lease. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise the option. The Company uses its incremental borrowing rate in determining the lease liabilities, as its leases generally do not provide an implicit rate. The incremental borrowing rate is an estimate of the collateralized borrowing rate the Company would incur on future lease payments over a similar term based on the information available at the commencement date. The Company does not have any finance leases.
Commitments and Contingencies
Commitments and Contingencies
The Company evaluates all pending or threatened commitments and contingencies, if any, that are reasonably likely to have a material effect on its operations or financial position. The Company assesses the probability of an adverse outcome and records a provision for a liability when management believes that it is probable that a liability has been incurred and the amount can be reasonably estimated.
Income Taxes
Income Taxes
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
The Company recognizes deferred tax assets to the extent that these assets are believed to be more likely than not to be realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations.
Tax benefits for uncertain tax positions are based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, a tax benefit must be at least more-likely-than-not of being sustained based on technical merits. The benefit for positions meeting the recognition threshold is measured as the largest benefit more-likely-than-not of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of provision for income taxes. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheets, as applicable.
Net Loss per Share
Net Loss per Share
The Company calculates basic net loss per share by dividing net loss attributable to common shareholders by the weighted-average number of the Company’s common stock shares outstanding during the respective period. Net loss attributable to common shareholders is net loss minus convertible preferred stock dividends declared, of which there were none during the periods presented.
The Company calculates diluted net loss per share using the treasury stock and if-converted methods, which consider the potential impacts of outstanding stock options and RSUs. Under these methods, the numerator and denominator of the net loss per share calculation are adjusted for these securities if the impact of doing so increases net loss per share. During the periods presented, the impact is to decrease net loss per share and therefore the Company is precluded from adjusting its calculation for these securities. As a result, diluted net loss per share is calculating using the same formula as basic net loss per share.
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted
Recently Adopted Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures. The ASU is effective for fiscal years beginning after December 31, 2024, with early adoption permitted. Entities may apply the amendments prospectively or may elect retrospective application. The Company adopted the ASU for the year ended December 31, 2025, and applied the new disclosure requirements on a prospective basis.
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The ASU requires the disclosure of more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the statement of operations. The ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact that this standard may have on its consolidated financial statements and related disclosures.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU 2025-05 provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. The ASU is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, on a prospective basis, with early adoption permitted. The Company is currently evaluating the impact of electing the practical expedient and the impact it may have on its consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40, including removing stage-based rules and replacing them with a principles-based framework to be more aligned with modern software development practices. The ASU is effective for all entities for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
Business Combination
Business Combinations
The Company recognizes and measures the assets acquired, liabilities assumed and any contingent consideration in a business combination based on their estimated fair values at the acquisition date. Any excess or deficiency of the purchase consideration, including the fair value of contingent consideration, when compared to the fair value of the net assets acquired, if any, is recorded as goodwill or gain from a bargain purchase.
Such valuations require that management make estimates and assumptions, especially with respect to the identifiable intangible assets and contingent consideration. The estimates and assumptions in valuing intangible assets include, but are not limited to, the selection of valuation methodologies, estimates of future revenue and cash flows, the time and expense to recreate the intangible assets, useful lives, customer attrition rate, royalty rate, obsolescence rate and discount rates.
The estimates are inherently uncertain and subject to revision as additional information is obtained during the measurement period for an acquisition, which may last up to one year from the acquisition date. During the measurement period, the Company may record adjustments to the fair value of tangible and intangible assets acquired and liabilities assumed, with a corresponding offset to goodwill. After the conclusion of the measurement period or the final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to earnings. Contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. Changes in the fair value of contingent consideration, other than measurement period adjustments, are recorded to earnings.
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy
As of December 31, 2025 and 2024, the Company’s restricted cash balance was $1.9 million and $4.0 million, respectively. Restricted cash represents cash that is held as collateral in relation to the Company’s letters of credit that are required as security for certain office lease arrangements and reserves held by the Company’s credit card processor. Restricted cash is included in Prepaid expenses and other current assets within the consolidated balance sheets.
Restructuring Costs, Policy
Restructuring
Restructuring charges consist primarily of employee severance, one-time termination benefits related to the reduction of the Company’s workforce, and other costs. The Company accounts for one-time employment benefit arrangements in accordance with ASC Topic 420, Exit or Disposal Cost Obligations. One-time termination benefits and other costs are generally recognized in the period in which the liability is incurred.
In November 2024, the Company initiated a restructuring plan to improve the efficiency and effectiveness of the research and development organization. In February 2025, the Company initiated a restructuring plan with a primary focus on its Sales and Customer Experience teams. For the year ended December 31, 2025, the Company incurred $2.7 million in restructuring charges, of which $2.3 million and $0.4 million are recorded within sales and marketing expense and cost of revenue, respectively. For the year ended December 31, 2024, the Company incurred $3.0 million of restructuring charges, of which $2.9 million and $0.1 million million are recorded within research and development expense and cost of revenue, respectively. Cash payments totaling $2.9 million and $2.7 million were made related to the restructuring during the years ended December 31, 2025 and 2024, respectively. All amounts incurred as of December 31, 2025 have been paid and no additional costs related to the restructuring plans are expected to be incurred.
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Activity related to the allowance for doubtful accounts The activity related to the allowance for credit losses for the years ended December 31, 2025, 2024 and 2023 was as follows (in thousands):
Balance at December 31, 2022$1,789 
Additions2,418 
Write-offs, net of recoveries(2,030)
Balance at December 31, 2023$2,177 
Additions1,709 
Write-offs, net of recoveries(1,717)
Balance at December 31, 20242,169 
Additions3,559 
Write-offs, net of recoveries(3,009)
Balance at December 31, 2025$2,719 
Schedule of property and equipment Depreciation and amortization are computed using the straight-line method over the following estimated useful lives:
Computer equipment and hardware
3-5 years
Furniture and fixtures
3-7 years
Internal-use software
3 years
Leasehold improvementsLesser of useful life or remaining lease term
As of the dates specified below, property and equipment consisted of the following (in thousands):
As of December 31,
20252024
Leasehold improvements$11,625 $18,733 
Furniture and fixtures4,333 4,201 
Computer equipment and hardware6,062 5,144 
Internal-use software6,210 3,865 
Total property and equipment28,230 31,943 
Less: Accumulated depreciation and amortization(18,366)(20,992)
Total property and equipment, net$9,864 $10,951 
v3.25.4
Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of property and equipment Depreciation and amortization are computed using the straight-line method over the following estimated useful lives:
Computer equipment and hardware
3-5 years
Furniture and fixtures
3-7 years
Internal-use software
3 years
Leasehold improvementsLesser of useful life or remaining lease term
As of the dates specified below, property and equipment consisted of the following (in thousands):
As of December 31,
20252024
Leasehold improvements$11,625 $18,733 
Furniture and fixtures4,333 4,201 
Computer equipment and hardware6,062 5,144 
Internal-use software6,210 3,865 
Total property and equipment28,230 31,943 
Less: Accumulated depreciation and amortization(18,366)(20,992)
Total property and equipment, net$9,864 $10,951 
v3.25.4
Business Combinations and Asset Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Combination, Recognized Asset Acquired and Liability Assumed
The following table summarizes the preliminary allocation of purchase price to the estimated fair values of assets acquired and liabilities assumed as of the acquisition date (in thousands):
July 30, 2025
Consideration:
Cash$52,313 
Contingent consideration at fair value8,450 
Deferred consideration3,215 
Additional payment for net working capital adjustment (1)
150 
Total purchase consideration$64,128 
Recognized amount of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents$1,980 
Accounts receivable2,255 
Other current and noncurrent assets2,335 
Intangible assets24,850 
Accounts payable, accrued expenses and other liabilities(4,661)
Deferred revenue(4,222)
Deferred tax liabilities(4,216)
Net assets acquired, excluding Goodwill18,321 
Goodwill45,807 
Total purchase price allocation$64,128 
Cash and cash equivalents acquired(1,980)
Total consideration, net of cash acquired$62,148 
(1) Additional amount paid in the fourth quarter of 2025 upon completion of the review of the working capital assets acquired and liabilities assumed.
The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
August 2, 2023
Cash and cash equivalents$4,648 
Accounts receivable2,979 
Other current and noncurrent assets932 
Intangible assets27,800 
Accounts payable, accrued expenses and other liabilities(1,758)
Deferred revenue(3,243)
Net assets acquired, excluding Goodwill31,358 
Goodwill112,405 
Total consideration$143,763 
Cash and cash equivalents acquired(4,648)
Cash paid for acquisition of business, net of cash acquired$139,115 
The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
January 19, 2023
Cash and cash equivalents$366 
Intangible assets1,800 
Deferred tax liability(477)
Other net tangible assets and liabilities assumed(4)
Net assets acquired, excluding Goodwill1,685 
Goodwill6,611 
Total consideration$8,296 
Deferred consideration related to holdback(1,498)
Cash and cash equivalents acquired(366)
Cash paid for acquisition of business, net of cash acquired$6,432 
Schedule of Acquired Finite-Lived Intangible Assets by Major Class The following table summarizes the estimated preliminary fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date:
Fair ValueExpected Useful Life
Customer Relationships$15,200 7 years
Acquired Technology8,400 5 years
Trademark800 5 years
Contract Backlog450 1 year
$24,850 
Acquired intangible assets are being amortized over the estimated useful lives on a straight-line basis. The following table summarizes the estimated fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date:
Fair ValueExpected Useful Life
Customer Relationships$12,400 7 years
Acquired Technology14,100 5 years
Trademark1,300 5 years
$27,800 
The following table summarizes the estimated fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date:
Fair ValueExpected Useful Life
Customer Relationships$200 1 year
Acquired Technology1,600 5 years
$1,800 
Schedule of Goodwill
The changes in the carrying amount of goodwill during the year ended December 31, 2025 were as follows (in thousands):
Goodwill balance as of December 31, 2024
$121,315 
Addition - NewsWhip acquisition45,807 
Goodwill balance as of December 31, 2025
$167,122 
v3.25.4
Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of finite-lived intangible assets
As of the dates specified below, intangible assets, net consisted of the following (in thousands):
As of December 31,
20252024
Customer relationships35,100 19,900 
Acquired Technology24,100 15,700 
Trademark2,100 1,300 
Contract backlog450 — 
61,750 36,900 
Less: Accumulated amortization
Customer relationships(12,685)(10,010)
Acquired Technology(8,449)(4,608)
Trademark(695)(368)
Contract backlog(188)— 
(22,017)(14,986)
Intangible assets, net$39,733 $21,914 
The following table sets forth the weighted-average amortization period, in total and by major intangible asset class:
Asset ClassWeighted-Average Amortization Period
(in years)
Customer relationships7.0
Acquired Technology5.0
Trademark5.0
Contract backlog1.0
All Intangible Assets6.1
Finite-lived intangible assets amortization expense The expected future amortization of intangible assets as of December 31, 2025 is summarized as follows (in thousands):
Years Ending December 31,Amortization Expense
20269,445 
20279,183 
20287,606 
20295,783 
20304,278 
Thereafter3,438 
$39,733 
v3.25.4
Operating Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Summary of operating lease assets and liabilities
The following table provides a summary of operating lease assets and liabilities as of December 31, 2025 (in thousands):
Assets
Operating lease right-of-use assets$9,810 
Liabilities
Operating lease liabilities2,664 
Operating lease liabilities, non-current12,055 
Total operating lease liabilities$14,719 
Schedule of remaining maturities of operating lease liabilities
Remaining maturities of operating lease liabilities as of December 31, 2025 are as follows (in thousands):
Years ending December 31,
2026$3,586 
20273,364 
20282,708 
20292,757 
20302,508 
Thereafter2,926 
Total future minimum lease payments$17,849 
Less: imputed interest(3,130)
Total operating lease liabilities$14,719 
Lease, Cost
The following table provides information about leases in the consolidated statements of operations (in thousands):
Years Ended December 31,
202520242023
Operating lease expense$2,645 $2,806 $2,659 
Variable lease expense2,249 3,451 3,572 
Within the consolidated statements of operations, operating and variable lease expense are recorded in General and administrative expenses.
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of components of loss before income taxes
The components of loss before income taxes are as follows (in thousands):
Year Ended December 31,
202520242023
Domestic$(44,078)$(63,221)$(64,497)
Foreign1,338 1,920 (1,281)
Loss before income taxes$(42,740)$(61,301)$(65,778)
Schedule of effective income tax rate reconciliation
A reconciliation of the difference between the federal statutory rate and the effective income tax rate as a percentage of income before taxes after the adoption of ASU 2023-09 is as follows (in thousands):
Year Ended December 31,
2025
AmountTax Rate
Federal statutory income tax$(8,975)21.00 %
State and local income taxes (1)
250 (0.59)
Foreign tax effects
Philippines
Changes in valuation allowance(521)1.22 
Other60 (0.14)
Other foreign jurisdictions530 (1.24)
Effects of cross-border tax laws:
Global intangible low-taxed income463 (1.08)
Other175 (0.41)
Tax credits
Research and development credits(1,524)3.56 
Changes in valuation allowance(2,800)6.55 
Nontaxable and Nondeductible items
Stock-based compensation12,172 (28.48)
Section 162(m) limitation608 (1.42)
Other417 (0.98)
Other adjustments(268)0.64 
Effective income tax rate$587 (1.4)%
(1) The majority of the tax effect within the state and local income tax category relates to California.
A reconciliation of the difference between the federal statutory rate and the effective income tax rate as a percentage of income before taxes for years prior to the adoption of ASU 2023-09 is as follows (in thousands):
Year Ended December 31,
20242023
AmountTax RateAmountTax Rate
Federal statutory income tax$(12,873)21.00 %$(13,813)21.00 %
State income tax, net of federal tax benefit(329)0.54 (2,423)3.68 
Foreign tax79 (0.13)(75)0.11 
Section 162(m) limitation845 (1.38)1,693 (2.57)
Other337 (0.54)304 (0.46)
Valuation allowance net of deferred tax assets5,367 (8.76)18,389 (27.96)
Stock-based compensation10,817 (17.65)2,051 (3.12)
R&D Credit(2,696)4.40 (6,100)9.27 
Acquisitions— — 603 (0.92)
Return to provision(877)1.43 20 (0.03)
Effective income tax rate$670 (1.1)%$649 (1.0)%
Schedule of deferred tax assets and liabilities Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows (in thousands):
As of December 31,
20252024
Deferred tax assets
Net operating loss carryforwards$84,758 $79,172 
Research & Development Costs17,947 22,629 
Operating lease liability3,539 4,487 
Stock-based compensation3,080 4,555 
Research & Development Credits11,285 9,753 
Other3,178 2,543 
Total deferred tax assets123,787 123,139 
Deferred tax liabilities
Fixed assets(754)(1,747)
Intangible assets(7,680)(4,939)
Deferred commissions and bonus(21,734)(18,634)
Operating lease right-of-use asset(2,407)(2,785)
Other(1,367)(1,303)
Total deferred tax liabilities(33,942)(29,408)
Less: Valuation allowance(93,861)(94,037)
Net deferred tax asset (liability)$(4,016)$(306)
Schedule of Unrecognized Tax Benefits Roll Forward
The reconciliation of uncertain tax positions at the beginning and end of the years below is as follows (in thousands):
As of December 31,
202520242023
Beginning balance3,354 2,456 — 
Gross increase (decrease) related to prior year positions(100)— — 
Gross decrease related to settlements— — — 
Gross increase related to current year positions508 898 2,456 
Ending balance3,762 3,354 2,456 
Schedule of Components of Income Tax Expense (Benefit)
The components of income tax expense (benefit) are as follows (in thousands):
Year Ended December 31,
202520242023
Current taxes
Federal$28 $— $— 
State262 13 — 
Foreign888 657 820 
Current tax expense (benefit)1,178 670 820 
Deferred taxes
Federal115 86 — 
State(12)— — 
Foreign(694)(86)(171)
Deferred tax expense (benefit)(591)— (171)
Income tax expense (benefit)$587 $670 $649 
Schedule of Cash Flow, Supplemental Disclosures
The amounts of cash income taxes paid (net of refunds) by the Company were as follows (in thousands):
Year Ended December 31,
2025
Canada$648 
Other jurisdictions (1)
723
Income taxes, net of amounts refunded$1,371 
(1) Income taxes paid to other jurisdictions are individually immaterial.
v3.25.4
Incentive Stock Plan (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense Stock-based compensation expense is included in the consolidated statements of operations as follows (in thousands):
Years Ended December 31,
202520242023
Cost of revenue$2,802 $3,936 $3,224 
Research and development25,162 25,619 18,478 
Sales and marketing22,783 31,544 30,116 
General and administrative27,972 23,204 15,886 
Total stock-based compensation expense$78,719 $84,303 $67,704 
Summary of Restricted Stock Units
The table below summarizes the activity regarding unvested restricted stock units for the year ended December 31, 2025:
Restricted
Stock Units		Weighted
Average Grant
Date Fair Value
Unvested at December 31, 20244,661,191 $47.34 
Granted6,355,991 16.18 
Vested(1,731,374)51.15 
Forfeited(1,375,264)36.90 
Unvested at December 31, 20257,910,544 $23.28 
v3.25.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of contractual commitments Material contractual commitments as of December 31, 2025 that are not disclosed elsewhere are as follows (in thousands):
Years ending December 31,
2026$86,842 
202716,207 
202812,612 
2029— 
2030— 
Thereafter— 
Total contractual obligations$115,661 
v3.25.4
Geographic Data (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of revenue by geographical region Revenue by geographical region is as follows (in thousands):
Year Ended December 31,
202520242023
Americas$365,417 $322,209 $262,290 
EMEA69,996 63,527 54,753 
Asia Pacific22,134 20,172 16,600 
Total$457,547 $405,908 $333,643 
v3.25.4
Net Loss per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of basic and diluted net loss per share
The following table presents the calculation for basic and diluted net loss per share (in thousands, except share and per share data):
Year Ended December 31,
202520242023
Net loss attributable to common shareholders$(43,327)$(61,971)$(66,427)
Weighted average common shares outstanding58,625,925 56,935,910 55,664,404 
Net loss per share, basic and diluted$(0.74)$(1.09)$(1.19)
Schedule of shares excluded from the calculation of diluted net loss per share
The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share for each period, as the impact of including them would have been anti-dilutive.
As of December 31,
202520242023
Stock options outstanding——27,010
RSUs outstanding7,910,5444,661,191 3,724,707
Total potentially dilutive shares7,910,544 4,661,191 3,751,717 
v3.25.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of financial assets measured at fair value
The following tables present information about the Company’s financial assets and liabilities that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands):
December 31, 2025
Level 1Level 2Level 3Total
Liabilities:
  Contingent consideration— — 8,873 8,873 
Total liabilities$— $— $8,873 $8,873 
December 31, 2024
Level 1Level 2Level 3Total
Assets:
Marketable Securities:
  Corporate bonds— 3,745 — 3,745 
Total assets$— $3,745 $— $3,745 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The change in fair value of the contingent consideration (a Level 3 input) was as follows (in thousands):
Contingent consideration liability as of NewsWhip acquisition date$8,450 
Change due to accretion423 
Contingent consideration liability as of December 31, 2025
$8,873 
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Number of operating segments | segment 1    
Bad debt expense $ 3,559 $ 1,709 $ 2,418
Allowance for doubtful accounts 2,719 2,169 2,177
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance 2,169 2,177 1,789
Additions 3,559 1,709 2,418
Write-offs, net of recoveries (3,009) (1,717) (2,030)
Ending balance $ 2,719 $ 2,169 $ 2,177
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies - Property and Equipment, Goodwill and Impairment of Long-Lived Assets (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Goodwill impairment loss $ 0 $ 0
Impairment of long-lived assets $ 0 $ 0
Software and Software Development Costs    
Property, Plant and Equipment [Line Items]    
Useful life 3 years  
Minimum | Computer equipment and hardware    
Property, Plant and Equipment [Line Items]    
Useful life 3 years  
Minimum | Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Useful life 3 years  
Maximum | Computer equipment and hardware    
Property, Plant and Equipment [Line Items]    
Useful life 5 years  
Maximum | Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Useful life 7 years  
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies - Sales Commissions, Advertising Costs (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jan. 01, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Deferred amortization period (in years)     3 years 5 years
Increase in deferred commissions $ 12,200,000 $ 17,900,000    
Deferred commissions 36,284,000 34,219,000 $ 40,540,000  
Amortization of deferred commissions 24,077,000 16,347,000 26,582,000  
Advertising costs 7,900,000 6,100,000 $ 5,100,000  
Reduction in sales and marketing expense   $ (14,300,000)    
Benefit To Net Loss Per Share   $ 0.25    
Capitalized Contract Cost, Impairment Loss $ 0 $ 0    
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Restricted Cash, Current $ 1,900 $ 4,000
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies - Restructuring (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Restructuring Cost and Reserve [Line Items]    
Restructuring Charges $ 2,700 $ 3,000
Payments for Restructuring 2,900 2,700
Sales and marketing    
Restructuring Cost and Reserve [Line Items]    
Restructuring Charges $ 2,300  
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Operating Expenses  
Cost of revenue    
Restructuring Cost and Reserve [Line Items]    
Restructuring Charges $ 400 $ 100
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Total cost of revenue Total cost of revenue
Research and development    
Restructuring Cost and Reserve [Line Items]    
Restructuring Charges   $ 2,900
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration]   Operating Expenses
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies (Details) - Computer Software, Intangible Asset
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Finite-Lived Intangible Assets, Remaining Amortization Period 3 years
Finite-Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Assets, Remaining Amortization Period 3 years
v3.25.4
Revenue Recognition (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]      
Increase in deferred revenue $ 22,482 $ 38,230 $ 41,918
Additional invoices 480,000 444,100  
Revenue 457,547 405,908 333,643
Revenue recognized previously deferred 175,800 137,900  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Contract with Customer, Liability, Increase (Decrease) for Contract Acquired in Business Combination 4,200    
Additional invoices 480,000 444,100  
Deferred revenue 22,482 38,230 $ 41,918
Contract With Customer, Liability, Addition   38,200  
Contract with Customer, Liability 206,400 $ 179,700  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue expected to be recognized $ 404,000    
Revenue expected to be recognized, percentage 70.00%    
Revenue, remaining performance obligation, period 12 months    
v3.25.4
Property and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Total property and equipment $ 28,230 $ 31,943  
Less: Accumulated depreciation and amortization (18,366) (20,992)  
Total property and equipment, net 9,864 10,951  
Depreciation 3,783 3,890 $ 3,137
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Total property and equipment 11,625 18,733  
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Total property and equipment 4,333 4,201  
Computer equipment and hardware      
Property, Plant and Equipment [Line Items]      
Total property and equipment 6,062 5,144  
Software Development      
Property, Plant and Equipment [Line Items]      
Total property and equipment $ 6,210 $ 3,865  
v3.25.4
Business Combinations - Narrative (Details) - USD ($)
$ in Thousands
 11 Months Ended 12 Months Ended
Jul. 30, 2025
Aug. 02, 2023
Jan. 19, 2023
Dec. 31, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Business Combination, Separately Recognized Transaction [Line Items]              
Payments for business acquisition, net of cash acquired         $ 51,790 $ 1,409 $ 145,636
Deferred consideration in connection with business acquisition         $ 1,908 $ 0 $ 0
Tagger Media              
Business Combination, Separately Recognized Transaction [Line Items]              
Business Combination, Date of Acquisition Agreement             Aug. 02, 2023
Business Combination, Consideration Transferred   $ 144,000          
Business Combination, Acquisition-Related Cost, Expense             $ 4,300
Payments for business acquisition, net of cash acquired   139,115          
Tagger Media | Line of Credit              
Business Combination, Separately Recognized Transaction [Line Items]              
Revolving credit facility   $ 75,000          
Repustate Inc.              
Business Combination, Separately Recognized Transaction [Line Items]              
Business Combination, Date of Acquisition Agreement             Jan. 19, 2023
Business Combination, Consideration Transferred     $ 8,300        
Payments for business acquisition, net of cash acquired     6,800 $ 6,432      
Deferred Consideration Related to Holdback     $ 1,500 $ (1,498)      
NewsWhip Group Holdings Limited              
Business Combination, Separately Recognized Transaction [Line Items]              
Business Combination, Date of Acquisition Agreement         Jul. 30, 2025    
Business Combination, Consideration Transferred $ 64,128            
Revolving credit facility 32,000            
Business Combination, Acquisition-Related Cost, Expense         $ 1,800    
Deferred Consideration Related to Holdback 500            
Payments to Acquire Businesses, Gross 52,313            
Business Combination Consideration Transferred Deferred Consideration 3,215            
Business Combination, Contingent Consideration, Liability 8,500            
Deferred Consideration Transferred, Other 800            
Deferred Consideration Payable 1,900       1,900    
Additional Payment For Net Working Capital Adjustment 150       $ 100    
Business Combination, Contingent Consideration, Range of Outcomes, Maximum, Amount 10,000            
NewsWhip Group Holdings Limited | Accrued Liabilities              
Business Combination, Separately Recognized Transaction [Line Items]              
Business Combination, Contingent Consideration, Liability 4,500            
NewsWhip Group Holdings Limited | Other Noncurrent Liabilities              
Business Combination, Separately Recognized Transaction [Line Items]              
Business Combination, Contingent Consideration, Liability $ 4,000            
v3.25.4
Business Combinations - Fair Value of Assets and Liabilities Assumed (Details) - USD ($)
$ in Thousands
 11 Months Ended 12 Months Ended
Jul. 30, 2025
Aug. 02, 2023
Jan. 19, 2023
Dec. 31, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Schedule Of Identified Assets Acquired And Liabilities Assumed [Line Items]              
Goodwill         $ 167,122 $ 121,315  
Payments for business acquisition, net of cash acquired         $ 51,790 $ 1,409 $ 145,636
Tagger Media              
Schedule Of Identified Assets Acquired And Liabilities Assumed [Line Items]              
Cash and cash equivalents   $ 4,648          
Accounts receivable   2,979          
Other current and noncurrent assets   932          
Intangible assets   27,800          
Accounts payable, accrued expenses and other liabilities   (1,758)          
Deferred revenue   (3,243)          
Net assets acquired, excluding Goodwill   31,358          
Total consideration   143,763          
Cash and cash equivalents acquired   (4,648)          
Payments for business acquisition, net of cash acquired   139,115          
Business Combination, Consideration Transferred   $ 144,000          
Repustate Inc.              
Schedule Of Identified Assets Acquired And Liabilities Assumed [Line Items]              
Cash and cash equivalents     $ 366        
Intangible assets     1,800        
Deferred tax liability     (477)        
Other net tangible assets and liabilities assumed     (4)        
Net assets acquired, excluding Goodwill     1,685        
Goodwill     6,611        
Total consideration     8,296        
Deferred Consideration Related to Holdback     1,500 $ (1,498)      
Cash and cash equivalents acquired     (366)        
Payments for business acquisition, net of cash acquired     6,800 $ 6,432      
Business Combination, Consideration Transferred     $ 8,300        
NewsWhip Group Holdings Limited              
Schedule Of Identified Assets Acquired And Liabilities Assumed [Line Items]              
Cash and cash equivalents $ 1,980            
Accounts receivable 2,255            
Other current and noncurrent assets 2,335            
Intangible assets 24,850            
Accounts payable, accrued expenses and other liabilities (4,661)            
Deferred revenue (4,222)            
Deferred tax liability (4,216)            
Net assets acquired, excluding Goodwill 18,321            
Goodwill 45,807            
Total consideration 64,128            
Deferred Consideration Related to Holdback 500            
Cash and cash equivalents acquired (1,980)            
Total consideration, net of cash acquired 62,148            
Payments to Acquire Businesses, Gross 52,313            
Business Combination, Consideration Transferred, Liabilities Incurred 8,450            
Business Combination Consideration Transferred Deferred Consideration 3,215            
Business Combination, Consideration Transferred $ 64,128            
v3.25.4
Business Combinations - Intangible Assets Acquired (Details) - USD ($)
$ in Thousands
Jul. 30, 2025
Aug. 02, 2023
Jan. 19, 2023
Tagger Media      
Business Acquisition [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived   $ 27,800  
Intangible Asset, Acquired, Indefinite-Lived [Line Items]      
Addition - acquisition   112,405  
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived   $ 27,800  
Tagger Media | Customer relationships      
Business Acquisition [Line Items]      
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life   7 years  
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived   $ 12,400  
Intangible Asset, Acquired, Indefinite-Lived [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived   $ 12,400  
Tagger Media | Acquired Technology      
Business Acquisition [Line Items]      
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life   5 years  
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived   $ 14,100  
Intangible Asset, Acquired, Indefinite-Lived [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived   $ 14,100  
Tagger Media | Trademark      
Business Acquisition [Line Items]      
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life   5 years  
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived   $ 1,300  
Intangible Asset, Acquired, Indefinite-Lived [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived   $ 1,300  
Repustate Inc.      
Business Acquisition [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived     $ 1,800
Intangible Asset, Acquired, Indefinite-Lived [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived     $ 1,800
Repustate Inc. | Customer relationships      
Business Acquisition [Line Items]      
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life     1 year
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived     $ 200
Intangible Asset, Acquired, Indefinite-Lived [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived     $ 200
Repustate Inc. | Acquired Technology      
Business Acquisition [Line Items]      
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life     5 years
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived     $ 1,600
Intangible Asset, Acquired, Indefinite-Lived [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived     $ 1,600
NewsWhip Group Holdings Limited      
Business Acquisition [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived $ 24,850    
Intangible Asset, Acquired, Indefinite-Lived [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived $ 24,850    
NewsWhip Group Holdings Limited | Customer relationships      
Business Acquisition [Line Items]      
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life 7 years    
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived $ 15,200    
Intangible Asset, Acquired, Indefinite-Lived [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived $ 15,200    
NewsWhip Group Holdings Limited | Acquired Technology      
Business Acquisition [Line Items]      
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life 5 years    
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived $ 8,400    
Intangible Asset, Acquired, Indefinite-Lived [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived $ 8,400    
NewsWhip Group Holdings Limited | Trademark      
Business Acquisition [Line Items]      
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life 5 years    
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived $ 800    
Intangible Asset, Acquired, Indefinite-Lived [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived $ 800    
NewsWhip Group Holdings Limited | Order or Production Backlog      
Business Acquisition [Line Items]      
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life 1 year    
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived $ 450    
Intangible Asset, Acquired, Indefinite-Lived [Line Items]      
Business Combination, Recognized Asset Acquired, Identifiable Intangible Asset, Finite-Lived $ 450    
v3.25.4
Business Combinations - Changes in Goodwill (Details) - NewsWhip Group Holdings Limited
$ in Thousands
Jul. 30, 2025
USD ($)
Intangible Asset, Acquired, Indefinite-Lived [Line Items]  
Addition - acquisition $ 45,807
Goodwill recorded $ 45,807
v3.25.4
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross $ 61,750 $ 36,900
Less: Accumulated amortization (22,017) (14,986)
Intangible assets, net 39,733 21,914
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross 35,100 19,900
Less: Accumulated amortization (12,685) (10,010)
Acquired Technology    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross 24,100 15,700
Less: Accumulated amortization (8,449) (4,608)
Trademark    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross 2,100 1,300
Less: Accumulated amortization (695) (368)
Order or Production Backlog    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross 450 0
Less: Accumulated amortization $ (188) $ 0
v3.25.4
Intangible Assets - Amortization Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization of intangible assets $ 7,030 $ 6,151 $ 3,541
2026 9,445    
2027 9,183    
2028 7,606    
2029 5,783    
2030 4,278    
Thereafter 3,438    
Intangible assets, net $ 39,733 $ 21,914  
v3.25.4
Intangible Assets - Amortization Periods (Details) - Weighted average
 12 Months Ended
Dec. 31, 2025
Finite-Lived Intangible Assets [Line Items]  
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life 6 years 1 month 6 days
Customer relationships  
Finite-Lived Intangible Assets [Line Items]  
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life 7 years
Acquired Technology  
Finite-Lived Intangible Assets [Line Items]  
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life 5 years
Trademark  
Finite-Lived Intangible Assets [Line Items]  
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life 5 years
Order or Production Backlog  
Finite-Lived Intangible Assets [Line Items]  
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life 1 year
v3.25.4
Operating Leases - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Lessee, Lease, Description [Line Items]      
Operating lease expense $ 2,645 $ 2,806 $ 2,659
Variable lease expense 2,249 3,451 3,572
Payments related to operating leases 6,000 8,300 8,200
Sublease income $ 0 $ 0 $ 0
Weighted-average remaining lease term (in years) 5 years 9 months 18 days    
Weighted-average discount rate 7.00%    
Loss on termination of lease, net $ 1,200    
Gain (Loss) on Termination of Lease 200    
Gain (Loss) on Disposition of Property Plant Equipment 1,400    
Minimum      
Lessee, Lease, Description [Line Items]      
Monthly rental payments 26    
Maximum      
Lessee, Lease, Description [Line Items]      
Monthly rental payments $ 142    
v3.25.4
Operating Leases - Summary of operating lease assets and liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Operating lease, right-of-use asset $ 9,810 $ 11,326
Operating lease liability 2,664 3,747
Operating lease liability, net of current portion 12,055 $ 14,543
Total operating lease liabilities $ 14,719  
v3.25.4
Operating Leases - Remaining maturities of operating lease liabilities (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Leases [Abstract]  
2026 $ 3,586
2027 3,364
2028 2,708
2029 2,757
2030 2,508
Thereafter 2,926
Total future minimum lease payments 17,849
Less: imputed interest (3,130)
Operating lease liability $ 14,719
v3.25.4
Income Taxes - Components of Provision (Benefit) for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Domestic $ (44,078) $ (63,221) $ (64,497)
Foreign 1,338 1,920 (1,281)
Loss before income taxes (42,740) (61,301) (65,778)
Increase in valuation allowance (200) 5,400 19,400
Current Federal Tax Expense (Benefit) 28 0 0
Current State and Local Tax Expense (Benefit) 262 13 0
Current Foreign Tax Expense (Benefit) 888 657 820
Current Income Tax Expense (Benefit) 1,178 670 820
Deferred Federal Income Tax Expense (Benefit) 115 86 0
Deferred State and Local Income Tax Expense (Benefit) (12) 0 0
Deferred Foreign Income Tax Expense (Benefit) (694) (86) (171)
Deferred Income Tax Expense (Benefit) (591) 0 (171)
Income tax expense $ 587 $ 670 $ 649
v3.25.4
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
Federal Statutory Income Tax Rate $ (8,975,000) $ (12,873,000) $ (13,813,000)
State and Local Income Taxes 250,000 (329,000) (2,423,000)
Foreign Income Taxes 530,000 79,000 (75,000)
GILTI 463,000    
Other Adjustments, Amount   337,000 304,000
Deferred Tax Assets Valuation Allowance (2,800,000) 5,367,000 18,389,000
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Other, Amount 60,000    
Effective Income Tax Rate Reconciliation, Cross-Border, Other, Amount 175,000    
Share-Based Payment Arrangement 12,172,000 10,817,000 2,051,000
Nondeductible Expense 608,000    
Other 417,000    
Acquisitions   0 603,000
R&D Tax Credit 1,524,000 2,696,000 6,100,000
Other Reconciling Items   845,000 1,693,000
Return On Provision (268,000) (877,000) 20,000
Effective income tax rate $ 587,000 $ 670,000 $ 649,000
Tax Rate      
Federal Statutory Income Tax Rate, Percent 21.00% 21.00% 21.00%
State and Local Income Taxes, Percent (0.59%) 0.54% 3.68%
Foreign Income Taxes, Percent (1.24%) (0.13%) 0.11%
GILTI, Percent (1.08%)    
Nondeductible Expense, Percent (1.42%)    
Other Reconciling Items, Percent   (1.38%) (2.57%)
Valuation Allowance, Percent 6.55% (8.76%) (27.96%)
Share-Based Payment Arrangement, Percent (28.48%) (17.65%) (3.12%)
Effective Income Tax Rate Reconciliation, Cross-Border, Other, Percent (0.41%)    
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Other, Percent (0.14%)    
Tax Credit, Research, Percent (3.56%) (4.40%) (9.27%)
Other Adjustments, Percent   (0.54%) (0.46%)
Other (0.98%)    
Return On Provision, Percent 0.64% 1.43% (0.03%)
Acquisitions, Percentage   0.00% (0.92%)
Effective income tax rate (1.40%) (1.10%) (1.00%)
PHILIPPINES      
Amount      
Deferred Tax Assets Valuation Allowance $ (521,000)    
Tax Rate      
Valuation Allowance, Percent 1.22%    
v3.25.4
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets    
Net operating loss carryforwards $ 84,758 $ 79,172
Research & Development Costs 17,947 22,629
Operating lease liability 3,539 4,487
Stock-based compensation 3,080 4,555
Research & Development Credits 11,285 9,753
Other 3,178 2,543
Total deferred tax assets 123,787 123,139
Deferred tax liabilities    
Deferred Tax Liabilities, Property, Plant and Equipment (754) (1,747)
Deferred Tax Liabilities, Intangible Assets (7,680) (4,939)
Deferred commissions and bonus (21,734) (18,634)
Operating lease right-of-use asset (2,407) (2,785)
Other (1,367) (1,303)
Total deferred tax liabilities (33,942) (29,408)
Less: Valuation allowance (93,861) (94,037)
Net deferred tax asset (liability) $ (4,016) $ (306)
v3.25.4
Income Taxes - Reconciliation of Uncertain Tax Positions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Text Block [Abstract]      
Beginning balance $ 3,354 $ 2,456 $ 0
Gross increase (decrease) related to prior year positions (100) 0 0
Gross decrease related to settlements 0 0 0
Gross increase related to current year positions 508 898 2,456
Ending balance $ 3,762 $ 3,354 $ 2,456
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating Loss Carryforwards [Line Items]        
Increase in valuation allowance $ (200) $ 5,400 $ 19,400  
Research & Development Costs 17,947 22,629    
Unrecognized Tax Benefits 3,762 3,354 2,456 $ 0
Income Tax Paid, by Individual Jurisdiction [Line Items]        
Income Taxes Paid, Net 1,371 $ 800 $ 700  
Valuation Allowance, Change Due To Acquired Net Operating Lossess, Increase (Decrease), Amount 3,800      
Federal tax authority        
Operating Loss Carryforwards [Line Items]        
Operating loss carryforwards 316,200      
State and local jurisdiction        
Operating Loss Carryforwards [Line Items]        
Operating loss carryforwards 217,800      
Foreign Tax Jurisdiction        
Operating Loss Carryforwards [Line Items]        
Operating loss carryforwards $ 33,100      
v3.25.4
Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Taxes Paid, Net $ 1,371 $ 800 $ 700
CANADA      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, Foreign, after Refund Received 648    
Foreign Tax Jurisdiction, Other      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, Foreign, after Refund Received $ 723    
v3.25.4
Revolving Line of Credit (Details)
$ in Thousands
Aug. 01, 2023
USD ($)
Dec. 31, 2025
USD ($)
letter_of_credit
Dec. 31, 2024
USD ($)
Debt Instrument [Line Items]      
Outstanding balance   $ 40,000 $ 25,000
Reduction in borrowing capacity   $ 2,000  
Number of standby letters of credit | letter_of_credit   2  
Letters of Credit Outstanding, Amount   $ 2,700  
Revolving Credit Facility | Line of Credit      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 100,000    
Revolving Credit Facility | Line of Credit | SOFR      
Debt Instrument [Line Items]      
Additional basis spread 0.10%    
Variable rate floor 1.00%    
Weighted average interest rate   6.71%  
Revolving Credit Facility | Line of Credit | SOFR | Minimum      
Debt Instrument [Line Items]      
Basis spread on variable rate 2.25%    
Unused capacity commitment fee percentage 0.30%    
Revolving Credit Facility | Line of Credit | SOFR | Maximum      
Debt Instrument [Line Items]      
Basis spread on variable rate 2.75%    
Unused capacity commitment fee percentage 0.35%    
Revolving Credit Facility | Line of Credit | ABR      
Debt Instrument [Line Items]      
Variable rate floor 2.00%    
Revolving Credit Facility | Line of Credit | ABR | Minimum      
Debt Instrument [Line Items]      
Basis spread on variable rate 1.25%    
Revolving Credit Facility | Line of Credit | ABR | Maximum      
Debt Instrument [Line Items]      
Basis spread on variable rate 1.75%    
v3.25.4
Stockholders Equity - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
vote
$ / shares
shares
Dec. 31, 2024
$ / shares
shares
Class of Stock [Line Items]    
Maximum combined voting power, percent 10.00%  
Period from closing of initial public offering (in years) 7 years  
Class A common stock    
Class of Stock [Line Items]    
Common Stock, shares authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, par value (in dollars per share) | $ / shares $ 0.0001 $ 0.0001
Number of votes | vote 1  
Common stock, shares outstanding (in shares) 53,607,556 51,277,740
Class B common stock    
Class of Stock [Line Items]    
Common Stock, shares authorized (in shares) 25,000,000 25,000,000
Common stock, par value (in dollars per share) | $ / shares $ 0.0001 $ 0.0001
Number of votes | vote 10  
Conversion feature (in shares) 1  
Common stock, shares outstanding (in shares) 5,949,357 6,480,638
v3.25.4
Incentive Stock Plan - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 12, 2019
Oct. 17, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total stock-based compensation expense $ 78,719,000 $ 84,303,000 $ 67,704,000    
2019 Incentive Award Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of shares authorized (in shares)         5,293,497
Class B Incentive Award Plan | Class B common stock          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of shares authorized (in shares)       550,000  
Stock Options          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total stock-based compensation expense 0 $ 0      
Restricted Stock Units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Unrecognized stock-based compensation expense $ 164,800,000        
Recognition period (in years) 2 years 9 months 18 days        
Weighted average grant date fair value (in dollars per share) $ 16.18 $ 40.79 $ 50.75    
Grants in period (in shares) 6,355,991        
v3.25.4
Incentive Stock Plan - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 78,719 $ 84,303 $ 67,704
Cost of revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 2,802 3,936 3,224
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 25,162 25,619 18,478
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 22,783 31,544 30,116
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 27,972 $ 23,204 $ 15,886
v3.25.4
Incentive Stock Plan - Restricted Stock Units (Details) - Restricted Stock Units - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Unvested at beginning of period (in shares) 4,661,191    
Granted 6,355,991    
Vested (1,731,374)    
Forfeited (1,375,264)    
Unvested at end of period (in shares) 7,910,544 4,661,191  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Unvested at beginning of period (in dollars per share) $ 47.34    
Granted 16.18 $ 40.79 $ 50.75
Vested 51.15    
Forfeited 36.90    
Unvested at end of period (in dollars per share) $ 23.28 $ 47.34  
v3.25.4
Commitments and Contingencies (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2026 $ 86,842
2027 16,207
2028 12,612
2029 0
2030 0
Thereafter 0
Total contractual obligations $ 115,661
v3.25.4
Geographic Data (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Segment Reporting [Abstract]      
Number of operating segments | segment 1    
Disaggregation of Revenue [Line Items]      
Total revenue $ 457,547 $ 405,908 $ 333,643
Americas      
Disaggregation of Revenue [Line Items]      
Total revenue 365,417 322,209 262,290
EMEA      
Disaggregation of Revenue [Line Items]      
Total revenue 69,996 63,527 54,753
Asia Pacific      
Disaggregation of Revenue [Line Items]      
Total revenue $ 22,134 $ 20,172 $ 16,600
Geographic concentration risk | Revenue from contract with customer benchmark | Outside of the United States      
Disaggregation of Revenue [Line Items]      
Concentration risk percentage 26.00% 27.00% 28.00%
v3.25.4
Net Loss per Share - Basic and diluted net loss per share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Net loss attributable to common shareholders $ (43,327) $ (61,971) $ (66,427)
Weighted Average Number of Shares Outstanding, Diluted 58,625,925 56,935,910 55,664,404
Net loss per share attributable to common shareholders, basic and diluted $ (0.74) $ (1.09) $ (1.19)
v3.25.4
Net Loss per Share - Shares excluded from the calculation of diluted net loss per share (Details) - shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total potentially dilutive shares (in shares) 7,910,544 4,661,191 3,751,717
Stock options outstanding      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total potentially dilutive shares (in shares) 0 0 27,010
RSUs outstanding      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total potentially dilutive shares (in shares) 7,910,544 4,661,191 3,724,707
v3.25.4
Fair Value Measurements (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities $ 0 $ 3,745
Marketable securities, noncurrent 0 0
Total assets   3,745
Contingent consideration liability as of NewsWhip acquisition date 8,450  
Change due to accretion 423  
Contingent consideration liability 8,873  
Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, Fair Value Disclosure 8,873  
Contingent Consideration    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Business Combination, Contingent Consideration, Liability 8,873  
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, Fair Value Disclosure 0  
Total assets   0
Level 1 | Contingent Consideration    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Business Combination, Contingent Consideration, Liability 0  
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, Fair Value Disclosure 0  
Total assets   3,745
Level 2 | Contingent Consideration    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Business Combination, Contingent Consideration, Liability 0  
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, Fair Value Disclosure 8,873  
Total assets   0
Level 3 | Contingent Consideration    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Business Combination, Contingent Consideration, Liability $ 8,873  
Corporate Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities   3,745
Corporate Bonds | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities   0
Corporate Bonds | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities   3,745
Corporate Bonds | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities   $ 0
v3.25.4
Employee Benefit Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Postemployment Benefits [Abstract]      
Matching contributions $ 3.6 $ 4.2 $ 3.7