SCHEDULE: Cadian Capital Boosts Sprout Social Stake to 7.3%

Cadian Capital Management and its affiliates have disclosed a 7.3% beneficial ownership stake in Sprout Social, Inc.'s Class A Common Stock as of September 30, 2025.

Summary

• Cadian Capital Management, LP, Cadian Capital Management GP, LLC, and Eric Bannasch (collectively, the "Reporting Persons") beneficially own 3,857,191 shares of Sprout Social, Inc.'s Class A Common Stock.
• This ownership represents approximately 7.3% of the outstanding Class A Common Stock of Sprout Social, Inc.
• The percentage is based on 53,145,821 shares of Class A Common Stock outstanding as of September 30, 2025, as disclosed in Sprout Social, Inc.'s Form 10-Q filed on November 6, 2025.
• The shares are directly held by Cadian Master Fund L.P., Cadian Opportunities Master Fund LP, and Cadian Master Software Opportunities Fund, LP, which are advisory clients of Cadian Capital Management, LP.
• Cadian Capital Management, LP exercises exclusive voting and investment power over these securities.
• The Reporting Persons certify that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Sprout Social, Inc.

Sentiment

Score: 7

Explanation: The disclosure of a significant beneficial ownership stake by a reputable investment firm like Cadian Capital Management is generally a positive signal, indicating confidence in the issuer. The statement that the shares were acquired in the ordinary course of business and not for control purposes further supports a stable, long-term investment view.

Positives

• A significant institutional investor, Cadian Capital Management, holds a substantial 7.3% stake in Sprout Social, Inc., indicating confidence in the company's prospects.
• The investment is stated to be in the ordinary course of business, suggesting a long-term investment perspective rather than an activist intent to influence control.

Risks

• No specific operational or financial risks of Sprout Social, Inc. are disclosed in this beneficial ownership statement. The Reporting Persons explicitly state the shares were not acquired for the purpose of changing or influencing control.

Future Outlook

The filing does not provide any forward-looking statements or guidance regarding Sprout Social, Inc.'s future performance or Cadian Capital Management's investment strategy beyond the current ownership.

Industry Context

This filing indicates continued institutional interest in Sprout Social, a company operating in the social media management and software industry. Significant stakes by investment firms like Cadian Capital Management can signal market confidence in the company's long-term prospects within its competitive landscape.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional investor holding a 7.3% stake may instill confidence among existing and potential shareholders, potentially supporting the stock price.

Key Dates

Recommendation

The filing indicates a significant institutional stake by Cadian Capital Management, which is a positive signal of investor confidence. However, a Schedule 13G filing primarily discloses ownership and does not provide new operational or financial performance data to warrant a 'buy' or 'sell' recommendation. The 'hold' recommendation reflects the positive signal from institutional interest without new fundamental data to change an existing investment thesis.

Keywords

Sprout Social, Cadian Capital Management, Beneficial Ownership, Class A Common Stock, Institutional Investment, SEC Filing, Schedule 13G, Software, Social Media Management