Form 4: Sprout Social CFO Sells Shares Under 10b5-1 Plan

Sprout Social's CFO, Joseph Del Preto, sold 1,500 shares of Class A Common Stock for $10.22 per share under a pre-arranged 10b5-1 trading plan.

Summary

• Joseph Del Preto, CFO and Treasurer of Sprout Social, Inc. (SPT), reported the sale of 1,500 shares of Class A Common Stock.
• The transaction occurred on November 4, 2025, at a price of $10.22 per share.
• This sale was executed under a Rule 10b5-1 trading plan adopted by Mr. Del Preto on August 20, 2024.
• Following this transaction, Mr. Del Preto beneficially owns 238,868 shares of Class A Common Stock.
• The beneficial ownership includes various tranches of Restricted Stock Units (RSUs) with future vesting schedules: 4,383 RSUs, 15,237 RSUs, 34,452 RSUs, and 118,613 RSUs, totaling 172,685 RSUs.

Sentiment

Score: 5

Explanation: The filing reports a routine insider transaction under a pre-arranged 10b5-1 plan. While insider selling can sometimes be viewed negatively, the pre-planned nature mitigates concerns, resulting in a neutral sentiment.

Positives

• The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a planned sale rather than a reaction to recent events, which enhances transparency and reduces concerns about opportunistic insider trading.

Negatives

• An insider sale, even under a 10b5-1 plan, can sometimes be interpreted by the market as a lack of confidence, although it is often for personal financial planning reasons.

Risks

• No specific risks to the company's operations or financial health are disclosed in this Form 4 filing, which is purely transactional.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic outlook, beyond the pre-scheduled vesting of Restricted Stock Units.

Industry Context

This Form 4 filing is a routine disclosure of an insider transaction and does not provide broader industry context or trends.

Corporate Governance

Stakeholder Impact

• Shareholders: May observe the insider sale as part of routine personal financial planning, potentially noting the relatively small volume compared to total holdings. The 10b5-1 plan context provides transparency.

Next Steps

• Continued vesting of 4,383 RSUs in 2 equal quarterly installments beginning December 1, 2025.
• Continued vesting of 15,237 RSUs in 6 equal quarterly installments beginning December 1, 2025.
• Continued vesting of 34,452 RSUs in 10 equal quarterly installments beginning December 1, 2025.
• Vesting of 25% of 118,613 RSUs on March 1, 2026.
• Continued vesting of the remaining 75% of 118,613 RSUs in 12 equal quarterly installments beginning June 1, 2026.

Key Dates

Keywords

Sprout Social, SPT, insider trading, Form 4, Joseph Del Preto, stock sale, 10b5-1 plan, CFO, equity, RSU