{"url_path":"/sec/spt/8-k/2026-07-15/item-2-05","section_key":"item-2-05","section_title":"Item 2.05 Costs Associated with Exit or Disposal Activities.","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-07-15","source_url":"https://www.sec.gov/Archives/edgar/data/1517375/0001517375-26-000052-index.html","accession_number":"0001517375-26-000052","cik":"0001517375","ticker":"SPT","issuer_name":"Sprout Social, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1517375/0001517375-26-000052-index.html","primary_entity_key":"0001517375","primary_entity_name":"Sprout Social, Inc."},"word_count":225,"has_tables":true,"body_markdown":"Item 2.05. Costs Associated with Exit or Disposal Activities.\n\nOn July 8, 2026, the Board of Directors of the Company approved a workforce reduction plan (the \"Plan\") designed to streamline the Company's organizational structure and align its cost base with its strategic priorities, including its ongoing investments in AI-powered social intelligence. As part of the Plan, the Company will reduce its workforce by approximately 20%, or approximately 260 employees. On July 15, 2026, the Company began notifying affected employees.\n\nThe Company estimates that it will incur total pre-tax restructuring charges of approximately $18.0 million to $20.0 million in connection with the Plan, consisting primarily of cash expenditures related to employee severance payments and benefits. The Company expects to recognize substantially all of these charges in the third quarter of 2026. The Company expects to substantially complete the Plan by the end of the third quarter of 2026, subject to local law and consultation requirements.\n\nThe Company intends to exclude the restructuring charges from its non-GAAP financial measures.\n\nThe charges that the Company expects to incur in connection with the Plan are estimates and are subject to a number of assumptions. Actual results may differ materially from these estimates. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the Plan."}