Sprinklr, Inc.CXM

Sprinklr, Inc. Fair Value Disclosure

10-KFiled Mar 19, 20262 min read
Fair Value Measurements
The following tables present information about the Company’s financial assets that have been measured at fair value on a recurring basis as of January 31, 2026 and 2025, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value:
January 31, 2026January 31, 2025
(in thousands)Level 1Level 2TotalLevel 1Level 2Total
Financial assets:
Cash equivalents:
Money market funds$11,095 $— $11,095 $57,158 $— $57,158 
Commercial paper— 2,499 2,499 — — — 
Certificates of deposit— 520 520 — — — 
Marketable securities:
Corporate bonds— 129,974 129,974 — 106,654 106,654 
Municipal bonds— 17,855 17,855 — 12,745 12,745 
U.S. government and agency securities— 115,454 115,454 — 120,008 120,008 
Certificates of deposit— 29,409 29,409 — 34,611 34,611 
Commercial paper— 46,845 46,845 — 64,171 64,171 
Total financial assets$11,095 $342,556 $353,651 $57,158 $338,189 $395,347 
The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its commercial paper, corporate and municipal debt securities, U.S. government and agency securities and certificates of deposit within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security, which may not be actively traded.
The Company’s primary objective when investing excess cash is preservation of capital, hence the Company’s marketable securities consist primarily of U.S. government and agency securities, high credit quality corporate debt securities and commercial paper. The Company has classified and accounted for its marketable securities as available-for-sale securities, as it may sell these securities at any time for use in the Company’s current operations or for other purposes, even prior to maturity.
The Company regularly reviews changes in the credit ratings of its debt securities and monitors relevant economic conditions to assess the risk of expected credit losses. As discussed in Note 4, Marketable Securities, as of January 31, 2026 and 2025, the maturities of available-for-sale marketable securities did not exceed 12 months; therefore, no securities were in an unrealized loss position for more than 12 months. The Company has not recorded any impairments in the periods presented.

Historical Timeline

Fiscal YearFiled
2026Mar 19, 2026Showing above
2025Mar 21, 2025
2024Mar 29, 2024
2023Apr 3, 2023
2022Apr 11, 2022

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance