The Australia women's soccer captain was charged after calling a Metropolitan Police officer "f***ing stupid and white" after a night out in the UK capital turned ugly during a taxi ride on January 30, 2023.
A jury returned the not guilty verdict on Tuesday after deliberating for four hours and 17 minutes at Kingston Crown Court, including an hour's lunch break, with the verdict delivered immediately after.
Kerr did not react as the verdict was read, but subsequently gave a thumbs-up to her barrister Grace Forbes.
Her pregnant fiancee, US international Kristie Mewis, sitting in the public gallery, burst into tears.
When Ms Forbes raised the subject of costs for the six-day trial, Judge Peter Lodder KC responded: "I take the view her own behaviour contributed significantly to the bringing of this allegation. I don't go behind the jury's verdict, but that has a significant bearing on the question of costs."
Ms Forbes later indicated Kerr would not be pursuing costs.
Kerr did not speak at the time, but later issued a statement in which she said: "I can finally put this challenging period behind me.
"While I apologise for expressing myself poorly on what was a traumatic evening, I have always maintained that I did not intend to insult or harm anyone and I am thankful the jury unanimously agreed.
"I would like to thank my partner Kristie, my family, my friends and all the fans for their love and support, especially those who attended court each day.
"I am fully focused on getting back on the pitch and look forward to an exciting year ahead for me and my family."
Kerr has not played for club or country since rupturing her ACL at a Chelsea training camp in March 2024, and Football Australia (FA) issued a statement on Wednesday pledging to support her through her return to football.
But FA, who were blindsided when the charge came to light in March 2024, did not address whether Kerr's position as captain would be affected, or if she was considered to have brought the game into disrepute.
As yet, Kerr, Australia's record goal scorer with 69 goals in 128 matches, has faced no sanctions or punishments from FA.
"Throughout this period, Football Australia has remained committed to supporting Sam and will continue to do so as she focuses on her footballing career, rehabilitation from injury and return to play,
"Football Australia invests heavily in building the behavioural standards and expectations of all involved with our game, especially for all our national team players, where leadership comes with added responsibilities on and off the field.
"Football Australia will reflect with Sam on learnings from this matter and we will continue to provide appropriate support for her moving forward."
Kerr was charged with racially aggravated harassment with intent to cause alarm or distress, a public order offence which carried a maximum sentence of 26 weeks in jail.
She was charged by police constable Stephen Lovell, the London officer she abused after an hour-long altercation in Twickenham police station that followed the taxi ride.
The ride had ended with Mewis kicking out a back window in an attempt to escape the vehicle.
The couple said the driver had begun driving "crazily" after Kerr, who admitted she was drunk, had thrown up outside the cab window on the way home.
They said they feared for their lives and thought they were being kidnapped.
The conversation with police grew heated after it became clear the officers did not believe their telling of events.
It can now be reported that Kerr's legal team attempted to get the case thrown out at a preliminary hearing, arguing there had been an abuse of process by prosecutors.
Speaking during the hearing on January 14, Ms Forbes said the Crown Prosecution Service had violated its own guidance, adding that a "loophole" in the victims' right of review scheme was used to justify prosecution proceedings a year after the alleged offence.
During the trial, it was put to PC Lovell that he made no mention of Kerr's comments upsetting him in his original statement, but only did so in a subsequent statement 11 months later to get the case "over the line". He denied this.