Progress Software ( (PRGS) ) has released its Q2 earnings. Here is a breakdown of the information Progress Software presented to its investors.
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Progress Software, a leading provider of AI-powered digital experience and infrastructure software, has reported its financial results for the second quarter of 2025, showcasing significant growth in revenue and recurring revenue streams.
The company announced a robust performance with a revenue increase of 36% year-over-year, reaching $237 million. Additionally, the Annualized Recurring Revenue (ARR) surged by 46% to $838 million, reflecting strong demand across all geographies. Progress Software also raised its full-year guidance for revenue, operating margin, earnings per share, and cash flow, signaling confidence in its ongoing business strategy.
Key financial metrics highlighted in the report include a non-GAAP operating margin of 40%, a 28% increase in non-GAAP diluted earnings per share to $1.40, and a net retention rate of 100%. The company also completed the acquisition of Nuclia, an innovator in agentic RAG AI solutions, to enhance its data platform offerings. Despite a decrease in cash flow from operations, Progress Software made significant progress in debt reduction, paying down $40 million of its revolving credit facility.
Looking ahead, Progress Software remains optimistic about its growth trajectory, supported by the successful integration of recent acquisitions and a strong product portfolio. The company anticipates continued revenue growth and profitability improvements, aligning with its strategic objectives for the fiscal year 2025.