PROS Holdings ((PRO)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for PROS Holdings showcased a positive sentiment, highlighting significant achievements in revenue growth, strategic partnerships, and AI innovation. While challenges persist, particularly in the international sales environment and long sales cycles in the airline industry, the overall outlook remains optimistic with positive aspects outweighing the lowlights.
Exceeding Guidance and Raising Outlook
PROS Holdings exceeded the high end of their guidance ranges across all metrics in Q2 2025, leading to an increase in the full-year outlook for both subscription revenue and subscription ARR. This achievement underscores the company’s robust performance and confidence in its future growth trajectory.
Strong Revenue and Profit Growth
In Q2 2025, PROS Holdings reported a 12% year-over-year growth in subscription revenue, reaching $73.3 million. Total revenue increased by 8% to $88.7 million, while adjusted EBITDA saw a remarkable 42% improvement. These figures reflect the company’s strong financial health and effective operational strategies.
AI and Industry Leadership
PROS was recognized as a leader in the 2025 CPQ Buyers Guide by ISG, marking the fourth consecutive leadership designation from an industry analyst in three quarters. This accolade highlights PROS’ commitment to innovation and leadership in the AI and CPQ sectors.
New Customer Wins and Expanding Partnerships
The company secured new customers like Lennox and Air Greenland and expanded partnerships with Holcim and Unidas. These developments demonstrate PROS’ growing influence and momentum across various industries, reinforcing its market position.
Innovation with AI Agents
PROS unveiled new AI agents that integrate language models with proprietary numerical models. These innovations are designed to enhance commercial strategies across different domains, showcasing the company’s dedication to cutting-edge technology.
Challenging Sales Environment
Despite the positive outlook, the sales environment remains challenging, particularly outside the U.S. Some international customers have delayed projects due to macroeconomic factors, posing a hurdle for the company’s growth in these regions.
Long Sales Cycles in the Airline Industry
The airline industry’s long sales cycles continue to challenge PROS’ ability to realize revenue quickly, despite the demand for its offer management capabilities. This issue highlights the complexities of operating within this sector.
Forward-Looking Guidance
PROS Holdings provided robust guidance for the future, raising its full-year outlook for subscription revenue and ARR following a strong quarter. For Q3, subscription revenue is expected to grow by 12% year-over-year, with total revenue projected to increase by 10%. The company anticipates a 43% year-over-year improvement in adjusted EBITDA for the full year, alongside a significant increase in free cash flow.
In summary, PROS Holdings’ earnings call reflected a positive sentiment, driven by strong financial performance and strategic advancements. Despite challenges in the sales environment and the airline industry’s long sales cycles, the company’s achievements in revenue growth, AI innovation, and expanding partnerships position it well for future success.