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Progress Software Corp. (PRGS)
NASDAQ:PRGS
Earnings Data
Report Date
Mar 31, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
1.57Last Year’s EPS
1.31Same Quarter Last Year
Strong Buy
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong financial results (30% revenue growth, $978M annual revenue), successful integration of ShareFile and Nuclea, robust Q4 operating performance, solid free cash flow growth, and continued AI product innovation. Counterbalancing these positives are modest organic ARR growth (~2%), elevated leverage (~3.4x) due to acquisition financing, rising operating expenses from the acquisition, and some early signs of working capital pressure (DSO +6 days). Management articulated clear plans to repay debt, maintain disciplined M&A, and expects FY26 revenue near $1 billion with continued profitability and free cash flow. Overall, the momentum and execution successes outweigh the risks, but leverage and modest organic growth are notable cautions.Company Guidance
Record Annual Revenue and EPS Growth
Annual revenue of $978 million, up 30% year-over-year; fiscal year EPS $5.72, up 16% versus FY24. Company exceeded midpoint of original revenue guidance by approximately $14 million and beat operating income guidance by 6%.
Strong Q4 Performance
Q4 revenue $253 million, up 18% year-over-year and in line with recent guidance; Q4 EPS $1.51, $0.16 above the high end of guidance; Q4 operating income $96 million with a 38% operating margin, outperforming expectations.
ARR, Net Retention and Revenue Mix
ARR of $852 million (pro forma), ~2% year-over-year growth; net retention rate maintained at 100%; ARR now represents over 87% of total revenue, indicating recurring revenues form the majority of the business.
ShareFile and Nuclea Integrations Delivering
Completed ShareFile integration (largest acquisition) and Nuclea Agentic RAD integration ahead of schedule; ShareFile was the primary driver of the year-over-year revenue increase and cited as a key contributor to FY25 growth.
Product and AI Innovation Momentum
Launched multiple AI-driven products including Progress Agentic RAD, generative content management in Sitefinity, an enterprise Agentic UI generator, and Automate MFT (claimed up to 50% TCO reduction versus traditional products). Management emphasized dozens of new AI capabilities across product lines.
Cash Flow Strength and Capital Returns
Adjusted free cash flow of $247 million for FY25, up 16% year-over-year; Q4 adjusted free cash flow $62 million. Returned $105 million via share repurchases in FY25 (including $40 million in Q4) with $202 million remaining under authorization.
Balance Sheet and Financial Flexibility Actions
Cash and cash equivalents $95 million with debt $1.4 billion (net debt ~$1.3 billion); management plans $250 million revolver repayments in FY26 to reduce net leverage to ~2.7x. Revolving credit facility capacity increased to $1.5 billion (from $900 million).
Customer & Talent Indicators
Cited enterprise customer wins and use-cases (e.g., Fortune 50 example unlocking tens of millions in value). Low voluntary attrition of 6% for FY25 (industry-leading) and regional recognition (Boston Globe #1 large software employer in region).
PRGS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
PRGS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jan 20, 2026 | $38.60 | $42.70 | +10.62% |
Sep 29, 2025 | $42.61 | $43.93 | +3.10% |
Jun 30, 2025 | $63.84 | $55.52 | -13.03% |
Mar 31, 2025 | $51.51 | $57.76 | +12.13% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Progress Software Corp. (PRGS) report earnings?
Progress Software Corp. (PRGS) is schdueled to report earning on Mar 31, 2026, After Close (Confirmed).
What is Progress Software Corp. (PRGS) earnings time?
Progress Software Corp. (PRGS) earnings time is at Mar 31, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is PRGS EPS forecast?
PRGS EPS forecast for the fiscal quarter 2026 (Q1) is 1.57.