Progress Software Corp. (PRGS)
NASDAQ:PRGS
Earnings Data
Report Date
Jun 30, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.49Last Year’s EPS
1.4Same Quarter Last Year
Strong Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveys a predominantly positive operational and financial picture: solid revenue growth (+4% YoY), strong margin expansion (operating margin >41%), meaningful EPS improvement (+22% YoY), record cash generation (adjusted FCF $99M), and clear capital allocation actions (debt paydown, buybacks). AI-driven product momentum, ShareFile integration progress, and improved collections are notable strengths. Offsetting items are modest: NRR at 99% (slightly below the 100% target), a discrete churn event driven by external legal action, SaaS revenue volatility from integration/billing cleanup, and elevated absolute debt with expected higher interest expense following refinancing. On balance the positives (profitability, cash flow, product momentum and disciplined capital allocation) outweigh the lowlights, though management is conservative in full-year top-line guidance.Company Guidance
Revenue and Top-Line Growth
Revenue of $248 million, up 4% year-over-year; ARR of ~$863 million, up 2% pro forma YoY (constant currency). Management emphasizes ARR as the best top-line metric and expects ARR growth to be generally in line with revenue for the full year.
Strong Profitability and EPS Improvement
GAAP/Non-GAAP EPS of $1.60 for the quarter, up 22% year-over-year. Operating margin finished above 41% (operating income ~$102M), reflecting disciplined cost management and margin expansion versus prior periods.
Record Cash Flow and Collections
Adjusted free cash flow of $99 million and unlevered free cash flow of $111 million in Q1. Adjusted FCF improved from $73 million in prior year quarter (~+36%), driven largely by improved collections and working capital performance.
Balance Sheet Actions and Capital Allocation
Paid down $60 million of debt and repurchased $20 million of stock in Q1. Ended the quarter with cash ~$113 million, total debt ~$1.35 billion and net debt ~$1.24 billion. Net leverage at 3.1x and management plans $250 million debt repayment for the year to reduce leverage to ~2.7x by year-end.
Operational Efficiency Improvements
Days sales outstanding (DSO) improved to 52 days from 73 days in Q4 (improvement of 21 days), and deferred revenue was ~$425 million, up ~$25 million year-over-year.
AI-Driven Product Momentum and Customer Wins
Company highlights AI-enabled wins and product adoption across the portfolio (Progress agentic RAG, data platform, WhatsUp Gold, Loadmaster, Flowmon, ShareFile). Specific customer examples include a global beverage company (HR automation), a tax authority/finance ministry (trusted answers), a U.S. state government (data platform delivering tens of millions in efficiencies), and a payments company using infrastructure/security products.
ShareFile Integration and Strategic Investments
Management reports ShareFile as a strong, accretive acquisition that scaled recurring revenue and SaaS capabilities. Progress opened an innovation hub in Bangalore to consolidate engineering and product teams and support global growth.
Guidance and Forward Positioning
Q2 revenue guidance of $240M–$246M and EPS $1.47–$1.53. Full-year 2026 revenue guidance of $988M–$1.0B (~1%–2% growth), operating margin ~39%, adjusted FCF $263M–$275M, unlevered FCF $315M–$326M, and full-year EPS $5.91–$6.03. Management notes $960M of unused revolver capacity to address upcoming convertible maturity.
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 |
|---|---|---|---|
Mar 30, 2026 | $28.27 | $25.65 | -9.27% |
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% |
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 Jun 30, 2026, After Close (Confirmed).
What is Progress Software Corp. (PRGS) earnings time?
Progress Software Corp. (PRGS) earnings time is at Jun 30, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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What is PRGS EPS forecast?
PRGS EPS forecast for the fiscal quarter 2026 (Q2) is 1.49.