Progress Software (PRGS) AI Stock Analysis

• Market Cap: $2.14B
• Dividend Yield: 1.41%
• Average Volume (3M): 963.98K
• Price to Earnings (P/E): 38.0
• Beta (1Y): 0.23
• Revenue Growth: 22.10%
• EPS Growth: -20.37%
• Country: US
• Employees: 2,815
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): 1.40
• Shares Outstanding: 43,108,350
• 10 Day Avg. Volume: 2,002,541
• 30 Day Avg. Volume: 963,977
• PEG Ratio: 17.21
• Price to Book (P/B): 5.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.33
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 5.16
• Enterprise Value/Ebitda: 3.76
• 1Y Price Target: $72.60
• Price Target Upside: 46.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: $57.00 ▲(14.87%Upside)

Progress Software's strong financial performance and positive earnings call are offset by bearish technical indicators and a high P/E ratio indicating potential overvaluation. Continued operational efficiency and revenue growth are key positives, but technical challenges pose near-term risks.

Progress Software Business Overview & Revenue Model

Company Description

Progress Software Corporation, listed as PRGS, is a global software company that specializes in providing products to develop, deploy, and manage high-impact business applications. The company operates in the software and technology sector, offering a comprehensive suite of products that include application development, data connectivity and integration, and digital experience solutions. With a focus on helping businesses drive digital transformation, Progress Software serves a diverse range of industries, including financial services, healthcare, manufacturing, and telecommunications.

How the Company Makes Money

Progress Software generates revenue primarily through the sale of software licenses, maintenance and support services, and cloud-based subscription services. The company's key revenue streams include licensing fees for its development tools and platforms, which enable businesses to create custom applications tailored to their specific needs. Additionally, Progress Software offers subscription-based services for its cloud solutions, providing clients with scalable and flexible options for application deployment and management. The company also earns from providing technical support and consulting services, ensuring customers maximize the value of their investments in Progress Software's products. Significant partnerships with other technology firms and system integrators further enhance its revenue potential by expanding its market reach and integrating its solutions into broader technology ecosystems.

Progress Software Financial Statement Overview

Summary

Progress Software displays strong financial health with consistent revenue growth, high operational efficiency, and robust cash flow generation. The financial statements reflect a well-managed company with a positive outlook. However, the reliance on debt warrants cautious monitoring.

Income Statement

Progress Software demonstrates a strong financial performance with consistent revenue growth, as seen in the 7.07% increase from the prior year in the TTM period. The gross profit margin is robust at 80.15%, indicating effective cost management. However, the net profit margin has slightly decreased to 7.03%, suggesting increased expenses or other costs affecting net income. The EBIT margin of 15.57% and EBITDA margin of 25.09% show healthy operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.92, suggesting moderate leverage. The company's return on equity is 13.14%, indicating reasonable profitability relative to shareholder investments. The equity ratio stands at 17.54%, which implies a lower reliance on equity financing, hence a potential risk if debt levels rise.

Cash Flow

Cash flow analysis reveals a strong operational cash flow to net income ratio of 3.73, suggesting excellent cash generation from operations. The free cash flow to net income ratio is 3.62, reflecting efficient capital expenditure management. The free cash flow has slightly decreased by 0.49% year-over-year, which is manageable given the overall positive cash flow metrics.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	869.02M	753.41M	694.44M	602.01M	531.31M	442.15M
Gross Profit	709.90M	622.93M	567.86M	507.52M	452.86M	380.04M
EBITDA	260.18M	124.00M	213.38M	214.77M	178.93M	149.50M
Net Income	57.59M	68.44M	70.20M	95.07M	78.42M	79.72M
Balance Sheet
Total Assets	2.41B	2.53B	1.60B	1.41B	1.36B	1.04B
Cash, Cash Equivalents and Short-Term Investments	102.01M	118.08M	126.96M	251.76M	157.37M	106.00M
Total Debt	1.49B	1.56B	747.11M	640.59M	591.35M	416.48M
Total Liabilities	1.96B	2.09B	1.14B	1.01B	951.05M	695.77M
Stockholders Equity	452.70M	438.79M	459.71M	393.99M	412.49M	346.01M
Cash Flow
Free Cash Flow	170.53M	206.29M	168.35M	186.07M	173.88M	138.33M
Operating Cash Flow	176.25M	211.49M	173.92M	192.16M	178.53M	144.85M
Investing Cash Flow	-859.62M	-857.91M	-360.38M	-6.09M	-258.62M	-218.69M
Financing Cash Flow	590.52M	640.82M	51.19M	-91.68M	131.46M	6.15M

Progress Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRGS, the sentiment is Negative. The current price of 49.62 is below the 20-day moving average (MA) of 59.06, below the 50-day MA of 60.87, and below the 200-day MA of 61.38, indicating a bearish trend. The MACD of -3.09 indicates Positive momentum. The RSI at 22.20 is Positive, neither overbought nor oversold. The STOCH value of 2.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRGS.

Progress Software Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTMI	76 Outperform	$4.46B	58.91	5.02%	―	11.65%	―
DV	76 Outperform	$2.50B	49.33	4.83%	―	15.30%	-22.69%
FORM	74 Outperform	$2.77B	51.99	5.74%	―	15.33%	-47.04%
PRGS	68 Neutral	$2.14B	37.99	13.48%	1.41%	22.10%	-20.37%
TDC	67 Neutral	$2.13B	15.11	130.19%	―	-6.53%	240.56%
Sector *	56 Neutral	HK$13.96B	5.37	-5.75%	5.38%	9.34%	-42.23%
RNG	52 Neutral	$2.42B	―	16.58%	―	7.78%	70.43%

Progress Software Corporate Events

Progress Software Reports Strong Q2 2025 Financial Results

Progress Software announced its financial results for the second quarter of 2025, reporting a 36% year-over-year increase in revenue to $237 million and a 46% increase in annualized recurring revenue to $838 million. The company also raised its full-year guidance for revenue, operating margin, earnings per share, and cash flow, reflecting strong performance across all geographies and successful integration of ShareFile. Additionally, Progress acquired Nuclia, an innovator in agentic Retrieval-Augmented Generation AI solutions, to enhance its Data Platform and expand market reach.

The most recent analyst rating on (PRGS) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Progress Software stock, see the PRGS Stock Forecast page.

Progress Software Holds Annual Stockholders Meeting on May 8

On May 8, 2025, Progress Software Corporation held its annual meeting of stockholders where key decisions were made, including the election of nine board members, approval of executive compensation, and ratification of Deloitte & Touche LLP as the independent auditor for 2025. These decisions are crucial for the company’s governance and operational strategy, potentially impacting its market position and stakeholder confidence.