Progress Software (PRGS)
NASDAQ:PRGS
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Progress Software
(NASDAQ:PRGS)
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Rating:67Neutral
Price Target:
$32.00
▲(3.46% Upside)
Action:Reiterated
Date:05/11/26
PRGS scores well on financial performance and earnings-call fundamentals, led by strong free cash flow and margin/cash-flow guidance alongside planned deleveraging and buybacks. The score is held back by weak technical trend signals and only moderate valuation support, plus a conservative top-line growth outlook.
Positive Factors
Free cash flow generation
Progress converts reported earnings into cash reliably (TTM operating cash flow $265M; FCF $258M, ~0.97x net income). This durable cash generation funds debt paydown, buybacks, R&D and inorganic activity, supporting capital allocation and financial flexibility over the next 2–6 months.
Negative Factors
Elevated leverage
Absolute debt and elevated leverage (net ~3.1x; debt-to-equity ~1.68) reduce financial flexibility and increase sensitivity to higher interest costs after refinancing. Even with planned paydown, servicing debt constrains capital allocation and raises execution risk if cash flow weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Progress converts reported earnings into cash reliably (TTM operating cash flow $265M; FCF $258M, ~0.97x net income). This durable cash generation funds debt paydown, buybacks, R&D and inorganic activity, supporting capital allocation and financial flexibility over the next 2–6 months.
Read all positive factors
Progress Software Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
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The Fly
The FlyProgress Software (PRGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.23B
Dividend YieldN/A
Average Volume (3M)866.87K
Price to Earnings (P/E)19.3
Beta (1Y)0.60
Revenue Growth22.42%
EPS Growth51.07%
CountryUS
Employees2,815
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.99
Shares Outstanding42,078,610
10 Day Avg. Volume580,428
30 Day Avg. Volume866,872
Financial Highlights & Ratios
PEG Ratio3.25
Price to Book (P/B)3.77
Price to Sales (P/S)1.84
P/FCF Ratio7.86
Enterprise Value/Market Cap1.62
Enterprise Value/Revenue2.01
Enterprise Value/Gross Profit2.47
Enterprise Value/Ebitda11.36
Forecast
1Y Price Target
$52.50Price Target Upside69.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)5.98
Revenue Forecast (FY)$993.34M
Progress Software Business Overview & Revenue Model
Company Description
Progress Software Corporation develops, deploys, and manages business applications. The company offers OpenEdge, a development software, which builds multi-language applications for secure deployment across various platforms and devices, as well a...
How the Company Makes Money
Progress primarily makes money by licensing its enterprise software products and providing ongoing maintenance and support, with revenue typically recurring through renewals and subscriptions. Key revenue streams include: (1) software licenses and...
Progress Software Earnings Call Summary
Earnings Call Date:Mar 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 30, 2026
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.Positive Updates
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.
Negative Updates
Net Revenue Retention Slightly Below Target
NRR came in at 99%, just below the company's 100% target and the 99%–101% historical range. Management attributes the shortfall to isolated churn rather than broad product weakness.
Read all updates
Q1-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Progress guided Q2 revenue of $240–246 million and EPS of $1.47–1.53, and for full‑year fiscal 2026 expects revenue of $988 million–$1.00 billion (≈1–2% growth), an operating margin of ~39%, adjusted free cash flow of $263–275 million, unlevered free cash flow of $315–326 million, and EPS of $5.91–6.03 (assuming a 20% tax rate and ~43 million weighted shares outstanding). Management said ARR growth should be generally in line with revenue, plans approximately $30 million of share repurchases, and expects $250 million of total debt repayment (reducing net leverage to ~2.7x by year‑end from 3.1x at Q1); it will roll the 2026 convertible notes into the revolver (about $960 million of unused revolver capacity at quarter end) and noted the EPS outlook reflects higher interest expense from that refinancing.Progress Software Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
58
Neutral
Cash Flow
83
Very Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 987.62M | 977.83M | 753.41M | 694.44M | 602.01M | 531.31M |
| Gross Profit | 802.40M | 790.25M | 622.93M | 567.86M | 507.52M | 452.86M |
| EBITDA | 174.80M | 159.52M | 229.32M | 213.58M | 207.78M | 168.56M |
| Net Income | 85.00M | 73.13M | 68.44M | 70.20M | 95.07M | 78.42M |
Balance Sheet | ||||||
| Total Assets | 2.39B | 2.46B | 2.53B | 1.60B | 1.41B | 1.36B |
| Cash, Cash Equivalents and Short-Term Investments | 113.17M | 94.81M | 118.08M | 126.96M | 256.28M | 157.37M |
| Total Debt | 869.63M | 850.99M | 1.56B | 747.11M | 640.59M | 591.35M |
| Total Liabilities | 1.90B | 1.98B | 2.09B | 1.14B | 1.01B | 951.05M |
| Stockholders Equity | 498.80M | 478.35M | 438.79M | 459.71M | 398.50M | 412.49M |
Cash Flow | ||||||
| Free Cash Flow | 257.75M | 229.49M | 206.29M | 168.35M | 186.07M | 173.88M |
| Operating Cash Flow | 264.87M | 235.19M | 211.49M | 173.92M | 192.16M | 178.53M |
| Investing Cash Flow | -27.14M | -26.92M | -857.91M | -360.38M | 21.99M | -250.34M |
| Financing Cash Flow | -258.38M | -238.37M | 640.82M | 51.19M | -101.42M | 132.11M |
Progress Software Technical Analysis
Positive
30.93
Price Trends
29.19
Positive
34.98
Negative
39.34
Negative
Market Momentum
-0.31
Negative
52.08
Neutral
76.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRGS, the sentiment is Positive. The current price of 30.93 is above the 20-day moving average (MA) of 28.18, above the 50-day MA of 29.19, and below the 200-day MA of 39.34, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 76.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRGS.
Progress Software Risk Analysis
Progress Software disclosed 37 risk factors in its most recent earnings report. Progress Software reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Progress Software Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.67B | 25.71 | -16.71% | ― | 4.90% | ― | |
67 Neutral | $1.23B | 19.35 | 17.82% | ― | 22.42% | 51.07% | |
64 Neutral | $1.23B | 44.10 | 3.93% | ― | 7.64% | -80.72% | |
62 Neutral | $2.47B | 132.40 | 9.97% | ― | 4.32% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $861.02M | -9.77 | -35.68% | ― | 16.36% | 10.40% |
* Technology Sector Average
PRGS
Progress Software
29.21
-32.63
-52.77%
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AMPL
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DBD
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Progress Software Corporate Events
Executive/Board ChangesShareholder Meetings
Progress Software Shareholders Back Board, Pay and Plans
Positive
May 11, 2026
On May 7, 2026, Progress Software Corporation held its annual meeting of stockholders, where shareholders voted on several corporate governance and compensation matters. Investors elected nine directors to serve until the 2027 annual meeting and g...
Business Operations and StrategyStock BuybackFinancial Disclosures
Progress Software Posts Strong Q1 Results, Raises EPS Outlook
Positive
Mar 30, 2026
On March 30, 2026, Progress Software reported fiscal first-quarter 2026 results for the period ended February 28, 2026, posting revenue of $248 million, up 4% year over year, and ARR of $863 million, up 2% in constant currency. GAAP operating marg...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.