Progress Software Corp. (PRGS)
NASDAQ:PRGS
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Progress Software
(NASDAQ:PRGS)
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Rating:62Neutral
Price Target:
$30.00
▲(6.46% Upside)
Action:ReiteratedDate:04/01/26
The score is supported by strong cash generation and high gross margins, reinforced by earnings-call guidance for solid margins, cash flow, and deleveraging actions. It is held back primarily by very weak technicals (deep downtrend despite oversold readings) and a modest growth outlook, with valuation appearing reasonable but not a clear bargain based on the provided data.
Positive Factors
Strong free cash flow
Consistent, high free cash flow and strong operating cash generation provide durable internal funding for debt reduction, buybacks, product investment and R&D. FCF conversion near 1x of net income indicates healthy earnings quality and long-term flexibility to support strategy.
Negative Factors
Elevated leverage
Leverage remains elevated versus historical norms, reducing financial flexibility and increasing sensitivity to margin or cash-flow setbacks. Higher debt amplifies refinancing and interest-rate risk, constraining capacity for large M&A or rapid investment if growth stalls.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistent, high free cash flow and strong operating cash generation provide durable internal funding for debt reduction, buybacks, product investment and R&D. FCF conversion near 1x of net income indicates healthy earnings quality and long-term flexibility to support strategy.
Read all positive factors
Progress Software (PRGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.17B
Dividend YieldN/A
Average Volume (3M)1.10M
Price to Earnings (P/E)19.3
Beta (1Y)0.44
Revenue Growth31.41%
EPS Growth-40.89%
CountryUS
Employees2,815
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.60
Shares Outstanding42,078,610
10 Day Avg. Volume1,479,517
30 Day Avg. Volume1,096,807
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 Cap1.66
Enterprise Value/Revenue1.97
Enterprise Value/Gross Profit2.42
Enterprise Value/Ebitda11.11
Forecast
1Y Price Target
$52.50Price Target Upside86.30% 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 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.
Data provided by:
The Fly
The FlyProgress 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
Negative
28.18
Price Trends
34.93
Negative
38.60
Negative
42.22
Negative
Market Momentum
-2.21
Negative
41.37
Neutral
59.97
Neutral
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 28.18 is below the 20-day moving average (MA) of 28.70, below the 50-day MA of 34.93, and below the 200-day MA of 42.22, indicating a bearish trend. The MACD of -2.21 indicates Negative momentum. The RSI at 41.37 is Neutral, neither overbought nor oversold. The STOCH value of 59.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $3.10B | 57.31 | -8.90% | ― | 5.45% | ― | |
65 Neutral | $3.00B | 26.41 | 8.82% | ― | -2.86% | 985.78% | |
64 Neutral | $1.35B | 69.87 | 3.93% | ― | 6.48% | 168.94% | |
62 Neutral | $1.17B | 19.35 | 17.82% | ― | 31.41% | -40.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $795.67M | -17.26 | -32.90% | ― | 12.78% | -20.47% |
* Technology Sector Average
PRGS
Progress Software
28.18
-28.90
-50.63%
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Progress Software Corporate Events
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...
Business Operations and StrategyStock BuybackFinancial Disclosures
Progress Software posts strong Q4 and fiscal 2025 results
Positive
Jan 20, 2026
On January 20, 2026, Progress Software reported that revenue for its fiscal fourth quarter ended November 30, 2025, rose 18% year over year to $253 million, with annualized recurring revenue reaching $852 million, up 2% on a constant-currency basi...
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.