Progress Software (PRGS) AI Stock Analysis

• Market Cap: $1.95B
• Dividend Yield: 1.57%
• Average Volume (3M): 958.89K
• Price to Earnings (P/E): 34.5
• Beta (1Y): 0.28
• Revenue Growth: 22.10%
• EPS Growth: -20.37%
• Country: US
• Employees: 2,815
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 1.40
• Shares Outstanding: 43,108,350
• 10 Day Avg. Volume: 833,407
• 30 Day Avg. Volume: 958,895
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.11
• Enterprise Value/Revenue: 4.72
• Enterprise Value/Gross Profit: 5.78
• Enterprise Value/Ebitda: 15.78
• 1Y Price Target: $67.40
• Price Target Upside: 50.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: $51.00 ▲(14.07% Upside)

Progress Software's strong financial performance and positive earnings call sentiment are key strengths, supported by strategic corporate events. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation.

Progress Software Business Overview & Revenue Model

Company Description

Progress Software Corporation (PRGS) is a global software company that specializes in application development, data connectivity, and digital experience solutions. Founded in 1981, the company operates in diverse sectors including enterprise application development, data management, and cloud-based solutions. Its core products include the Telerik suite for UI development, the Kendo UI framework, the OpenEdge platform for creating business applications, and various data integration tools designed to enhance connectivity and performance in hybrid environments.

How the Company Makes Money

Progress Software generates revenue primarily through software licensing, subscription services, and maintenance fees. The company offers a range of products under both perpetual licenses and subscription-based models, allowing customers to choose the payment structure that best fits their needs. Key revenue streams include sales of its developer tools and platforms, which are crucial for building applications, as well as its data management solutions that facilitate seamless data integration and analytics. Additionally, Progress collaborates with various technology partners to enhance its product offerings and extend its market reach, contributing to its earnings through strategic alliances and integrations.

Progress Software Financial Statement Overview

Summary

Progress Software demonstrates strong revenue growth and efficient cash flow management, though high leverage is a potential risk. The company shows strong operational performance and cash generation capabilities.

Income Statement

Progress Software has demonstrated strong revenue growth over the years, with an impressive increase from $442 million in 2020 to $869 million in TTM (Trailing-Twelve-Months). Gross profit margins are robust, consistently above 80%, indicating effective cost management. However, the net profit margin has shown some variability, reflecting fluctuations in net income. The EBIT and EBITDA margins are healthy, indicating strong operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, which is a potential risk factor, as the company has significantly increased its leverage over the years. Despite this, the return on equity (ROE) remains positive, demonstrating effective use of equity to generate profits. The equity ratio is stable, although relatively low, suggesting that liabilities make up a significant portion of the company's financing structure.

Cash Flow

Operating cash flow has been consistently strong, exceeding net income, which is a positive indicator of cash generation efficiency. The free cash flow growth rate is positive, though it has seen some fluctuations. The free cash flow to net income ratio remains healthy, highlighting the company's ability to generate cash from operations.

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: 44.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 44.71 is below the 20-day moving average (MA) of 45.95, below the 50-day MA of 52.01, and below the 200-day MA of 58.74, indicating a bearish trend. The MACD of -1.84 indicates Negative momentum. The RSI at 37.18 is Neutral, neither overbought nor oversold. The STOCH value of 49.31 is Neutral, 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
CXM	76 Outperform	$2.16B	20.18	17.50%	―	6.75%	97.06%
PRGS	72 Outperform	$1.95B	34.55	13.48%	1.57%	22.10%	-20.37%
OLO	71 Outperform	$1.73B	593.71	-0.13%	―	21.92%	95.91%
Sector *	61 Neutral	$34.98B	7.37	-10.82%	1.91%	8.82%	-8.66%
DBD	61 Neutral	$2.24B	0.78	-1.23%	―	-3.75%	-100.59%
RNG	60 Neutral	$2.72B	―	16.58%	―	6.47%	90.60%
AMPL	59 Neutral	$1.48B	―	-33.99%	―	9.93%	-11.15%

Progress Software Corporate Events

Progress Software Secures New Credit Facility Agreement

On July 22, 2025, Progress Software announced a new credit facility agreement, increasing its revolving credit from $900 million to $1.5 billion and extending the maturity date to July 31, 2030. This move is expected to support the company’s growth strategy and enhance its ability to pursue additional acquisitions, positioning Progress well for future expansion.

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.