PROS Holdings (PRO) AI Stock Analysis

• Market Cap: $723.52M
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: 7.96%
• EPS Growth: 83.62%
• Country: US
• Employees: 1,501
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Application
• EPS (TTM): 0.13
• Shares Outstanding: 48,106,453
• 10 Day Avg. Volume: 853,876
• 30 Day Avg. Volume: 1,015,550
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 3.98
• Enterprise Value/Ebitda: 126.00
• 1Y Price Target: $24.79
• Price Target Upside: 62.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 58 Neutral
• Price Target: $15.50 ▲(1.64% Upside)

The overall stock score reflects strong earnings call performance and positive cash flow, offset by high leverage, negative equity, and challenging valuation. Technical indicators suggest bearish momentum, adding to the cautious outlook.

Positive Factors

Revenue Growth

PROS reported a better-than-expected 2Q with Travel and B2B momentum driving acceleration in Total and Subscription revenue growth.

Sales and Bookings

Billings came in above expectations as the company saw improvement in sales cycles, competitive win rates, and booking linearity.

Travel Segment

Solid recovery in its Travel segment supports positive outlook for the company.

Negative Factors

Leadership Changes

The company is currently operating with a new CEO and no Chief Revenue Officer, which adds risk.

Long-Term Targets

There is skepticism around the company's long-term targets, as they require significant improvements in revenue growth and free cash flow margin.

Valuation

Price target reduced from $30 to $25 to reflect current valuation trends.

PROS Holdings Business Overview & Revenue Model

Company Description

PROS Holdings, Inc. is a technology company that specializes in providing AI-powered solutions for pricing, sales, and revenue management. The company primarily operates in the software sector, offering solutions that help businesses optimize their pricing strategies, enhance their sales processes, and improve overall revenue performance. PROS's core products include its pricing optimization software and sales effectiveness solutions, which leverage advanced analytics and machine learning to deliver actionable insights for various industries, including manufacturing, distribution, and e-commerce.

How the Company Makes Money

PROS Holdings generates revenue primarily through subscription-based licensing of its software solutions, which allows customers to access its AI-driven tools and analytics on a recurring basis. Key revenue streams include software sales, professional services for implementation and support, and maintenance contracts. Additionally, PROS may benefit from significant partnerships with other technology firms and system integrators that expand its market reach and enhance its product offerings. The company's focus on providing value through data-driven insights and tailored solutions helps in retaining customers and driving long-term revenue growth.

PROS Holdings Financial Statement Overview

Summary

PROS Holdings shows strong revenue growth and positive cash flow management, but faces significant challenges with profitability and high leverage, reflected in a negative equity position.

Income Statement

PROS Holdings has shown consistent revenue growth with a TTM revenue of $342.71 million, reflecting a growth rate of approximately 3.73% from the previous annual period. However, the company continues to struggle with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin stands at a healthy 67.09% for TTM, yet, the persistent operating losses and negative net income highlight ongoing challenges in managing costs and achieving profitability.

Balance Sheet

The company's balance sheet reveals high leverage with a negative stockholders' equity of -$84.88 million and a concerning debt-to-equity ratio due to the negative equity. Despite this, the total assets have increased, and cash reserves have shown some improvement. The equity ratio remains negative, posing significant financial risk and highlighting the need for improved capital structure and risk management.

Cash Flow

Cash flow analysis shows a positive trajectory, with a TTM operating cash flow of $30.04 million and a free cash flow of $29.22 million, indicating improved cash management and operational efficiency. The free cash flow growth rate is robust, and the company has managed to maintain positive cash flow despite net losses, pointing to strong operational cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	342.71M	330.37M	303.71M	276.14M	251.42M	252.42M
Gross Profit	229.90M	217.04M	188.40M	166.06M	146.50M	147.79M
EBITDA	7.26M	-5.76M	-39.57M	-61.53M	-60.77M	-51.58M
Net Income	-7.18M	-20.48M	-56.35M	-82.25M	-81.21M	-76.98M
Balance Sheet
Total Assets	443.04M	419.90M	421.83M	452.95M	494.48M	539.97M
Cash, Cash Equivalents and Short-Term Investments	178.96M	161.98M	168.75M	203.63M	227.55M	329.13M
Total Debt	343.97M	300.89M	324.76M	325.63M	334.78M	268.06M
Total Liabilities	527.92M	488.61M	499.71M	488.43M	490.90M	422.93M
Stockholders Equity	-84.88M	-68.70M	-77.87M	-35.47M	3.58M	117.04M
Cash Flow
Free Cash Flow	29.22M	26.22M	7.29M	-24.77M	-21.35M	-79.57M
Operating Cash Flow	30.04M	27.38M	9.88M	-23.91M	-18.55M	-49.39M
Investing Cash Flow	-636.00K	-1.22M	-2.70M	-1.14M	-85.17M	-30.46M
Financing Cash Flow	12.63M	-32.34M	-32.36M	1.07M	2.47M	102.91M

PROS Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.25
• 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 PRO, the sentiment is Neutral. The current price of 15.25 is above the 20-day moving average (MA) of 14.86, below the 50-day MA of 15.33, and below the 200-day MA of 19.71, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 51.27 is Neutral, neither overbought nor oversold. The STOCH value of 59.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRO.

PROS Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEAV	62 Neutral	$579.31M	―	-40.52%	―	18.10%	4.60%
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
PUBM	61 Neutral	$380.90M	124.65	-0.65%	―	3.53%	-109.03%
PRO	58 Neutral	$723.52M	―	29.80%	―	7.96%	83.62%
DOMO	53 Neutral	$648.19M	―	48.46%	―	-0.81%	9.83%
BLND	50 Neutral	$899.85M	―	-93.00%	―	-4.76%	67.62%
RSKD	50 Neutral	$725.93M	―	-10.16%	―	7.96%	5.67%

PROS Holdings Corporate Events

PROS Holdings Reports Strong Q2 2025 Financial Results

On July 31, 2025, PROS Holdings, Inc. announced its financial results for the second quarter of 2025, highlighting a 12% year-over-year increase in subscription revenue to $73.3 million and an expansion of subscription gross margin to 79%. The company also raised its full-year outlook for subscription revenue and subscription ARR, reflecting strong performance and positioning in the AI-powered enterprise market. Recent achievements include welcoming new customers, expanding platform adoption among existing clients, and forming a strategic partnership with Commerce to enhance B2B merchant offerings. PROS was recognized as a Leader in ISG’s 2025 CPQ Buyers Guide and won the 2025 CSO Award for cybersecurity excellence.

PROS Holdings Issues Convertible Senior Notes for Flexibility

On June 24, 2025, PROS Holdings, Inc. issued $235 million in Convertible Senior Notes due 2030, under an indenture with Wilmington Trust, National Association. The notes, which bear an interest rate of 2.50% per year, are convertible into cash, shares of the company’s common stock, or a combination thereof. This issuance, conducted under exemptions from the Securities Act, aims to provide financial flexibility and reduce potential stock dilution through capped call transactions. Additionally, an amendment to the company’s existing Credit Agreement was made to accommodate this issuance, reflecting strategic financial adjustments that could impact stakeholders by potentially enhancing the company’s market position and operational capabilities.

PROS Holdings Swaps Convertible Notes in Strategic Move

On June 12, 2025, PROS Holdings, Inc. entered into exchange agreements with institutional buyers to swap $186.9 million of its 2027 Convertible Senior Notes for $185 million of newly issued 2030 Notes, alongside cash for accrued interest. The 2030 Notes, maturing in July 2030, offer a 2.50% interest rate and are convertible into cash or stock. Additionally, PROS entered a Securities Purchase Agreement to sell $50 million of 2030 Notes to investors, with proceeds intended for capped calls and general corporate purposes. These financial maneuvers, including capped call transactions, aim to manage stock dilution and stabilize market impacts, potentially affecting the company’s stock price and stakeholder interests.

PROS Holdings Announces CRO Todd McNabb’s Departure

On June 10, 2025, PROS Holdings, Inc. announced that Chief Revenue Officer Todd McNabb will step down from his position effective July 1, 2025, and will remain with the company until July 19, 2025. The responsibilities of Mr. McNabb will be distributed among the senior leadership team, indicating a shift in the company’s management structure.