PROS Holdings (PRO) AI Stock Analysis

• Market Cap: $1.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: 8.92%
• EPS Growth: 60.34%
• Country: US
• Employees: 1,501
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.22
• Shares Outstanding: 42,589,000
• 10 Day Avg. Volume: 1,423,947
• 30 Day Avg. Volume: 1,137,824
• PEG Ratio: 0.78
• Price to Book (P/B): -15.06
• Price to Sales (P/S): 3.13
• P/FCF Ratio: 39.47
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 3.55
• Enterprise Value/Gross Profit: 5.23
• Enterprise Value/Ebitda: 394.38
• 1Y Price Target: $23.25
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.66
• Revenue Forecast (FY): $361.26M

• Rating: 53 Neutral
• Price Target: $23.50 ▲(1.08% Upside)

PROS Holdings' overall score is primarily influenced by its mixed financial performance and technical analysis indicating overbought conditions. The strategic acquisition by Thoma Bravo is a positive development, but legal challenges pose risks. The valuation remains unattractive due to ongoing losses.

Positive Factors

Strategic Acquisition

The acquisition by Thoma Bravo is expected to enhance PROS Holdings' market position and operational capabilities, providing resources to advance AI innovation and expand market reach.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Cash Flow Management

Improved cash flow from operations suggests effective cash management, ensuring the company can meet its operational needs and invest in growth opportunities.

Negative Factors

High Leverage

High leverage indicates financial risk and potential solvency issues, which could limit the company's ability to invest in growth and weather economic downturns.

Profitability Challenges

Ongoing net losses highlight challenges in achieving profitability, which may impact long-term financial health and investor confidence.

Legal Challenges

Legal challenges related to the merger could delay strategic initiatives and create uncertainty, potentially affecting the company's operational focus and market perception.

PROS Holdings Business Overview & Revenue Model

Company Description

PROS Holdings, Inc. provides solutions that optimize the processes of selling and shopping in the digital economy worldwide. The company offers PROS Smart Configure Price Quote that improves sales productivity and accelerate deal velocity by automating common sales tasks; and PROS Smart Price Optimization and Management that enables businesses to optimize, personalize and harmonize pricing across the complexity of their go-to-market channels in the context of dynamic market and competitive conditions. It offers PROS Airline Revenue Optimization; PROS Airline Revenue Management solution that delivers algorithmic forecasting and network optimization for the travel industry; PROS Airline Real-Time Dynamic Pricing that offers accurate booking class availability and seat prices; and PROS Airline Group Sales Optimizer which enables airlines and their travel agent partners to create and manage group bookings, contracts, and policies. Further, it provides PROS Digital Retail, a configurable end-to-end solution for airlines to optimize the traveler experience from inspiration to post-trip; and PROS digital offer marketing solutions provide performance content management and search engine marketing tools that enable businesses in the travel industry. Additionally, the company offers software-related services, such as implementation, configuration, consulting, training, and maintenance and support services. It sells its software solutions to customers in various industries, including automotive and industrial manufacturing, transportation and logistics, chemicals and energy, food and beverage, healthcare, high tech, and travel. The company markets and sells its software solutions through its sales force, as well as through partners, resellers, and systems integrators. PROS Holdings, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

How the Company Makes Money

PROS generates revenue primarily through subscription-based models for its software solutions, which are offered as Software as a Service (SaaS). This recurring revenue model allows the company to maintain a steady cash flow as clients pay for access to its platforms over time. Additionally, PROS earns revenue from professional services, including consulting, implementation, and training for clients using its software. Significant partnerships with major enterprises across various industries also contribute to its earnings, as these collaborations enhance PROS's market reach and credibility, enabling the company to attract more customers and expand its service offerings.

PROS Holdings Financial Statement Overview

Summary

PROS Holdings shows mixed financial performance. Revenue and gross profit margins are improving, but the company faces profitability challenges and high leverage. Strong cash flow provides some stability, but reducing debt and improving profitability are crucial.

Income Statement

PROS Holdings has shown a consistent increase in revenue over the years, with a TTM revenue growth rate of 2.62%. The gross profit margin has improved to 67.08% in the TTM, indicating efficient cost management. However, the company is still operating at a net loss, with a net profit margin of -2.09% in the TTM. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of -4.05 in the TTM, indicating significant leverage and financial risk. The negative stockholders' equity suggests potential solvency issues. However, the return on equity has improved to 9.74% in the TTM, showing some operational efficiency despite the high leverage.

Cash Flow

Cash flow from operations has improved, with a TTM operating cash flow of $39.82 million and a free cash flow growth rate of 32.24%. The free cash flow to net income ratio is strong at 0.97, indicating effective cash management despite the net losses. This suggests the company is generating sufficient cash to cover its operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	351.68M	330.37M	303.71M	276.14M	251.42M	252.42M
Gross Profit	238.64M	217.04M	188.40M	166.06M	146.50M	147.79M
EBITDA	3.16M	-5.76M	-38.03M	-58.84M	-60.77M	-49.05M
Net Income	-11.66M	-20.48M	-56.35M	-82.25M	-81.21M	-76.98M
Balance Sheet
Total Assets	444.93M	419.90M	421.83M	452.95M	494.48M	539.97M
Cash, Cash Equivalents and Short-Term Investments	188.40M	161.98M	168.75M	203.63M	227.55M	329.13M
Total Debt	342.08M	300.89M	324.76M	325.63M	334.78M	268.06M
Total Liabilities	521.11M	488.61M	499.71M	488.43M	490.90M	422.93M
Stockholders Equity	-76.18M	-68.70M	-77.87M	-35.47M	3.58M	117.04M
Cash Flow
Free Cash Flow	38.64M	26.22M	7.33M	-24.77M	-21.35M	-79.57M
Operating Cash Flow	39.81M	27.38M	9.88M	-23.91M	-18.55M	-49.39M
Investing Cash Flow	-935.00K	-1.22M	-2.70M	-1.14M	-85.17M	-30.46M
Financing Cash Flow	11.60M	-32.34M	-32.36M	1.07M	2.47M	102.91M

PROS Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRO, the sentiment is Positive. The current price of 23.25 is above the 20-day moving average (MA) of 23.16, above the 50-day MA of 23.06, and above the 200-day MA of 18.89, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 74.75 is Negative, neither overbought nor oversold. The STOCH value of 89.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRO.

PROS Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PUBM	59 Neutral	$433.05M	―	-2.85%	―	-0.68%	-146.14%
PRO	53 Neutral	$1.12B	―	―	―	8.92%	60.34%
WEAV	52 Neutral	$502.28M	-14.87	-44.64%	―	17.34%	-8.35%
BLND	51 Neutral	$859.76M	―	―	―	-15.41%	71.18%
RSKD	51 Neutral	$796.73M	―	-10.54%	―	6.54%	-19.17%
DOMO	48 Neutral	$380.78M	―	―	―	-0.14%	21.60%

PROS Holdings Corporate Events

PROS Holdings Completes Merger, Delists from NYSE

On December 9, 2025, PROS Holdings announced the completion of a merger resulting in significant changes to its convertible senior notes due 2027 and 2030. The notes are no longer convertible into company stock but can be converted into cash based on a specified conversion rate. Additionally, the merger led to the cancellation of existing shares of common stock, with shareholders receiving cash compensation. The company also initiated steps to delist its common stock from the New York Stock Exchange and terminate its reporting obligations under the Securities Exchange Act.

PROS Holdings Stockholders Approve Merger Proposal

On December 4, 2025, PROS Holdings, Inc. held a virtual special meeting of stockholders, where 68% of the total shares were represented. During the meeting, stockholders approved the Merger Proposal, which involves merging the company with Project Portofino Merger Sub, making PROS Holdings a wholly owned subsidiary of Project Portofino Parent LLC. The Compensation Proposal related to executive compensation in connection with the merger was also approved, while the Adjournment Proposal was deemed unnecessary.

PROS Holdings Faces Legal Challenges in Merger

On September 22, 2025, PROS Holdings, Inc. entered into a merger agreement with Portofino Parent, LLC, which will result in PROS Holdings becoming a wholly owned subsidiary of Portofino. However, the merger has faced legal challenges, with two stockholders filing lawsuits alleging insufficient disclosure of material information in the proxy statement. Despite believing the allegations are without merit, PROS Holdings has decided to supplement its disclosures to avoid potential delays or adverse effects on the merger process.

PROS Holdings Merger Awaits Final Stockholder Approval

PROS Holdings, Inc., a Delaware corporation, has entered into a Merger Agreement with Portofino Parent, LLC, and its subsidiary, Portofino Merger Sub, Inc. The merger will result in PROS Holdings becoming a wholly owned subsidiary of Portofino Parent. As of November 24, 2025, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired, fulfilling a key condition for the merger’s completion. The merger is anticipated to close in the fourth quarter of 2025, pending stockholder approval and other conditions.

PROS Holdings Announces Strategic Plans Post-Acquisition

On October 1, 2025, PROS Holdings announced strategic plans following its acquisition by Thoma Bravo, expected to close in Q4 2025. Thoma Bravo aims to enhance PROS’ travel segment as a standalone business and integrate its B2B segment with Conga, another portfolio company. This move is intended to strengthen PROS’ position in the competitive airline and travel industry by leveraging Thoma Bravo’s expertise. The merger is anticipated to provide PROS shareholders with a significant premium on their shares, reflecting confidence in the company’s growth potential and market leadership.

PROS Holdings Enters Merger Agreement with Thoma Bravo

On September 22, 2025, PROS Holdings, Inc. entered into a merger agreement with Portofino Parent, LLC and its subsidiary, Portofino Merger Sub, Inc., which are affiliated with Thoma Bravo, L.P. The merger will result in PROS Holdings becoming a wholly owned subsidiary of Portofino Parent, with its shares being acquired for $23.25 each in cash. The company’s board has unanimously approved the merger, which includes customary closing conditions and a no-shop clause. The agreement outlines the treatment of equity awards and employee stock purchase plans, ensuring that vested and unvested units are converted into cash rights. The merger is subject to regulatory approvals and shareholder consent, with a termination fee set at $39.6 million if the agreement is terminated under certain conditions.

PROS Holdings Acquired by Thoma Bravo for $1.4B

On September 22, 2025, PROS Holdings, Inc. announced its acquisition by Thoma Bravo in an all-cash transaction valued at approximately $1.4 billion. PROS shareholders will receive $23.25 per share, a significant premium over the previous trading prices. The merger, expected to close in the fourth quarter of 2025, will transform PROS into a private company, enhancing its agility and capacity for innovation. This strategic move is anticipated to strengthen PROS’s market position and operational capabilities, benefiting stakeholders by advancing AI innovation and expanding market reach.