PROS Holdings (PRO) AI Stock Analysis

• Market Cap: $689.08M
• Dividend Yield: N/A
• Average Volume (3M): 722.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: 7.97%
• EPS Growth: 74.22%
• Country: US
• Employees: 1,501
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 0.13
• Shares Outstanding: 47,852,470
• 10 Day Avg. Volume: 1,193,103
• 30 Day Avg. Volume: 722,346
• PEG Ratio: 24.44
• Price to Book (P/B): -30.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -44.34
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 5.46
• Enterprise Value/Ebitda: -26.87
• 1Y Price Target: $25.40
• Price Target Upside: 76.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 58 Neutral
• Price Target: $16.50 ▲(14.58%Upside)

PROS Holdings' stock score is primarily influenced by its positive earnings call and cash flow management, offset by its bearish technical indicators and valuation challenges. The company's robust revenue growth and strategic steps suggest potential for long-term improvement, although immediate financial restructuring and market conditions pose risks.

Positive Factors

Business Strategy

The new Agentic strategy was compelling due to real work value, ease of use, and a new PLG GTM strategy simplifying the purchasing process.

Financial Performance

PROS reported good 1Q results with modest beats across the board.

Market Demand

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 Trends

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

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 Holdings makes money primarily through the sale of its software as a service (SaaS) solutions, which include subscription fees for access to its cloud-based platforms. Key revenue streams include software subscriptions, professional services such as implementation and consulting, and customer support services. The company's revenue model is further enhanced by strategic partnerships with other technology providers and system integrators that help expand the reach and adoption of its solutions. PROS leverages its expertise in AI and data analytics to offer solutions that drive pricing optimization, configure-price-quote (CPQ) processes, and revenue management, which are critical for its clients to improve profitability and operational efficiency.

PROS Holdings Financial Statement Overview

Summary

PROS Holdings shows strong revenue growth and effective cash flow management, but faces challenges with net losses and high financial leverage. Positive signs include a high gross profit margin and liquidity comfort from cash reserves.

Income Statement

PROS Holdings has shown consistent revenue growth over the analyzed period, with a 5.4% increase in TTM compared to the previous year. The gross profit margin for TTM is strong at 66.55%, indicating effective cost management. However, profitability metrics remain concerning as the company continues to operate at a net loss, with a TTM net profit margin of -3.81% and negative EBIT and EBITDA margins. Despite these challenges, the steady revenue growth and high gross profit margin suggest potential for future profitability improvements.

Balance Sheet

The balance sheet reveals significant financial leverage, with the company exhibiting a negative stockholders' equity of -$65.81 million in TTM, highlighting a high debt-to-equity ratio. This presents substantial financial risk. The equity ratio is negative due to the company's liabilities exceeding its assets, which underscores the need for strategic financial restructuring. However, the company's ability to maintain cash and short-term investments at $160.02 million offers some liquidity comfort.

Cash Flow

Cash flows indicate positive trends, with a strong free cash flow growth rate in TTM. Operating cash flow exceeds net income, reflecting efficient cash generation from operations despite ongoing losses. The free cash flow to net income ratio is positive, driven by controlled capital expenditure, suggesting the company is managing its cash resources effectively to support operations and potential growth opportunities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
336.01M	330.37M	303.71M	276.14M	251.42M	252.42M
	Gross Profit
223.58M	217.04M	188.40M	166.06M	146.50M	147.79M
	EBIT
-12.54M	-19.02M	-50.60M	-76.54M	-71.96M	-66.08M
	EBITDA
1.70M	-5.76M	-39.57M	-61.53M	-60.77M	-51.58M
	Net Income Common Stockholders
-12.81M	-20.48M	-56.35M	-82.25M	-81.21M	-76.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
160.02M	161.98M	168.75M	203.63M	227.55M	329.13M
	Total Assets
427.16M	419.90M	421.83M	452.95M	494.48M	539.97M
	Total Debt
303.80M	300.89M	324.76M	325.63M	334.78M	268.06M
	Net Debt
143.77M	138.91M	156.02M	122.00M	107.22M	-61.07M
	Total Liabilities
492.97M	488.61M	499.71M	488.43M	490.90M	422.93M
	Stockholders Equity
-65.81M	-68.70M	-77.87M	-35.47M	3.58M	117.04M
Cash Flow		Free Cash Flow
32.21M	26.22M	7.29M	-24.77M	-21.35M	-79.57M
	Operating Cash Flow
33.24M	27.38M	9.88M	-23.91M	-18.55M	-49.39M
	Investing Cash Flow
-851.00K	-1.22M	-2.70M	-1.14M	-85.17M	-30.46M
	Financing Cash Flow
-28.16M	-32.34M	-32.36M	1.07M	2.47M	102.91M

PROS Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRO, the sentiment is Negative. The current price of 14.4 is below the 20-day moving average (MA) of 17.59, below the 50-day MA of 17.27, and below the 200-day MA of 20.56, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 30.06 is Neutral, neither overbought nor oversold. The STOCH value of 4.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRO.

PROS Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLO	74 Outperform	$1.42B	486.86	0.49%	―	23.31%	―
VTEX	71 Outperform	$1.17B	77.14	6.26%	―	7.71%	―
DSP	65 Neutral	$817.75M	434.22	4.15%	―	30.64%	―
BASE	64 Neutral	$1.06B	―	-55.90%	―	12.76%	16.97%
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
PRO	58 Neutral	$689.08M	―	29.80%	―	7.97%	74.22%
BLND	57 Neutral	$832.44M	―	-93.00%	―	-0.40%	63.36%

PROS Holdings Corporate Events

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.

The most recent analyst rating on (PRO) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on PROS Holdings stock, see the PRO Stock Forecast page.

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.

The most recent analyst rating on (PRO) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on PROS Holdings stock, see the PRO Stock Forecast page.

PROS Holdings Announces Key Decisions at Annual Meeting

On May 8, 2025, PROS Holdings, Inc. held its annual meeting of stockholders, where several key decisions were made. Stockholders elected Catherine Lesjak and John Strosahl as Class III directors and Andres Reiner as a Class I director. They approved executive officer compensation and amendments to the 2017 Equity Incentive Plan, increasing authorized shares by three million. Additionally, PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

PROS Holdings Announces New CEO Appointment

On May 1, 2025, PROS Holdings announced the appointment of Jeffrey B. Cotten as the new President and CEO, effective June 2, 2025, succeeding Andres Reiner who is retiring. The company also reported strong financial results for Q1 2025, with a 10% increase in subscription revenue and a significant improvement in operating cash flow, highlighting the growing adoption of its AI-driven solutions and its recognition as a leader in the CPQ solutions market.