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Pros Holdings (PRO)
NYSE:PRO
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PROS Holdings (PRO) AI Stock Analysis

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PRO

PROS Holdings

(NYSE:PRO)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
$24.50
▲(6.38% Upside)
PROS Holdings' overall stock score is driven by strong earnings call performance and positive technical indicators. However, financial performance and valuation concerns, particularly profitability challenges and high leverage, weigh on the score.
Positive Factors
Revenue Growth
Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.
Cash Flow Management
Effective cash flow management ensures the company can meet its operational needs and invest in growth opportunities, enhancing financial resilience.
Strategic Advancements
Expanding partnerships in the airline industry strengthens market position and diversifies revenue streams, contributing to long-term growth.
Negative Factors
High Leverage
Significant leverage poses financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.
Profitability Challenges
Ongoing net losses indicate operational inefficiencies, which could hinder long-term profitability and shareholder value.
Acquisition Uncertainty
Pending acquisition introduces uncertainty regarding future strategic direction and integration, potentially affecting business operations.

PROS Holdings (PRO) vs. SPDR S&P 500 ETF (SPY)

PROS Holdings Business Overview & Revenue Model

Company DescriptionPROS 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 MoneyPROS 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 Earnings Call Summary

Earnings Call Date:Oct 27, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a positive sentiment due to the strong financial performance, exceeding guidance, and strategic advancements in the airline industry and partnerships. However, some challenges remain in the macroeconomic environment affecting international sales.
Q2-2025 Updates
Positive Updates
Exceeding Guidance Ranges
The company exceeded the high end of its guidance ranges across all metrics for the second quarter, leading to a raised full year outlook for subscription revenue and ARR.
Strong Revenue Growth
Subscription revenue grew by 12%, total revenue by 8%, and adjusted EBITDA improved by 42% year-over-year.
Industry Recognition
PROS was named a leader by ISG in the 2025 CPQ Buyers Guide, marking its fourth consecutive leadership designation from an industry analyst in three quarters.
Airline Industry Momentum
PROS continued to gain momentum in the airline sector with new customer wins, such as Air Greenland and ValueJet, and expanding partnerships, including with American Airlines.
Financial Flexibility Improvement
The company exchanged $186.9 million of 2027 notes for $185 million of new notes due in 2030, reducing debt by approximately $2 million, thereby increasing financial flexibility.
Negative Updates
Challenging Sales Environment
The macroeconomic environment remains challenging, with specific impacts on international deals, leading to some project delays or pauses.
Moderation in Services Growth
Services revenue growth is expected to be below subscription growth, with a forecasted growth rate of 6% to 8% for the year.
Company Guidance
During the PROS Holdings Second Quarter 2025 Earnings Conference Call, the company exceeded the high end of guidance ranges across all metrics, leading to a raised full-year outlook for subscription revenue and subscription ARR. In Q2, subscription revenue grew by 12% to $73.3 million, total revenue increased by 8% to $88.7 million, and adjusted EBITDA improved by 42% year-over-year to $7.4 million. The company reported a non-GAAP subscription gross margin of 80% and a non-GAAP service gross margin of 11%, resulting in an overall non-GAAP gross margin of 69%. Free cash flow was $3.2 million for the quarter. For Q3, PROS expects subscription revenue to be between $74.8 million and $75.3 million, total revenue between $90.5 million and $91.5 million, and adjusted EBITDA between $11 million and $12 million. The full-year guidance was raised to reflect subscription ARR in the range of $310 million to $313 million and subscription revenue of $295.5 million to $297.5 million, with total revenue expected to be between $360 million and $362 million, and adjusted EBITDA between $42 million and $44 million.

PROS Holdings Financial Statement Overview

Summary
PROS Holdings shows solid revenue growth and improved cash flow generation, but remains unprofitable with high leverage and negative equity. Strong cash management mitigates some risks, but cost control and debt management are crucial for sustainability.
Income Statement
65
Positive
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
40
Negative
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue351.68M330.37M303.71M276.14M251.42M252.42M
Gross Profit238.64M217.04M188.40M166.06M146.50M147.79M
EBITDA861.00K-10.72M-39.57M-61.53M-60.77M-51.58M
Net Income-11.66M-20.48M-56.35M-82.25M-81.21M-76.98M
Balance Sheet
Total Assets444.93M419.90M421.83M452.95M494.48M539.97M
Cash, Cash Equivalents and Short-Term Investments188.40M161.98M168.75M203.63M227.55M329.13M
Total Debt342.08M300.89M324.76M325.63M334.78M268.06M
Total Liabilities521.11M488.61M499.71M488.43M490.90M422.93M
Stockholders Equity-76.18M-68.70M-77.87M-35.47M3.58M117.04M
Cash Flow
Free Cash Flow38.64M26.22M7.29M-24.77M-21.35M-79.57M
Operating Cash Flow39.81M27.38M9.88M-23.91M-18.55M-49.39M
Investing Cash Flow-935.00K-1.22M-2.70M-1.14M-85.17M-30.46M
Financing Cash Flow11.60M-32.34M-32.36M1.07M2.47M102.91M

PROS Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price23.03
Price Trends
50DMA
19.30
Positive
100DMA
17.55
Positive
200DMA
19.12
Positive
Market Momentum
MACD
0.95
Positive
RSI
79.80
Negative
STOCH
71.99
Neutral
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 23.03 is above the 20-day moving average (MA) of 22.97, above the 50-day MA of 19.30, and above the 200-day MA of 19.12, indicating a bullish trend. The MACD of 0.95 indicates Positive momentum. The RSI at 79.80 is Negative, neither overbought nor oversold. The STOCH value of 71.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRO.

PROS Holdings Risk Analysis

PROS Holdings disclosed 34 risk factors in its most recent earnings report. PROS Holdings 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

PROS Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$400.11M-0.65%3.53%-109.03%
$1.11B7.96%83.62%
$37.18B12.37-10.20%1.83%8.50%-7.62%
$533.86M-40.52%18.10%4.60%
$771.64M-10.16%7.96%5.67%
$563.63M>-0.01%9.72%
$923.19M-4.76%67.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PRO
PROS Holdings
23.03
3.65
18.83%
DOMO
Domo
13.95
5.56
66.27%
PUBM
PubMatic
8.78
-6.43
-42.27%
BLND
Blend Labs
3.55
0.08
2.31%
RSKD
Riskified
4.92
0.42
9.33%
WEAV
Weave Communications
6.93
-6.57
-48.67%

PROS Holdings Corporate Events

PROS Holdings Reports Strong Q3 2025 Growth
Oct 28, 2025

PROS Holdings, Inc. is a leading provider of AI-powered SaaS solutions that optimize pricing and selling experiences across various industries. The company leverages predictive AI and real-time analytics to enhance commerce through its PROS Platform.

Business Operations and StrategyM&A Transactions
PROS Holdings Announces Strategic Plans Post-Acquisition
Positive
Oct 1, 2025

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.

The most recent analyst rating on (PRO) stock is a Hold with a $23.25 price target. To see the full list of analyst forecasts on PROS Holdings stock, see the PRO Stock Forecast page.

M&A Transactions
PROS Holdings Enters Merger Agreement with Thoma Bravo
Neutral
Sep 22, 2025

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.

The most recent analyst rating on (PRO) stock is a Hold with a $23.25 price target. To see the full list of analyst forecasts on PROS Holdings stock, see the PRO Stock Forecast page.

Business Operations and StrategyM&A Transactions
PROS Holdings Acquired by Thoma Bravo for $1.4B
Positive
Sep 22, 2025

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.

The most recent analyst rating on (PRO) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on PROS Holdings stock, see the PRO Stock Forecast page.

PROS Holdings Reports Strong Q2 Earnings and Positive Outlook
Aug 2, 2025

The recent earnings call for PROS Holdings showcased a positive sentiment, highlighting significant achievements in revenue growth, strategic partnerships, and AI innovation. While challenges persist, particularly in the international sales environment and long sales cycles in the airline industry, the overall outlook remains optimistic with positive aspects outweighing the lowlights.

PROS Holdings Reports Strong Q2 2025 Growth
Aug 1, 2025

PROS Holdings, Inc. is a leading provider of AI-powered SaaS solutions that optimize pricing and selling experiences across various industries. The company leverages predictive AI and real-time analytics to enhance commerce strategies for businesses globally.

Business Operations and StrategyFinancial Disclosures
PROS Holdings Reports Strong Q2 2025 Financial Results
Positive
Jul 31, 2025

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.

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.

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.Date of analysis: Oct 28, 2025