PROS Holdings (PRO) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: N/A
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: 7.96%
• EPS Growth: 83.62%
• Country: US
• Employees: 1,501
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.13
• Shares Outstanding: 48,106,453
• 10 Day Avg. Volume: 3,644,985
• 30 Day Avg. Volume: 1,735,153
• 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: 0.83
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 3.98
• Enterprise Value/Ebitda: 126.00
• 1Y Price Target: $23.25
• Price Target Upside: 1.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 64 Neutral
• Price Target: $24.50 ▲(6.71% Upside)

PROS Holdings' overall score is driven by strong technical momentum and positive earnings call outcomes, despite financial risks from high leverage and negative equity. The lack of profitability and valuation concerns weigh on the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for PROS's solutions, supporting long-term business expansion and market presence.

Strategic Advancements

Industry recognition enhances brand credibility and competitive positioning, potentially attracting new customers and partnerships.

Financial Flexibility

Improved debt structure increases financial flexibility, allowing for better resource allocation and strategic investments.

Negative Factors

High Leverage

High leverage and negative equity pose financial risks, potentially limiting investment capacity and increasing vulnerability to economic downturns.

Profitability Challenges

Ongoing profitability issues highlight cost management challenges, which may hinder long-term financial health and growth potential.

Challenging Sales Environment

Adverse macroeconomic conditions could delay sales and project execution, impacting revenue growth and strategic initiatives.

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 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 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

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: Positive
• Last Price: 22.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 22.96 is above the 20-day moving average (MA) of 19.95, above the 50-day MA of 17.04, and above the 200-day MA of 19.07, indicating a bullish trend. The MACD of 2.00 indicates Negative momentum. The RSI at 81.42 is Negative, neither overbought nor oversold. The STOCH value of 60.28 is Neutral, 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
PRO	64 Neutral	$1.10B	―	29.80%	―	7.96%	83.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PUBM	61 Neutral	$387.31M	124.65	-0.65%	―	3.53%	-109.03%
WEAV	61 Neutral	$522.31M	―	-40.52%	―	18.10%	4.60%
DOMO	53 Neutral	$626.30M	―	48.46%	―	>-0.01%	9.72%
RSKD	51 Neutral	$730.86M	―	-10.16%	―	7.96%	5.67%
BLND	49 Neutral	$879.11M	―	-93.00%	―	-4.76%	67.62%

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.

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.