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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)

Rating:56Neutral
Price Target:
$15.50
▲(4.10%Upside)
The overall score is primarily driven by the company's solid revenue growth and positive earnings outlook, balanced against significant financial risks and bearish technical indicators. The raised guidance and strategic initiatives offer a positive outlook, but the high leverage and lack of profitability are major concerns.
Positive Factors
Revenue Growth
PROS reported a better-than-expected 2Q with Travel and B2B momentum driving acceleration in Total and Subscription revenue growth.
Strategic Initiatives
With new CEO Jeff Cotten at the helm and armed with new GTM strategies, PROS has plans to grow quota bearing reps along with initiating targeted campaigns that could drive improved bookings.
Negative Factors
Execution Risk
There is skepticism around the company's long-term targets, as they require significant improvements in revenue growth and free cash flow margin.
Leadership Changes
The company is currently operating with a new CEO and no Chief Revenue Officer, which adds risk.

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 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 Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: -5.10%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant achievements in revenue growth, strategic partnerships, and AI innovation. However, challenges persist in the sales environment, particularly in international markets, and long sales cycles in the airline industry. Despite these challenges, the positive aspects significantly outweigh the lowlights.
Q2-2025 Updates
Positive Updates
Exceeding Guidance and Raising Outlook
PROS Holdings exceeded the high end of their guidance ranges across all metrics in Q2 2025, prompting an increase in the full year outlook for both subscription revenue and subscription ARR.
Strong Revenue and Profit Growth
Q2 2025 results showed a 12% year-over-year growth in subscription revenue to $73.3 million, an 8% increase in total revenue to $88.7 million, and a 42% improvement in adjusted EBITDA.
AI and Industry Leadership
PROS was named a leader in the 2025 CPQ Buyers Guide by ISG, marking the fourth consecutive leadership designation from an industry analyst in three quarters.
New Customer Wins and Expanding Partnerships
New customers such as Lennox and Air Greenland, and expanded partnerships with Holcim and Unidas, highlight PROS' momentum in various industries.
Innovation with AI Agents
PROS unveiled AI agents that combine language models with proprietary numerical models, aimed at enhancing commercial strategies across various domains.
Negative Updates
Challenging Sales Environment
The sales environment remains challenging, especially outside the U.S., where some international customers have delayed projects due to macroeconomic factors.
Long Sales Cycles in the Airline Industry
Despite the demand for PROS' offer management capabilities, the airline industry's long sales cycles pose a challenge for quicker revenue realization.
Company Guidance
During the PROS Holdings Second Quarter 2025 Earnings Conference Call, the company provided robust guidance, highlighting a positive trajectory across key financial metrics. The company raised its full-year outlook for subscription revenue and subscription Annual Recurring Revenue (ARR), following a strong quarter where subscription revenue grew by 12% and total revenue by 8% year-over-year. Adjusted EBITDA improved by 42% compared to the previous year. For the third quarter, PROS expects subscription revenue to be between $74.8 million and $75.3 million, reflecting a 12% growth year-over-year at the midpoint, and total revenue to range from $90.5 million to $91.5 million, indicating a 10% growth year-over-year. The company anticipates adjusted EBITDA between $11 million and $12 million for the third quarter. For the full year, subscription ARR is forecasted between $310 million and $313 million, with subscription revenue expected to be in the range of $295.5 million to $297.5 million. Total revenue for the year is projected to be between $360 million and $362 million, with adjusted EBITDA expected to improve by 43% year-over-year. Additionally, free cash flow is anticipated to increase by 61% year-over-year, ranging from $40 million to $44 million.

PROS Holdings Financial Statement Overview

Summary
PROS Holdings shows strong revenue growth and effective cash management, with a high gross profit margin. However, profitability and leverage remain concerns, with ongoing net losses and negative stockholders' equity.
Income Statement
68
Positive
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
45
Neutral
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue342.71M330.37M303.71M276.14M251.42M252.42M
Gross Profit229.90M217.04M188.40M166.06M146.50M147.79M
EBITDA-2.23M-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 Assets443.04M419.90M421.83M452.95M494.48M539.97M
Cash, Cash Equivalents and Short-Term Investments178.96M161.98M168.75M203.63M227.55M329.13M
Total Debt343.97M300.89M324.76M325.63M334.78M268.06M
Total Liabilities527.92M488.61M499.71M488.43M490.90M422.93M
Stockholders Equity-84.88M-68.70M-77.87M-35.47M3.58M117.04M
Cash Flow
Free Cash Flow29.22M26.22M7.29M-24.77M-21.35M-79.57M
Operating Cash Flow30.04M27.38M9.88M-23.91M-18.55M-49.39M
Investing Cash Flow-636.00K-1.22M-2.70M-1.14M-85.17M-30.46M
Financing Cash Flow12.63M-32.34M-32.36M1.07M2.47M102.91M

PROS Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price14.89
Price Trends
50DMA
16.43
Negative
100DMA
17.32
Negative
200DMA
20.17
Negative
Market Momentum
MACD
-0.15
Positive
RSI
39.88
Neutral
STOCH
19.69
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 14.89 is below the 20-day moving average (MA) of 15.87, below the 50-day MA of 16.43, and below the 200-day MA of 20.17, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 39.88 is Neutral, neither overbought nor oversold. The STOCH value of 19.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$539.69M131.131.94%3.62%-53.21%
63
Neutral
$789.71M-9.00%9.30%24.96%
62
Neutral
$34.81B6.83-11.82%2.06%6.36%-8.52%
59
Neutral
$513.49M-40.52%18.10%4.60%
58
Neutral
$648.19M48.46%-0.81%9.83%
56
Neutral
$716.31M29.80%7.96%83.62%
53
Neutral
$920.34M-93.00%-0.40%63.36%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PRO
PROS Holdings
14.89
-6.06
-28.93%
DOMO
Domo
16.11
8.51
111.97%
PUBM
PubMatic
11.12
-7.98
-41.78%
BLND
Blend Labs
3.56
0.80
28.99%
RSKD
Riskified
4.93
-0.80
-13.96%
WEAV
Weave Communications
6.83
-3.40
-33.24%

PROS Holdings Corporate Events

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.

Private Placements and FinancingBusiness Operations and Strategy
PROS Holdings Issues Convertible Senior Notes for Flexibility
Positive
Jun 25, 2025

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.

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.

Private Placements and FinancingBusiness Operations and Strategy
PROS Holdings Swaps Convertible Notes in Strategic Move
Neutral
Jun 13, 2025

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.

Executive/Board Changes
PROS Holdings Announces CRO Todd McNabb’s Departure
Neutral
Jun 11, 2025

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.

Executive/Board ChangesShareholder Meetings
PROS Holdings Announces Key Decisions at Annual Meeting
Neutral
May 9, 2025

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.

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: Aug 03, 2025