BURLINGTON, Mass., Sept. 29, 2025 (GLOBE NEWSWIRE) -- Progress Software (NASDAQ: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced financial results for its fiscal third quarter ended August 31, 2025.
Third Quarter 2025 Highlights:
Revenue of $250 million increased 40% year-over-year on an actual currency basis and 38% on a constant currency basis.
Annualized Recurring Revenue ("ARR") of $849 million increased 47% year-over-year on a constant currency basis.
Operating margin was 18% and non-GAAP operating margin was 40%.
Diluted earnings per share was $0.44 compared to $0.65 in the same quarter last year, a decrease of 32%.
Non-GAAP diluted earnings per share was $1.50 compared to $1.26 in the same quarter last year, an increase of 19%.
"Our third quarter performance was truly exceptional," said Progress CEO, Yogesh Gupta. "Net retention remains strong at 100%, while ARR continues to grow steadily. Q3 was very solid in terms of revenue, earnings, cash flow, and execution. ShareFile is meaningfully contributing to top and bottom-line results as we successfully passed every major milestone on our integration plan. On the product front, we continue to invest and innovate in AI capabilities, including agentic RAG technology, which we are now embedding across our product portfolio to empower customers to extract more value from their own data using GenAI."
Additional financial highlights included:
Three Months Ended
GAAP
Non-GAAP
(in thousands, except percentages and per share amounts)
August 31,2025
August 31,2024
% Change
August 31,2025
August 31,2024
% Change
Revenue
$
249,795
$
178,686
40
%
$
249,795
$
178,686
40
%
Income from operations
$
43,874
$
40,349
9
%
$
99,423
$
74,123
34
%
Operating margin
18
%
23
%
(500) bps
40
%
41
%
(100) bps
Net income
$
19,413
$
28,464
(32
)%
$
65,723
$
55,216
19
%
Diluted earnings per share
$
0.44
$
0.65
(32
)%
$
1.50
$
1.26
19
%
Cash from operations (GAAP) / Adjusted free cash flow (non-GAAP) / Unlevered free cash flow (non-GAAP)
$
73,446
$
57,658
27
%
$
74,428
$
57,525
29
%
$
88,617
$
63,149
40
%
See Important Information Regarding Non-GAAP Financial Measures, Liquidity Measures, and Select Performance Metrics and a reconciliation of non-GAAP adjustments to Progress' GAAP financial results at the end of this press release.
Other fiscal third quarter 2025 metrics and recent results included:
Cash and cash equivalents were $99.0 million at the end of the quarter.
Days sales outstanding was 55 days compared to 45 days in the fiscal third quarter of 2024 and 53 days in the fiscal second quarter of 2025.
On September 23, 2025, our Board of Directors increased our share repurchase authorization by $200.0 million to $242.2 million.
Anthony Folger, Progress CFO, said: "Our Q3 results reflect the durability of our revenue streams, cash flow, and earnings, highlighted by continued outperformance in the field, the successful integration of ShareFile, and ongoing expense control company-wide. ARR again grew and net retention remained at 100%. On the balance sheet, we continued to pay down debt aggressively and repurchased another $15 million of shares, while increasing liquidity with a new $1.5 billion revolving credit facility. We're well positioned to close out FY25 and our positive outlook is reflected in our increased guidance."
2025 Business Outlook
Progress provides the following guidance for the fiscal year ending November 30, 2025 and the fiscal fourth quarter ending November 30, 2025:
Updated FY 2025 Guidance(September 29, 2025)
Prior FY 2025 Guidance (June 30, 2025)
(in millions, except percentages and per share amounts)
GAAP
Non-GAAP
GAAP
Non-GAAP
Revenue
$975 - $981
$975 - $981
$962 - $974
$962 - $974
Diluted earnings per share
$1.38 - $1.45
$5.50 - $5.56
$1.27 - $1.43
$5.28 - $5.40
Operating margin
15%
38% - 39%
15%
38% - 39%
Cash from operations (GAAP) /Adjusted free cash flow (non-GAAP) / Unlevered free cash flow (non-GAAP)
$221 - $231
$232 - $242$289 - $299
$218 - $230
$228 - $240$285 - $296
Effective tax rate
19%
20%
17%
20%
Q4 2025 Guidance
(in millions, except per share amounts)
GAAP
Non-GAAP
Revenue
$250 - $256
$250 - $256
Diluted earnings per share
$0.31 - $0.37
$1.29 - $1.35
Based on current exchange rates, the expected positive currency translation impact on our:
Fiscal year 2025 business outlook compared to 2024 exchange rates is approximately $4.0 million on revenue.
GAAP and non-GAAP diluted earnings per share for fiscal year 2025 is approximately $0.03.
Fiscal Q4 2025 business outlook compared to 2024 exchange rates is approximately $2.5 million on revenue.
GAAP and non-GAAP diluted earnings per share for fiscal Q4 2025 is approximately $0.01.
To the extent that there are changes in exchange rates versus the current environment and/or our expectations, this may have an impact on Progress' business outlook.
Conference Call
Progress will hold a conference call to review its financial results for the fiscal third quarter of 2025 at 5:00 p.m. ET on Monday, September 29, 2025. Participants must register for the conference call here: https://register-conf.media-server.com/register/BI3c81d17f962244a88dfaf9ee6925ed85. The webcast can be accessed at: https://edge.media-server.com/mmc/p/axecrzfw/. The conference call will include comments followed by questions and answers. Attendees must register for the webcast and an archived version of the conference call and supporting materials will be available on the Progress website within the investor relations section after the live conference call.
About Progress
Progress Software (NASDAQ: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables our customers to develop, deploy and manage responsible AI-powered applications and digital experiences with agility and ease. Customers get a trusted provider in Progress, with the products, expertise and vision they need to succeed. Over 4 million developers and technologists at hundreds of thousands of enterprises depend on Progress. Learn more at www.progress.com.
Progress and Progress Software are trademarks or registered trademarks of Progress Software Corporation and/or its subsidiaries or affiliates in the U.S. and other countries. Any other names contained herein may be trademarks of their respective owners.
Investor Contact:
Press Contact:
Michael Micciche
Jeff Young
Progress Software
Progress Software
+1 781 850 8450
+1 781 280 4000
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)
Three Months Ended
Nine Months Ended
(in thousands, except per share data)
August 31,2025
August 31,2024
% Change
August 31,2025
August 31,2024
% Change
Revenue:
Software licenses
$
63,437
$
57,850
10
%
$
172,677
$
175,929
(2
)%
Maintenance, SaaS, and professional services
186,358
120,836
54
%
552,488
362,519
52
%
Total revenue
249,795
178,686
40
%
725,165
538,448
35
%
Costs of revenue:
Cost of software licenses
2,833
2,700
5
%
8,745
7,928
10
%
Cost of maintenance, SaaS, and professional services
33,919
20,057
69
%
100,567
64,452
56
%
Amortization of acquired intangibles
10,784
6,307
71
%
31,743
21,564
47
%
Total costs of revenue
47,536
29,064
64
%
141,055
93,944
50
%
Gross profit
202,259
149,622
35
%
584,110
444,504
31
%
Operating expenses:
Sales and marketing
51,850
37,141
40
%
152,823
114,141
34
%
Product development
49,432
34,720
42
%
142,377
105,143
35
%
General and administrative
28,308
20,503
38
%
79,568
63,830
25
%
Amortization of acquired intangibles
26,415
13,810
91
%
78,286
47,515
65
%
Cyber vulnerability response expenses, net
659
927
(29
)%
2,126
4,950
(57
)%
Restructuring expenses
907
308
194
%
8,979
3,308
171
%
Acquisition-related expenses
814
1,864
(56
)%
5,035
3,114
62
%
Total operating expenses
158,385
109,273
45
%
469,194
342,001
37
%
Income from operations
43,874
40,349
9
%
114,916
102,503
12
%
Other expense, net
(17,668
)
(6,070
)
191
%
(55,544
)
(20,489
)
171
%
Income before income taxes
26,206
34,279
(24
)%
59,372
82,014
(28
)%
Provision for income taxes
6,793
5,815
17
%
11,984
14,723
(19
)%
Net income
$
19,413
$
28,464
(32
)%
$
47,388
$
67,291
(30
)%
Earnings per share:
Basic
$
0.45
$
0.66
(32
)%
