Progress Software (NASDAQ:PRGS) Posts Quarterly Earnings Results, Beats Expectations By $0.20 EPS

Progress Software (NASDAQ:PRGS) posted its quarterly earnings results on Tuesday. The software maker reported $1.51 EPS for the quarter, beating the consensus estimate of $1.31 by $0.20, FiscalAI reports. The firm had revenue of $253.00 million during the quarter, compared to analysts’ expectations of $252.86 million. Progress Software had a return on equity of 43.68% and a net margin of 5.16%.The company’s revenue for the quarter was up 17.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.33 EPS. Progress Software updated its FY 2026 guidance to 1.74-1.910 EPS and its Q1 2026 guidance to 1.56-1.62 EPS.

Here are the key takeaways from Progress Software’s conference call:

• Fiscal 2025 topped expectations — revenue was $978 million (+30% YoY), Q4 EPS beat guidance, and FY26 guidance targets up to $1.0 billion in revenue with unlevered free cash flow near $320 million.
• ShareFile integration is complete and accretive, and the Nuclia acquisition has been integrated to add agentic RAG capabilities, enabling multiple new AI product launches that management says are driving customer momentum.
• ARR finished at $852 million (≈+2% pro forma YoY) with a 100% net retention rate, indicating strong customer retention but only modest organic ARR growth so far.
• The balance sheet carries meaningful leverage — $1.4 billion of debt and ~3.4x net leverage at year-end — though management plans $250 million of revolver repayments in FY26 to reduce leverage toward ~2.7x.
• Cash generation and capital returns remain strong — adjusted free cash flow was $247 million for FY25, the company repurchased $105 million of stock in FY25 and has ~$202 million remaining on its buyback authorization.

Progress Software Trading Down 3.7%

Shares of PRGS opened at $38.60 on Wednesday. The stock has a fifty day moving average price of $42.26 and a two-hundred day moving average price of $44.27. The company has a debt-to-equity ratio of 2.22, a quick ratio of 0.44 and a current ratio of 0.44. The company has a market cap of $1.66 billion, a price-to-earnings ratio of 35.09, a PEG ratio of 1.76 and a beta of 0.61. Progress Software has a 52-week low of $38.54 and a 52-week high of $65.50.

Progress Software News Summary

Here are the key news stories impacting Progress Software this week:

• Positive Sentiment: Q1 FY26 EPS guidance of $1.56–$1.62 tops the street view (~$1.30), which supports near‑term earnings expectations and helped initial after‑hours buying. Progress Software Reports Fiscal Fourth Quarter 2025 and Full Year Results
• Positive Sentiment: Reported Q4 revenue (~$252.7–$253.0M) showed mid‑teens YoY growth and the company cited stronger cash from operations and improved margins — constructive fundamentals for longer‑term growth. Progress Software (PRGS) Releases Q4 2025 Earnings
• Neutral Sentiment: FY26 revenue guide of $986M–$1.0B is roughly in line with consensus (~$986.6M), so top‑line expectations were not materially changed. Progress Software Reports Fiscal Fourth Quarter 2025 and Full Year Results
• Negative Sentiment: FY26 EPS guidance of $1.74–$1.91 looks substantially below some analyst models and reported consensus figures cited in aggregators, creating uncertainty about full‑year profitability and prompting investor caution. Progress Software Stock Climbs After Mixed Q4 Results, Strong FY26 Guidance
• Negative Sentiment: Some reporting differences (GAAP vs. adjusted EPS) and third‑party summaries show mixed EPS comparisons (e.g., publications noting EPS misses on certain metrics), increasing analyst/investor confusion. Progress Software Reports Fiscal Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Balance‑sheet metrics cited by data services (low current/quick ratios and higher debt‑to‑equity) may raise liquidity/leverage concerns for some investors. Progress Software (PRGS) Releases Q4 2025 Earnings

Hedge Funds Weigh In On Progress Software

Several hedge funds have recently added to or reduced their stakes in PRGS. Advisors Asset Management Inc. boosted its stake in shares of Progress Software by 135.1% in the 1st quarter. Advisors Asset Management Inc. now owns 1,051 shares of the software maker’s stock valued at $54,000 after purchasing an additional 604 shares during the last quarter. AQR Capital Management LLC lifted its stake in Progress Software by 16.9% in the first quarter. AQR Capital Management LLC now owns 42,587 shares of the software maker’s stock valued at $2,194,000 after buying an additional 6,147 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Progress Software by 6.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 25,644 shares of the software maker’s stock worth $1,321,000 after buying an additional 1,454 shares during the period. Goldman Sachs Group Inc. grew its holdings in Progress Software by 75.6% during the first quarter. Goldman Sachs Group Inc. now owns 560,943 shares of the software maker’s stock valued at $28,894,000 after purchasing an additional 241,515 shares during the period. Finally, Jane Street Group LLC grew its holdings in Progress Software by 206.8% during the first quarter. Jane Street Group LLC now owns 111,326 shares of the software maker’s stock valued at $5,734,000 after purchasing an additional 75,044 shares during the period.

Analysts Set New Price Targets

Several research firms recently issued reports on PRGS. Weiss Ratings lowered shares of Progress Software from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Saturday, October 25th. Jefferies Financial Group lowered their price objective on Progress Software from $50.00 to $45.00 and set a “hold” rating on the stock in a research note on Monday, January 5th. DA Davidson cut their target price on Progress Software from $75.00 to $70.00 and set a “buy” rating for the company in a research report on Thursday, January 15th. Wall Street Zen raised Progress Software from a “hold” rating to a “buy” rating in a research note on Friday, October 3rd. Finally, Citigroup dropped their price objective on Progress Software from $57.00 to $54.00 and set a “buy” rating for the company in a research note on Friday, January 16th. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $65.40.

About Progress Software

Progress Software (NASDAQ: PRGS) is a global provider of enterprise software designed to simplify and accelerate the delivery of business applications. The company’s offerings span digital experience management, application development and deployment, data connectivity and integration, and predictive analytics. Progress supports organizations in building, deploying, and managing mission-critical applications across on-premises, cloud and hybrid environments, helping to reduce development complexity and operational overhead.

Key products in Progress’s portfolio include Progress OpenEdge, a robust development and database platform for building transactional applications; Progress DataDirect, which enables high-performance connectivity to disparate data sources; Progress Sitefinity, a digital experience platform for content management and personalization; Progress Telerik, a suite of UI controls and developer tools; and Progress Kinvey, a serverless backend platform for mobile and web applications.