Progress Software (NASDAQ:PRGS) Posts Earnings Results, Beats Estimates By $0.03 EPS

Progress Software (NASDAQ:PRGS) posted its quarterly earnings data on Monday. The software maker reported $1.60 EPS for the quarter, topping the consensus estimate of $1.57 by $0.03, Briefing.com reports. Progress Software had a return on equity of 43.90% and a net margin of 7.48%.The company’s revenue for the quarter was up 4.1% compared to the same quarter last year. During the same quarter last year, the company posted $1.31 earnings per share.

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

• Progress delivered a strong Q1 with $248M revenue (+4% YoY), ARR of ~$863M (+2% pro forma), EPS of $1.60 (+22%), and raised full-year guidance of $988M–$1.0B revenue and EPS $5.91–$6.03.
• Management cites AI as a major growth driver—AI features are embedded across the portfolio (Agentic RAG, Data Platform, ShareFile, infrastructure tools) and are credited with accelerating new customer wins and expansions.
• Cash generation and balance-sheet improvements were highlighted: adjusted free cash flow of $99M, DSO improvement to 52 days, $60M of debt repaid and $20M of buybacks in Q1, with a plan to repay ~$250M of debt in FY26 to lower leverage to ~2.7x.
• ShareFile is presented as a successful, margin-accretive acquisition that scaled recurring SaaS revenue and collections, though prior billing/data cleanup caused some quarter-to-quarter SaaS volatility that the company says is largely resolved.
• Progress will roll its 2026 convertible note into the revolver, which increases expected interest expense and is reflected in guidance; net debt remains elevated (~$1.24B, 3.1x leverage), posing refinancing and interest-cost risk to margins.

Progress Software Stock Up 2.2%

PRGS stock traded up $0.60 during mid-day trading on Monday, reaching $28.27. The company had a trading volume of 1,599,729 shares, compared to its average volume of 1,058,614. Progress Software has a fifty-two week low of $26.85 and a fifty-two week high of $65.50. The company has a market capitalization of $1.19 billion, a price-to-earnings ratio of 17.03, a price-to-earnings-growth ratio of 1.22 and a beta of 0.57. The company has a debt-to-equity ratio of 2.18, a quick ratio of 0.49 and a current ratio of 0.49. The firm has a fifty day simple moving average of $37.90 and a 200 day simple moving average of $41.27.

Analysts Set New Price Targets

A number of research firms recently weighed in on PRGS. 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 reduced their price target on Progress Software from $70.00 to $50.00 and set a “buy” rating on the stock in a report on Wednesday, March 25th. Citigroup boosted their price target on shares of Progress Software from $54.00 to $60.00 and gave the company a “buy” rating in a research report on Thursday, January 22nd. Weiss Ratings cut shares of Progress Software from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, March 13th. Finally, Wedbush reduced their target price on shares of Progress Software from $75.00 to $65.00 and set an “outperform” rating on the stock in a research note on Thursday, January 22nd. Four research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Progress Software currently has a consensus rating of “Moderate Buy” and an average target price of $60.60.

Insiders Place Their Bets

In other news, EVP Sundar Subramanian sold 1,600 shares of the firm’s stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $38.28, for a total transaction of $61,248.00. Following the sale, the executive vice president owned 15,542 shares of the company’s stock, valued at approximately $594,947.76. This trade represents a 9.33% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Anthony Folger sold 6,000 shares of the firm’s stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $40.00, for a total transaction of $240,000.00. Following the sale, the chief financial officer directly owned 48,802 shares in the company, valued at approximately $1,952,080. The trade was a 10.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 30,546 shares of company stock worth $1,171,546 over the last 90 days. Company insiders own 3.60% of the company’s stock.

Institutional Trading of Progress Software

Hedge funds and other institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP grew its position in shares of Progress Software by 1.8% during the third quarter. Dimensional Fund Advisors LP now owns 1,139,309 shares of the software maker’s stock worth $50,044,000 after acquiring an additional 20,669 shares during the last quarter. Geode Capital Management LLC raised its position in Progress Software by 0.6% in the 4th quarter. Geode Capital Management LLC now owns 1,081,487 shares of the software maker’s stock valued at $46,468,000 after purchasing an additional 6,095 shares during the last quarter. The Manufacturers Life Insurance Company boosted its stake in Progress Software by 2.7% during the 4th quarter. The Manufacturers Life Insurance Company now owns 931,070 shares of the software maker’s stock worth $39,999,000 after purchasing an additional 24,659 shares during the period. Goldman Sachs Group Inc. boosted its stake in Progress Software by 75.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 560,943 shares of the software maker’s stock worth $28,894,000 after purchasing an additional 241,515 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its position in Progress Software by 11.9% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 558,855 shares of the software maker’s stock worth $24,008,000 after purchasing an additional 59,649 shares during the last quarter.

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.