Progress Software (NASDAQ:PRGS) Announces Earnings Results

Progress Software (NASDAQ:PRGS) issued its quarterly earnings results on Monday. The software maker reported $1.60 EPS for the quarter, topping analysts’ consensus estimates of $1.57 by $0.03, Briefing.com reports. The firm had revenue of $248.00 million for the quarter, compared to analyst estimates of $246.40 million. Progress Software had a net margin of 8.61% and a return on equity of 44.35%. The business’s revenue for the quarter was up 4.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.31 EPS.

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 Price Performance

Shares of NASDAQ:PRGS opened at $25.65 on Wednesday. The company has a quick ratio of 0.49, a current ratio of 0.49 and a debt-to-equity ratio of 2.18. The stock has a market cap of $1.08 billion, a PE ratio of 13.15, a PEG ratio of 1.24 and a beta of 0.57. The company’s fifty day moving average is $37.41 and its 200 day moving average is $41.05. Progress Software has a 52 week low of $24.72 and a 52 week high of $65.50.

Analyst Upgrades and Downgrades

PRGS has been the subject of several research reports. DA Davidson cut their target price on shares of Progress Software from $70.00 to $50.00 and set a “buy” rating for the company in a research report on Wednesday, March 25th. Weiss Ratings downgraded Progress Software from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, March 13th. Wedbush dropped their price target on Progress Software from $65.00 to $45.00 and set an “outperform” rating for the company in a research note on Tuesday. Jefferies Financial Group cut their price objective on Progress Software from $45.00 to $34.00 and set a “hold” rating for the company in a report on Tuesday. Finally, Citigroup increased their price objective on Progress Software from $54.00 to $60.00 and gave the company a “buy” rating in a research report on Thursday, January 22nd. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $54.83.

Insider Transactions at Progress Software

In other news, EVP Sundar Subramanian sold 21,594 shares of Progress Software stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $37.65, for a total value of $813,014.10. Following the transaction, the executive vice president owned 15,542 shares in the company, valued at approximately $585,156.30. The trade was a 58.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 value of $240,000.00. Following the transaction, the chief financial officer owned 48,802 shares in the company, valued at approximately $1,952,080. The trade was a 10.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 30,546 shares of company stock worth $1,171,546 over the last ninety days. Insiders own 3.60% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Kemnay Advisory Services Inc. purchased a new stake in Progress Software during the 4th quarter valued at $42,000. Advisors Asset Management Inc. increased its position in shares of Progress Software by 135.1% in the first quarter. Advisors Asset Management Inc. now owns 1,051 shares of the software maker’s stock valued at $54,000 after acquiring an additional 604 shares during the period. Osaic Holdings Inc. increased its position in shares of Progress Software by 183.0% in the second quarter. Osaic Holdings Inc. now owns 985 shares of the software maker’s stock valued at $62,000 after acquiring an additional 637 shares during the period. iSAM Funds UK Ltd bought a new position in shares of Progress Software during the third quarter valued at about $102,000. Finally, State of Wyoming bought a new position in shares of Progress Software during the second quarter valued at about $137,000.

Key Stories Impacting Progress Software

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

• Positive Sentiment: Q1 results beat expectations — Progress reported ~ $248M revenue (up ~4% Y/Y) and $1.60 EPS, topping estimates and lifting the company’s FY2026 earnings outlook; this drove the initial share-strength reaction. PRGS’ Q1 Earnings Surpass Estimates, Revenues Up Y/Y, Shares Rise
• Positive Sentiment: Company raised full‑year guidance after the quarter, citing robust demand for AI-enabled offerings and stable customer retention — a constructive signal for revenue leverage if product momentum continues. Progress Software raises full-year outlook after delivering strong Q1 results
• Positive Sentiment: New product release — Progress launched Sitefinity Generative CMS to expand its AI-driven digital experience stack; product traction could help sustain the revenue mix shift toward higher-growth, AI-enabled offerings. Progress Software Delivers Sitefinity Generative CMS
• Neutral Sentiment: Earnings-call materials and transcripts are available — review the call/slides for management commentary on margin drivers, timing of AI-related bookings, and guidance details to assess sustainability of the beat. Q1 2026 Earnings Call Transcript
• Negative Sentiment: Analyst reactions trimmed upside — several firms lowered price targets and some revised models after the print (Jefferies to $34 hold; Wedbush to $45 from $65; Oppenheimer to $57), and a Benzinga roundup notes analysts cutting forecasts; those changes pressured the stock despite the beat. Progress Software Analysts Cut Their Forecasts After Q1 Results

Progress Software Company Profile

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.