Business
Progress Software Announces Third Quarter 2025 Financial Results
Annualized Recurring Revenue ("ARR") of $849 million Grew 47% year-over-yearRevenue of $250 million Grew 40% year-over-yearRaises Full Year Guidance for
About this update from Progress Software Corporation
[{"type":"text","content":"Annualized Recurring Revenue (\"ARR\") of $849 million Grew 47% year-over-yearRevenue of $250 million Grew 40% year-over-yearRaises Full Year Guidance for Revenue, Earnings Per Share, and Cash Flow 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 % ChangeRevenue$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) bpsNet 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 Per...