Slide 1: Progress Financial Results Q3 2025
Progress Financial Results Q3 2025 Supplemental Information September 29, 2025
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Progress has identified some of these forward-lookin
Slide 3: Conference Call Details
Conference Call Details What: Progress Fiscal Q3’25 Financial Results When: Monday, September 29, 2025 Time: 5:00 p.m. ET To register for the Live Call: Please go to this link to retrieve dial-in details. Access the Webcast: Here. Please note: Webcast is listen-only. © 2025 Progress Software Corpora
Slide 4: Summary Highlights Q3 2025
Summary Highlights Q3 2025 Strong Q3 Results; ARR Growth of 47%, Net Retention Rate 100% Guidance Raised for Revenue, EPS, and Cash Flow • Revenues of $250M vs. prior guidance of $237M - $243M, an increase of 38% year-over-year in constant currency • ARR: $849M, up 47% year-over-year in constant cur
Slide 5: Annualized Recurring Revenue
Annualized Recurring Revenue ARR growth of 47% year-over-year ShareFile adds ~$260M of ARR Other products further add to year- over-year growth All periods reported in constant currency, using current year budgeted exchange rates Note: ARR is a Non-GAAP operating metric and does not have a standardi
Slide 6: Annualized Recurring Revenue Trend
Annualized Recurring Revenue Trend Pro Forma ARR growth of 3% year-over- year (ShareFile included in all periods) Net Retention Rate between 100%-102% Consistent Annual Growth Net Retention % - TTM 101% 102% 102% 101% 100% 100% 100% 100% 100% © 2025 Progress Software Corporation and/or its subsidiar
Slide 7: Total Growth Strategy: Driving ARR Growth
Total Growth Strategy: Driving ARR Growth ARR CAGR of 20% Q3 2020 – Q3 2025 All periods reported in constant currency, using current year budgeted exchange rates © 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 7
Slide 8: Total Growth Strategy: Driving Revenue Growth
Total Growth Strategy: Driving Revenue Growth Revenue CAGR of 15% 2021 – 2025(E)* * Represents the mid-point of our FY’25 guidance range © 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 8
Slide 9: Total Growth Strategy: Growing Profitability
Total Growth Strategy: Growing Profitability Operating Income CAGR of 13% 2021 – 2025(E)* Best-in-class non-GAAP operating margins consistently above 35% * Represents the mid-point of our FY’25 guidance range © 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights rese
Slide 10: Total Growth Strategy: Growing Unlevered Free Cash Flow
Total Growth Strategy: Growing Unlevered Free Cash Flow Unlevered FCF CAGR of 12% 2021 – 2025(E)* * Represents the mid-point of our FY’25 guidance range © 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 10
Slide 11: Capital Allocation Strategy
Capital Allocation Strategy PRIMARY Continue to prioritize accretive M&A opportunities that meet our disciplined FOCUS criteria to create the strongest returns. Use our significant free cash flow to pay down debt and reload for the next acquisition. • $40M repaid in Q3 ’25; $110M YTD • Currently mod
Slide 12: Well Defined M&A Framework
Well Defined M&A Framework End Market ▪ Cast a wide net across infrastructure software Alignment and all aspects of the development lifecycle ▪ Tight alignment increases synergy potential Appropriate ▪ ~10-25% of current Progress revenues Sizing ▪ Can be financed and integrated efficiently Financial
Slide 13: Summary Q3 2025 Financial Results
Summary Q3 2025 Financial Results Q3 2025 Results Prior Q3 2025 Outlook (provided on June 30, 2025) Revenue $250M $237M - $243M GAAP earnings per share (Diluted) $0.44 $0.29 - $0.35 Non-GAAP earnings per share (Diluted) $1.50 $1.28 - $1.34 GAAP Operating Margin 18% Not guided Non-GAAP Operating Marg
Slide 14: Business Outlook (as of September 29, 2025)
Business Outlook (as of September 29, 2025) Q4 2025 FY 2025 FY 2025 Current Outlook Prior Outlook Updated Outlook (provided on June 30, 2025) Revenue $250M - $256M $962M - $974M $975M - $981M GAAP EPS $0.31 - $0.37 $1.27 - $1.43 $1.38 - $1.45 Non-GAAP EPS $1.29 - $1.35 $5.28 - $5.40 $5.50 - $5.56 GA
Slide 15: Outstanding Debt and Potential Impact on Share Count
Outstanding Debt and Potential Impact on Share Count Convertible # 1 Convertible # 2 Revolver (as of 8/31/25) Balance: $360M Balance: $450M Balance: $620M drawn out of $1.5B Interest Rate: 1.00% Interest Rate: 3.50% Interest Rate: 1.25% to 2.5% above benchmark Conversion Price: $57.30 Conversion Pri
Slide 16: Supplemental Financial Information
Supplemental Financial Information
Slide 17: Supplemental Revenue Information (Unaudited)
Supplemental Revenue Information (Unaudited) © 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 17
Slide 18: Important Information Regarding Non-GAAP Financial Information
Important Information Regarding Non-GAAP Financial Information Progress furnishes certain non-GAAP supplemental information to our financial results. We use such non-GAAP financial measures to evaluate our period-over-period operating performance because our management team believes that excluding t
Slide 19: Important Information Regarding Non-GAAP Financial Information
Important Information Regarding Non-GAAP Financial Information • Provision for income taxes - We adjust our income tax provision by excluding the tax impact of the non-GAAP adjustments discussed above. • Constant currency - Revenue from our international operations has historically represented a sub
Slide 20: Important Information Regarding Non-GAAP Financial Information
Important Information Regarding Non-GAAP Financial Information • ARR continued - ARR is not defined in GAAP and is not derived from a GAAP measure. Rather, ARR generally aligns to billings (as opposed to GAAP revenue which aligns to the transfer of control of each performance obligation). ARR does n
Slide 21: Progress
D Progress