Progress Software Corporation · NASDAQ:PRGS

Progress Software — Q1 2026 Earnings Presentation

23 slides from Progress Software's earnings presentation, Mar 30, 2026

  1. Slide 1: Financial Results Q1 2026 Supplemental Information

    Progress Financial Results Q1 2026 Supplemental Information March 30, 2026

  2. 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

  3. Slide 3: Conference Call Details

    Conference Call Details What: Progress Fiscal Q1 ’26 Financial Results When: Monday, March 30, 2026 Time: 5:00 p.m. ET Register for the Live Call: Use this this link. Access the Webcast: here. Please note: Webcast is listen-only. © 2026 Progress Software Corporation and/or its subsidiaries or affili

  4. Slide 4: Summary Highlights Q1 2026

    Summary Highlights Q1 2026 Rev Growth 4%, Exceptional Margins and Cash Flow Debt Paydown and Buybacks Continue • Revenues of $248M vs. prior guidance of $244M - $250M, up 4% year-over-year as reported, or 2% in constant currency • ARR: $863M, up 2% year-over-year • NRR: 99% • Operating margin: 41% •

  5. Slide 5: Annualized Recurring Revenue Trend (Pro Forma)

    Annualized Recurring Revenue Trend (Pro Forma) ARR growth of 2% year-over-year ShareFile included in all periods Consistent Annual Growth All periods reported in constant currency, using current year budgeted exchange rates Net Retention % - TTM 102% 101% 100% 100% 100% 99% 100% 99% 99% © 2026 Progr

  6. Slide 6: Total Growth Strategy

    Total Growth Strategy Invest & Innovate Invest in our products and incorporate the latest technologies and capabilities to sustain relevance well into the future. Acquire & Integrate Disciplined M&A: pay a reasonable multiple for high-quality technology with strong recurring revenue; integrate quick

  7. Slide 7: Total Growth Strategy: Driving ARR Growth

    Total Growth Strategy: Driving ARR Growth ARR CAGR of 15% Q1 2021 – Q1 2026 All periods reported in constant currency, using current year budgeted exchange rates Excludes ARR values from acquisitions prior to purchase date © 2026 Progress Software Corporation and/or its subsidiaries or affiliates. A

  8. Slide 8: Total Growth Strategy: Driving Revenue Growth

    Total Growth Strategy: Driving Revenue Growth Revenue CAGR of 13% 2022 – 2026(E)* * Represents the mid-point of our FY’26 guidance range © 2026 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 8

  9. Slide 9: Total Growth Strategy: Growing Profitability

    Total Growth Strategy: Growing Profitability Operating Income CAGR of 13% 2022 – 2026(E)* Best-in-class non-GAAP operating margins consistently above 35% * Represents the mid-point of our FY’26 guidance range © 2026 Progress Software Corporation and/or its subsidiaries or affiliates. All rights rese

  10. Slide 10: Total Growth Strategy: Growing Unlevered Free Cash Flow

    Total Growth Strategy: Growing Unlevered Free Cash Flow Unlevered FCF CAGR of 12% 2022 – 2026(E)* * Represents the mid-point of our FY’26 guidance range © 2026 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 10

  11. 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 aggressively pay down debt and reload for the next acquisition. • $60M repaid in Q1 ’26 • Currently m

  12. Slide 12: Well Defined M&A Framework

    Well Defined M&A Framework End Market ▪ Cast a wide net across infrastructure software Alignment for AI-resilient businesses ▪ Tight alignment increases synergy potential Appropriate ▪ ~10-25% of current Progress revenues Sizing ▪ Can be financed and integrated efficiently Financial ▪ High recurring

  13. Slide 13: Summary Q1 2026 Financial Results

    Summary Q1 2026 Financial Results Q1 2026 Results Prior Q1 2026 Outlook (provided on January 20, 2026) Revenue $248M $244M - $250M GAAP earnings per share (Diluted) $0.53 $0.47 - $0.53 Non-GAAP earnings per share (Diluted) $1.60 $1.56 - $1.62 GAAP Operating Margin 19% Not guided Non-GAAP Operating M

  14. Slide 14: Business Outlook (as of March 30, 2026)

    Business Outlook (as of March 30, 2026) Q2 2026 FY 2026 FY 2026 Current Outlook Prior Outlook Updated Outlook (provided on January 20, 2026) Revenue $240M - $246M $986M - $1B $988M - $1B GAAP EPS $0.35 - $0.41 $1.74 - $1.91 $1.71 - $1.87 Non-GAAP EPS $1.47 - $1.53 $5.82 - $5.96 $5.91 - $6.03 GAAP Op

  15. 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 2/28/26) Balance: $360M Balance: $450M Balance: $540M 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

  16. Slide 16: Supplemental Financial Information

    Supplemental Financial Information

  17. Slide 17: ARR Exchange Rate Comparison – 2025 by Quarter

    ARR Exchange Rate Comparison – 2025 by Quarter* ARR is presented in constant currency, using our current year budgeted exchange rates “ARR at FY25 Rates” represents results reported translated using our FY25 budgeted exchange rates “ARR at FY26 Rates” represents those same results translated using o

  18. Slide 18: ARR Exchange Rate Comparison – 2022-2025

    ARR Exchange Rate Comparison – 2022-2025 ARR is presented in constant currency, using our current year budgeted exchange rates “ARR at FY25 Rates” represents results reported translated using our FY25 budgeted exchange rates “ARR at FY26 Rates” represents those same results translated using our FY26

  19. Slide 19: Supplemental Revenue Information (Unaudited)

    Supplemental Revenue Information (Unaudited) © 2026 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 19

  20. Slide 20: 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

  21. Slide 21: 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

  22. Slide 22: 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

  23. Slide 23: D Progress’

    D Progress’

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