Slide 1: Q2 2025 Supplemental Information Progress Financial Results
June 30, 2025 Q2 2025 Supplemental Information Progress Financial Results
Slide 2: Forward Looking Statements
2© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 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
Slide 3: Conference Call Details
3© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Conference Call Details Please note: Webcast is listen-only. What: When: Time: To register for the Live Call: Live / Recorded Webcast: Progress Fiscal Q2’25 Financial Results Monday, June 30, 2025 5:00
Slide 4: Solid Q2 Results; ARR Growth of 46%, Net Retention Rate 100%
4© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Summary Highlights Q2 2025 • Revenues of $237M increased 35% year-over-year in constant currency, vs prior guidance of $235M - $241M • ARR: $838M, up 46% year-over-year in constant currency, 2% pro-form
Slide 5: Annualized Recurring Revenue
5© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Note: ARR is a Non-GAAP operating metric and does not have a standardized definition. It is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be v
Slide 6: Annualized Recurring Revenue Trend
6© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Annualized Recurring Revenue Trend All periods reported in constant currency, using current year budgeted exchange rates Pro Forma ARR growth of 2% year-over- year (ShareFile included in all periods) Co
Slide 7: ARR Growth and Net Retention
7© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. ARR Growth and Net Retention All periods reported in constant currency, using current year budgeted exchange rates` YoY ARR Growth % in Purple Pro Forma ARR growth of 2% year-over- year (ShareFile inclu
Slide 8: Total Growth Strategy: Driving ARR Growth
8© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Total Growth Strategy: Driving ARR Growth ARR CAGR of 19% Q2 2020 – Q2 2025 All periods reported in constant currency, using current year budgeted exchange rates
Slide 9: Total Growth Strategy: Driving Revenue Growth
9© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Total Growth Strategy: Driving Revenue Growth Revenue CAGR of 15% 2021 – 2025(E)* * Represents the mid-point of our FY’25 guidance range
Slide 10: Total Growth Strategy: Growing Profitability
10© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 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 Total Growth Strategy: Growing Profit
Slide 11: Total Growth Strategy: Growing Unlevered Free Cash Flow
11© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Unlevered FCF CAGR of 11% 2021 – 2025(E)* * Represents the mid-point of our FY’25 guidance range Total Growth Strategy: Growing Unlevered Free Cash Flow
Slide 12: Capital Allocation Strategy
12© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Capital Allocation Strategy PRIMARY FOCUS Continue to prioritize accretive M&A opportunities that meet our disciplined criteria to create the strongest returns. Repurchase shares to offset dilution fro
Slide 13: Well Defined M&A Framework
13© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Well Defined M&A Framework ▪ Cast a wide net across infrastructure software and all aspects of the development lifecycle ▪ Tight alignment increases synergy potential ▪ ~10-25% of current Progress reve
Slide 14: Summary Q2 2025 Financial Results
14© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Summary Q2 2025 Financial Results Q2 2025 Results Prior Q2 2025 Outlook (provided on March 31, 2025) Revenue $237M $235M - $241M GAAP earnings per share (Diluted) $0.39 $0.24 - $0.30 Non-GAAP earnings
Slide 15: Business Outlook (as of June 30, 2025)
15© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Business Outlook (as of June 30, 2025) Q3 2025 Current Outlook FY 2025 Prior Outlook (provided on March 31, 2025) FY 2025 Updated Outlook Revenue $237M - $243M $958M - $970M $962M - $974M GAAP EPS $0.2
Slide 16: Outstanding Debt and Potential Impact on Share Count
16© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Outstanding Debt and Potential Impact on Share Count Convertible # 1 Balance: $360M Interest Rate: 1.00% Conversion Price: $57.30 Expiration: April 15, 2026 Capped Call Coverage: up to $89.88* * Subjec
Slide 17: Supplemental Financial Information
Supplemental Financial Information
Slide 18: Supplemental Revenue Information (Unaudited)
18© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited)
Slide 19: Non-GAAP Supplemental Information
19© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 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 manag
Slide 20: Important Information Regarding Non-GAAP Financial Information
20© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 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.
Slide 21: Important Information Regarding Non-GAAP Financial Information (continued)
21© 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 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
Slide 22: D Progress’
D Progress’