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Progress Software Corporation
NASDAQ: PRGS Technology IT 🔎 Screen
🏹 Trader: 🚀 Stage 2 + Near High 📈 Stage 2 🎯 Near 52W High | BRS 76 Ready View all →
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$1.9B
Market Cap
24.9
P/E
1.50
PEG
7.4%
ROCE
15.9%
ROE
2.22
D/E
15.7%
OPM
-7.1%
% from 52W High
75
α RS
🔍 PRGS is showing a near-52W-high setup because it's within 7.1% of its 52-week high and RS Rating is 75. Net: Partial signal stack, not a recommendation. ? 52W High RS Rating
Sources
7.1% from 52W high · RS Rating 75
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🌏 Global Investor Returns
Currency-adjusted total returns for PRGS including FX impact
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📈 Price History
Ratio Health
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About

Progress Software Corporation provides software products that develops, deploys, and manages artificial intelligence (AI) powered applications and digital experiences in the United States and internationally.

Key Ratios Snapshot
📈 Growth Pattern
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 327.8K $8.4M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Progress Software Q1 2026: Revenue $248M, ARR $863M, EPS $1.60, 41% operating margin.
Revenue & Profitability
Revenue for Q1 2026 was $248 million, operating income (non-GAAP) was $102 million, and EPS was $1.60, up 22% YoY. ARR grew 2% pro forma YoY to $863 million, with net retention rate (NRR) of 99%. Adjusted free cash flow was $99 million, and the company ended the quarter with $113 million cash, $1.35 billion debt, and net leverage of 3.1x.
Outlook
Management is positive about the business, citing solid retention and performance. Full-year 2026 revenue guidance is $988 million to $1 billion (1-2% growth), with EPS of $5.91-$6.03. Macro and geopolitical uncertainty is being monitored but has not materially impacted demand. The company expects ARR growth to generally align with revenue growth for the year.
Growth Drivers
Growth is driven by new customer wins and expansions, supported by AI investments across the portfolio. Key products include OpenEdge, ShareFile, LoadMaster, and DevTools, with AI features like document summarization and security analysis accelerating adoption. The new innovation hub in Bangalore supports scaling of engineering and customer success teams globally.
Balance Sheet & CapEx
Not discussed in this earnings call. The only investment mentioned is the opening of a new innovation hub in Bangalore, consolidating office space for Progress and ShareFile teams.
Margins
Operating margin in Q1 2026 was 41%, with solid YoY expansion. Total costs were flat YoY at ~$146 million. Full-year 2026 operating margin is guided at approximately 39%, reflecting continued cost discipline and efficiency initiatives. Adjusted free cash flow guidance is $263-$275 million.
Key Risks
Isolated churn from a seven-figure Eastern European government contract due to a European court ruling on data retention. Macro and geopolitical uncertainty is being closely watched but has not yet affected demand. The company noted potential risks from AI disruption but views it as an opportunity given their trusted relationships.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-06-30
Q2 2026 results exceeded expectations with 7% revenue growth, strong margins, and robust cash flow. Guidance for the full year was raised, reflecting confidence in continued demand, especially for AI-driven products, and ongoing deleveraging and share repurchases.
Q1 2026 Q1 2026 2026-03-30
Q1 2026 saw 4% revenue growth, 2% ARR growth, and 22% higher EPS, driven by AI innovation and strong execution. ShareFile integration and improved collections boosted cash flow, while isolated churn had minimal impact. Full-year guidance projects steady growth and margin strength.
Q4 2025 Q4 2025 2026-01-20
Fiscal 2025 delivered record revenue and EPS, driven by ShareFile integration and AI innovation. Guidance for 2026 projects continued growth, strong cash flow, and steady operating margins, with ongoing investments in AI and disciplined M&A.
Q3 2025 Q3 2025 2025-09-29
Q3 results exceeded all guidance metrics, driven by strong AI-fueled demand and successful ShareFile integration. Revenue grew 40% year-over-year, ARR rose 47%, and EPS reached $1.50. Full-year guidance was raised, with continued focus on disciplined capital allocation.
Q2 2025 Q2 2025 2025-06-30
Q2 revenue grew 36% year-over-year to $237 million, with strong ARR and 100% net retention. ShareFile integration is ahead of schedule, Nuclia was acquired to boost GenAI capabilities, and full-year guidance was raised across all key metrics.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
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