Progress Software Corporation (PRGS) specializes in providing technology solutions that enable businesses to create, launch, and oversee their software applications. The company's ...
Progress Software Corporation is a publicly traded enterprise software provider listed on the NASDAQ Global Select Market under the symbol PRGS. Founded in 1981 by software industry pioneers including Joseph Alsop, Clyde Kessel, Mary Székely, and Charles “Chip” Ziering, the company is headquartered at 15 Wayside Road in Burlington, Massachusetts. ...Progress Software Corporation is a publicly traded enterprise software provider listed on the NASDAQ Global Select Market under the symbol PRGS. Founded in 1981 by software industry pioneers including Joseph Alsop, Clyde Kessel, Mary Székely, and Charles “Chip” Ziering, the company is headquartered at 15 Wayside Road in Burlington, Massachusetts. Yogesh K. Gupta serves as chief executive officer. Progress has approximately 2,801 full-time employees and operates internationally across North America, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific region.
The company’s business is centered on software that helps organizations create, deploy, operate, secure, and modernize business applications and digital experiences. OpenEdge is a central application development and deployment platform designed to support secure, multi-language applications across on-premises, cloud, and hybrid environments. Progress also offers developer tools and user-interface components for web, mobile, desktop, chat, and augmented or virtual reality applications, along with automated testing and reporting capabilities. Sitefinity supports web content management and customer analytics, while Corticon provides business rules management and decision automation intended to help organizations change operational policies without extensive application redevelopment.
Progress’s data and infrastructure portfolio broadens its addressable market. DataDirect Connect enables connectivity between applications and databases through common interfaces. MOVEit focuses on secure file transfer and collaboration for sensitive business information. Chef provides infrastructure automation for building, deploying, configuring, and securing applications across multi-cloud, hybrid, and on-premises environments. WhatsUp Gold supports network monitoring, while Kemp LoadMaster delivers application delivery and load-balancing capabilities. Kemp Flowmon provides network performance monitoring and diagnostics using telemetry from multiple sources.
In addition to licenses and subscriptions, Progress provides professional and technical services such as implementation assistance, project management, custom development, programming, web application enablement, consulting, and training. Its customers include direct enterprise users, software vendors, OEMs, and systems integrators. The company’s revenue model combines recurring software and subscription revenue with maintenance, support, and services. Source data indicates approximately $753 million in 2024 revenue and a gross margin near 79% on a trailing basis. Progress reports meaningful operating cash generation and relatively low capital-expenditure requirements, which are typical characteristics of an established software vendor. However, the company also carries substantial debt and has significant intangible assets, partly reflecting acquisitions and purchased technology. Its strategic priorities include expanding cloud-based and AI-enabled offerings, improving application modernization, increasing data accessibility and security, and helping customers automate development, deployment, infrastructure management, and business decisions.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$977.8M
+29.8%
+2.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$73.1M
+6.9%
-7.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+80.8%
-2.3%
+14.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+15.7%
-4.8%
-6.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+7.5%
-17.7%
-9.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$229.5M
+11.2%
-19.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+23.5%
-14.3%
-21.5%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
177.9%
-50.0%
+50.4%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.49x
-39.0%
+72.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, and welcome to Progress Software's second Quarter 26 Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a Q&A session. To ask the question during the session, you will need to press *11 on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. I would now like to hand the conference over to Michael Micciche, Sir, you may begin.
Michael Micciche: Thank you, Tawanda. Good afternoon, everybody. Thanks for joining us for Progress Software's Second Fiscal Quarter 2026 Financial Results Conference Call. With me tonight are Yogesh Gupta, our president and CEO, and Anthony Folger, our Chief Financial Officer. Please note that all the financial figures referenced in this call tonight are non-GAAP measures unless otherwise indicated. Both the earnings release and the supplemental presentation are available on the Investor Relations section of our website at investors.progress.com. Yogesh, I'll turn it over to you.
Yogesh Gupta: Thank you, Mike, and good afternoon, everyone. Q2 was another strong quarter for Progress as our results exceeded our expectations and we were able to raise our guidance again for the full year. Our Q2 '26 results reflect the resilience of our product portfolio, strong execution by all our teams, and the continued loyalty of our customers. Revenue of $253 million was up 7% year-over-year, with ARR of $868 million, up 2% year-over-year in constant currency. Operating margin was 40% and earnings per share were $1.62, well ahead of the high end of our guidance. We also generated approximately $79 million of adjusted free cash flow and delivered a net retention rate of 100%. These results exceeded our expectations and guidance across every metric and were driven by broad-based strength throughout the portfolio. We saw particularly strong performance in our data platform products, as our customers increasingly leverage their business data to provide context for AI. We also saw strength across the rest of our portfolio, including infrastructure management and content-driven workflow automation. When viewed against the backdrop of the last several quarters, Q2 reinforces the strength and consistency of our business model. Over the past year, we have continued to demonstrate our ability to generate durable recurring revenue, strong margins and significant cash flows, while integrating acquisitions, reducing debt, investing in innovation, and navigating a rapidly evolving technology environment. Our view remains largely unchanged that AI represents an opportunity for Progress. While certain aspects of the software business are dramatically changing, enterprises have begun to realize that context and control are key to AI efficacy, outcomes and value. These realizations lead to the strengths of Progress. Our data platform and workflow automation products …
