Progress Software Corp (PRGS)

Price$44.05Cached quoteAs of 2026-09-05 12:29 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong cash generation is offset by heavy borrowing.

At roughly $1.68 billion of equity value, the shares trade near 5.5 times trailing free cash flow—cash left after operating and capital spending—and about 23 times the midpoint of management’s full-year reported earnings guidance. Including $1.22 billion of net debt, the business costs about 9.5 times trailing free cash flow. That cash measure looks cheap, but it includes $72 million of stock compensation and precedes Domo financing. A fair price therefore assumes cash remains durable and acquisition debt falls promptly.

Big pictureAcquisitions drove rapid sales growth, while underlying recurring growth remains modest.

Revenue rose from $442 million in fiscal 2020 to $978 million in 2025, but net income slipped from $80 million to $73 million as purchased businesses brought amortization and interest costs. The latest twelve months produced about $1.00 billion of revenue and $314 million of operating cash flow, showing durable cash conversion. Yet annualized recurring revenue—revenue expected to repeat over a year—grew only 2% excluding currency effects. Repeat software revenue reduces normal economic swings, but acquisition timing makes reported growth lumpy.

Business strengthHigh repeat revenue supports cash flow, but the balance sheet offers little room for mistakes.

Second-quarter revenue rose 7% to $253 million, gross profit remained about 82% of sales, and trailing capital spending was only $8.5 million. Those traits help cash remain resilient. Against that, May debt was $1.33 billion versus $103 million of cash, nearly four times trailing operating cash flow. Goodwill—the premium paid above acquired net assets—was $1.31 billion, more than twice $506 million of shareholder equity, while current liabilities exceeded current assets. Weaker renewals or a costly integration would quickly reduce downside protection.

What could change the storySuccessful Domo integration could unlock value; slowing renewals or delayed debt reduction would weaken it.

Bull case: Progress delivers its updated $263 million to $275 million adjusted free-cash-flow outlook, captures Domo cost savings by fiscal 2027, and reduces leverage as promised; then the current cash multiple looks low. Bear case: Domo’s July-quarter revenue fell 4%, Progress recurring revenue stays near 2%, and another debt-funded deal keeps interest and integration costs elevated. Buybacks complicate the test: $55 million spent in the first half reduced shares only about 2%, while stock compensation reached $39 million. Watch renewals, post-deal margins, and net debt.

AI: News

Second-quarter guidance resetResults beat the prior quarterly outlook, while slower full-year cash expectations tempered the good news.

On June 30, second-quarter revenue of $253 million exceeded the prior $240 million to $246 million range, while reported earnings per share of $0.50 exceeded the $0.35 to $0.41 range. Revenue grew 7%, but revenue expected to repeat each year grew only 2% excluding currency effects. Management raised full-year reported earnings guidance to $1.71–$1.87, while trimming its revenue and adjusted free-cash-flow ranges. The update supports near-term execution without proving faster underlying growth.

Domo acquisition announcedThe Domo deal broadens the data platform, while adding integration and borrowing risk.

On July 22, Progress agreed to acquire substantially all Domo operating assets for $400 million in cash. Management estimates an effective $355 million price after acquired cash, tax benefits, and transaction costs, funded through cash and its revolving credit line. It expects debt relative to adjusted operating profit to remain below three times and cost savings to be fully realized by fiscal 2027. The upside is a broader data and artificial-intelligence platform; the risk is borrowing more before ShareFile debt is fully reduced.

Domo sales deteriorateDomo’s latest filing showed shrinking customer revenue, increasing the burden on integration savings.

On September 3, Domo reported July-quarter revenue of $76.8 million, down 4%, with subscription revenue down 3%. Revenue lost from existing customers exceeded gains from new customers, and total customer count declined. Domo also breached a recurring-revenue requirement in its loan agreement, although Progress’s purchase terms reduce the price for debt left with the acquired business. These facts do not prevent closing, but they show that the acquisition’s value depends heavily on customer retention and cost removal, not simple growth.

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$977.8M	$753.4M	$694.4M	$602.0M	$531.3M	$442.1M	$413.3M	$379.0M	$389.2M	$405.3M	$377.6M	$332.5M	$334.0M	$317.6M	$333.6M	$351.6M	$494.1M	$515.6M
Gross profit	$790.3M	$622.9M	$567.9M	$507.5M	$452.9M	$380.0M	$338.1M	$312.0M	$320.0M	$339.6M	$313.8M	$298.3M	$299.0M	$281.3M	$296.8M	$310.5M	$400.9M	$423.7M
Gross margin	80.82%	82.68%	81.77%	84.30%	85.23%	85.95%	81.79%	82.33%	82.23%	83.79%	83.12%	89.70%	89.53%	88.57%	88.98%	88.30%	81.14%	82.18%
Research & development	$192.3M	$146.3M	$132.4M	$114.6M	$103.3M	$88.6M	$88.6M	$79.7M	$77.0M	$88.6M	$86.9M	$59.0M	$57.3M	$44.4M	$38.2M	$50.1M	$93.3M	$87.8M
Operating expenses	$637.0M	$498.9M	$457.3M	$375.4M	$336.8M	$272.3M	$298.0M	$244.2M	$262.5M	$369.3M	$299.1M	$217.5M	$235.3M	$213.5M	$188.1M	$219.0M	$349.8M	$359.3M
Operating income	$153.3M	$124.0M	$110.5M	$132.1M	$116.1M	$107.7M	$40.1M	$67.8M	$57.5M	−$29.7M	$14.8M	$80.7M	$63.7M	$67.8M	$108.7M	$91.5M	$51.1M	$64.4M
Operating margin	15.68%	16.46%	15.92%	21.95%	21.85%	24.36%	9.70%	17.89%	14.77%	−7.33%	3.91%	24.28%	19.08%	21.34%	32.59%	26.02%	10.35%	12.49%
EBITDA	$159.5M	$130.4M	$116.8M	$137.1M	$121.6M	$113.8M	$47.7M	$74.7M	$65.0M	−$21.2M	$24.2M	$90.5M	$74.0M	$77.1M	$117.5M	$110.9M	$91.5M	$94.5M
EBITDA margin	16.31%	17.31%	16.82%	22.78%	22.89%	25.74%	11.54%	19.71%	16.70%	−5.23%	6.40%	27.23%	22.17%	24.27%	35.22%	31.55%	18.52%	18.33%
Net income	$73.1M	$68.4M	$70.2M	$95.1M	$78.4M	$79.7M	$26.4M	$49.7M	$29.0M	−$55.7M	−$8.8M	$49.5M	$74.9M	$47.4M	$59.6M	$48.1M	$32.8M	$46.3M
Net profit margin	7.48%	9.08%	10.11%	15.79%	14.76%	18.03%	6.39%	13.11%	7.46%	−13.75%	−2.33%	14.87%	22.43%	14.94%	17.87%	13.68%	6.63%	8.98%
Basic EPSper basic share	$1.70	$1.58	$1.62	$2.19	$1.79	$1.78	$0.59	$1.09	$0.60	-$1.13	-$0.17	$0.97	$1.37	$0.75	$0.91	$0.75	$0.54	$0.75
Diluted EPSper diluted share	$1.66	$1.54	$1.57	$2.15	$1.76	$1.76	$0.58	$1.08	$0.60	-$1.13	-$0.17	$0.96	$1.35	$0.74	$0.88	$0.73	$0.53	$0.72

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈18.46%of listed shares

BlackRock, Inc.7.57M shares · Jun 30, 2026

View holders

Top 20 reported holders of PRGS
Holder	% owned
BlackRock, Inc.	≈18.46%7.57M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈9.38%3.85M shares
STATE STREET CORP	≈4.78%1.96M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈4.63%1.9M shares
VICTORY CAPITAL MANAGEMENT INC	≈4.12%1.69M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	≈3.11%1.27M shares
LSV ASSET MANAGEMENT	≈3.08%1.26M shares
GOLDMAN SACHS GROUP INC	≈3.07%1.26M shares
MANUFACTURERS LIFE INSURANCE COMPANY, THE	≈2.96%1.21M shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.86%1.17M shares
DIMENSIONAL FUND ADVISORS LP	≈2.62%1.08M shares
AQR CAPITAL MANAGEMENT LLC	≈2.54%1.04M shares
Heron Bay Capital Management	≈2.47%1.01M shares
NOMURA ASSET MANAGEMENT INTERNATIONAL INC.	≈2.15%880.61K shares
SYSTEMATIC FINANCIAL MANAGEMENT LP	≈2.10%861.53K shares
AMERICAN CENTURY COMPANIES INC	≈2.03%832.7K shares
FULLER & THALER ASSET MANAGEMENT, INC.	≈1.94%795.07K shares
KENNEDY CAPITAL MANAGEMENT LLC	≈1.81%741.88K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	≈1.66%682.1K shares
RICE HALL JAMES & ASSOCIATES, LLC	≈1.39%570.26K shares

Percentages use 41.01M shares of this listed class outstanding on Jun 26, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$428.2K disclosed value

Sells (SEC code S)45$8.99M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 19, 2026Form 4 · 10b5-1	FOLGER ANTHONYChief Financial Officer	SellCommon Stock	400	$29.96	$12.0K	48.8K
May 19, 2026Form 4 · 10b5-1	FOLGER ANTHONYChief Financial Officer	SellCommon Stock	4.1K	$29.05	$118.3K	49.2K
May 18, 2026Form 4 · 10b5-1	WANG YUFAN STEPHANIEChief Legal Officer	SellCommon Stock	3.5K	$29.04	$102.2K	2.5K
May 18, 2026Form 4 · 10b5-1	WANG YUFAN STEPHANIEChief Legal Officer	SellCommon Stock	1.5K	$28.44	$42.7K	6.1K
Mar 11, 2026Form 4 · 10b5-1	Subramanian SundarEVP/GM Infrastructure Mgmt	SellCommon Stock	1.6K	$38.28	$61.2K	15.5K

Review ownership filings at SEC.gov ↗

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Progress Software Corp (PRGS)

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