Progress Software Corporation, listed on NASDAQ as PRGS, is a key player in the software industry, specializing in AI-powered digital experience and infrastructure software. The company has shown remarkable financial performance, as evidenced by its recent earnings report. Progress Software competes with other software giants, but its consistent ability to exceed market expectations sets it apart.
On September 29, 2025, Progress Software reported earnings per share (EPS) of $1.50, surpassing the estimated $1.30. This represents a 15.38% earnings surprise, as highlighted by Zacks. The EPS also improved from $1.26 in the same period last year, showcasing the company's growth trajectory. Over the past four quarters, PRGS has consistently outperformed consensus EPS estimates.
The company achieved a revenue of $249.8 million for the quarter ending August 2025, exceeding the Zacks Consensus Estimate of $240.35 million by 3.93%. This revenue marks a significant year-over-year increase of 39.8% from $178.69 million. Progress Software has surpassed consensus revenue estimates in three of the last four quarters, demonstrating its robust performance in the software industry.
Progress Software's financial health is further underscored by its Annualized Recurring Revenue (ARR) of $849 million, a 47% increase year-over-year. The company has also raised its full-year guidance for revenue, earnings per share, and cash flow, indicating a positive outlook for the remainder of the year. This growth is supported by a non-GAAP operating margin of 40%.
Despite a decrease in diluted earnings per share to $0.44 from $0.65 in the same quarter last year, the non-GAAP diluted EPS rose by 19% to $1.50. The company's financial metrics, such as a price-to-earnings (P/E) ratio of 31.86 and a price-to-sales ratio of 2.11, reflect the market's valuation of its revenue. However, a debt-to-equity ratio of 3.29 suggests a higher level of debt compared to its equity.
