PROGRESS SOFTWARE CORP /MA

PROGRESS SOFTWARE CORP /MA

PRGSProductivityAcquisitive (Roll-Up)

Progress Software is a global provider of application development, deployment, and digital experience infrastructure software.

Key figures

Data as of Aug 2026 · Pills compare vs May 2026
ARR Multiple
1.6x
-0.3x
ARR
$984M
-2.9%
YoY Growth
-1.5%
-8.3pp
Market Cap
$1.6B
-14.8%
Revenue (Q)
$246M
-2.9%
Gross Margin
82.7%
+0.4pp
Op. Margin
18.9%
+1.1pp
Rule of 40
17.4
-7.4
Magic Number
-0.55
-0.99

Revenue, margins & ratios from SEC filings; market cap & ARR multiple from market data. Market cap & ARR multiple use the close of 13 Oct 2026; their pills compare vs the Aug 2026 quarter-end (1.9x).

Valuation by quarter

Current ARR Multiple: 1.9x· Forward at Q4 FY2026 guidance: 1.6x

Calculated valuation

FRAMEWORK EST.
Valuation data is not available for this company.

Strategy recommendations

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AI Replacement RiskLOW
13/ 100
LowModerateElevatedHigh

Estimated likelihood that general-purpose AI replaces this product.

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Why this rating

From the AI Risk Calculator model

Structural moats (regulation, integration depth, or proprietary data) make AI-only replacement unlikely in the near term.

What's driving the score
DevOps & developer toolsCategory baseline
low base
Workflow complexity5/5
-12 risk
Data moat3/5
-1 risk
Integration depthHigh
-10 risk
SegmentEnterprise
-8 risk
IndustryOther
neutral
Own AI integration2/5
+1.6 risk

Company overview

Progress Software is a global provider of application development, deployment, and digital experience infrastructure software. It was founded in 1981 in Burlington, Massachusetts. It's one of the longest-running independent software companies, with roots in database technology, development tools, and middleware.

The product portfolio is broad. Telerik and Kendo UI provide comprehensive UI component libraries for web, desktop, and mobile development. Sitefinity handles digital experience and content management. WhatsUp Gold provides network monitoring. MOVEit is a secure managed file transfer solution widely used in healthcare, financial services, and government. DataDirect covers data connectivity. Chef handles infrastructure automation and compliance for DevOps teams. Kemp provides application delivery and load balancing. MarkLogic is a multi-model NoSQL database.

The strategy centers on acquiring established enterprise infrastructure products with loyal customer bases, strong recurring revenue, and room for operational improvement. Chef, Kemp, MarkLogic, and ShareFile are recent additions that significantly expanded the addressable market. The company transitions these products to subscription models while keeping retention rates high.

Over 100,000 customers across 180 countries use Progress products, including a majority of the Fortune 500. Annual revenue is roughly $1.0 billion. Recurring revenue exceeds 85% of total. Adjusted operating margins sit above 40%, reflecting the mature and capital-efficient business model. About 2,400 employees work at the company. Progress is known for consistent free cash flow and returns to shareholders through dividends and buybacks.

Entity information

Industry7372: Services-Prepackaged Software
Fiscal YearNov 30
IncorporatedDelaware
Phone(781) 280-4473
Address15 WAYSIDE ROAD, SUITE 400, BURLINGTON, MA, 01803
Mailing address15 WAYSIDE ROAD, SUITE 400, BURLINGTON, MA, 01803
EIN04-2746201
Entity typeoperating
SEC industry framework06 Technology

SaaS KPIs

Reported in at least 3 quarters

Non-GAAP Operating Margin

20 quarters
43%
Q3 FY2026+3.0pp

Adjusted Free Cash Flow

17 quarters
$87.2M
Q3 FY2026+10.0%

Annualized Recurring Revenue (ARR)

14 quarters
$868.0M
Q2 FY2026+0.6%

Net Retention Rate

11 quarters
100%
Q3 FY2025+1.0pp

Annualized Recurring Revenue

8 quarters
$852.0M
Q4 FY2025+1.7%

Free Cash Flow

5 quarters
$86.3M
Q3 FY2026+12.1%

Guidance

Q3 FY2026 earnings report →

Management outlook

Given with Q3 FY2026 results (Aug 2026)
ReportedGuidance

Guided revenue, Q4 FY2026$297.0M – $305.0M
Midpoint$301.0M
Growth vs Q3 FY2026+22.4%
Growth vs Q4 FY2025+19.1%
Q4 2026
Diluted (loss) earnings per share (GAAP)$(0.41) - $(0.32)
Diluted earnings per share (Non-GAAP)$1.24 - $1.33
Expected positive currency translation impact on revenueapproximately $0.6 million
Expected positive currency translation impact on GAAP and non-GAAP diluted (loss) earnings per shareapproximately $0.02
Revolver increase to cover Domo acquisition, net of debt repayments$360M
FY 2026
Revenue$1,044 - $1,052
Diluted earnings per share (GAAP)$1.18 - $1.28
Diluted earnings per share (Non-GAAP)$6.15 - $6.23
Operating margin (GAAP)13%
Operating margin (Non-GAAP)38%
Cash from operations (GAAP)$274 - $282
Adjusted free cash flow (Non-GAAP)$275 - $283
Unlevered free cash flow (Non-GAAP)$330 - $338
Effective tax rate (GAAP)25%
Effective tax rate (Non-GAAP)20%
Expected positive currency translation impact on revenueapproximately $9.4 million
Expected positive currency translation impact on GAAP and non-GAAP diluted earnings per shareapproximately $0.11

Quarterly financials

Earnings reports (23) →

Left axis in $ (Revenue, Gross profit, Net income, S&M); right axis for ratios (Rule of 40, Magic number). Click a legend item to toggle it.

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