Progress Software Corp provides enterprise performance engineering and observability software that helps organizations monitor, secure, and optimize complex IT environments globally.
PRGS offers compelling growth potential driven by its unique position bridging legacy infrastructure with modern cloud needs, resulting in accelerated revenue expansion and high operating margins. The company's ability to generate $235.2M in cash flow from operations provides a solid foundation for funding R&D and returning capital to shareholders through buybacks.
Investors should be cautious of the elevated debt load with long-term debt at $1.04B and a retained earnings deficit, which limits financial flexibility during downturns. The massive accumulated goodwill and intangible assets create significant non-cash amortization charges that suppress reported net income without affecting underlying cash generation.
Progress Software Corp (PRGS) delivers enterprise software solutions focused on performance engineering and observability across industries like healthcare, finance, and manufacturing. The company serves global markets with its flagship APM and digital experience monitoring platforms designed to optimize IT infrastructure and cloud-native applications. Revenue surged to $977.8M in 2025, reflecting strong adoption of its comprehensive analytics suite amidst a backdrop of significant goodwill assets.
Management successfully navigated the transition from legacy mainframe dominance to modern cloud architectures, evidenced by the robust revenue growth from $602M in 2022 to $977.8M in 2025. Despite a slight dip in net income during the expansion phase, operational efficiency improved with operating profit reaching $153.3M and strong cash flow from operations of $235.2M supporting shareholder returns via repurchases.
The enterprise software sector is shifting towards hybrid cloud architectures where visibility across on-premise servers and public clouds is critical for operational resilience. Companies like Progress Software are essential providers in this space, offering the only comprehensive solutions capable of monitoring disparate environments from a single pane of glass.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $602.0M | $694.4M | $753.4M | $977.8M |
| Cost of Revenue | $94.5M | $126.6M | $130.5M | $187.6M |
| Gross Profit | $507.5M | $567.9M | $622.9M | $790.2M |
| Operating Expenses | $375.4M | $457.3M | $498.9M | $637.0M |
| Operating Income | $132.1M | $110.5M | $124.0M | $153.3M |
| G&A | $77.9M | $83.2M | $89.5M | $108.2M |
| Marketing | $140.8M | $156.1M | $164.6M | $211.0M |
| Stock-Based Comp | $37.1M | $40.5M | $46.8M | $64.8M |
| D&A | $5.0M | $6.3M | $6.4M | $6.2M |
| Depreciation | $5.0M | $6.3M | $6.4M | $6.2M |
| Amortization | $68.9M | $96.6M | $94.5M | $145.5M |
| Other OpEx | $156.8M | $218.1M | $244.8M | $317.7M |
| Non-Operating Income | $-14.9M | $-30.9M | $-29.7M | $-71.7M |
| Interest Expense | $15.8M | $30.8M | — | — |
| Pre-Tax Income | $117.3M | $79.7M | $94.3M | $81.6M |
| Income Tax | $22.2M | $9.5M | $25.8M | $8.5M |
| Continuing Ops | $95.1M | $70.2M | $68.4M | $73.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $95.1M | $70.2M | $68.4M | $73.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $95.1M | $70.2M | $68.4M | $73.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $426.1M | $330.8M | $368.8M | $400.0M |
| Cash & Equivalents | $256.3M | $127.0M | $118.1M | $94.8M |
| Marketable Securities | $0 | — | — | — |
| Accounts Receivable | $97.8M | $125.8M | $163.6M | $195.8M |
| Inventory | $5.0M | — | — | — |
| Other Current Assets | $66.9M | $78.0M | $87.2M | $109.4M |
| Long-Term Assets | $985.4M | $1.27B | $2.16B | $2.06B |
| PP&E (Net) | $14.9M | $15.2M | $13.7M | $13.7M |
| Intangibles | $217.4M | $354.3M | $723.6M | $584.0M |
| Goodwill | $671.0M | $832.1M | $1.29B | $1.31B |
| Operating Leases | $17.6M | $18.7M | $30.9M | $25.8M |
| Other LT Assets | $64.5M | $51.7M | $97.8M | $125.1M |
| Total Assets | $1.41B | $1.60B | $2.53B | $2.46B |
| Current Liabilities | $318.0M | $352.1M | $455.1M | $809.7M |
| Accounts Payable | $9.3M | $12.4M | $13.9M | $15.9M |
| Current Debt | $6.2M | $13.1M | $0 | $359.2M |
| Current Leases | $7.5M | $10.1M | $9.2M | $8.5M |
| Deferred Revenue | $227.7M | $236.1M | $332.1M | $324.8M |
| Other Current Liab | $59.2M | $72.1M | $99.9M | $101.4M |
| Long-Term Liabilities | $695.0M | $791.0M | $1.63B | $1.17B |
| Long-Term Debt | $611.8M | $710.9M | — | $1.04B |
| LT Operating Leases | $15.0M | $13.0M | $26.3M | $21.1M |
| Other LT Liab | $13.3M | $8.1M | $1.53B | $7.0M |
| Total Liabilities | $1.01B | $1.14B | $2.09B | $1.98B |
| Shareholders' Equity | $398.5M | $459.7M | $438.8M | $478.3M |
| Paid-In Capital | $331.6M | $370.6M | $354.2M | $383.7M |
| Retained Earnings | $101.7M | $120.9M | $120.4M | $127.4M |
| AOCI | $-35.2M | $-32.2M | $-36.2M | $-33.1M |
| Total L&E | $1.41B | $1.60B | $2.53B | $2.46B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $95.1M | $70.2M | $68.4M | $73.1M |
| Non-Cash Adjustments | $25.9M | $114.0M | $41.0M | $66.3M |
| Working Capital Changes | $71.2M | $-10.3M | $102.1M | $95.8M |
| Cash from Operations | $192.2M | $173.9M | $211.5M | $235.2M |
| Capital Expenditures | $6.1M | $5.6M | $5.2M | $5.7M |
| Cash from Investing | $22.0M | $-360.4M | $-857.9M | $-26.9M |
| Debt Issuances | $7.5M | $195.0M | $730.0M | $0 |
| Debt Repayments | $6.9M | $6.9M | $261.2M | $0 |
| Share Buybacks | $77.0M | $34.0M | $86.8M | $105.2M |
| Dividends Paid | $31.1M | $31.6M | $31.5M | $786.0K |
| Cash from Financing | $-101.4M | $51.2M | $640.8M | $-238.4M |
| FX Effect | $-11.9M | $6.0M | $-3.3M | $6.8M |
| Net Change in Cash | $100.9M | $-129.3M | $-8.9M | $-23.3M |
| Beginning Cash | $155.4M | $256.3M | $127.0M | $118.1M |
| Ending Cash | $256.3M | $127.0M | $118.1M | $94.8M |
The company's revenue streams primarily consist of professional services for implementation and support, licensing fees for its core APM platform, and subscription-based SaaS offerings for digital experience management. Financials indicate a heavy reliance on high-margin software licenses and recurring service contracts which drive the substantial current deferred revenue balance of $324.8M.
The substantial $1.31B goodwill balance exposes the stock to significant impairment risk if market conditions deteriorate or if acquisitions underperform integration targets. High levels of current liabilities at $809.7M relative to cash on hand could strain liquidity during periods of rapid expansion or economic contraction. The concentration in specific verticals like healthcare and finance introduces regulatory and sector-specific cyclicality risks.
Progress Software possesses deep historical expertise in mainframe and hybrid IT environments, creating a high barrier to entry for competitors who focus solely on cloud-native stacks. The company's integrated platform architecture reduces customer migration costs while providing unique visibility into legacy systems that many modern monitoring tools cannot address effectively.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.