Overview

* Progress Software ( PRGS ) fiscal Q2 revenue grows 36% yr/yr to $237 mln

* ARR increases 46% yr/yr to $838 mln, reflecting strong product portfolio

* Co raises FY25 guidance for revenue, operating margin, EPS, and cash flow

Outlook

* Progress Software ( PRGS ) raises FY25 revenue guidance to $962-$974 mln.

* Company expects FY25 non-GAAP EPS of $5.28-$5.40.

* Progress Software anticipates Q3 2025 revenue of $237-$243 mln.

* Company sees positive currency impact of $2.4 mln on FY25 revenue.

Result Drivers

* STRONG REVENUE GROWTH - Revenue increased by 36% year-over-year to $237 million, driven by strong contributions across all geographies, according to CEO Yogesh Gupta.

* ARR GROWTH - Annualized Recurring Revenue grew 46% year-over-year, reaching $838 million, attributed to the consistent strength of the product portfolio, as stated by CEO Yogesh Gupta.

* SHAREFILE INTEGRATION - Progress reports successful integration of ShareFile, achieving major synergy milestones.

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 $237 mln

Revenue

Q2 Beat $1.4 $1.3

Adjusted

EPS

Q2 EPS $0.39

Q2 40.0%

Adjusted

Operatin

g Margin

Q2 ARR $838 mln

Q2 16.0%

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)