📊 PRGS Key Takeaways
Is Progress Software Corp. /Ma (PRGS) a Good Investment?
Progress Software demonstrates strong revenue growth (+29.8% YoY) and exceptional cash generation (34.5% FCF margin), indicating solid market demand and operational efficiency. However, net income growth (6.9% YoY) significantly lags revenue, combined with elevated leverage (2.55x D/E ratio) and below-1.0 current ratio, suggesting margin pressure from acquisitions and capital structure concerns that warrant caution despite fundamentally sound business dynamics.
Progress Software combines strong 29.8% revenue growth, an 82.3% gross margin, and excellent free-cash-flow generation, but net income growth of 6.9% indicates limited earnings conversion from the expanded revenue base. Financial risk remains elevated due to $1.29 billion of long-term debt, 2.55x debt-to-equity, and sub-1.0x liquidity ratios, although 10.5x interest coverage and robust cash flow provide meaningful protection.
Progress Software Corp. /Ma Key Strengths (PRGS)
- Strong revenue growth of 29.8% YoY demonstrates sustained market demand and sales execution
- Exceptional free cash flow generation of $172.9M (34.5% FCF margin) indicates high-quality earnings and minimal capital intensity typical of leading software businesses
- Excellent gross margins of 82.3% with operating margins of 18.3% reflect strong pricing power and operational leverage in the software segment
- High 82.3% gross margin and solid 18.3% operating margin
- Strong 29.8% revenue growth
- Exceptional $172.89 million free cash flow and 34.5% FCF margin
PRGS Stock Risks: Progress Software Corp. /Ma Investment Risks
- Net income growth (6.9% YoY) significantly lags revenue growth (29.8%), indicating margin compression likely from acquisition-related amortization and integration costs
- High financial leverage with Debt/Equity of 2.55x ($1.3B debt on $506.1M equity) creates refinancing and covenant risk in a potential downturn
- Current ratio of 0.81x and Quick ratio of 0.80x indicate tight working capital position and potential liquidity constraints if operations deteriorate
- High long-term debt of $1.29 billion and 2.55x debt-to-equity
- Current and quick ratios near 0.8x indicate limited short-term liquidity
- Net income growth substantially trails revenue growth, suggesting acquisition, financing, or integration costs
Key Metrics to Watch
- Earnings growth trajectory relative to revenue growth - need to see expansion of operating leverage as acquisitions integrate
- Operating cash flow sustainability and working capital management - critical given below-1.0 current ratio
- Debt reduction progress - monitor leverage ratios trending toward <2.0x D/E range for improved financial flexibility
- Net debt reduction and interest coverage
- Operating margin and net income growth
Progress Software Corp. /Ma (PRGS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 34.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
PRGS Profit Margin, ROE & Profitability Analysis
PRGS vs Technology Sector: How Progress Software Corp. /Ma Compares
How Progress Software Corp. /Ma compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Progress Software Corp. /Ma Stock Overvalued? PRGS Valuation Analysis 2026
Based on fundamental analysis, Progress Software Corp. /Ma shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Progress Software Corp. /Ma Balance Sheet: PRGS Debt, Cash & Liquidity
PRGS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Progress Software Corp. /Ma's revenue has grown significantly by 84% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.57 reflects profitable operations.
PRGS Revenue Growth, EPS Growth & YoY Performance
PRGS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $237.4M | $17.0M | $0.39 |
| Q1 2026 | $238.0M | $10.9M | $0.24 |
| Q3 2025 | $178.7M | $19.4M | $0.44 |
| Q2 2025 | $175.1M | $16.2M | $0.37 |
| Q1 2025 | $184.7M | $10.9M | $0.24 |
| Q3 2024 | $175.0M | $19.1M | $0.42 |
| Q2 2024 | $175.1M | $12.1M | $0.27 |
| Q1 2024 | $164.2M | $22.6M | $0.51 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Progress Software Corp. /Ma Dividends, Buybacks & Capital Allocation
PRGS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Progress Software Corp. /Ma (CIK: 0000876167)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PRGS
What is the AI rating for PRGS?
Progress Software Corp. /Ma (PRGS) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PRGS's key strengths?
Claude: Strong revenue growth of 29.8% YoY demonstrates sustained market demand and sales execution. Exceptional free cash flow generation of $172.9M (34.5% FCF margin) indicates high-quality earnings and minimal capital intensity typical of leading software businesses. ChatGPT: High 82.3% gross margin and solid 18.3% operating margin. Strong 29.8% revenue growth.
What are the risks of investing in PRGS?
Claude: Net income growth (6.9% YoY) significantly lags revenue growth (29.8%), indicating margin compression likely from acquisition-related amortization and integration costs. High financial leverage with Debt/Equity of 2.55x ($1.3B debt on $506.1M equity) creates refinancing and covenant risk in a potential downturn. ChatGPT: High long-term debt of $1.29 billion and 2.55x debt-to-equity. Current and quick ratios near 0.8x indicate limited short-term liquidity.
What is PRGS's revenue and growth?
Progress Software Corp. /Ma reported revenue of $501.3M.
Does PRGS pay dividends?
Progress Software Corp. /Ma pays dividends, with $0.4M distributed to shareholders in the trailing twelve months.
Where can I find PRGS SEC filings?
Official SEC filings for Progress Software Corp. /Ma (CIK: 0000876167) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PRGS's EPS?
Progress Software Corp. /Ma has a diluted EPS of $1.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PRGS's fundamental grade?
Based on our AI fundamental analysis in August 2026, Progress Software Corp. /Ma has a B grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PRGS stock overvalued or undervalued?
Valuation metrics for PRGS: ROE of 8.7% (sector avg: 22%), net margin of 8.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is PRGS's AI grade for 2026?
Our dual AI analysis gives Progress Software Corp. /Ma a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PRGS's free cash flow?
Progress Software Corp. /Ma's operating cash flow is $177.5M, with capital expenditures of $4.6M. FCF margin is 34.5%.
How does PRGS compare to other Technology stocks?
Vs Technology sector averages: Net margin 8.8% (avg: 18%), ROE 8.7% (avg: 22%), current ratio 0.81 (avg: 2.5).
Is Progress Software Corp. /Ma carrying too much debt?
PRGS has a debt-to-equity ratio of 2.55x, which is above the Technology sector average of 0.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.