Progress Software Delivers Strong Q3 2025 Financial Performance

Progress Software Reports Robust Third Quarter Financial Results

Annualized Recurring Revenue ("ARR") of $849 million grew by 47% year-over-year.
Quarterly revenue reached $250 million, reflecting a 40% year-over-year increase.
Full year guidance for revenue, earnings per share, and cash flow is raised.

Progress Software (Nasdaq: PRGS) has recently disclosed its outstanding financial metrics for the latest quarter that showcases its substantial growth engine. As of the end of its fiscal third quarter, which concluded on August 31, 2025, the company demonstrated significant improvements in its key performance indicators, reinforcing its market leadership in AI-driven digital experience and infrastructure software.

Key Financial Highlights of Q3 2025

• Revenue of $250 million increased 40% on a year-over-year basis, showcasing strong performance across its product lines.
• ARR rose to $849 million, marking a phenomenal growth rate of 47% year-over-year.
• Operating margin stood at an admirable 18%, while the non-GAAP operating margin was notably higher at 40%.
• Diluted earnings per share (EPS) was reported at $0.44, which shows a decrease from $0.65 in the same quarter last year, impacted by some strategic investments.
• Conversely, the non-GAAP diluted EPS increased by 19% to $1.50, reflecting improved operational efficiency.

Reflecting on the earnings, CEO Yogesh Gupta stated, "Our third quarter performance was truly exceptional, highlighted by strong net retention and impressive growth in ARR. This quarter has marked solid progress in revenue, earnings, and cash flow, complemented by seamless integration of our product ShareFile which is significantly enhancing our financials."

Additional Noteworthy Developments

• At quarter-end, cash and cash equivalents totaled $99 million.
• The company experienced a slight increase in days sales outstanding, now at 55 days compared to 45 days from the same quarter last year.
• On September 23, 2025, the Board of Directors authorized an additional $200 million share repurchase, enhancing shareholder value.

CFO Anthony Folger expressed confidence in the company's trajectory, stating the results underscore progress concerning revenue sustainability, cash flow generation, and cost control strategies. The continued enhancement of liquidity combined with the new $1.5 billion revolving credit facility further positions Progress to capitalize on future opportunities.

Business Outlook for FY 2025

Looking forward, Progress Software revised its annual guidance, expecting fiscal year revenues to be between $975 million and $981 million, with diluted EPS forecasted at $1.38 to $1.45. The robust anticipated performance is backed by expectations of consistent demand across its core offerings as the market embraces AI technology.

Q4 FY 2025 Projections

The outlook for the fourth quarter remains optimistic, with expected revenues in the range of $250 to $256 million and diluted EPS anticipated between $0.31 and $0.37. This guidance reflects the company’s solid market positioning and the increasing acceptance of its innovative solutions.

Frequently Asked Questions

What were the key financial highlights in Q3 2025 for Progress Software?

The company reported a revenue of $250 million, a 40% increase year-over-year and an ARR of $849 million, which represents a 47% growth from the previous year.

How did diluted earnings per share perform in Q3 2025?

Diluted EPS was reported at $0.44, down from $0.65 in the year-ago quarter, while non-GAAP EPS increased by 19% to $1.50.

What future guidance has Progress Software provided?

Progress has raised its full-year revenue guidance to $975-$981 million and expects diluted EPS to range from $1.38 to $1.45.

What actions has Progress Software taken regarding share buybacks?

The Board of Directors recently approved an increased share repurchase authorization by $200 million, signifying the company’s commitment to enhancing shareholder value.

How is the integration of ShareFile impacting the company?

The ShareFile integration is significantly contributing to both top and bottom lines, aiding in achieving revenue goals and improving operational efficiencies.

About The Author

Olivia Taylor here, a 26-year-old writer and financial advisor. After earning a degree in finance, I worked in the sector for years. I've always loved numbers and had a talent for simplifying difficult financial ideas so that anyone could understand. I wrote my first book because of this passion; it helps readers take charge of their financial futures by fusing real-life stories with useful financial advice.

Whether they are just beginning their careers, preparing for significant life events, or seeking to invest wisely, my goal with my writing is to enable people to make educated financial decisions. The foundation of my work is the conviction that security and freedom of the individual are largely determined by financial literacy. To further financial education, I run workshops and frequently write for financial blogs in addition to my books.

I like to travel, experience other cultures, and find inspiration in daily life when I'm not writing or examining market trends. My passion is utilizing sound financial practices to help people reach their financial objectives and lead the best lives possible.

Contact Olivia Taylor privately here. Or send an email with ATTN: Olivia Taylor as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.