Progress Software Q2 revenue up 36%, raises FY25 guidance
Overview
Progress Software 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 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/Miss | Actual | Consensus Estimate |
Q2 Revenue | $237 mln | ||
Q2 Adjusted EPS | Beat | $1.4 | $1.3 |
Q2 EPS | $0.39 | ||
Q2 Adjusted Operating Margin | 40.0% | ||
Q2 ARR | $838 mln | ||
Q2 Operating Margin | 16.0% |
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:
