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Feb 28
Progress Software Q1 2025 Earnings Report
Progress Software delivered strong Q1 2025 results with double-digit revenue growth and solid profitability driven by broad product strength and ShareFile integration.
Key Takeaways
Progress Software reported Q1 2025 revenue of $238 million, reflecting a 29% year-over-year increase. Non-GAAP EPS rose to $1.31, while net income declined due to acquisition-related and restructuring costs. Strong ARR growth, controlled expenses, and continued integration of ShareFile supported performance.
Revenue rose 29% YoY to $238 million, boosted by product strength and ShareFile contribution.
Non-GAAP EPS increased 5% to $1.31, while GAAP EPS declined 53% to $0.24.
Net income was $10.9 million, and free cash flow reached $67.7 million.
ARR grew 48% YoY, reaching $836 million, highlighting recurring revenue strength.
Progress Software
Progress Software
Progress Software Revenue by Segment
Revenue by Segment
Software Licenses Revenue
CapyFin.comMaintenance & Services Revenue
CapyFin.com Forward Guidance
Progress expects continued top-line growth with FY25 revenue between $958M and $970M and non-GAAP EPS guidance raised to $5.25–$5.37.
Positive Outlook
- FY25 revenue guidance reaffirmed at $958M–$970M
- Non-GAAP EPS guidance raised to $5.25–$5.37
- Strong recurring revenue base with ARR of $836M
- ShareFile integration on track for completion by year-end
- Q2 2025 non-GAAP EPS expected between $1.28 and $1.34
Challenges Ahead
- GAAP EPS projected lower at $1.19–$1.35 for FY25
- Operating margin expected to remain flat at 14–15%
- Foreign exchange expected to have ~$2.8M negative revenue impact
- Continued restructuring and acquisition-related expenses
- MOVEit cyber expenses expected to persist during FY25
Revenue & Expenses
Visualization of income flow from segment revenue to net income