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May 31
Progress Software Q2 2025 Earnings Report
Progress Software reported strong financial performance in Q2 2025, exceeding expectations and raising full-year guidance.
Key Takeaways
Progress Software delivered a solid Q2 2025 with significant revenue and earnings growth, driven by strong ARR performance and strategic acquisitions.
Revenue rose to $237,355,000, up 36% from the prior year quarter.
Non-GAAP EPS reached $1.40, an increase from $1.09 in Q2 2024.
Net income was $17,029,000, reflecting solid profitability.
Annualized Recurring Revenue (ARR) grew 46% YoY to $838,000,000.
Progress Software
Progress Software
Progress Software Revenue by Segment
Revenue by Segment
Software Licenses Revenue
CapyFin.comMaintenance & Services Revenue
CapyFin.com Forward Guidance
Progress raised its full-year guidance for FY25, citing strong revenue momentum, improved margins, and effective integration of recent acquisitions.
Positive Outlook
- Raised FY25 revenue guidance to $962M–$974M.
- Increased non-GAAP EPS guidance to $5.28–$5.40.
- Improved operating margin outlook to 38–39%.
- Raised adjusted free cash flow forecast to $228M–$240M.
- Positive currency impact expected on revenue and EPS.
Challenges Ahead
- Cash flow from operations declined 53% YoY in Q2.
- Free cash flow also dropped significantly YoY.
- Net income growth was modest at 5% YoY.
- Debt levels remain high with $660M in long-term debt.
- Convertible notes liabilities remain significant at over $798M.
Revenue & Expenses
Visualization of income flow from segment revenue to net income