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Aug 31
Progress Software Q3 2025 Earnings Report
Progress Software reported strong third quarter results for fiscal year 2025, with robust revenue growth and improved non-GAAP earnings.
Key Takeaways
Progress Software delivered a solid Q3 2025 with 40% year-over-year revenue growth, supported by strong ARR and effective integration of recent acquisitions.
Revenue reached $249,795,000, up 40% year-over-year.
Non-GAAP EPS rose to $1.50, compared to $1.26 in Q3 2024.
Annualized Recurring Revenue (ARR) reached $849,000,000 with 100% net retention.
ShareFile contributed meaningfully to both top-line and bottom-line performance.
Progress Software
Progress Software
Progress Software Revenue by Segment
Revenue by Segment
Software Licenses Revenue
CapyFin.comMaintenance, SaaS & Prof Services Revenue
CapyFin.com Forward Guidance
Progress Software raised its full-year FY2025 guidance across revenue, EPS, and cash flow, reflecting confidence in execution and acquisition synergies.
Positive Outlook
- Raised full-year revenue guidance to $975M–$981M
- Raised full-year non-GAAP EPS guidance to $5.50–$5.56
- Raised adjusted free cash flow guidance to $232M–$242M
- ARR reached $849M and continues to grow steadily
- Integration of ShareFile ahead of milestones, contributing to financial performance
Challenges Ahead
- GAAP EPS declined YoY from $0.65 to $0.44
- Net income decreased 32% YoY
- Operating margin declined from 23% to 18%
- Days Sales Outstanding rose from 45 to 55 days
- Cash and cash equivalents decreased from prior year
Revenue & Expenses
Visualization of income flow from segment revenue to net income