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Nov 30, 2025
Progress Software Q4 2025 Earnings Report
Progress Software reported strong Q4 2025 results with EPS and cash flow exceeding expectations.
Key Takeaways
Progress Software beat guidance for Q4 2025, driven by strong EPS and operating margin. ARR remained stable at $852M, and net retention was 100%.
EPS of $1.51 exceeded the high end of guidance.
Q4 revenue reached $253 million.
Annualized Recurring Revenue hit $852 million.
Operating margin came in at 38% on a non-GAAP basis.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Progress provided strong Q1 and FY26 guidance, highlighting confidence in continued performance momentum.
Positive Outlook
- FY26 revenue guidance: $986M - $1B
- FY26 non-GAAP EPS guidance: $5.82 - $5.96
- Q1 revenue guidance: $244M - $250M
- Q1 non-GAAP EPS guidance: $1.56 - $1.62
- Projected FY26 unlevered free cash flow: $313M - $326M
Challenges Ahead
- GAAP EPS for Q4 was significantly lower than non-GAAP EPS ($0.59 vs $1.51)
- No GAAP operating margin guidance for Q1 2026
- Guidance does not address ongoing cyber vulnerability costs
- No update on gross margin or employee count
- Revenue growth rate for ARR slowed to 2% YoY
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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