PRGS earnings analysis
What we found in PRGS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Progress Software Corporation reported second quarter fiscal 2026 revenue of $253.5 million, a 7% year-over-year increase, exceeding estimates. Although diluted EPS of $0.50 fell short of the expected $1.42, operating margin improved to 18%. Management noted ongoing headwinds from cyber vulnerability responses but expressed optimism about revenue growth driven by software licenses and updated annual revenue guidance for FY2026.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Q2 Revenue Growth of 7%
- Revenue increased to $253.5 million from $237.4 million year-over-year, exceeding estimates of $242.5 million.
- Diluted EPS Misses Expectations
- Reported diluted EPS was $0.50, significantly below the estimated $1.42.
- Operating Margin Improvement
- Operating margin rose to 18%, up from 16.3% year-over-year.
- Strong Performance in Software Licenses
- Software licenses revenue surged by 36% to $68.98 million, contributing to overall growth.
- Upgraded Annual Revenue Guidance
- Management revised FY2026 revenue guidance to a range of $990 million to $1.002 billion.
- Increased Cash Position
- Cash and cash equivalents rose to $102.98 million, up from $94.81 million at the end of FY2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Cyber Vulnerability Expenses
- Cyber vulnerability response expenses rose to $1.27 million, up 73% year-over-year, continuing to exert financial pressure.
- Rising Restructuring Costs
- Restructuring expenses increased 42% to $1.48 million compared to the same quarter last year.
- Changes in Effective Tax Rate
- Effective tax rate surged to 27%, compared to 14% in Q2 2025, affecting net income.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.5
- Gross margin
- 81.6%
- Operating margin
- 18%
- Segment
- Software Licenses
- Segment
- Maintenance
- Segment
- SaaS
- Segment
- Professional Services
What they said about what is next.
Updated FY2026 guidance reflects optimistic revenue expectations.
The filing reads about the same as the one before it.
What came before.
- 10-Q · March 31, 2026
- Progress reported Q1 revenue of $247.8M, up $9.8M (+4.1%) versus Q1 FY2025 but down ~$5.2M (-2.1%) versus the prior quarter. Gross margin expanded to 82.3% and operating margin widened to 18.8%, driving diluted EPS of…
- 10-Q · September 29, 2025
- Progress delivered strong top-line growth in the quarter with revenue of $249.8M, driven largely by Maintenance, SaaS and professional services. Gross profit was $202.3M (≈81.0% margin) but net income and EPS were…
- 10-Q · June 30, 2025
- Progress reported quarterly revenue of $237.4M, up 35.6% year-over-year driven by maintenance, SaaS and professional services growth, while software license revenue declined. Gross margin compressed to 80.1% but…
- 10-K · January 26, 2024
- Progress presents a broad enterprise software portfolio (OpenEdge, Chef, MOVEit, DataDirect, Sitefinity, etc.) sold primarily under perpetual licenses with growing subscription/cloud offerings and a large indirect…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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