Progress Software Q2 revenue up 36%, raises FY25 guidance

Overview

• Progress Software fiscal Q2 revenue grows 36% yr/yr to $237 mln

• ARR increases 46% yr/yr to $838 mln, reflecting strong product portfolio

• Co raises FY25 guidance for revenue, operating margin, EPS, and cash flow

Outlook

• Progress Software raises FY25 revenue guidance to $962-$974 mln.

• Company expects FY25 non-GAAP EPS of $5.28-$5.40.

• Progress Software anticipates Q3 2025 revenue of $237-$243 mln.

• Company sees positive currency impact of $2.4 mln on FY25 revenue.

Result Drivers

• STRONG REVENUE GROWTH - Revenue increased by 36% year-over-year to $237 million, driven by strong contributions across all geographies, according to CEO Yogesh Gupta.

• ARR GROWTH - Annualized Recurring Revenue grew 46% year-over-year, reaching $838 million, attributed to the consistent strength of the product portfolio, as stated by CEO Yogesh Gupta.

• SHAREFILE INTEGRATION - Progress reports successful integration of ShareFile, achieving major synergy milestones.

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: