Progress Software Reports Strong Q4 2025 EPS and Free Cash Flow Beat, Provides Positive FY26 Outlook

summarizeSummary

Progress Software reported Q4 2025 non-GAAP EPS and Adjusted Free Cash Flow that exceeded guidance, alongside revenue that met expectations. The company also provided an optimistic outlook for fiscal year 2026.

check_boxKey Events

• Q4 2025 Non-GAAP EPS Beat

  Progress Software reported non-GAAP diluted earnings per share of $1.51, exceeding the high end of its prior guidance of $1.35.

• FY 2025 Adjusted Free Cash Flow Exceeds Guidance

  The company achieved $247 million in Adjusted Free Cash Flow for fiscal year 2025, surpassing the high end of its guidance range of $232 million - $242 million.

• Stable Annualized Recurring Revenue (ARR) and Net Retention Rate (NRR)

  Annualized Recurring Revenue (ARR) grew 2% year-over-year to $852 million, with a Net Retention Rate (NRR) of 100%, indicating strong customer retention.

• Positive FY 2026 Financial Outlook

  Progress Software provided optimistic guidance for fiscal year 2026, projecting revenue between $986 million and $1 billion, and non-GAAP diluted EPS between $5.82 and $5.96.

auto_awesomeAnalysis

Progress Software delivered a solid performance in Q4 2025, with non-GAAP diluted EPS of $1.51 significantly surpassing the high end of its guidance ($1.35). Adjusted Free Cash Flow also exceeded expectations, reaching $247 million for the full fiscal year. While Annualized Recurring Revenue (ARR) growth was a modest 2% year-over-year, the Net Retention Rate of 100% indicates strong customer retention. The company's capital allocation strategy, including significant debt repayment and an increased share repurchase authorization, further strengthens its financial position. The positive FY26 guidance for both revenue and EPS suggests continued operational momentum, which is particularly notable given the stock is trading near its 52-week low.