Progress Software Corp (NASDAQ:PRGS) Beats Q3 2025 Earnings and Revenue Estimates, Raises Guidance

Progress Software Corp (NASDAQ:PRGS) has reported financial results for its fiscal third quarter of 2025, delivering a performance that surpassed analyst expectations on key profitability and sales metrics. The company's strong quarterly results were accompanied by an upward revision to its full-year guidance, signaling confidence in its operational trajectory.

Earnings and Revenue Performance Versus Estimates

The company's third-quarter performance demonstrated significant strength, particularly in its top-line growth and adjusted profitability. Progress Software reported revenue of $250 million, a substantial 40% increase compared to the same quarter last year. This figure came in ahead of the analyst consensus estimate of $244.9 million. On the bottom line, the company reported non-GAAP diluted earnings per share of $1.50, soundly beating the estimate of $1.32 per share.

Key financial highlights from the quarter include:

• Revenue: $250 million (Actual) vs. $244.9 million (Estimate)
• Non-GAAP EPS: $1.50 (Actual) vs. $1.32 (Estimate)
• Annualized Recurring Revenue (ARR): $849 million, representing 47% year-over-year growth on a constant currency basis.

Market Reaction and Price Action

The market responded positively to the earnings beat and raised outlook. In after-hours trading following the announcement, the stock climbed approximately 3.6%, indicating investor approval of the company's financial health and future prospects. This immediate positive reaction suggests the results were perceived as a favorable surprise, outweighing any potential concerns. The stock's performance over the last month had been negative, down about 9.3%, making the post-earnings rebound a significant shift in sentiment.

Updated Business Outlook and Analyst Comparisons

Progress Software's management raised its full-year guidance for revenue, earnings per share, and cash flow, reflecting the strong quarterly execution and an optimistic view for the remainder of the fiscal year. The company's updated forecast for the full year 2025 now projects revenue between $975 million and $981 million, which sits comfortably above the analyst consensus estimate of $986.6 million in sales.

For the upcoming fourth quarter, the company provided revenue guidance of $250 million to $256 million. This range aligns closely with the analyst sales estimate of $256.8 million for Q4 2025. The company's forward-looking statements suggest a continuation of its current momentum.

Press Release Summary and Operational Highlights

Beyond the headline earnings and revenue figures, the press release highlighted several operational successes. CEO Yogesh Gupta described the quarter as "truly exceptional," pointing to a net retention rate of 100% and the successful integration of ShareFile, which is now contributing meaningfully to financial results. The company also emphasized its ongoing innovation in AI capabilities, specifically mentioning the embedding of agentic RAG technology across its product portfolio.

From a balance sheet perspective, the company reported robust cash flow from operations of $73.4 million for the quarter, a 27% year-over-year increase. The board of directors also demonstrated confidence by increasing the share repurchase authorization by $200 million.

For a detailed breakdown of future earnings estimates and historical data, you can review the earnings and estimates page for PRGS.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any security. The performance data and forward-looking statements referenced are based on sources believed to be reliable, but their accuracy cannot be guaranteed. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.