NEW YORK, June 30, 2026, 18:10 (EDT)
- Progress Software Corporation NASDAQ:PRGS finished the day at $33.58, slipping $0.26. Google Finance later posted an after-hours price of $32.51.
- Progress Software said fiscal Q2 revenue was up 7% at $253 million. Annualized recurring revenue increased 2% to $868 million.
- License revenue drove all of the revenue increase, while maintenance, SaaS and services were flat or lower, according to company filings.
- CFO Anthony Folger told analysts that ARR gives the “clearest read” on top-line momentum, rather than the 7% revenue growth. Benzinga
Progress Software Corporation NASDAQ:PRGS stock fell in after-hours Tuesday. The company topped its Q2 targets and lifted full-year profit outlook, but revenue showed more weight from one-time license sales versus recurring revenue growth.
Progress (a Russell 2000 name) finished the regular session at $33.58, down 0.8%, before the company posted earnings right after the bell at 4:01 p.m. ET. Later, Google Finance quoted the shares at $32.51 in after-hours.
Progress Software beat estimates as revenue climbed 7% to $253.5 million. Annualized recurring revenue gained 2% to $868 million. The company posted an 18% GAAP operating margin and a 40% non-GAAP operating margin. Non-GAAP diluted EPS rose 16% to $1.62. CEO Yogesh Gupta credited “continued momentum” in AI-powered products for the quarter’s results. Progress Software Corporation
| Q2 metric | Result | Prior company outlook | Gap to high end |
|---|---|---|---|
| Revenue | $253.5 million | $240 million-$246 million | +$7.5 million |
| GAAP diluted EPS | $0.50 | $0.35-$0.41 | +$0.09 |
| Non-GAAP diluted EPS | $1.62 | $1.47-$1.53 | +$0.09 |
| Non-GAAP operating margin | 40% | Not guided | — |
This table shows company Q2 numbers against earlier guidance, with dollar gaps calculated from those.
The top-line number got a boost from software license revenue, which climbed $18.2 million from last year. That’s higher than the company’s total revenue gain of $16.1 million. Maintenance dropped, SaaS ticked up, and professional services also fell.
| Revenue type | Q2 2026 | Q2 2025 | Change | Share of Q2 2026 revenue |
|---|---|---|---|---|
| Software licenses | $69.0 million | $50.8 million | up 35.8% | 27.2% |
| Maintenance | $101.2 million | $103.5 million | down 2.2% | 39.9% |
| SaaS | $73.0 million | $72.1 million | up 1.2% | 28.8% |
| Professional services | $10.3 million | $11.0 million | down 6.4% | 4.0% |
| Total revenue | $253.5 million | $237.4 million | up 6.8% | 100% |
Filings show that software license revenue is booked at a point in time. Maintenance, SaaS, and services are recognized over time. Percentages below are from the company filing.
This is key for the stock since recurring software revenue usually gives a clearer view of demand. Folger told analysts growth in the first half was “partially influenced by deal timing,” adding that annual recurring revenue, up 2%, was the best metric for the top line. He also mentioned that subscription renewal timing had a “meaningful one time impact” on Q2 revenue. Benzinga
| Market screen | Price | Move |
|---|---|---|
| Progress Software closed at the end of regular trading | $33.58 | -0.8% |
| Progress Software was last at $32.51 after hours, per Google Finance | $32.51 | -3.2% |
| iShares Russell 2000 ETF NYSEARCA:IWM finished at $300.45 | $300.45 | +0.5% |
| Invesco QQQ Trust NASDAQ:QQQ added 1.6% to $736.40 | $736.40 | +1.6% |
| SPDR S&P 500 ETF Trust NYSEARCA:SPY was up 0.7% to $746.77 | $746.77 | +0.7% |
Progress price pulled from the standard close feed and a Google Finance after-hours print. ETF numbers came off finance feeds.
Cash flow played into the bull case. Progress posted $78.8 million in operating cash flow for the quarter, up from $30.0 million a year ago. The company bought back 1.2 million shares for $34.7 million and had $147.5 million left on its buyback authorization as of May 31. With a market value of $1.43 billion at last report, that remaining authorization covers about 10% of Progress’s equity.
Debt remains a big factor here. Progress wrapped the quarter with around $1.29 billion in total debt. That number includes $850 million in long-term debt and $442.1 million in non-current convertible senior notes on a net carrying basis. The company said it paid back $110 million on its revolving credit facility during the first half. As of May 31, the rate on the revolver was 5.37%.
Right before its earnings, Progress rolled out Chef Enterprise Management for NVIDIA NASDAQ:NVDA DGX Spark. The price is $189 a year per system. Sundar Subramanian, an EVP and GM at Progress, said Chef supports customers who want to “move quickly without losing operational control.” Progress Software Corporation
Guggenheim’s John DeFucci asked on the call if third-quarter revenue guidance was “a touch below the street.” Folger pointed to ShareFile’s SaaS numbers starting to look more normalized, while Gupta said the full-year revenue growth outlook of around 1% to 2.5% lines up with recent ARR growth. Benzinga
Progress bumped up its full-year revenue target to $990 million to $1.002 billion, compared to a prior range of $988 million to $1.000 billion. The company also raised its non-GAAP EPS outlook to $6.09 to $6.21, from $5.91 to $6.03. For its fiscal third quarter, Progress guided for revenue between $244 million and $250 million, and non-GAAP EPS of $1.53 to $1.59.
Related articles: Earnings Reports
