📊 PRGS Key Takeaways
Is Progress Software Corp. /Ma (PRGS) a Good Investment?
Progress Software demonstrates strong revenue growth (+29.8% YoY) and exceptional free cash flow generation (38.7% FCF margin), indicating a fundamentally sound business with efficient operations. However, critical liquidity concerns (0.47x current ratio), high leverage (2.69x Debt/Equity), and significant divergence between revenue growth and net income growth (+6.9%) suggest financial stress and potential covenant risks that warrant caution.
Why Buy Progress Software Corp. /Ma Stock? PRGS Key Strengths
- Strong revenue growth of 29.8% YoY demonstrates market demand and execution capability
- Excellent gross margins at 82.3% and operating margins at 18.8% typical of quality software businesses
- Robust free cash flow of $95.9M with 38.7% FCF margin indicates cash-generative business model with minimal capex requirements
- Adequate interest coverage ratio of 5.3x suggests ability to service debt obligations
PRGS Stock Risks: Progress Software Corp. /Ma Investment Risks
- Critical liquidity risk: current ratio of 0.47x and quick ratio of 0.46x are dangerously low, indicating potential difficulty meeting short-term obligations
- High financial leverage with Debt/Equity ratio of 2.69x and $1.3B long-term debt relative to $498.8M equity; vulnerable to refinancing risks
- Profitability deterioration: net income growth of 6.9% substantially lags revenue growth of 29.8%, suggesting margin compression or rising non-operating expenses
- Poor capital returns: ROE of 4.6% and ROA of 1.0% indicate inefficient capital deployment or excessive financing burden relative to earnings
Key Metrics to Watch
- Net margin trend relative to operating margin to identify profitability trajectory
- Debt reduction rate and covenant compliance against debt obligations
- Free cash flow sustainability and cash balance adequacy for debt service and obligations
- Working capital efficiency and current ratio improvement trends
- Return on equity progression to assess capital efficiency
Progress Software Corp. /Ma (PRGS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 38.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
PRGS Profit Margin, ROE & Profitability Analysis
PRGS vs Technology Sector: How Progress Software Corp. /Ma Compares
How Progress Software Corp. /Ma compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Progress Software Corp. /Ma Stock Overvalued? PRGS Valuation Analysis 2026
Based on fundamental analysis, Progress Software Corp. /Ma shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Progress Software Corp. /Ma Balance Sheet: PRGS Debt, Cash & Liquidity
PRGS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Progress Software Corp. /Ma's revenue has grown significantly by 84% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.57 reflects profitable operations.
PRGS Revenue Growth, EPS Growth & YoY Performance
PRGS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $238.0M | $10.9M | $0.24 |
| Q3 2025 | $178.7M | $19.4M | $0.44 |
| Q2 2025 | $175.1M | $16.2M | $0.37 |
| Q1 2025 | $184.7M | $10.9M | $0.24 |
| Q3 2024 | $175.0M | $19.1M | $0.42 |
| Q2 2024 | $175.1M | $12.1M | $0.27 |
| Q1 2024 | $164.2M | $22.6M | $0.51 |
| Q3 2023 | $151.2M | $19.1M | $0.42 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Progress Software Corp. /Ma Dividends, Buybacks & Capital Allocation
PRGS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Progress Software Corp. /Ma (CIK: 0000876167)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775247526.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775247504.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775247480.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775247453.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775247433.xml | View → |
❓ Frequently Asked Questions about PRGS
What is the AI rating for PRGS?
Progress Software Corp. /Ma (PRGS) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PRGS's key strengths?
Claude: Strong revenue growth of 29.8% YoY demonstrates market demand and execution capability. Excellent gross margins at 82.3% and operating margins at 18.8% typical of quality software businesses.
What are the risks of investing in PRGS?
Claude: Critical liquidity risk: current ratio of 0.47x and quick ratio of 0.46x are dangerously low, indicating potential difficulty meeting short-term obligations. High financial leverage with Debt/Equity ratio of 2.69x and $1.3B long-term debt relative to $498.8M equity; vulnerable to refinancing risks.
What is PRGS's revenue and growth?
Progress Software Corp. /Ma reported revenue of $247.8M.
Does PRGS pay dividends?
Progress Software Corp. /Ma pays dividends, with $0.2M distributed to shareholders in the trailing twelve months.
Where can I find PRGS SEC filings?
Official SEC filings for Progress Software Corp. /Ma (CIK: 0000876167) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PRGS's EPS?
Progress Software Corp. /Ma has a diluted EPS of $0.53.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PRGS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Progress Software Corp. /Ma has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is PRGS stock overvalued or undervalued?
Valuation metrics for PRGS: ROE of 4.6% (sector avg: 22%), net margin of 9.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy PRGS stock in 2026?
Our dual AI analysis gives Progress Software Corp. /Ma a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PRGS's free cash flow?
Progress Software Corp. /Ma's operating cash flow is $98.6M, with capital expenditures of $2.7M. FCF margin is 38.7%.
How does PRGS compare to other Technology stocks?
Vs Technology sector averages: Net margin 9.2% (avg: 18%), ROE 4.6% (avg: 22%), current ratio 0.47 (avg: 2.5).
Is Progress Software Corp. /Ma carrying too much debt?
PRGS has a debt-to-equity ratio of 2.69x, which is above the Technology sector average of 0.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.