📊 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.
Progress Software Corp. /Ma Key Strengths (PRGS)
- 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
❓ Frequently Asked Questions about PRGS
What is the AI rating for PRGS?
Progress Software Corp. /Ma (PRGS) has an AI grade of B 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 grade reflects both perspectives for balanced insights.
What is PRGS's fundamental grade?
Based on our AI fundamental analysis in May 2026, Progress Software Corp. /Ma has a B grade with 72% confidence. Review the strengths and risks sections above for full context. 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.
What is PRGS's AI grade for 2026?
Our dual AI analysis gives Progress Software Corp. /Ma a combined B grade 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.