Progress Software Reports $247.8 Million Revenue, 4% Year-Over-Year Growth

Progress Software Corporation reported a total revenue of $247.8 million for the three months ended February 28, 2026, marking a 4% increase from $238.0 million in the same period last year. The growth was primarily driven by a 16% rise in software license revenue, which reached $67.6 million, up from $58.4 million. Maintenance, SaaS, and professional services revenue remained relatively stable, totaling $180.2 million compared to $179.6 million in the prior year. The company’s net income also saw significant improvement, rising to $22.8 million, or $0.54 per share, from $10.9 million, or $0.25 per share, in the previous year.

In terms of operational metrics, Progress Software's annualized recurring revenue (ARR) increased by 2% year-over-year, reaching $863.0 million. The company reported a net retention rate consistently between 99% and 100%, indicating strong customer loyalty and retention. The total cash and cash equivalents as of February 28, 2026, stood at $113.2 million, an increase from $94.8 million at the end of the previous fiscal year, attributed to improved cash inflows from operations.

The company has made strategic moves, including the acquisition of Nuclia, an AI solutions provider, which was completed in June 2025 for an aggregate fair value of $21.4 million. This acquisition is expected to enhance Progress Software's product offerings in the AI space. Additionally, the company has been actively managing its capital structure, repaying $60 million on its revolving credit facility during the quarter and repurchasing $20.4 million of its common stock as part of its ongoing share repurchase program.

Progress Software's operational expenses were slightly reduced, with total operating expenses decreasing to $157.5 million from $159.4 million year-over-year. Notably, restructuring expenses dropped significantly to $706,000 from $7.0 million, reflecting the completion of prior restructuring initiatives. The company also incurred $1.4 million in costs related to the MOVEit vulnerability, which has been a focus of ongoing legal and regulatory scrutiny.

Looking ahead, Progress Software anticipates continued revenue growth driven by its software licensing and maintenance services, alongside the integration of its recent acquisition. The company remains committed to optimizing its operational efficiency and capitalizing on market opportunities, while also navigating the challenges posed by ongoing legal matters related to the MOVEit incident.