PROS Holdings Reports 8% Revenue Growth to $88.7 Million in Q2 2025

PROS Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $88.7 million, an increase of 8% compared to $82.0 million in the same period of 2024. Subscription revenue, which is a key component of the company's income, rose by 12% year-over-year to $73.3 million, driven by growth in new and existing customer contracts. The company’s gross profit for the quarter was $59.5 million, reflecting a gross profit margin of 67%, up from 65% in the prior year. Despite these gains, PROS recorded a net loss of $1.8 million, a significant improvement from a net loss of $7.4 million in Q2 2024.

In terms of operational metrics, recurring revenue, which includes subscription and maintenance support, accounted for 86% of total revenue in the second quarter. The company maintained a gross revenue retention rate above 93% over the past twelve months. However, maintenance and support revenue decreased by 24% to $2.6 million, attributed to customer churn and the migration of existing maintenance customers to cloud solutions. The company anticipates this trend will continue as it shifts more customers to its cloud offerings.

Strategically, PROS has made significant moves in its capital structure, including the issuance of $235 million in convertible senior notes due in 2030. This issuance was part of a debt exchange transaction that resulted in a $4.2 million gain on debt extinguishment, contributing to the company's other income for the quarter. Additionally, the company has been actively managing its operational costs, with total operating expenses increasing by 11% to $67.1 million, primarily due to higher employee-related costs and marketing expenses.

As of June 30, 2025, PROS reported cash and cash equivalents of $179 million, an increase from $162 million at the end of 2024. The company also noted a significant improvement in cash provided by operating activities, which totaled $4.4 million for the first half of 2025, compared to $1.8 million in the same period last year. Looking ahead, PROS Holdings anticipates continued growth driven by the increasing demand for AI-driven solutions and digital purchasing technologies, despite the challenges posed by macroeconomic conditions and regulatory environments. The company remains focused on optimizing its cloud infrastructure and expanding its customer base to enhance profitability and market share.