PROS Holdings Reports 11% Revenue Growth in Q3 2025, Announces Merger with Thoma Bravo

PROS Holdings, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $91.7 million, an increase of 11% compared to $82.7 million in the same period last year. Subscription revenue, which constitutes a significant portion of the company's income, rose by 13% to $76.0 million from $67.1 million year-over-year. For the nine months ending September 30, 2025, total revenue reached $266.7 million, up 9% from $245.4 million in the prior year. Despite the revenue growth, the company recorded a net loss of $4.2 million for the quarter, compared to a net income of $235,000 in Q3 2024.

The financial performance reflects a strategic shift as PROS continues to optimize its cloud infrastructure, resulting in improved gross margins. The subscription gross margin increased to 80% for the third quarter, up from 78% in the same quarter of 2024. Total gross margin also improved to 69% from 66% year-over-year. However, the company faced challenges in maintenance and support revenue, which decreased by 37% to $2.1 million, attributed to customer churn as PROS transitions clients to its cloud solutions.

In terms of operational developments, PROS has seen a significant increase in cash flow, with $15.8 million generated from operating activities in the first nine months of 2025, compared to $3.4 million in the same period last year. The company also reported a total cash and cash equivalents balance of $188.4 million as of September 30, 2025, up from $162.0 million at the end of 2024. The increase in cash flow is primarily due to a reduction in net losses and improved operational efficiencies.

Strategically, PROS announced a merger agreement with Thoma Bravo, a private equity firm, on September 22, 2025. The merger, which has been unanimously approved by PROS' Board of Directors, is expected to close in the fourth quarter of 2025, subject to shareholder and regulatory approvals. Under the terms of the agreement, shareholders will receive $23.25 per share in cash. The company has incurred approximately $2.3 million in transaction costs related to the merger, which have been recorded in general and administrative expenses.

Looking ahead, PROS anticipates continued growth in subscription revenue, driven by new customer acquisitions and existing customer expansions. The company expects to recognize approximately $487.5 million in revenue from remaining performance obligations, with $257.2 million expected to be recognized over the next 12 months. However, macroeconomic factors, including inflation and geopolitical uncertainties, may impact customer purchasing behavior and overall market conditions.