Filing Flows › Progress Software (PRGS) › Q2 FY25
Progress Software (PRGS) Q2 FY25 earnings results (second quarter fiscal 2025)
10-Q filed Jun 30, 2025
Progress Software (PRGS) reported revenue of $237M for the second quarter fiscal 2025 (Q2 FY25), +36% from a year earlier and -0.3% from the quarter before. Operating margin was 16.3%, net earnings $17.0M (7.2% of revenue).
Progress Software, Q2 FY25: revenue $237M (+36% year over year), operating margin 16.3%, net earnings $17.0M, operating cash flow $30.0M. The chart follows the revenue to costs, profit and cash.
| Q2 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $237M | -0.3% | +36% |
| Gross profit | $190M | -0.9% | +33% |
| Operating profit | $38.6M | +19% | +42% |
| Net earnings | $17.0M | +56% | +5% |
| Operating cash flow | $30.0M | -56% | -53% |
| Free cash flow | $29.5M | -56% | -53% |
What changed
Revenue was $237.4M in Q2 FY25, up 36% year over year and roughly flat from the previous quarter. Maintenance, SaaS, and professional services was the largest line at 79% of revenue. Maintenance, SaaS, and professional services added $65.5M year over year (up 54%), 105% of the total change. Software licenses declined 6%.
Gross margin was 80.1%, down 1.6 points from a year earlier. Operating profit was $38.6M, a 16.3% margin (up 0.8 points year over year). Of the extra revenue versus a year earlier, 18% reached operating profit, above the 16% margin then. Operating expenses grew 31% against revenue growth of 36%. The fastest-growing cost line was Other operating costs (+36%). Net earnings were $17.0M, up 5% year over year. The effective tax rate was 14.3%.
Operating cash flow was $30.0M (down 53% year over year), 176% of net earnings. Non-cash charges added back $38.2M of depreciation and amortization and $16.7M of share-based compensation. Working capital and other items used $42.0M. Capital expenditures of $495K left free cash flow of $29.5M.
Questions
What was Progress Software's revenue in the second quarter fiscal 2025?
Progress Software (PRGS) reported revenue of $237M for the second quarter fiscal 2025 (Q2 FY25), +36% from a year earlier and -0.3% from the quarter before.
Was Progress Software profitable in the second quarter fiscal 2025?
Operating profit was $38.6M (16.3% of revenue) and net earnings $17.0M.
Source: Progress Software 10-Q on SEC EDGAR.