Filing Flows › Progress Software (PRGS) › Q2 FY26 › vs Q2 FY25
Progress Software (PRGS) Q2 FY26 vs Q2 FY25 (year over year)
Progress Software's revenue rose $16.1M (+7%) from $237M in Q2 FY25 to $253M in Q2 FY26. The biggest changes: Software licenses +$18.2M (+36%); Maintenance, SaaS, and professional services −$2.1M (-1%). Gross margin 82.3% against 80.1% (+2.2 pts).
Progress Software, Q2 FY26: revenue $253M (+7% year over year), operating margin 17.8%, net earnings $21.1M, operating cash flow $78.8M. The chart draws each line against Q2 FY25, the increases inside each band.
Margins
| Q2 FY26 | Q2 FY25 | Change | |
|---|---|---|---|
| Gross margin | 82.3% | 80.1% | +2.2 pts |
| Operating margin | 17.8% | 16.3% | +1.6 pts |
| Net margin | 8.3% | 7.2% | +1.1 pts |
| Free cash flow margin | 30.4% | 12.4% | +17.9 pts |
Every line
| Line | Q2 FY26 | Q2 FY25 | Change | % |
|---|---|---|---|---|
| Maintenance, SaaS, and professional services | $184M | $187M | −$2.1M | -1% |
| Software licenses | $69.0M | $50.8M | $18.2M | +36% |
| Revenue | $253M | $237M | $16.1M | +7% |
| Gross profit | $209M | $190M | $18.5M | +10% |
| Cost of revenue | $44.9M | $47.3M | −$2.4M | -5% |
| Operating profit | $45.2M | $38.6M | $6.6M | +17% |
| Operating expenses | $163M | $151M | $11.9M | +8% |
| Pre-tax earnings | $28.8M | $19.9M | $9.0M | +45% |
| Other expense, net | $16.4M | $18.8M | −$2.4M | -13% |
| Sales & marketing | $54.3M | $49.7M | $4.7M | +9% |
| General & admin | $32.2M | $25.6M | $6.6M | +26% |
| Other operating costs | $76.8M | $76.1M | $677K | +0.9% |
| Net earnings | $21.1M | $17.0M | $4.0M | +24% |
| Income tax | $7.8M | $2.8M | $4.9M | +174% |
| Depreciation & amortization | $36.9M | $38.2M | −$1.3M | -3% |
| Share-based compensation | $20.5M | $16.7M | $3.8M | +23% |
| Working capital & other | $393K | −$42.0M | $42.4M | — |
| Operating cash flow | $78.8M | $30.0M | $48.8M | +163% |
| Free cash flow (OCF − capex) | $77.0M | $29.5M | $47.5M | +161% |
| Capital expenditures | $1.9M | $495K | $1.4M | +277% |
Questions
How much did Progress Software's revenue grow year over year in Q2 FY26?
Progress Software's revenue rose $16.1M (+7%) from $237M in Q2 FY25 to $253M in Q2 FY26.
What drove Progress Software's revenue change in Q2 FY26?
Software licenses +$18.2M (+36%); Maintenance, SaaS, and professional services −$2.1M (-1%).