Filing Flows › Progress Software (PRGS) › Q3 FY25
Progress Software (PRGS) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed Sep 29, 2025
Progress Software (PRGS) reported revenue of $250M for the third quarter fiscal 2025 (Q3 FY25), +40% from a year earlier and +5% from the quarter before. Operating margin was 17.6%, net earnings $19.4M (7.8% of revenue).
Progress Software, Q3 FY25: revenue $250M (+40% year over year), operating margin 17.6%, net earnings $19.4M, operating cash flow $73.4M. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $250M | +5% | +40% |
| Gross profit | $202M | +6% | +35% |
| Operating profit | $43.9M | +14% | +9% |
| Net earnings | $19.4M | +14% | -32% |
| Operating cash flow | $73.4M | +145% | +27% |
| Free cash flow | $72.4M | +145% | +28% |
What changed
Revenue was $249.8M in Q3 FY25, up 40% year over year and up 5% from the previous quarter. Maintenance, SaaS, and professional services was the largest line at 75% of revenue. Maintenance, SaaS, and professional services added $65.5M year over year (up 54%), 92% of the total change.
Gross margin was 81.0%, down 2.8 points from a year earlier. Operating profit was $43.9M, a 17.6% margin (down 5.0 points year over year). Of the extra revenue versus a year earlier, 5% reached operating profit, below the 23% margin then. Operating expenses grew 45% against revenue growth of 40%. The fastest-growing cost line was Other operating costs (+52%). Net earnings were $19.4M, down 32% year over year. The effective tax rate was 25.9%.
Operating cash flow was $73.4M (up 27% year over year), 378% of net earnings. Non-cash charges added back $38.7M of depreciation and amortization and $16.0M of share-based compensation. Capital expenditures of $1.1M left free cash flow of $72.4M.
Questions
What was Progress Software's revenue in the third quarter fiscal 2025?
Progress Software (PRGS) reported revenue of $250M for the third quarter fiscal 2025 (Q3 FY25), +40% from a year earlier and +5% from the quarter before.
Was Progress Software profitable in the third quarter fiscal 2025?
Operating profit was $43.9M (17.6% of revenue) and net earnings $19.4M.
Source: Progress Software 10-Q on SEC EDGAR.