Filing Flows › Progress Software (PRGS) › Q3 FY26 › vs Q2 FY26
Progress Software (PRGS) Q3 FY26 vs Q2 FY26 (quarter over quarter)
Progress Software's revenue fell $7.5M (-3%) from $253M in Q2 FY26 to $246M in Q3 FY26. The biggest changes: Software licenses −$5.4M (-8%); Maintenance, SaaS, and professional services −$2.0M (-1%). Gross margin 82.7% against 82.3% (+0.4 pts).
Progress Software, Q3 FY26: revenue $246M (-2% year over year), operating margin 18.9%, net earnings $22.8M, operating cash flow $88.0M. The chart draws each line against Q2 FY26, the increases inside each band.
Margins
| Q3 FY26 | Q2 FY26 | Change | |
|---|---|---|---|
| Gross margin | 82.7% | 82.3% | +0.4 pts |
| Operating margin | 18.9% | 17.8% | +1.1 pts |
| Net margin | 9.3% | 8.3% | +0.9 pts |
| Free cash flow margin | 35.1% | 30.4% | +4.7 pts |
Every line
| Line | Q3 FY26 | Q2 FY26 | Change | % |
|---|---|---|---|---|
| Maintenance, SaaS, and professional services | $182M | $184M | −$2.0M | -1% |
| Software licenses | $63.6M | $69.0M | −$5.4M | -8% |
| Revenue | $246M | $253M | −$7.5M | -3% |
| Gross profit | $204M | $209M | −$5.1M | -2% |
| Cost of revenue | $42.5M | $44.9M | −$2.4M | -5% |
| Operating profit | $46.5M | $45.2M | $1.3M | +3% |
| Operating expenses | $157M | $163M | −$6.4M | -4% |
| Pre-tax earnings | $29.5M | $28.8M | $693K | +2% |
| Other expense, net | $17.0M | $16.4M | $655K | +4% |
| Sales & marketing | $50.5M | $54.3M | −$3.9M | -7% |
| General & admin | $26.8M | $32.2M | −$5.5M | -17% |
| Other operating costs | $79.7M | $76.8M | $2.9M | +4% |
| Net earnings | $22.8M | $21.1M | $1.7M | +8% |
| Income tax | $6.8M | $7.8M | −$1.0M | -13% |
| Depreciation & amortization | $36.4M | $36.9M | −$453K | -1% |
| Share-based compensation | $16.1M | $20.5M | −$4.4M | -22% |
| Working capital & other | $12.7M | $393K | $12.4M | 32× |
| Operating cash flow | $88.0M | $78.8M | $9.2M | +12% |
| Free cash flow (OCF − capex) | $86.3M | $77.0M | $9.3M | +12% |
| Capital expenditures | $1.7M | $1.9M | −$169K | -9% |
Questions
How much did Progress Software's revenue grow quarter over quarter in Q3 FY26?
Progress Software's revenue fell $7.5M (-3%) from $253M in Q2 FY26 to $246M in Q3 FY26.
What drove Progress Software's revenue change in Q3 FY26?
Software licenses −$5.4M (-8%); Maintenance, SaaS, and professional services −$2.0M (-1%).