Filing Flows › Progress Software (PRGS) › Q3 FY26 › vs Q3 FY25
Progress Software (PRGS) Q3 FY26 vs Q3 FY25 (year over year)
Progress Software's revenue fell $3.8M (-2%) from $250M in Q3 FY25 to $246M in Q3 FY26. The biggest changes: Maintenance, SaaS, and professional services −$3.9M (-2%); Software licenses +$119K (+0.2%). Gross margin 82.7% against 81.0% (+1.8 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 Q3 FY25, the increases inside each band.
Margins
| Q3 FY26 | Q3 FY25 | Change | |
|---|---|---|---|
| Gross margin | 82.7% | 81.0% | +1.8 pts |
| Operating margin | 18.9% | 17.6% | +1.4 pts |
| Net margin | 9.3% | 7.8% | +1.5 pts |
| Free cash flow margin | 35.1% | 29.0% | +6.1 pts |
Every line
| Line | Q3 FY26 | Q3 FY25 | Change | % |
|---|---|---|---|---|
| Maintenance, SaaS, and professional services | $182M | $186M | −$3.9M | -2% |
| Software licenses | $63.6M | $63.4M | $119K | +0.2% |
| Revenue | $246M | $250M | −$3.8M | -2% |
| Gross profit | $204M | $202M | $1.3M | +0.6% |
| Cost of revenue | $42.5M | $47.5M | −$5.1M | -11% |
| Operating profit | $46.5M | $43.9M | $2.7M | +6% |
| Operating expenses | $157M | $158M | −$1.4M | -0.9% |
| Pre-tax earnings | $29.5M | $26.2M | $3.3M | +13% |
| Other expense, net | $17.0M | $17.7M | −$651K | -4% |
| Sales & marketing | $50.5M | $51.9M | −$1.4M | -3% |
| General & admin | $26.8M | $28.3M | −$1.5M | -5% |
| Other operating costs | $79.7M | $78.2M | $1.5M | +2% |
| Net earnings | $22.8M | $19.4M | $3.4M | +17% |
| Income tax | $6.8M | $6.8M | −$36K | -0.5% |
| Depreciation & amortization | $36.4M | $38.7M | −$2.3M | -6% |
| Share-based compensation | $16.1M | $16.0M | $109K | +0.7% |
| Working capital & other | $12.7M | −$673K | $13.4M | — |
| Operating cash flow | $88.0M | $73.4M | $14.6M | +20% |
| Free cash flow (OCF − capex) | $86.3M | $72.4M | $13.9M | +19% |
| Capital expenditures | $1.7M | $1.1M | $640K | +61% |
Questions
How much did Progress Software's revenue grow year over year in Q3 FY26?
Progress Software's revenue fell $3.8M (-2%) from $250M in Q3 FY25 to $246M in Q3 FY26.
What drove Progress Software's revenue change in Q3 FY26?
Maintenance, SaaS, and professional services −$3.9M (-2%); Software licenses +$119K (+0.2%).