Filing Flows › Progress Software (PRGS) › Q3 FY26
Progress Software (PRGS) Q3 FY26 earnings results (third quarter fiscal 2026)
10-Q filed Sep 30, 2026
Progress Software (PRGS) reported revenue of $246M for the third quarter fiscal 2026 (Q3 FY26), -2% from a year earlier and -3% from the quarter before. Operating margin was 18.9%, net earnings $22.8M (9.3% of revenue).
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 follows the revenue to costs, profit and cash.
| Q3 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $246M | -3% | -2% |
| Gross profit | $204M | -2% | +0.6% |
| Operating profit | $46.5M | +3% | +6% |
| Net earnings | $22.8M | +8% | +17% |
| Operating cash flow | $88.0M | +12% | +20% |
| Free cash flow | $86.3M | +12% | +19% |
What changed
Revenue was $246.0M in Q3 FY26, down 2% year over year and down 3% from the previous quarter. Maintenance, SaaS, and professional services was the largest line at 74% of revenue. Maintenance, SaaS, and professional services lost $3.9M year over year (down 2%), 103% of the total change.
Gross margin was 82.7%, up 1.8 points from Q3 FY25. Operating profit was $46.5M, a 18.9% margin (up 1.4 points year over year). Operating expenses fell 1% while revenue fell 2%. Net earnings were $22.8M, up 17% year over year. The effective tax rate was 22.9%.
Operating cash flow was $88.0M (up 20% year over year), 386% of net earnings. Non-cash charges added back $36.4M of depreciation and amortization and $16.1M of share-based compensation. Working capital and other items added $12.7M. Capital expenditures of $1.7M left free cash flow of $86.3M.
Questions
What was Progress Software's revenue in the third quarter fiscal 2026?
Progress Software (PRGS) reported revenue of $246M for the third quarter fiscal 2026 (Q3 FY26), -2% from a year earlier and -3% from the quarter before.
Was Progress Software profitable in the third quarter fiscal 2026?
Operating profit was $46.5M (18.9% of revenue) and net earnings $22.8M.
Source: Progress Software 10-Q on SEC EDGAR.