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How Progress Software (PRGS) makes money

Progress Software (PRGS) made $246M of revenue in the third quarter fiscal 2026 (Q3 FY26), -2% from a year earlier. Maintenance, SaaS, and professional services brought in $182M (74%); Software licenses brought in $63.6M (26%). Of every dollar of revenue, 83¢ was left as gross profit, 19¢ was left as operating profit, 9¢ was left as net earnings.

Drawing the Sankey…

Progress Software revenue by segment, Q3 FY26Progress Software revenue by segment, Q3 FY26Maintenance, SaaS, and profession…$182MSoftware licenses$63.6M
Progress Software: revenue by line, Q2 FY25 to Q3 FY26Progress Software: revenue by line, Q2 FY25 to Q3 FY26Maintenance, SaaS, an…Software licensesMaintenance, SaaS, and professional services: $182M latest$182MSoftware licenses: $63.6M latest$63.6MQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26
Maintenance, SaaS, and professional services went from 79% of revenue in Q2 FY25 to 74% in Q3 FY26, the largest shift in the mix.
Progress Software revenue by quarterProgress Software revenue by quarter$215MQ4 FY24$237MQ2 FY25$250MQ3 FY25$253MQ4 FY25$248MQ1 FY26$253MQ2 FY26$246MQ3 FY26
Progress Software: where each dollar of revenue goesProgress Software: where each dollar of revenue goesCost of revenue17¢Gross profit83¢Operating expenses64¢Operating profit19¢Income tax3¢Net earnings9¢Operating cash flow36¢Free cash flow35¢

Revenue by segment, Q3 FY26

SegmentRevenueShareQ/QY/Y
Maintenance, SaaS, and professional services$182M74.2%-1%-2%
Software licenses$63.6M25.8%-8%+0.2%

Where each dollar of revenue goes

LineQ3 FY26% of revenue
Revenue$246M100.0%
Cost of revenue$42.5M17.3%
Gross profit$204M82.7%
Operating expenses$157M63.8%
Operating profit$46.5M18.9%
Income tax$6.8M2.7%
Net earnings$22.8M9.3%
Operating cash flow$88.0M35.8%
Free cash flow$86.3M35.1%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q3 FY26$246M-2%
Q2 FY26$253M+7%
Q1 FY26$248M+4%
Q4 FY25$253M+18%
Q3 FY25$250M+40%
Q2 FY25$237M+36%
Q4 FY24$215M+22%

From Progress Software's 10-Q filed Sep 30, 2026 (on EDGAR).

Questions

How does Progress Software make money?

Progress Software (PRGS) made $246M of revenue in the third quarter fiscal 2026 (Q3 FY26), -2% from a year earlier. Maintenance, SaaS, and professional services brought in $182M (74%); Software licenses brought in $63.6M (26%). Of every dollar of revenue, 83¢ was left as gross profit, 19¢ was left as operating profit, 9¢ was left as net earnings.

What is Progress Software's biggest business?

Maintenance, SaaS, and professional services: $182M in the third quarter fiscal 2026, 74% of revenue, -2% from a year earlier.

What is Progress Software's profit margin?

Net earnings were $22.8M, 9.3% of revenue, in the third quarter fiscal 2026; the operating margin was 18.9%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.