Progress Software (PRGS) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Progress Software

NasdaqGS•Technology•Software - Infrastructure

$39.92-0.69(-0.02%)Pre-market

Market Cap

$1.75B

P/E

19.7x

P/S

1.7x

P/B

3.5x

Progress Software Corporation provides software products that develops, deploys, and manages artificial intelligence (AI) powered applications and digital experiences in the United States and internationally. The company offers Agentic RAG, a next-generation Agentic Rag-as-a-Service platform; Automate MFT, a cloud-native Software-as-a-Service (SaaS) platform for automated and secure file transfers; Chef, a DevOps/DevSecOps automation software; Corticon, a decision automation platform; DataDirect, a secure data connectivity tools for Relational, NoSQL, Big Data, and SaaS data sources; Developer Tools, such as software development tooling collection, including NET and JavaScript UI components for web, desktop and mobile applications, AI-prompt components, reporting and report management tools, and automated testing and mocking tools; Flowmon, a AI-powered network security and visibility product with automated response across hybrid cloud ecosystems; and Kemp LoadMaster, an application delivery and security product for cloud-native, and virtual and hardware load balancers. It also provides MarkLogic, a data agility platform to connect data and metadata; MOVEit, a managed file transfer software; OpenEdge, an application development platform; Semaphore, a Semantic AI platform; ShareFile, an SaaS-native AI-powered document centric collaboration platform; Sitefinity, a digital experience platform foundation; and WhatsUp Gold, a network infrastructure monitoring software to find and fix network problems. The company offers project management, implementation, custom software development, programming, and other services, as well as web-enable applications, and training services. It sells its products to end users, independent software vendors, original equipment manufacturers, system integrators, value added resellers, and distributors. The company was founded in 1981 and is headquartered in Burlington, Massachusetts.

How this company scores

GoodMetricSide Score: 79/100

Strongest: Growth (25/25); weakest: Balance Sheet & Red Flags (7/25).

Profitability22/25

Growth25/25

Balance Sheet & Red Flags7/25

Cash & Earnings Quality25/25

Strengths

Growing revenueRising free cash flowStrong marginsHigh ROE

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 19.7x5y range 19.7x – 46.0x

Currently below its 20-quarter median.

P/S · 1.7x5y range 1.7x – 4.1x

Currently below its 20-quarter median.

P/B · 3.5x5y range 3.5x – 6.7x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Leverage Risk

Watch

D/E ratio of 2.6 is elevated. Watch for further debt accumulation.

Price & Volume

Market Cap $1.75B

Metrics at a Glance

as of May 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.00B
Q. Revenue: $253.47M
TTM EBITDA: $322.22M
TTM Op. Income: $173.91M
Q. Op. Income: $45.20M
TTM Net Income: $89.04M
Q. Net Income: $21.07M
EPS: $0.5
Shares Out.: $41.90M

$1.00B in TTM revenue grew 15.5% YoY, reaching $253.47M last quarter. TTM EBITDA of $322.22M and TTM operating income of $173.91M show growth is flowing through to the bottom line. TTM net income of $89.04M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 82.3%
EBITDA Margin: 31.7%
Op. Margin: 17.8%
Net Margin: 8.3%

Op. margin of 17.8% is up 1.6% YoY — cost efficiency is improving. Net margin at 8.3% and gross margin of 82.3% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 10% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 19.7x
P/S Ratio: 1.7x
P/B Ratio: 3.5x

At 19.7x P/E, the stock trades within typical market levels. P/S of 1.7x and P/B of 3.5x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 4 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $2.35B
Cash: $102.98M
Long-Term Debt: $1.29B
Book Value: $506.08M
D/E Ratio: 2.6
Debt/EBITDA: 16.1

With $2.35B in assets and $1.29B in long-term debt, D/E is 2.6and book value is $506.08M — elevated leverage, meaning significant financial risk in a downturn. Over the past year, debt/equity is up 5% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $78.84M
TTM Free Cash Flow: $305.22M
FCF Margin: 30.4%
FCF / Net Income: 3.4

TTM FCF of $305.22M on $78.84M in operating cash flow. The FCF / Net Income ratio of 3.4x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 4 consecutive quarters — an improving trend.