Revenue growth accelerated to 6.8% YoY in 2026Q2, with gross margin at 82.3%, though operating margin at 18.5% remains below the 22.6% peak in 2024Q3, and SBC of $20.5M nearly matched net income of $21.1M.
Progress Software Corporation (PRGS) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Nov'25 | Nov'24 | Nov'23 | Nov'22 | Nov'21 | Nov'20 | Nov'19 | Nov'18 | Nov'17 | Nov'16 | Nov'15 | Nov'14 | Nov'13 | Nov'12 | Nov'11 | Nov'10 | Nov'09 | Nov'08 | Nov'07 | Nov'06 | Nov'05 | Nov'04 | Nov'03 | Nov'02 | Nov'01 | Nov'00 | Nov'99 | Nov'98 | Nov'97 | Nov'96 |
|---|
| Sales/Revenue | 1B | 977.83M | 753.41M | 694.44M | 602.01M | 531.31M | 442.15M | 413.3M | 397.17M | 397.57M | 405.34M | 377.55M | 332.53M | 334M | 335.2M | 533.6M | 529.12M | 494.14M | 515.56M | 493.5M | 447.06M | 405.38M | 362.66M | 309.06M | 273.12M | 262M | 271.35M | 286.1M | 239.9M | 188.3M | 176.7M |
| Revenue Growth % | 15.5% | 29.79% | 8.49% | 15.35% | 13.31% | 20.17% | 6.98% | 4.06% | -0.1% | -1.92% | 7.36% | 13.54% | -0.44% | -0.36% | -37.18% | 0.85% | 7.08% | -4.16% | 4.47% | 10.39% | 10.28% | 11.78% | 17.34% | 13.16% | 4.25% | -3.45% | -5.16% | 19.26% | 27.4% | 6.56% | -1.89% |
| Cost of Goods Sold | 208.41M | 187.58M | 130.48M | 126.58M | 94.5M | 78.45M | 62.11M | 75.24M | 66.97M | 69.16M | 65.71M | 63.74M | 34.26M | 34.98M | 36.31M | 36.78M | 41.15M | 93.2M | 91.89M | 86.76M | 76.79M | 69.04M | 61.33M | 61.77M | 67.69M | 67.63M | 64.44M | 54.8M | 42.5M | 28.3M | 27M |
| COGS % of Revenue | - | 19.18% | 17.32% | 18.23% | 15.7% | 14.77% | 14.05% | 18.2% | 16.86% | 17.4% | 16.21% | 16.88% | 10.3% | 10.47% | 10.83% | 6.89% | 7.78% | 18.86% | 17.82% | 17.58% | 17.18% | 17.03% | 16.91% | 19.99% | 24.78% | 25.81% | 23.75% | 19.15% | 17.72% | 15.03% | 15.28% |
| Gross Profit | 795.31M | 790.25M | 622.93M | 567.86M | 507.52M | 452.86M | 380.04M | 338.06M | 312.01M | 320M | 339.63M | 313.81M | 298.27M | 299.01M | 281.3M | 296.83M | 310.46M | 400.94M | 423.67M | 406.74M | 370.28M | 336.33M | 301.33M | 247.29M | 205.44M | 195.96M | 208.65M | 231.3M | 197.4M | 160M | 149.7M |
| Gross Margin % | 79.24% | 80.82% | 82.68% | 81.77% | 84.3% | 85.23% | 85.95% | 81.8% | 78.56% | 80.49% | 83.79% | 83.12% | 89.7% | 89.53% | 83.92% | 55.63% | 58.67% | 81.14% | 82.18% | 82.42% | 82.82% | 82.97% | 83.09% | 80.01% | 75.22% | 74.79% | 76.89% | 80.85% | 82.28% | 84.97% | 84.72% |
| Gross Profit Growth % | - | 26.86% | 9.7% | 11.89% | 12.07% | 19.16% | 12.42% | 8.35% | -2.5% | -5.78% | 8.23% | 5.21% | -0.25% | 6.3% | -5.23% | -4.39% | -22.57% | -5.37% | 4.16% | 9.85% | 10.09% | 11.61% | 21.86% | 20.37% | 4.84% | -6.08% | -9.79% | 17.17% | 23.38% | 6.88% | -4.77% |
| Operating Expenses | 616.71M | 636.96M | 498.92M | 457.34M | 375.39M | 336.76M | 272.31M | 265.89M | 236.54M | 238.84M | 269.36M | 281.83M | 209.41M | 220.09M | 206.09M | 184.28M | 196.27M | 344.15M | 352.25M | 349.53M | 327.48M | 272.98M | 252.37M | 210.34M | 177.21M | 174.65M | 169.95M | 184.6M | 167.5M | 150.7M | 145.2M |
| OpEx % of Revenue | - | 65.14% | 66.22% | 65.86% | 62.36% | 63.38% | 61.59% | 64.33% | 59.56% | 60.07% | 66.45% | 74.65% | 62.97% | 65.9% | 61.48% | 34.54% | 37.09% | 69.65% | 68.32% | 70.83% | 73.25% | 67.34% | 69.59% | 68.06% | 64.88% | 66.66% | 62.63% | 64.52% | 69.82% | 80.03% | 82.17% |
| Selling, General & Admin | 332.07M | 319.23M | 254.09M | 239.23M | 218.64M | 191.02M | 154.12M | 155.06M | 143.56M | 144.1M | 168.03M | 182.16M | 149.79M | 161.99M | 179.91M | 248.18M | 220.59M | 241.84M | 258.03M | 253.71M | 242.86M | 202.27M | 184.92M | 160.09M | 135.1M | 132.92M | 130.92M | 133M | 123.7M | 110.8M | 109.7M |
| SG&A % of Revenue | - | 32.65% | 33.73% | 34.45% | 36.32% | 35.95% | 34.86% | 37.52% | 36.15% | 36.25% | 41.45% | 48.25% | 45.04% | 48.5% | 53.67% | 46.51% | 41.69% | 48.94% | 50.05% | 51.41% | 54.32% | 49.9% | 50.99% | 51.8% | 49.47% | 50.73% | 48.25% | 46.49% | 51.56% | 58.84% | 62.08% |
| Research & Development | 198.63M | 192.26M | 146.34M | 132.4M | 114.57M | 103.34M | 88.6M | 88.57M | 79.74M | 76.99M | 88.59M | 86.92M | 58.97M | 57.34M | 53.02M | 80.72M | 90.64M | 93.26M | 87.79M | 80.34M | 77.27M | 63.07M | 60.37M | 50.24M | 42.11M | 41.73M | 39.03M | 38.3M | 30.2M | 27M | 24M |
| R&D % of Revenue | - | 19.66% | 19.42% | 19.07% | 19.03% | 19.45% | 20.04% | 21.43% | 20.08% | 19.36% | 21.85% | 23.02% | 17.73% | 17.17% | 15.82% | 15.13% | 17.13% | 18.87% | 17.03% | 16.28% | 17.28% | 15.56% | 16.65% | 16.26% | 15.42% | 15.93% | 14.39% | 13.39% | 12.59% | 14.34% | 13.58% |
| Other Operating Expenses | 3M | 125.47M | 98.49M | 85.7M | 42.18M | 42.41M | 29.59M | 22.25M | 13.24M | 13.04M | 12.73M | 12.74M | 653K | 760K | 820K | 513K | 2.8M | 9.05M | 6.43M | 15.48M | 7.36M | 4.28M | 7.08M | 0 | 0 | 0 | 0 | 13.3M | 13.6M | 12.9M | 11.5M |
| Operating Income | 178.6M | 153.29M | 124M | 110.52M | 132.13M | 116.1M | 107.73M | 40.08M | 67.81M | 57.49M | -29.71M | 14.75M | 80.74M | 63.74M | 67.79M | 108.71M | 91.48M | 51.13M | 64.38M | 57.22M | 40.94M | 59.95M | 46.36M | 36.75M | 28.22M | 21.3M | 38.7M | 46.7M | 29.9M | 9.3M | 4.5M |
| Operating Margin % | 17.79% | 15.68% | 16.46% | 15.92% | 21.95% | 21.85% | 24.36% | 9.7% | 17.07% | 14.46% | -7.33% | 3.91% | 24.28% | 19.08% | 20.22% | 20.37% | 17.29% | 10.35% | 12.49% | 11.59% | 9.16% | 14.79% | 12.78% | 11.89% | 10.33% | 8.13% | 14.26% | 16.32% | 12.46% | 4.94% | 2.55% |
| Operating Income Growth % | - | 23.62% | 12.2% | -16.35% | 13.81% | 7.77% | 168.76% | -40.89% | 17.96% | 293.51% | -301.36% | -81.73% | 26.67% | -5.97% | -37.64% | 18.84% | 78.9% | -20.58% | 12.53% | 39.75% | -31.7% | 29.3% | 26.15% | 30.22% | 32.48% | -44.94% | -17.14% | 56.19% | 221.51% | 106.67% | -80.69% |
| EBITDA | 305.35M | 159.52M | 227.05M | 213.67M | 206.86M | 169.09M | 142.49M | 96.76M | 112.32M | 100.39M | 9.61M | 56.43M | 96.04M | 78.17M | 98.75M | 143.79M | 132.89M | 91.54M | 94.5M | 84.28M | 65.72M | 78.14M | 62.89M | 47.75M | 39.53M | 33.45M | 51.02M | 60M | 43.5M | 22.2M | 16M |
| EBITDA Margin % | 30.42% | 16.31% | 30.14% | 30.77% | 34.36% | 31.82% | 32.23% | 23.41% | 28.28% | 25.25% | 2.37% | 14.95% | 28.88% | 23.41% | 29.46% | 26.95% | 25.12% | 18.52% | 18.33% | 17.08% | 14.7% | 19.28% | 17.34% | 15.45% | 14.47% | 12.77% | 18.8% | 20.97% | 18.13% | 11.79% | 9.05% |
| EBITDA Growth % | 17.83% | -29.74% | 6.26% | 3.29% | 22.34% | 18.66% | 47.26% | -13.85% | 11.88% | 944.38% | -82.97% | -41.24% | 22.85% | -20.84% | -31.32% | 8.2% | 45.18% | -3.13% | 12.13% | 28.24% | -15.89% | 24.25% | 31.7% | 20.78% | 18.2% | -34.45% | -14.96% | 37.93% | 95.95% | 38.75% | -50.46% |
| D&A (Non-Cash Add-back) | 126.75M | 6.23M | 103.04M | 103.15M | 74.73M | 52.98M | 34.77M | 56.68M | 44.5M | 42.9M | 39.32M | 41.68M | 15.3M | 14.44M | 30.96M | 35.08M | 41.42M | 40.41M | 30.11M | 27.06M | 24.78M | 18.19M | 16.52M | 11M | 11.31M | 12.14M | 12.33M | 13.3M | 13.6M | 12.9M | 11.5M |
| EBIT | 160.34M | 152.48M | 126.28M | 110.44M | 133.04M | 115.58M | 106.81M | 38.41M | 65.94M | 70.22M | -31.1M | 16.14M | 78.38M | 63.43M | 75.21M | 112.55M | 114.19M | 56.79M | 71.43M | 57.22M | 42.79M | 63.35M | 48.96M | 36.95M | 28.22M | 21.3M | 38.7M | 46.7M | 29.9M | 9.3M | 4.5M |
| Net Interest Income | -63.91M | -69.09M | -27.28M | -28.24M | -14.38M | -19.27M | -8.68M | -8.77M | -3.93M | -3.71M | -3.34M | -2.34M | -489K | 1.2M | 2.57M | 2M | 3.13M | 2.7M | 10.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.53M | 1.76M | 4.73M | 2.54M | 1.41M | 777K | 1.5M | 1.14M | 1.22M | 921K | 839K | 1.45M | 0 | 1.2M | 2.57M | 2M | 3.13M | 2.7M | 10.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 65.44M | 70.85M | 32.01M | 30.78M | 15.79M | 20.05M | 10.17M | 9.91M | 5.15M | 4.63M | 4.18M | 3.79M | 489K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.2M | 0 |
| Other Income/Expense | -71.01M | -71.66M | -29.74M | -30.87M | -14.88M | -20.57M | -11.09M | -11.59M | -7.02M | -5.03M | -5.57M | -2.4M | -2.94M | -957K | 196K | -519K | 3.76M | 48K | 9.63M | 7.83M | 4.64M | 3.1M | 843K | 1.93M | 1.19M | 4.26M | 10.79M | 4.8M | 4.1M | -6.2M | 3.8M |
| Pretax Income | 107.59M | 81.63M | 94.26M | 79.66M | 117.25M | 95.53M | 96.64M | 28.5M | 60.8M | 52.46M | -35.28M | 12.35M | 77.8M | 62.78M | 67.98M | 108.19M | 95.23M | 51.18M | 74.01M | 65.05M | 45.58M | 63.05M | 47.21M | 38.68M | 29.41M | 25.57M | 49.49M | 51.5M | 34M | 3.1M | 8.3M |
| Pretax Margin % | 10.72% | 8.35% | 12.51% | 11.47% | 19.48% | 17.98% | 21.86% | 6.89% | 15.31% | 13.2% | -8.7% | 3.27% | 23.4% | 18.8% | 20.28% | 20.28% | 18% | 10.36% | 14.36% | 13.18% | 10.2% | 15.55% | 13.02% | 12.51% | 10.77% | 9.76% | 18.24% | 18% | 14.17% | 1.65% | 4.7% |
| Income Tax | 18.55M | 8.49M | 25.83M | 9.46M | 22.19M | 17.11M | 16.91M | 2.1M | 15.49M | 28.17M | 20.45M | 21.16M | 28.35M | 23.01M | 17.44M | 28.94M | 22.86M | 18.43M | 27.71M | 22.77M | 16.18M | 17.93M | 15.11M | 11.6M | 8.82M | 7.92M | 15.84M | 16.5M | 11.2M | 4.7M | 2.8M |
| Effective Tax Rate % | 17.24% | 10.41% | 27.4% | 11.88% | 18.92% | 17.91% | 17.5% | 7.35% | 25.48% | 53.69% | -57.95% | 171.24% | 36.43% | 36.64% | 25.65% | 26.75% | 24% | 36% | 37.45% | 35% | 35.5% | 28.44% | 32% | 30% | 30% | 31% | 32% | 32.04% | 32.94% | 151.61% | 33.73% |
| Net Income | 89.04M | 73.13M | 68.44M | 70.2M | 95.07M | 78.42M | 79.72M | 26.4M | 63.49M | 37.42M | -55.73M | -8.8M | 49.46M | 74.91M | 47.44M | 58.76M | 48.57M | 32.76M | 46.3M | 42.28M | 29.4M | 48.93M | 32.1M | 27.07M | 20.59M | 17.64M | 33.65M | 35M | 22.8M | -1.6M | 5.5M |
| Net Margin % | 8.87% | 7.48% | 9.08% | 10.11% | 15.79% | 14.76% | 18.03% | 6.39% | 15.99% | 9.41% | -13.75% | -2.33% | 14.87% | 22.43% | 14.15% | 11.01% | 9.18% | 6.63% | 8.98% | 8.57% | 6.58% | 12.07% | 8.85% | 8.76% | 7.54% | 6.73% | 12.4% | 12.23% | 9.5% | -0.85% | 3.11% |
| Net Income Growth % | 54.63% | 6.86% | -2.51% | -26.16% | 21.23% | -1.63% | 201.98% | -58.42% | 69.68% | 167.14% | -533.18% | -117.79% | -33.97% | 57.89% | -19.26% | 20.98% | 48.29% | -29.25% | 9.5% | 43.8% | -39.92% | 52.43% | 18.57% | 31.51% | 16.69% | -47.57% | -3.85% | 53.51% | 1525% | -129.09% | -67.07% |
| Net Income (Continuing) | 89.04M | 73.13M | 68.44M | 70.2M | 95.07M | 78.42M | 79.72M | 26.4M | 49.67M | 37.42M | -55.73M | -8.8M | 49.46M | 39.78M | 32.6M | 71.39M | 62.57M | 32.76M | 46.3M | 42.28M | 29.4M | 46.26M | 32.1M | 27.07M | 20.59M | 17.64M | 33.65M | 35M | 22.8M | -1.6M | 5.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 35.13M | 14.84M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 300K | 200K |
| EPS (Diluted) | 2.09 | 1.66 | 1.54 | 1.57 | 2.15 | 1.76 | 1.76 | 0.58 | 1.38 | 0.77 | -1.13 | -0.17 | 0.96 | 1.35 | 0.74 | 0.87 | 0.73 | 0.53 | 0.72 | 0.64 | 0.45 | 0.79 | 0.51 | 0.43 | 0.36 | 0.31 | 0.57 | 0.60 | 0.39 | -0.03 | 0.09 |
| EPS Growth % | 57.81% | 7.79% | -1.91% | -26.98% | 22.16% | 0% | 203.45% | -57.97% | 79.22% | 168.14% | -564.71% | -117.71% | -28.89% | 82.43% | -14.94% | 19.18% | 37.74% | -26.39% | 12.5% | 42.22% | -43.04% | 54.9% | 18.6% | 19.44% | 16.13% | -45.61% | -5% | 53.85% | 1426.53% | -132.06% | -66.04% |
| EPS (Basic) | - | 1.70 | 1.58 | 1.62 | 2.19 | 1.79 | 1.78 | 0.59 | 1.39 | 0.78 | -1.13 | -0.17 | 0.97 | 1.37 | 0.75 | 0.89 | 0.76 | 0.54 | 0.75 | 0.68 | 0.48 | 0.85 | 0.55 | 0.47 | 0.39 | 0.33 | 0.63 | 0.68 | 0.44 | -0.03 | 0.09 |
| Diluted Shares Outstanding | 42.52M | 44.02M | 44.43M | 44.66M | 44.25M | 44.62M | 45.32M | 45.34M | 46.13M | 48.52M | 49.48M | 50.39M | 51.47M | 55.38M | 63.74M | 67.54M | 66.21M | 61.56M | 64.02M | 65.91M | 64.9M | 62.14M | 63.36M | 62.48M | 57.2M | 57.64M | 59.38M | 58.82M | 57.84M | 54.5M | 60M |
| Basic Shares Outstanding | 42.03M | 43M | 43.27M | 43.46M | 43.48M | 43.92M | 44.89M | 44.79M | 45.56M | 48.13M | 49.32M | 50.39M | 50.84M | 54.52M | 62.88M | 65.7M | 63.96M | 60.15M | 61.55M | 62.33M | 61.46M | 57.34M | 58.72M | 57.2M | 53.13M | 53.17M | 53.7M | 51.73M | 51.69M | 54.5M | 59.71M |
| Dividend Payout Ratio | - | 1.07% | 45.97% | 44.95% | 32.67% | 40.25% | 37.51% | 105.15% | 40.62% | 64.48% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying PRGS stock.
For fiscal year 2025, Progress Software Corporation (PRGS) reported total revenue of $977.8M. This represents a 453.4% increase compared to $176.7M in 1996.
Progress Software Corporation (PRGS) is profitable, generating $73.1M in net income for the fiscal year ending 2025 with a net profit margin of 7.5%.
Progress Software Corporation (PRGS) reported an operating income of $153.3M, resulting in an operating profit margin of 15.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Progress Software Corporation (PRGS) generated $790.3M in gross profit for the year, representing a gross profit margin of 80.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
SBC dilution and margin volatility
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates
PRGS revenue grew 6.8% YoY in 2026Q2, up from 4.1% in the prior quarter, according to the latest income statement data, suggesting accelerating demand.
The sequential acceleration from 4.1% to 6.8% YoY growth in 2026Q2 indicates improving momentum, possibly driven by new product adoption or market share gains. However, the growth rate remains modest compared to peers like GWRE and PDFS, which are growing in the low-20s, implying PRGS may be sacrificing growth for profitability.
Gross Margin Volatility Raises Questions
Gross margin swung from 72.0% in 2026Q1 to 82.3% in 2026Q2, a 10.3-point swing, as reported in the financial statements, suggesting potential one-time costs or revenue mix shifts.
The dramatic gross margin fluctuation is unusual for a software company and may indicate a one-time COGS spike in 2026Q1, possibly from a large deal or cloud infrastructure costs. Investors should monitor whether the 82% level is sustainable or if the 72% quarter reflects a new cost structure. Compared to peers like PEGA at 75.9%, PRGS's margins are higher but less stable.
Operating Leverage Inconsistent
Operating margin improved to 18.5% in 2026Q2 from 15.2% in 2025Q4, but remains below the 22.6% peak in 2024Q3, based on reported figures, indicating uneven cost control.
While operating income grew faster than revenue in 2026Q2 (op margin up 3.3 points from 2025Q4), the trend is not linear. The 2024Q3 peak of 22.6% suggests the company can achieve higher efficiency, but recent quarters have seen SG&A and R&D expenses grow, possibly due to investments. The 18.5% margin is respectable but not best-in-class.
SBC Dilutes Reported Earnings
Stock-based compensation reached $20.5M in 2026Q2, nearly equal to net income of $21.1M, as per the income statement, implying reported EPS may overstate economic profitability.
SBC as a percentage of revenue has risen from around 6% in 2024 to over 8% in 2026, which is a significant drag on shareholder value. The gap between net income and SBC suggests that cash earnings are much lower than reported, and investors should adjust for this dilution when valuing the company. The 120.8% EPS growth in 2026Q1 was likely distorted by a low base and tax effects.
R&D and SG&A Escalate
Combined R&D and SG&A expenses grew from $95.5M in 2024Q1 to $135.4M in 2026Q2, a 42% increase, according to the income statement data, outpacing revenue growth.
The rise in operating expenses is notable, with R&D up from $35M to $48.8M and SG&A from $60.5M to $86.6M over the period. This suggests management is investing heavily in product development and sales capacity, which may be necessary for growth but is compressing margins. The 2026Q2 op margin of 18.5% is below the 2024Q3 level, indicating that cost growth is not yet yielding proportional operating leverage.
2024Q4 Marks a Profitability Trough
Net income collapsed to $1.1M in 2024Q4 from $28.5M in 2024Q3, a 96% drop, as reported in the financial statements, likely due to acquisition-related costs or one-time charges.
The 2024Q4 quarter stands out as a clear inflection point, with operating margin falling to 10.0% and net margin to 0.5%. This was followed by a recovery in 2025, but the volatility suggests the company may have made a strategic acquisition or incurred restructuring charges. The lasting impact is that investors should expect periodic earnings disruptions, and the 2025-2026 recovery may not be smooth.
Margin Compression and Dilution Risks
Despite revenue growth, operating margin has not returned to 2024Q3 levels, and SBC is consuming nearly all net income, as per the income statement, suggesting earnings quality is weak.
Short-sellers could argue that PRGS's growth is not translating into bottom-line improvement, with op margin still 4 points below its 2024Q3 peak. The high SBC expense indicates that reported EPS is inflated, and the volatile gross margins raise questions about cost control. If revenue growth decelerates, the lack of operating leverage could lead to significant earnings misses.