Revenue growth reached 10.9% in 2025Q3, yet structural profitability remains elusive as SG&A expenses of $43.0M continue to outpace gross profit generation.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Sales/Revenue | 351.68M | 330.37M | 303.71M | 276.14M | 251.42M | 252.42M | 250.33M | 197.02M | 168.82M | 153.28M | 168.25M | 185.83M | 144.84M | 117.79M | 96.64M | 71.05M | 68.78M | 75.59M | 62.08M | 46.03M | 35.13M |
| Revenue Growth % | 8.92% | 8.78% | 9.98% | 9.83% | -0.4% | 0.83% | 27.06% | 16.71% | 10.14% | -8.9% | -9.46% | 28.3% | 22.96% | 21.89% | 36.03% | 3.29% | -9% | 21.76% | 34.87% | 31.02% | - |
| Cost of Goods Sold | 113.05M | 113.33M | 115.31M | 110.08M | 104.92M | 104.63M | 99.12M | 77.18M | 68.57M | 63.35M | 61.41M | 55.89M | 43.13M | 33.78M | 26.44M | 20.57M | 18.64M | 19.25M | 17.94M | 15.61M | 13.38M |
| COGS % of Revenue | - | 34.3% | 37.97% | 39.86% | 41.73% | 41.45% | 39.59% | 39.17% | 40.62% | 41.33% | 36.5% | 30.08% | 29.78% | 28.68% | 27.36% | 28.95% | 27.11% | 25.47% | 28.91% | 33.9% | 38.09% |
| Gross Profit | 238.64M | 217.04M | 188.4M | 166.06M | 146.5M | 147.79M | 151.22M | 119.84M | 100.25M | 89.92M | 106.84M | 129.94M | 101.7M | 84.01M | 70.2M | 50.48M | 50.14M | 56.34M | 44.14M | 30.42M | 21.75M |
| Gross Margin % | 67.86% | 65.7% | 62.03% | 60.14% | 58.27% | 58.55% | 60.41% | 60.83% | 59.38% | 58.67% | 63.5% | 69.92% | 70.22% | 71.32% | 72.64% | 71.05% | 72.89% | 74.53% | 71.09% | 66.1% | 61.91% |
| Gross Profit Growth % | - | 15.21% | 13.45% | 13.35% | -0.87% | -2.27% | 26.18% | 19.55% | 11.48% | -15.83% | -17.78% | 27.76% | 21.07% | 19.66% | 39.07% | 0.68% | -11% | 27.64% | 45.08% | 39.88% | - |
| Operating Expenses | 254.49M | 236.06M | 239M | 242.6M | 218.46M | 213.87M | 204.05M | 168.97M | 164.47M | 155.32M | 159.44M | 145.29M | 95.99M | 75.83M | 61.6M | 54.77M | 42.77M | 42.4M | 33.13M | 23.59M | 18.41M |
| OpEx % of Revenue | - | 71.45% | 78.69% | 87.85% | 86.89% | 84.73% | 81.51% | 85.76% | 97.43% | 101.33% | 94.77% | 78.18% | 66.28% | 64.37% | 63.74% | 77.08% | 62.18% | 56.1% | 53.37% | 51.26% | 52.4% |
| Selling, General & Admin | 163.38M | 146.34M | 149.64M | 149.19M | 136.19M | 138.26M | 136.81M | 113.31M | 108.45M | 102.52M | 112.66M | 99.92M | 63.52M | 48.22M | 35.93M | 34.1M | 22.64M | 22.09M | 16.29M | 13.26M | 12.01M |
| SG&A % of Revenue | - | 44.3% | 49.27% | 54.03% | 54.17% | 54.77% | 54.65% | 57.51% | 64.24% | 66.88% | 66.96% | 53.77% | 43.86% | 40.93% | 37.18% | 48% | 32.91% | 29.23% | 26.25% | 28.81% | 34.19% |
| Research & Development | 91.11M | 89.72M | 89.36M | 93.41M | 82.27M | 75.61M | 67.25M | 55.66M | 56.02M | 52.8M | 46.78M | 45.37M | 32.47M | 27.61M | 25.67M | 20.66M | 20.14M | 20.31M | 16.84M | 10.33M | 6.4M |
| R&D % of Revenue | - | 27.16% | 29.42% | 33.83% | 32.72% | 29.96% | 26.86% | 28.25% | 33.18% | 34.45% | 27.8% | 24.41% | 22.42% | 23.44% | 26.56% | 29.09% | 29.27% | 26.87% | 27.12% | 22.45% | 18.22% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 308K | 897K | -354K | 0 | 384K | -38K | -661K | 0 | -265K | -163K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -15.86M | -19.02M | -50.6M | -76.54M | -71.96M | -66.08M | -52.84M | -49.12M | -64.22M | -65.4M | -52.61M | -15.35M | 5.71M | 8.18M | 8.6M | -4.29M | 7.37M | 13.93M | 11.01M | 6.83M | 3.34M |
| Operating Margin % | -4.51% | -5.76% | -16.66% | -27.72% | -28.62% | -26.18% | -21.11% | -24.93% | -38.04% | -42.67% | -31.27% | -8.26% | 3.94% | 6.94% | 8.9% | -6.03% | 10.71% | 18.43% | 17.73% | 14.84% | 9.51% |
| Operating Income Growth % | - | 62.41% | 33.89% | -6.37% | -8.89% | -25.07% | -7.57% | 23.52% | 1.8% | -24.31% | -242.76% | -368.74% | -30.18% | -4.89% | 300.63% | -158.19% | -47.13% | 26.6% | 61.15% | 104.51% | - |
| EBITDA | -8.34M | -10.22M | -39.09M | -60.38M | -58.7M | -49.95M | -37.57M | -36.06M | -53.69M | -55.89M | -42.21M | -4.91M | 10.02M | 10.47M | 10.21M | -2.93M | 8.65M | 15.3M | 12.19M | 8.75M | 4.41M |
| EBITDA Margin % | -2.37% | -3.09% | -12.87% | -21.86% | -23.35% | -19.79% | -15.01% | -18.3% | -31.8% | -36.46% | -25.09% | -2.64% | 6.92% | 8.89% | 10.57% | -4.12% | 12.58% | 20.24% | 19.63% | 19.01% | 12.57% |
| EBITDA Growth % | 56.76% | 73.86% | 35.25% | -2.86% | -17.52% | -32.96% | -4.16% | 32.83% | 3.93% | -32.41% | -760.59% | -148.96% | -4.28% | 2.51% | 448.94% | -133.83% | -43.45% | 25.5% | 39.3% | 98.22% | - |
| D&A (Non-Cash Add-back) | 7.52M | 8.8M | 11.51M | 16.17M | 13.26M | 16.13M | 15.27M | 13.05M | 10.53M | 9.51M | 10.39M | 10.44M | 4.31M | 2.29M | 1.61M | 1.36M | 1.28M | 1.36M | 1.18M | 0 | 0 |
| EBIT | -4.35M | -14.56M | -49.54M | -75.01M | -74.03M | -65.18M | -53.69M | -47.06M | -64.56M | -65.44M | -56.16M | -25.06M | 3.27M | 8.02M | 8.63M | -4.19M | 7.56M | 15.04M | 12.63M | 8.75M | 4.41M |
| Net Interest Income | 48K | 1.62M | 1.85M | -6.3M | -6.3M | -11.13M | -14.77M | -16.99M | -13.22M | -9.32M | -8.91M | 0 | 0 | 0 | 33K | 69K | 196K | 1.11M | 754.19K | 1.92M | 1.07M |
| Interest Income | 5.54M | 6.22M | 7.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 33K | 69K | 196K | 1.11M | 1.62M | 1.92M | 1.07M |
| Interest Expense | 5.49M | 4.6M | 5.88M | 6.3M | 6.3M | 11.13M | 14.77M | 16.99M | 13.22M | 9.32M | 8.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 868.98K | 0 | 0 |
| Other Income/Expense | 6.01M | -139K | -4.82M | -4.77M | -8.38M | -10.23M | -15.62M | -14.93M | -13.55M | -9.36M | -12.46M | -9.71M | -2.44M | -163K | 33K | 94K | 196K | 1.11M | 754.19K | 1.92M | 1.07M |
| Pretax Income | -9.85M | -19.16M | -55.42M | -81.31M | -80.34M | -76.31M | -68.46M | -64.05M | -77.78M | -74.75M | -65.07M | -25.06M | 3.27M | 8.02M | 8.63M | -4.19M | 7.56M | 15.04M | 11.76M | 8.75M | 4.41M |
| Pretax Margin % | -2.8% | -5.8% | -18.25% | -29.45% | -31.95% | -30.23% | -27.35% | -32.51% | -46.07% | -48.77% | -38.68% | -13.48% | 2.26% | 6.81% | 8.93% | -5.9% | 11% | 19.9% | 18.94% | 19.01% | 12.57% |
| Income Tax | 1.81M | 1.31M | 933K | 932K | 870K | 676K | 624K | 200K | 149K | 470K | 739K | 12.49M | -173K | 3.05M | 2.28M | -2.26M | 2.05M | 4.29M | 1.24M | 1.72M | 974.54K |
| Effective Tax Rate % | -18.39% | -6.86% | -1.68% | -1.15% | -1.08% | -0.89% | -0.91% | -0.31% | -0.19% | -0.63% | -1.14% | -49.86% | -5.29% | 38.06% | 26.45% | 53.95% | 27.07% | 28.5% | 10.57% | 19.71% | 22.08% |
| Net Income | -11.66M | -20.48M | -56.35M | -82.25M | -81.21M | -76.98M | -69.08M | -64.25M | -77.93M | -75.22M | -65.81M | -36.64M | 3.45M | 4.97M | 6.35M | -1.93M | 5.52M | 10.76M | 10.52M | 7.03M | 3.44M |
| Net Margin % | -3.32% | -6.2% | -18.56% | -29.78% | -32.3% | -30.5% | -27.6% | -32.61% | -46.16% | -49.08% | -39.12% | -19.72% | 2.38% | 4.22% | 6.57% | -2.72% | 8.02% | 14.23% | 16.94% | 15.26% | 9.79% |
| Net Income Growth % | 59.38% | 63.67% | 31.48% | -1.28% | -5.49% | -11.44% | -7.53% | 17.56% | -3.59% | -14.3% | -79.6% | -1163.38% | -30.61% | -21.8% | 428.85% | -135.01% | -48.72% | 2.28% | 49.7% | 104.25% | - |
| Net Income (Continuing) | -11.66M | -20.48M | -56.35M | -82.25M | -81.21M | -76.98M | -69.08M | -64.25M | -77.93M | -75.22M | -65.81M | -37.55M | 3.45M | 4.97M | 6.35M | -1.93M | 5.52M | 10.76M | 10.52M | 7.03M | 3.44M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 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 |
| EPS (Diluted) | -0.24 | -0.43 | -1.22 | -1.82 | -1.83 | -1.78 | -1.72 | -1.86 | -2.46 | -2.47 | -2.22 | -1.27 | 0.11 | 0.17 | 0.23 | -0.07 | 0.21 | 0.40 | 0.45 | 0.32 | 0.16 |
| EPS Growth % | 47.72% | 64.75% | 32.97% | 0.55% | -2.81% | -3.49% | 7.53% | 24.39% | 0.4% | -11.26% | -74.8% | -1254.55% | -35.29% | -26.09% | 410.81% | -135.24% | -47.5% | -11.11% | 40.63% | 100% | - |
| EPS (Basic) | - | -0.43 | -1.22 | -1.82 | -1.83 | -1.78 | -1.72 | -1.86 | -2.46 | -2.47 | -2.23 | -1.27 | 0.12 | 0.18 | 0.24 | -0.07 | 0.21 | 0.41 | 0.45 | 0.33 | 0.19 |
| Diluted Shares Outstanding | 48.2M | 47.12M | 46.16M | 45.27M | 44.35M | 43.3M | 40.23M | 34.47M | 31.63M | 30.39M | 29.58M | 28.92M | 30.11M | 28.42M | 27.76M | 26.09M | 26.43M | 26.57M | 23.43M | 20.6M | 20.01M |
| Basic Shares Outstanding | 48.2M | 47.12M | 46.16M | 45.27M | 44.35M | 43.3M | 40.23M | 34.46M | 31.63M | 30.39M | 29.51M | 28.85M | 28M | 27.37M | 26.83M | 26.09M | 25.71M | 26.12M | 23.03M | 19.65M | 13.89M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 392.96% | - | - |
Persistent negative operating margins
According to recent quarterly filings, PROS Holdings has maintained a steady revenue growth trajectory, recording a 10.9% year-over-year increase in 2025Q3, which suggests that the company's ongoing transition toward a subscription-based model is successfully capturing recurring demand despite broader macroeconomic volatility in the airline and industrial sectors.
The revenue expansion appears durable, supported by the company's specialized algorithmic pricing engines that remain deeply embedded in customer workflows. While growth remains in the high single digits, investors should monitor whether the company can accelerate this pace as it integrates generative AI features into its existing CPQ platform.
As reported in financial statements, the company's gross margin reached 68.9% in 2025Q3, reflecting a gradual improvement from the 62.3% level observed in 2023Q2, yet the firm continues to struggle with achieving the necessary scale to translate these gains into positive operating profitability on a consistent basis.
The upward trend in gross margins suggests that the shift toward higher-margin subscription modules is beginning to yield structural benefits. However, the persistence of negative operating margins indicates that the cost of maintaining a specialized, high-touch sales force and cloud infrastructure continues to offset these gains.
Based on the provided income statement data, PROS has yet to demonstrate meaningful operating leverage, as SG&A expenses of $43.0M in 2025Q3 continue to consume a significant portion of gross profit, preventing the company from achieving sustained positive operating income despite consistent top-line growth over the last ten quarters.
The company's high fixed-cost structure, particularly in R&D and specialized sales, appears to be a primary barrier to profitability. Unless management can decouple revenue growth from headcount-related expenses, the path to operating leverage may remain obstructed by the high-touch nature of its complex software implementations.
Analysis of recent SEC filings reveals that stock-based compensation remains a substantial component of operating expenses, reaching $13.8M in 2025Q3, which significantly masks the underlying cash burn and complicates the assessment of the company's true progress toward GAAP profitability and long-term shareholder value creation.
The reliance on equity-based incentives suggests that management is prioritizing talent retention in a competitive software market, but this practice dilutes the quality of reported earnings. Investors should carefully adjust for these non-cash charges to better understand the company's actual operational efficiency and cash flow generation capabilities.
Skeptics might argue that the company's reliance on bespoke professional services and the persistent negative net margins, which stood at -4.6% in 2025Q3, indicate a business model that may struggle to scale efficiently without further dilutive financing or significant reductions in its current high-touch operational cost structure.
The risk of margin compression remains a valid concern if competitive pressures in the pricing software space force increased R&D spending or pricing concessions. Furthermore, the sensitivity of the airline segment to global travel shocks warrants caution regarding the long-term stability of the company's recurring revenue base.
Quick answers to the most common questions about buying PRO stock.
For fiscal year 2024, PROS Holdings, Inc. (PRO) reported total revenue of $330.4M. This represents a 840.4% increase compared to $35.1M in 2005.
PROS Holdings, Inc. (PRO) reported a net loss of $20.5M for the fiscal year ending 2024.
PROS Holdings, Inc. (PRO) reported an operating income of $-19.0M, resulting in an operating profit margin of -5.8%. This margin reflects the operational efficiency of the business before interest and taxes.
PROS Holdings, Inc. (PRO) generated $217.0M in gross profit for the year, representing a gross profit margin of 65.7%. This demonstrates the company's core pricing power and production efficiency.