Progress Software Q1 Net Income Doubles to $22.8M on 4% Revenue Gain

Progress Software Corporation (NASDAQ: PRGS), an enterprise application development and deployment platform provider, posted net income of $22.8 million for the three months ended February 28, 2026, more than doubling the $10.9 million earned in the same quarter a year earlier. Revenue rose 4% to $247.8 million from $238.0 million. Read more earnings reports.

The company reported diluted earnings per share of $0.53, up from $0.24 in the prior-year quarter. Operating income jumped 43% to $46.5 million from $32.4 million, as gross profit climbed to $203.9 million from $191.8 million while operating expenses declined slightly to $157.5 million from $159.4 million.

Cash Generation Surges

Cash from operations surged 43% to $98.6 million for the quarter, compared to $68.9 million in the same period last year. The company ended the quarter with cash and cash equivalents of $113.2 million, up from $94.8 million at the end of November 2025.

Progress reduced long-term debt to $981.7 million as of February 28, 2026, down from $1.04 billion three months earlier. Cash used in financing activities totaled $78.9 million, compared to $58.9 million in the year-ago quarter.

Balance Sheet Contracts

Total assets declined to $2.39 billion as of February 28, 2026, from $2.46 billion at November 30, 2025. Accounts receivable dropped to $147.6 million from $195.8 million over the same period. Goodwill remained essentially flat at $1.31 billion, while intangible assets decreased to $549.8 million from $584.0 million.

Stockholders' equity increased to $498.8 million from $478.3 million at the prior quarter end. The company had 42.1 million shares outstanding as of February 28, 2026, down from 42.3 million three months earlier.

Revenue Breakdown

The company reported maintenance and services revenue of $180.2 million for the quarter, essentially flat compared to $179.6 million in the prior year. Subscription revenue rose to $67.6 million from $58.4 million.

Cost of revenue declined to $43.9 million from $46.2 million, contributing to the improved profitability. Income tax expense increased to $7.5 million from $2.4 million in the year-ago quarter.