Progress Software Corporation (PRGS) Earnings Call Transcripts

Progress Software Corporation's Latest Earnings Call - Q1 FY2026

In the first quarter of fiscal year 2026, Progress Software Corporation reported revenue of $248 million, reflecting a 4% increase year-over-year, and earnings per share (EPS) of $1.60, up 22% from the previous year. The company maintained a strong net retention rate (NRR) of 99% and adjusted free cash flow of $99 million, indicating robust cash generation. Management provided guidance for Q2 revenue between $240 million and $246 million and full-year revenue expectations of $988 million to $1 billion, suggesting modest growth ahead.

Reported metrics

Guidance from management

Management expects Q2 revenue between $240 million and $246 million and full-year revenue of $988 million to $1 billion, reflecting 1% to 2% growth over 2025. They maintained a positive outlook despite some macroeconomic uncertainties.

What management said

No, I think it is largely cleaned up in any of these cleanup issues that we need to do will get smaller and smaller as we go forward. So I don't expect significant issues with it. I mean, as Yogesh said, the business fundamentally from an operational perspective has been incredibly solid.

Maybe not at all. This was unusual. This was truly unusual. It was -- the decision came out, the government acted and the service providers had to act. I mean it was within a matter of 2 weeks and completely from left field.

What analysts pressed on

Analysts expressed concerns regarding the decline in SaaS revenue and the implications of isolated churn events. There were questions about the sustainability of customer retention rates and the impact of macroeconomic factors on future performance.

Main topics on the call

• Revenue Performance — Progress Software achieved revenue of $248 million for Q1 2026, which was above internal expectations and represented a 4% year-over-year growth. Management noted, "the renewal timing of subscription contracts...can have...
• Artificial Intelligence Integration — The company emphasized its ongoing investments in AI, stating it has "embedded AI into our products with attention to governance, observability, cost and LLM flexibility." This integration is driving customer value and o...
• Capital Allocation Strategy — Management highlighted a disciplined capital allocation strategy, with $60 million in debt repayment and $20 million in stock repurchases during the quarter. They stated, "Our capital allocation priorities remain very cl...
• Customer Retention and Churn — Despite a strong NRR of 99%, management acknowledged some "isolated churn" due to specific customer events, such as a government contract loss. They remain confident in their ability to maintain customer loyalty and expa...

Read the full Progress Software Corporation transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 35 Progress Software Corporation earnings call transcripts on record, spanning January 16, 2020 to July 22, 2026. Based on this history, Progress Software Corporation reports quarterly. The most recent call on file is dated July 22, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

PRGS

Exchange

NasdaqGS

Country

US

Sector

Information Technology

Industry

Software

Calls on record

35

First call

January 16, 2020

Most recent

July 22, 2026

Reporting cadence

quarterly