Progress Software (PRGS) Q3 FY2026 Earnings Call: Domo Deal and Raised Guidance
Source Tradingkey
Key Takeaways
- Progress Software (NASDAQ: PRGS) ended fiscal Q3 2026 with ARR of approximately $873 million, up more than 1% year over year on a pro forma constant-currency basis. Net retention remained at 99%.
- Q3 revenue was $246 million. Operating margin reached 43%, up 300 basis points year over year, while EPS increased 13% to $1.69.
- Adjusted free cash flow rose 17% to $87 million. Year-to-date adjusted free cash flow increased 44% to $265 million, supported by stronger collections and continued operating performance.
- Progress completed its acquisition of Domo’s AI and data platform business for a headline price of $400 million. The actual cash outlay was $390 million after acquired cash and assumed transaction expenses.
- Management expects Domo’s revenue to stabilize at $280 million to $290 million after planned declines in professional services and legacy seat-based contracts. Once fully integrated by the end of FY2027, Domo is expected to contribute well over $100 million of annual EBITDA.
- Progress raised its FY2026 outlook to revenue of $1.044 billion to $1.052 billion and EPS of $6.15 to $6.23, including a partial-quarter contribution from Domo.
Key Financial Data
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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