The beat-and-raise quarter with accelerating revenue growth (7% vs 4% in Q1) and strong cash flow supports the bullish thesis. Monitor Q3 guidance for continued ARR acceleration and margin expansion. The lowered GAAP EPS guidance due to tax rate is a minor offset but does not change the underlying operational strength.
Price Chart
Executive Summary
Progress Software reported Q2 2026 results with revenue of $253M (+7% YoY) and non-GAAP EPS of $1.62, beating consensus estimates of $242.7M and $1.49 respectively. The company raised its full-year non-GAAP EPS guidance to $6.09-$6.21 (from $5.91-$6.03) and revenue guidance to $990M-$1,002M, while continuing aggressive debt paydown and share repurchases. The beat-and-raise quarter signals sustained demand for AI-powered offerings and strong operational execution.
Key Financial Metrics
Key Facts
- Q2 revenue $253.5M (+7% YoY) vs consensus $242.7M
- Non-GAAP EPS $1.62 (+16% YoY) vs consensus $1.49 (8.7% beat)
- FY2026 non-GAAP EPS guidance raised to $6.09-$6.21 from $5.91-$6.03
- FY2026 revenue guidance raised to $990M-$1,002M from $988M-$1,000M
- ARR $868M (+2% YoY), net retention rate 100%
- Adjusted free cash flow $79.2M (+114% YoY)
- Debt paydown $50M in Q2, $110M YTD; net leverage ratio 2.9x
- Share repurchases $35M in Q2, $55M YTD
- GAAP EPS guidance lowered to $1.60-$1.74 due to higher effective tax rate (25% vs 23%)
Financial Impact
Revenue beat by ~$10.8M (4.4%), non-GAAP EPS beat by $0.13 (8.7%). FY guidance raised by $2M revenue midpoint and $0.18 non-GAAP EPS midpoint.
Risk Factors
- GAAP EPS guidance lowered due to higher effective tax rate (25% vs 23%)
- Ongoing MOVEit vulnerability expenses ($1.3M in Q2) may persist
- High debt load ($850M revolver + $442M convertible) despite paydown
- ARR growth remains modest at 2% YoY
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000876167-26-000077 |
| Document: prgs-20260630.htm | 0000876167-26-000077 |
| Document: q22026supplementaldeck.htm | 0000876167-26-000077 |
| Document: 0000876167-26-000077-index-headers.html | 0000876167-26-000077 |
| Document: 0000876167-26-000077-index.html | 0000876167-26-000077 |
| Document: 0000876167-26-000077.txt | 0000876167-26-000077 |
| 8-K Data (Synthetic) | 0000876167-26-000077 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 30, 2026 13w ago | 8-K | $39.16 $40.23 | ▲ +2.73% | ▼ −0.14% | $36.90 (−5.77%) |
Jun 30, 2026 13w ago | Press Release | $39.16 $40.23 | ▲ +2.73% | ▼ −0.14% | $36.90 (−5.77%) |
Jun 11, 2026 16w ago | Institutional Cluster | $31.59 $44.05 | ▼ −39.44% | ▼ −35.05% | $36.90 (−16.81%) |
May 20, 2026 19w ago | Insider Cluster | $28.92 $42.86 | ▲ +48.20% | ▲ +43.90% | $36.90 (+27.59%) |
Mar 30, 2026 26w ago | Press Release | $25.65 $33.15 | ▲ +29.24% | ▲ +16.86% | $36.90 (+43.86%) |
Mar 25, 2026 27w ago | DEFA14A | $29.17 $28.61 | ▼ −1.92% | ▼ −15.87% | $36.90 (+26.50%) |
Mar 16, 2026 28w ago | Press Release | $33.61 $31.16 | ▼ −7.29% | ▼ −17.77% | $36.90 (+9.79%) |
US Market Status
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