The revenue decline and elevated leverage from the Domo acquisition create near-term uncertainty, but the strong EPS beat and raised revenue guidance signal underlying operational strength. Monitor Q4 2026 for Domo integration progress and debt paydown trajectory; the Q4 GAAP loss guidance ($0.41-$0.32) is a one-time acquisition accounting effect, not a fundamental deterioration.
Price Chart
Executive Summary
Progress Software reported Q3 2026 revenue of $246M, down 2% YoY, missing consensus estimates of $300.3M. Non-GAAP EPS of $1.69 beat the $1.28 consensus by 32%, driven by strong operating margins (43%). The company closed the Domo AI/data platform acquisition for $400M, raising FY 2026 revenue guidance to $1.044B-$1.052B (from $990M-$1,002M) but lowering GAAP EPS guidance to $1.18-$1.28 due to acquisition-related costs. The revenue miss and elevated leverage from the Domo deal temper the EPS beat.
Key Financial Metrics
Key Facts
- Q3 2026 revenue of $246M decreased 2% YoY vs consensus $300.3M
- Non-GAAP EPS of $1.69 beat consensus $1.28 by 32%
- ARR of $873M grew 1% YoY; NRR was 99%
- Closed $400M acquisition of Domo's AI and data platform business on Sept 22, 2026
- FY 2026 revenue guidance raised to $1.044B-$1.052B from $990M-$1,002M
- FY 2026 GAAP EPS guidance lowered to $1.18-$1.28 from $1.60-$1.74
- Non-GAAP operating margin of 43% expanded 300 bps YoY
- Net leverage rose to ~3.8x at close; pro forma ~2.9x with Domo EBITDA
- Adjusted free cash flow of $87M grew 17% YoY
- Repurchased $17M of shares in Q3; $72M YTD
Financial Impact
Revenue miss of ~$54M vs consensus ($246M vs $300.3M) but EPS beat of $0.41; $400M Domo acquisition closed with $390M revolver draw; FY revenue guidance raised ~$52M at midpoint
Risk Factors
- Revenue declined 2% YoY, the first quarterly decline in recent history
- Net leverage spiked to ~3.8x at Domo close, though pro forma ~2.9x
- Q4 GAAP EPS guided to a loss of ($0.41)-($0.32) due to acquisition costs
- ARR growth slowed to 1% YoY, NRR at 99% (below 100% threshold)
- Domo integration risk and potential customer churn
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000876167-26-000110 |
| Document: q32026supplementaldeck.htm | 0000876167-26-000110 |
| Document: prgs-20260930.htm | 0000876167-26-000110 |
| Document: 0000876167-26-000110-index-headers.html | 0000876167-26-000110 |
| Document: 0000876167-26-000110-index.html | 0000876167-26-000110 |
| Document: 0000876167-26-000110.txt | 0000876167-26-000110 |
| 8-K Data (Synthetic) | 0000876167-26-000110 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | Insider Cluster | $46.45 | awaiting T+5 | — | $45.48 (−2.09%) |
Sep 30, 2026 26d ago | 8-K | $36.58 $38.28 | ▲ +4.65% | ▲ +3.35% | $45.48 (+24.33%) |
Sep 30, 2026 26d ago | Press Release | $36.58 $38.28 | ▲ +4.65% | ▲ +3.35% | $45.48 (+24.33%) |
Sep 29, 2026 28d ago | Press Release | $39.44 $37.20 | ▼ −5.68% | ▼ −7.63% | $45.48 (+15.31%) |
Sep 22, 2026 4w ago | 8-K | $41.03 $39.97 | ▼ −2.58% | ▼ −1.91% | $45.48 (+10.85%) |
Sep 22, 2026 4w ago | Press Release | $41.03 $39.97 | ▼ −2.58% | ▼ −1.91% | $45.48 (+10.85%) |
Jun 30, 2026 16w ago | 8-K | $39.16 $39.21 | ▲ +0.13% | ▼ −0.13% | $45.48 (+16.14%) |
Jun 30, 2026 16w ago | Press Release | $39.16 $39.21 | ▲ +0.13% | ▼ −0.13% | $45.48 (+16.14%) |
Jun 11, 2026 19w ago | Institutional Cluster | $31.59 $30.08 | ▲ +4.78% | ▲ +5.21% | $45.48 (−43.97%) |
May 20, 2026 22w ago | Insider Cluster | $28.92 $32.83 | ▲ +13.52% | ▲ +11.67% | $45.48 (+57.26%) |
US Market Status
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