Description

Progress Software’s $400 Million Domo Acquisition: A $100 Million EBITDA Powerhouse?

Progress Software reported its third quarter of fiscal year 2026 results, marked by certain strengths and challenges amidst a significant acquisition. The company’s annual recurring revenue (ARR) grew slightly by over 1% in constant currency to approximately $873 million, with a net retention rate steady at 99%, reflecting ongoing customer loyalty and contract renewals. Revenue for the quarter was $246 million, aligning with the midpoint of the company’s prior guidance. Core product lines such as OpenEdge, DataDirect, MOVEit, and LoadMaster contributed notably to performance. Operating margins improved to 43%, up 300 basis points year-over-year, while earnings per share increased 13% to $1.69, surpassing the guidance range. Cash flow generation remained strong, with significant improvements in days sales outstanding (DSO) and a continued focus on reducing leverage through debt repayments and share repurchases.