Description

Progress Software Corporation Expanded Revolver Capacity to $1.5B—Is a Bigger M&A Wave About to Start?

Progress Software’s third-quarter financial results for fiscal year 2025 demonstrated a combination of positive business momentum and strategic execution, although there are areas that warrant cautious consideration. The company reported strong financial performance, with revenues amounting to $250 million, exceeding their prior guidance, and earnings per share reaching $1.50, above expectations. The operating margin was noted at 40%, signaling effective cost control. Progress Software also showed operational discipline by paying down $40 million of debt while increasing its revolving credit capacity. Share repurchase activity amounted to $15 million in the quarter. A standout positive driver was the acquisition integration of ShareFile, which is contributing significantly to business performance. ShareFile’s net retention rate improved as customers adopted new AI functionalities like AI document assistance and secure share recommenders.