Progress Software (PRGS) Q3 FY2026 earnings: revenue $246 million, down 1.5% on the year

Progress Software Corp. (PRGS) reported revenue of $246 million for Q3 FY2026, the quarter ended 31 August 2026, down 1.5% on the same quarter a year earlier. Net income was $23 million, up 17.3% on the year, and diluted earnings per share $0.55. The figures are the company's own, from the 10-Q it filed with the SEC on 30 September 2026.

Revenue$246 milliondown 1.5%

Net income$23 millionup 17.3%

Diluted EPS$0.55

QuarterQ3 FY2026ended 31 August 2026

What management said

Revenue declined 2 percent year-over-year: Q3 2026 revenue was $246 million, down 2% on both actual and constant currency basis. Maintenance, SaaS and professional services revenue was $182.4 million, down 2%, while software license revenue was flat at $63.6 million.
GAAP earnings per share increased 25 percent: Diluted EPS was $0.55, up 25% from $0.44 in the prior year quarter. Non-GAAP diluted EPS was $1.69, up 13% from $1.50, driven by operating leverage and disciplined expense management.
Domo AI platform acquisition completed: Progress closed acquisition of Domo's AI and data platform business during Q3 for $400 million cash. Transaction announced July 22, 2026 and completed within fiscal year as expected. Domo brings 2,400+ customer base and strategic cloud partnerships.

Read the earnings call summary

The quarter, against the one before and a year earlier

Line	Q3 FY2026	Q2 FY2026	Q3 FY2025	Change on the year
Revenue	246	253	250	-1.5%
Cost of revenue	42.5	44.9	47.5	-10.7%
Gross profit	204	209	202	+0.6%
Gross margin	82.7%	82.3%	81.0%
Operating income	46.5	45.2	43.9	+6.1%
Operating margin	18.9%	17.8%	17.6%
Interest expense	16.9	15.9	17.7	-4.7%
Pre-tax income	29.5	28.8	26.2	+12.7%
Income tax	6.8	7.8	6.8	-0.5%
Effective tax rate	22.9%	26.9%	25.9%
Net income	22.8	21.1	19.4	+17.3%
Net margin	9.3%	8.3%	7.8%
Diluted EPS	$0.55	$0.50	$0.44	+25.0%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2026	Q2 FY2026	Q3 FY2025	Change on the year
Operating cash flow	88.0	78.8	73.4	+19.8%
Capital expenditure	1.7	1.9	1.1	+60.7%
Free cash flow	86.3	77.0	72.4	+19.2%
Free cash flow margin	35.1%	30.4%	29.0%
Cash from investing	-1.7	-1.9	-20.5	n/a
Cash from financing	-74.3	-85.1	-57.7	n/a
Depreciation and amortisation	36.4	36.9	38.7	-6.0%
Share-based compensation	16.1	20.5	16.0	+0.7%
Buybacks	16.9	34.7	15.0	+12.5%
Dividends paid	0.0	0.2	0.0	n/a
Dividend per share	n/a	n/a	$0.00	n/a
Diluted shares, weighted	41m	42m	44m	-5.1%
Shares outstanding at period end	41m	41m	43m	-4.6%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2026	Q2 FY2026	Q3 FY2025	Change on the year
Shareholders' equity	530	506	478	+10.9%
Debt	1,233	1,292	1,419	-13.2%
Operating lease liabilities	24.6	26.5	22.7	+8.6%
Other liabilities	515	521	502	+2.7%
Total liabilities and equity	2,303	2,346	2,422	-4.9%
Fixed assets	15.3	14.9	13.1	+16.2%
Goodwill	1,310	1,310	1,309	+0.0%
Intangible assets	479	515	619	-22.6%
Cash and equivalents	114	103	99.0	+14.8%
Receivables	119	125	151	-21.5%
Other assets	266	278	230	+15.7%
Total assets	2,303	2,346	2,422	-4.9%

Questions

What was Progress Software's revenue in Q3 FY2026?

Progress Software (PRGS) reported revenue of $246 million for Q3 FY2026, the quarter ended 31 August 2026, down 1.5% on the same quarter a year earlier.

How much did Progress Software earn in Q3 FY2026?

Net income for Q3 FY2026 was $23 million, up 17.3% on the year, and diluted earnings per share $0.55.

When did Progress Software report Q3 FY2026 results?

Progress Software filed its 10-Q for the quarter ended 31 August 2026 with the SEC on 30 September 2026.

Quarterly results, the last 12 quarters

	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	177	185	175	179	215	238	237	250	253	248	253	246
Cost of revenue	33.7	32.8	32.1	29.1	36.5	46.2	47.3	47.5	46.5	43.9	44.9	42.5
Gross profit	143	152	143	150	178	192	190	202	206	204	209	204
Gross margin	81%	82%	82%	84%	83%	81%	80%	81%	82%	82%	82%	83%
Operating income	22.5	35.0	27.1	40.3	21.5	32.4	38.6	43.9	38.4	46.5	45.2	46.5
Operating margin	13%	19%	16%	23%	10%	14%	16%	18%	15%	19%	18%	19%
Interest expense	7.9	7.3	7.0	6.8	10.9	18.4	18.1	17.7	16.5	15.2	15.9	16.9
Pre-tax income	14.2	27.6	20.1	34.3	12.2	13.3	19.9	26.2	22.3	30.3	28.8	29.5
Tax rate	-8%	18%	20%	17%	91%	18%	14%	26%	-16%	25%	27%	23%
Net income	15.3	22.6	16.2	28.5	1.1	10.9	17.0	19.4	25.7	22.8	21.1	22.8
Net margin	9%	12%	9%	16%	1%	5%	7%	8%	10%	9%	8%	9%
Diluted EPS	$0.34	$0.51	$0.37	$0.65	$0.03	$0.24	$0.39	$0.44	$0.59	$0.53	$0.50	$0.55
Operating cash flow	33.2	70.5	63.7	57.7	19.7	68.9	30.0	73.4	62.8	98.6	78.8	88.0
Capital expenditure	2.4	0.3	1.0	1.1	2.9	1.3	0.5	1.1	2.9	2.7	1.9	1.7
Free cash flow	30.8	70.2	62.7	56.6	16.8	67.7	29.5	72.4	59.9	95.9	77.0	86.3
Buybacks	4.0	22.5	49.9	14.3	0.0	30.1	20.0	15.0	40.0	20.4	34.7	16.9
Dividends paid	7.9	8.2	8.0	7.7	7.6	0.4	0.3	0.0	0.1	0.2	0.2	0.0
Shares outstanding	44m	44m	43m	43m	43m	43m	43m	43m	42m	42m	41m	41m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 August 2026, filed 30 September 2026, accession 0000876167-26-000111: the filing on EDGAR. All of Progress Software Corp.'s filings: EDGAR company page.

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