PROGRESS SOFTWARE CORP /MA SEC 10-Q Report

Progress Software Corp, a leading provider of application development and digital experience technologies, has released its Form 10-Q report for the third quarter of fiscal year 2025. The report highlights significant financial and operational developments, primarily driven by the recent acquisition of ShareFile. The company has demonstrated robust revenue growth and strategic advancements, despite facing increased costs and integration challenges.

Financial Highlights

• Total Revenue: $249.8 million, increased by 40% compared to the same period last year, primarily due to the acquisition of ShareFile.
• Gross Profit: $202.3 million, representing 81% of total revenue, decreased as a percentage of total revenue due to higher hosting costs associated with the acquisition of ShareFile.
• Income from Operations: $43.9 million, increased by 9% year-over-year due to an increase in revenue, offset by increases in costs of revenue and operating expenses.
• Net Income: $19.4 million, decreased by 32% compared to the same period last year, primarily due to increased interest expense from the acquisition of ShareFile.
• Diluted EPS: $0.44, decreased from $0.65 in the same period last year, reflecting the impact of increased expenses and interest costs.

Business Highlights

• Revenue Segments: The company reported a significant increase in SaaS revenue, primarily driven by the acquisition of ShareFile. SaaS revenue for the third quarter of fiscal year 2025 was $71.5 million, compared to $6.1 million in the same period last year, marking a 1,076% increase.
• Geographical Performance: North America showed strong performance with a 57% increase in revenue for the third quarter of fiscal year 2025 compared to the same period last year. This growth was largely attributed to the ShareFile acquisition. Revenue from EMEA also increased by 20%, while Latin America and Asia Pacific saw more modest changes.
• Product Development: The company increased its product development expenses by 42% in the third quarter of fiscal year 2025 compared to the same period last year. This was primarily due to increased personnel costs and contractor services associated with the ShareFile acquisition.
• Sales and Marketing: Sales and marketing expenses rose by 40% in the third quarter of fiscal year 2025 compared to the same period last year. This increase was driven by higher personnel costs and marketing program expenses related to the integration of ShareFile.
• Operational Integration: The integration of ShareFile has been a key focus, with restructuring expenses related to this acquisition amounting to $8.9 million in the first nine months of fiscal year 2025.
• Future Outlook: The company anticipates continued growth in SaaS revenue and plans to leverage the ShareFile acquisition to enhance its product offerings. The management expects the integration of ShareFile to contribute positively to the company's operational performance in the coming quarters.

SEC Filing: PROGRESS SOFTWARE CORP /MA [ PRGS ] - 10-Q - Sep. 29, 2025