Progress Software Corporation

PRGS

Software - Infrastructure · Technology

Price

$44.36

+1.15 (+2.66%)

Market Cap

$1.82B

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through May 31, 2026

How the score breaks down

Quality

Good

Growth

Strong

Cash Flow

Exceptional

Stability

Mixed

Valuation

Strong

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Share count falling — buybacks

−1.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 44.6M (2021) → 44.0M (2025)

Winston Score History

The full picture

Progress Software makes tools that help other companies build and run software applications. Its main products include OpenEdge, a platform for building business applications, and Telerik and Kendo UI, which are toolkits that developers use to create user interfaces. Its customers are mostly businesses and software developers across industries like healthcare, finance, and manufacturing.

Progress makes money by selling software licenses and subscriptions, with a growing share of revenue coming from recurring annual contracts. The company operates mainly in North America and Europe and generates roughly $700–800 million in annual revenue. Its moat comes from deeply embedded products — once a business builds its core systems on OpenEdge, switching is costly and disruptive. Progress has also grown through acquisitions, most notably buying ShareFile from Citrix in 2023, which expanded its file-sharing and collaboration offerings. The main risk is that its legacy OpenEdge platform faces slow long-term decline as customers gradually modernize onto newer cloud-native technologies.

Politician Trades

2 trades / 12mo

1 Congressional buy and 1 sell on PRGS in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+6.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+25.0% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$192M/ year

↑ Rising (+31% vs prior year)

19.7% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

1.7%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$103M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

Progress Software Corporation is putting 20% of revenue into R&D and that number is rising. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

82.3%

Premium pricing power — 82.3% gross margin

Profit after running costs

Operating Margin

18.5%

Healthy — 18.5% operating margin

Return on the money invested

ROCE

9.9%

Below par — 9.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+15.5%

Fast-growing sales (+15.5% YoY)

Profit growth

EPS YoY

+56.4%

Earnings growing fast (+56.4% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

352%

Turns 352% of profit into real cash

Spare cash per sale

FCF Margin

30.4%

Converts sales into free cash efficiently (30.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

2.55

Heavy debt load (2.55)

Covers its interest

Interest Cover

2.73x

Tight — interest eats into profit (2.7x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

21.2x

Growth-priced — P/E 21.2

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+14.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (21.2 → 6.9)

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Dividends

Not applicable for this business.

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