Progress Software (Nasdaq: PRGS) reported strong third-quarter fiscal 2025 results, highlighted by revenue of $250 million, up 40% year-over-year, and annualized recurring revenue (ARR) of $849 million, a 47% increase. Non-GAAP earnings per share rose 19% to $1.50, though GAAP EPS declined 32% to $0.44 due to higher expenses. Operating margin came in at 18% on a GAAP basis and 40% on a non-GAAP basis.

CEO Yogesh Gupta praised the company’s performance, pointing to steady net retention at 100% and meaningful contributions from ShareFile following its integration. He noted continued investment in AI, including embedding agentic RAG technology across the portfolio to enhance customer data value.

CFO Anthony Folger emphasized durable revenue streams, disciplined cost control, and debt reduction. The company repurchased $15 million in stock during the quarter, added $200 million to its repurchase program, and secured a new $1.5 billion revolving credit facility to boost liquidity.

Progress raised its full-year guidance, now expecting revenue of $975–$981 million, non-GAAP EPS of $5.50–$5.56, and cash from operations of $221–$231 million. For Q4, it forecasts revenue of $250–$256 million and non-GAAP EPS of $1.29–$1.35.

Management said these results demonstrate resilience, strong cash generation, and progress toward long-term growth objectives.