PRGSPROGRESS SOFTWARE CORP /MA

Services-Prepackaged Software

Revenue: $978M; 30% YoY
Operating margin: 15.7%; 4.8% YoY
EBITDA: $159M; 22% YoY
Market cap: $1.8B
Employees: 2,801; $349K revenue each
Net debt / EBITDA: 7.0×; $1.1B net debt
AI in 10-K: 10.1; mentions per 10K words

Takeover score 2 of 13

Fixable underperformance 1 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
322% of net income
Cash flow under 80% of net income
Dilutive SBCNo
7% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
45% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyYes
57% of assets
Over 40% of assets
Shareholder dissentNo
89% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$349K · 32nd pct
Bottom quartile of its SIC industry
Quiet on AINo
10.1 per 10K words · 93rd pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
7.0× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedYes
$1.8B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$3M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$531M	$602M	$694M	$753M	$978M	30%
Operating income	$116M	$132M	$111M	$124M	$153M	24%
Net income	$78M	$95M	$70M	$68M	$73M	6.9%
Operating cash flow	$179M	$192M	$174M	$211M	$235M	11%
Capex	$5M	$6M	$6M	$5M	$6M	9.5%
Stock-based comp	$30M	$37M	$41M	$47M	$65M	39%
Buybacks	$35M	$77M	$34M	$87M	$105M	21%
Dividends	$32M	$31M	$32M	$31M	$786K	98%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $3M · 18
Net: −$3M

Pay vs performance

No pay-versus-performance disclosure yet.