Is the business good?
How good a business is PRGS?
Progress Software Corporation earns 8.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.1%
Return on invested capital · cost of capital 9.0% · 0.90 points below what the capital costs: growth destroys value
- Operating margin
- 17%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q2 2026
- Cash conversion
- 3.43×
Cash conversion · 2.96× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −4.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 24% |
| FY2021 | 22% |
| FY2022 | 22% |
| FY2023 | 16% |
| FY2024 | 16% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q2 2026
- 82%
- Operating margin12 months to Q2 2026
- 17%
- Net margin12 months to Q2 2026
- 8.9%
- Free cash flow margin
- 30%
- R&D as % of revenue
- 20%
- Revenue, trailing twelve months
- $1.00B
- Free cash flow, trailing twelve months
- $305M
- Net income, trailing twelve months
- $89M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #30 of 78 by Smart Score