PRGSProgress Software Corporation

$39.34-6.2% 1Y

$39.34

$25.0952 weeks$46.87

Is the business good?

Mixed

The checks split: 7 of 9 health tests passed and earnings fully cash-backed (2.2×), but margins compressing and returns that lean on debt.

2 good, 2 to watch

Fundamental health (F-score)7 / 9SEC EDGAR · Nov 30, 2025

High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.

Profits arrive as cash2.18×derived · May 31, 2026

Operating profit is fully backed by cash. Conversion is improving vs a year ago.

Margin direction, 3 years−1.5 pts

Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.

Where ROE comes from4.9× leverage

Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 15% = margin × turnover × leverage.

Unless marked, from derived.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

FCF conversiontop 3% of the market

Leverage (Debt/EBITDA)behind 79% of the market

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

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 5.8% · 12 months to Q2 2026
Cash conversion: 2.18×
Cash conversion · 1.83× a year ago · operating cash flow covers the operating profit after tax
Share count, year on year: −4.2%
Share count, year on year · bought back, each share owns more of the company

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 is operating cash flow over operating profit after tax.

Ranks #18 of 80 by RyuScore