Progress Software Corporation, headquartered in Burlington, Massachusetts, provides AI-powered digital experience and infrastructure software solutions. The company reported strong financial results for its first fiscal quarter ended February 28, 2025, demonstrating significant growth in key metrics.

Progress Software is in a state of rise, evidenced by a notable increase in its annualized recurring revenue (ARR), which reached $836 million, reflecting a year-over-year growth of 48% when calculated in constant currency. Revenue for the quarter totaled $238 million, up 30% year-over-year in constant currency, at the high end of the previously provided guidance range.

In terms of earnings, Progress reported earnings per share (EPS) of $1.31, exceeding the upper end of its guidance range, which was projected to be between $1.02 and $1.08. This reflects a 5% increase compared to the same quarter last year. The company maintained an operating margin of 39%, which was a 22% increase in operating income from the previous year. Adjusted operating income was reported at $93.6 million with a margin of 39%, up from $76.8 million and a margin of 42% in the prior year quarter.

The overall costs and operating expenses for this quarter were $144 million, marking a 34% increase year-over-year, primarily due to the impact of the ShareFile acquisition. The integration of ShareFile is being executed ahead of schedule, contributing positively to the higher ARR and revenue figures.

Progress has also demonstrated a strong commitment to capital management, having paid down $30 million on its revolving credit line during the quarter and repurchased $30 million of its stock. The total debt at the end of the quarter stood at $1.51 billion.

The company has updated its guidance for Q2 and the full fiscal year 2025. Revenue expectations for Q2 are between $235 million and $241 million, with an EPS projection of $1.28 to $1.34. For the full fiscal year, revenue is projected to be in the range of $958 million to $970 million, with a non-GAAP EPS expectation of $5.25 to $5.37.

Improved cash collection metrics also contributed to positive results, with cash flow from operations at $69 million, unlevered free cash flow at $88 million, and days sales outstanding reduced to 48 days from 67 days in the previous quarter.

Overall, Progress Software’s performance reflects a robust start to fiscal 2025, characterized by solid revenue growth and effective integration of the recently acquired ShareFile business.