Progress Software Corporation has recently released its 10-Q report, detailing its financial performance for the period. The company develops, deploys, and manages AI-powered applications and digital experiences globally. Its product offerings include AI-powered network security, decision automation platforms, data connectivity tools, and digital experience platforms for marketers and developers. Progress also provides project management, implementation, custom software development, programming, and training services.
In the 10-Q report, Progress Software Corporation's revenue for the three months ended August 31, 2025, was $249.8 million, marking a 40% increase from the same period in the previous year. For the nine months ended August 31, 2025, the company reported revenue of $725.2 million, representing a 35% increase from the prior year. These increases were primarily attributed to the acquisition of ShareFile in the fourth quarter of fiscal year 2024, with ShareFile revenue contributing $64.6 million and $194.1 million in the third quarter and first nine months of fiscal year 2025, respectively.
Software license revenue for the three months ended August 31, 2025, was $63.4 million, a 10% increase from the same period in the previous year. However, for the nine months ended August 31, 2025, software license revenue remained relatively flat compared to the same period in the prior year.
The company's maintenance, SaaS, and professional services revenue for the three months ended August 31, 2025, totaled $186.4 million, marking a 54% increase from the same period in the previous year. Similarly, for the nine months ended August 31, 2025, this revenue category amounted to $552.5 million, representing a 52% increase from the prior year.
In terms of regional performance, revenue generated in North America increased by $59.0 million and $150.8 million in the third quarter and first nine months of fiscal year 2025, respectively, compared to the same periods in the prior year. Revenue generated outside North America also saw increases of $12.1 million and $35.9 million over the same periods.
The company's gross profit for the three months ended August 31, 2025, was $202.3 million, a 35% increase from the same period in the prior year. However, gross profit as a percentage of total revenue decreased due to higher hosting costs associated with the acquisition of ShareFile.
Progress Software Corporation's sales and marketing expenses for the three months ended August 31, 2025, amounted to $51.9 million, a 40% increase from the same period in the previous year. Similarly, product development costs for the same period increased by 42% to $49.4 million. General and administrative expenses also saw a 38% increase to $28.3 million for the three months ended August 31, 2025.
The company reported cyber vulnerability response expenses, net of received and expected insurance recoveries, amounting to $659,000 for the three months ended August 31, 2025, a decrease of 29% from the same period in the prior year.
These figures from the 10-Q report provide a detailed insight into Progress Software Corporation's financial performance and strategic initiatives for the period. Following these announcements, the company's shares moved 3.55%, and are now trading at a price of $43.51. For more information, read the company's full 10-Q submission here.
