Progress Software Corp

F:PGR

Q3 results: Progress reported $246 million in revenue, ARR of approximately $873 million, and a 43% operating margin. EPS was $1.69, above the high end of guidance.

Cash flow: Adjusted free cash flow increased 17% year over year to $87 million, while collections improved and the company continued paying down debt.

Domo acquisition: Progress closed its $400 million cash acquisition of Domo’s AI and data platform business. Management expects Domo revenue to stabilize at $280 million to $290 million and to contribute well over $100 million of annual EBITDA once fully integrated.

2027 transition: Management expects Domo’s integration to temporarily reduce Progress’ operating margin by 100 to 200 basis points in fiscal 2027, with margins expected to recover as synergies are realized.

Outlook: Progress raised its fiscal 2026 revenue, free cash flow, and EPS outlook, citing Domo’s partial-quarter contribution and solid underlying performance in its existing business.

AI and pricing: Management sees rising data use and infrastructure complexity as growth drivers, and is studying whether Domo’s consumption-based pricing model can apply to more Progress products.