Citi has revised its price target for Progress Software, adjusting it from $64 to $57 while maintaining a Neutral rating on the stock. This update follows the company's second-quarter financial report, prompting Citi to re-evaluate the firm's projections. The decision reflects current market conditions and the latest performance metrics observed in the recent financial disclosures.

Based on the one-year price targets offered by 6 analysts, the average target price for Progress Software Corp is $71.67 with a high estimate of $83.00 and a low estimate of $57.00. The average target implies an upside of 46.86% from the current price of $48.80.

Based on the consensus recommendation from 6 brokerage firms, Progress Software Corp's average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

Based on GuruFocus estimates, the estimated GF Value for Progress Software Corp in one year is $80.40, suggesting a upside of 64.75% from the current price of $48.8. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance.

Release Date: June 30, 2025
Total Revenue: $237 million, up 36% year-over-year.
Annual Recurring Revenue (ARR): $838 million, 46% growth year-over-year, 2% pro forma growth.
Net Retention Rate: 100%.
Operating Margin: 40%.
Earnings Per Share (EPS): $1.40, $0.06 above guidance.
Debt Repayment: $40 million paid down on revolving credit line.
Cash and Cash Equivalents: $102 million.
Total Debt: $1.47 billion.
Unlevered Free Cash Flow: $52 million.
Share Repurchase: $20 million in Q2, $50 million in the first half of 2025.
Q3 Revenue Guidance: $237 million to $243 million.
Full Year 2025 Revenue Guidance: $962 million to $974 million.
Full Year 2025 EPS Guidance: $5.28 to $5.40.

Positive Points:
Progress Software Corp reported a 36% increase in total revenue year-over-year, reaching $237 million.
Annual Recurring Revenue (ARR) grew by 46% year-over-year, totaling $838 million, with a net retention rate of 100%.
The company successfully integrated ShareFile ahead of schedule, completing major operational synergies.
Progress Software Corp raised its full-year guidance, reflecting confidence in continued business strength and expense control.
The acquisition of Nuclia is expected to enhance product offerings with advanced AI capabilities, potentially benefiting multiple product lines.

Negative Points:
Free cash flow for the quarter was below expectations, attributed to timing issues and the transition of ShareFile onto Progress's billing system.
The company's debt remains high, with a total debt of $1.47 billion and a net debt position of $1.37 billion.
The integration of ShareFile led to a temporary increase in Days Sales Outstanding (DSO), rising to 53 days from 48 days in the previous quarter.
Despite the acquisition of Nuclia, it is not expected to have a material impact on financial results in the second half of 2025.
The company's operating expenses increased by 31% year-over-year, driven by the addition of ShareFile to the business.

Citi Adjusts Price Target for Progress Software (PRGS) Amid Upda

Citi revised its price target for Progress Software from $64 to $57 while maintaining a Neutral rating, following the company's Q2 financial report. Progress Software reported 36% YoY revenue growth to $237M, 46% YoY ARR growth to $838M, and a 100% net retention rate. The company raised full-year 2025 guidance, citing confidence in business strength. However, free cash flow fell below expectations, and debt remains high at $1.47B. The acquisition of Nuclia is expected to enhance AI capabilities but may not impact results in 2025.