PRGSProgress Software Corporation
Is the business good?
The checks split: 7 of 9 health tests passed and earnings fully cash-backed (2.2×), but returns that lean on debt.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 17% = 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.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PRGS?
Progress Software Corporation earns 8.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.54 points below what the capital costs: growth destroys value
- Operating margin
- 18%
Operating margin · Software - Infrastructure median 7.5% · 12 months to Q3 2026
- Cash conversion
- 2.23×
Cash conversion · 2.08× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −5.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 24% |
| FY2021 | 22% |
| FY2022 | 22% |
| FY2023 | 16% |
| FY2024 | 16% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q3 2026
- 82%
- Operating margin12 months to Q3 2026
- 18%
- Net margin12 months to Q3 2026
- 9.2%
- Free cash flow margin
- 32%
- R&D as % of revenue
- 20%
- Revenue, trailing twelve months
- $1000M
- Free cash flow, trailing twelve months
- $319M
- Net income, trailing twelve months
- $92M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #19 of 78 by RyuScore