Progress Software (Nasdaq: PRGS) posts Q1 2026 beat and raises 2026 EPS outlook

Rhea-AI Filing Summary

Progress Software reported solid fiscal first-quarter 2026 results with steady growth and very strong profitability. Revenue reached $247.8 million, up 4% year-over-year, led by 16% growth in software licenses while maintenance, SaaS, and services were flat. GAAP operating margin improved to 19% and non-GAAP operating margin to 41%, driving GAAP diluted EPS up to $0.53 from $0.24 and non-GAAP diluted EPS to $1.60 from $1.31. Cash from operations rose 43% to $98.6 million, supporting $60 million of debt repayment and $15 million of share repurchases. Annualized Recurring Revenue was $863 million, up 2% in constant currency, with a net retention rate of 99%, underscoring a sticky customer base. For fiscal 2026, Progress now guides revenue to $988 million–$1.0 billion and nudges non-GAAP EPS up to $5.91–$6.03, while maintaining a targeted 39% non-GAAP operating margin and strong free cash flow.

Insights

Software sector earnings analyst

Progress delivered margin-rich Q1 growth, strong cash flow, and a modest EPS guidance raise.

Progress Software grew Q1 2026 revenue to $247.8M, up 4% year-over-year, with licenses up 16% and stable maintenance, SaaS, and services. GAAP operating income increased 43% to $46.5M, while non-GAAP operating income rose 9% to $102.2M.

Profitability remains a clear strength. GAAP operating margin improved from 14% to 19%, and non-GAAP operating margin reached 41%. GAAP diluted EPS more than doubled to $0.53, and non-GAAP diluted EPS rose 22% to $1.60, supported by tight operating expenses and lower restructuring and acquisition-related costs.

Cash generation was particularly strong: operating cash flow climbed 43% to $98.6M, funding $60M of debt repayment and $15M of buybacks in the quarter. For FY 2026, management slightly lifted non-GAAP EPS guidance to $5.91–$6.03 and reaffirmed a 39% non-GAAP operating margin, while guiding revenue to $988M–$1.0B. Subsequent filings may provide detail on how acquisitions and the MOVEit-related expenses track against this outlook.

8-K Event Classification

3 items: 2.02, 7.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q1 2026 revenue: $247.8M Q1 2026 GAAP diluted EPS: $0.53 Q1 2026 non-GAAP diluted EPS: $1.60 +5 more

8 metrics

Q1 2026 revenue $247.8M Up 4% year-over-year for quarter ended February 28, 2026

Q1 2026 GAAP diluted EPS $0.53 Increased 121% from $0.24 in Q1 2025

Q1 2026 non-GAAP diluted EPS $1.60 Up 22% from $1.31 in Q1 2025

Q1 2026 non-GAAP operating margin 41% Improved from 39% in Q1 2025

Q1 2026 cash from operations $98.6M Rose 43% from $68.9M in Q1 2025

Annualized Recurring Revenue $863M Up 2% year-over-year on a constant currency basis in Q1 2026

FY 2026 revenue guidance $988M–$1.0B Updated outlook as of March 30, 2026

FY 2026 non-GAAP EPS guidance $5.91–$6.03 Raised from prior $5.82–$5.96 range

Key Terms

Annualized Recurring Revenue, Net Retention Rate, unlevered free cash flow, non-GAAP operating margin, +2 more

6 terms

Annualized Recurring Revenue financial

"Annualized Recurring Revenue ("ARR") of $863 million increased 2% year-over-year"

Annualized recurring revenue is the predictable income a business expects to earn over a year from ongoing customer subscriptions or contracts. It’s similar to estimating how much money you would make in a year if your current monthly income stayed the same. Investors use this figure to assess the stability and growth potential of a company's revenue stream.

Net Retention Rate financial

"NRR: 99%"

Net retention rate measures how much revenue a company keeps and grows from its existing customers over a set period, after accounting for expansions, contractions and lost customers. Think of it like checking whether a garden of existing plants is producing more fruit this year than last — it shows whether the current customer base is becoming more valuable or shrinking. Investors use it to judge revenue sustainability and growth potential without relying on new customers.

unlevered free cash flow financial

"Unlevered free cash flow (non-GAAP) | $ 111,042 | | | $ 87,954"

Unlevered free cash flow is the cash a company generates from its core business after paying operating costs and reinvesting in the business, but before any interest or debt repayments. It shows how much cash would be available to all providers of capital—owners and lenders alike—and helps investors compare underlying business performance and value companies without the distortion of different debt levels, like judging a car’s fuel efficiency before adding cargo weight.

non-GAAP operating margin financial

"non-GAAP operating margin was 41%"

Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.

capped call financial

"Capped Call Coverage: up to $89.88*"

A capped call is a financial strategy that gives investors the right to buy shares at a set price, known as the strike price, but limits the maximum profit they can make from that gain. Think of it as a sales agreement where you can purchase something at a fixed price, but there's a cap on how much extra you can earn if the item's value rises significantly. This helps investors protect themselves from unlimited upside risk while still participating in potential gains.

convertible senior notes financial

"Convertible senior notes, current portion, net | 359,723"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

Earnings Snapshot

Revenue: $247.8M · Guidance included

Q1 2026

Revenue $247.8M +4% year-over-year

GAAP diluted EPS $0.53 +121% year-over-year

Non-GAAP diluted EPS $1.60 +22% year-over-year

GAAP operating margin 19% +500 bps year-over-year

Non-GAAP operating margin 41% +200 bps year-over-year

Cash from operations $98.6M +43% year-over-year

Guidance

For FY 2026, Progress guides revenue to $988M–$1.0B and non-GAAP diluted EPS to $5.91–$6.03, with a 39% non-GAAP operating margin; Q2 2026 revenue is guided to $240M–$246M and non-GAAP EPS to $1.47–$1.53.

Understanding 8-K Material Events →

0000876167falsePROGRESS SOFTWARE CORP /MA15 Wayside RoadSuite 400BurlingtonMassachusetts00008761672026-03-302026-03-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 30, 2026

 Progress Software Corporation

(Exact name of registrant as specified in its charter)

Delaware			0-19417			04-2746201
(State or other jurisdiction of incorporation or organization)			(Commission file number)			(I.R.S. Employer Identification No.)

15 Wayside Road, Suite 400, Burlington, Massachusetts						01803
(Address of principal executive offices)						(Zip code)

Registrant’s telephone number, including area code: (781) 280-4000

Not applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

PRGS

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Item 2.02 Results of Operations and Financial Condition

On March 30, 2026, Progress Software Corporation ("Progress") issued a press release announcing its financial results for the fiscal first quarter ended February 28, 2026. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that Section, and shall not be incorporated by reference into any other filing by Progress under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01 Regulation FD Disclosure

In connection with the issuance of the press release attached hereto as Exhibit 99.1, the supplemental data attached as Exhibit 99.2 to this Current Report will be available on the Progress website within the investor relations section prior to the live conference call.

The information furnished pursuant to this Item 7.01, including Exhibit 99.2, shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that Section, and shall not be incorporated by reference into any other filing by Progress under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.						Description
99.1						Press release issued by Progress Software Corporation dated March 30, 2026
99.2						Q1 2026 Supplemental Data
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:			March 30, 2026			Progress Software Corporation
						By:			/s/ ANTHONY FOLGER
									Anthony Folger
									Chief Financial Officer

Exhibit 99.1

P R E S S A N N O U N C E M E N T

Progress Software Announces First Quarter 2026 Financial Results

Revenue Growth 4%, Exceptional Margins and Cash Flow;

Debt Paydown and Buybacks Continue

BURLINGTON, Mass., March 30, 2026 — Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced financial results for its fiscal first quarter ended February 28, 2026.

First Quarter 2026 Highlights:

•Revenue of $248 million increased 4% year-over-year on an actual currency basis and 2% on a constant currency basis.

•Annualized Recurring Revenue ("ARR") of $863 million increased 2% year-over-year on a constant currency basis.

•Operating margin was 19% and non-GAAP operating margin was 41%.

•Diluted earnings per share was $0.53 compared to $0.24 in the same quarter last year, an increase of 121%. 

•Non-GAAP diluted earnings per share was $1.60 compared to $1.31 in the same quarter last year, an increase of 22%.

"We’re extremely pleased that the momentum from 2025 is carrying over into FY26," said Yogesh Gupta, CEO of Progress Software. "Revenue growth, margins, collections, and business operations continued strong through the first quarter. Our Q1 results reflect the durability of our model - driving profitable growth, generating robust cash flow, strengthening our balance sheet, and returning capital to shareholders through buybacks, as customers continue to derive measurable business value from the AI capabilities across our product portfolio."

Additional financial highlights included:

			Three Months Ended
			GAAP																		Non-GAAP
(in thousands, except percentages and per share amounts)			February 28, 2026						February 28, 2025						% Change						February 28, 2026						February 28, 2025						% Change
Revenue			$	247,799					$	238,015					4		%				$	247,799					$	238,015					4		%
Income from operations			$	46,465					$	32,426					43		%				$	102,185					$	93,595					9		%
Operating margin			19		%				14		%				500 bps						41		%				39		%				200 bps
Net income			$	22,813					$	10,946					108		%				$	68,300					$	58,995					16		%
Diluted earnings per share			$	0.53					$	0.24					121		%				$	1.60					$	1.31					22		%
Cash from operations (GAAP) / Adjusted free cash flow (non-GAAP) / Unlevered free cash flow (non-GAAP)			$	98,626					$	68,947					43		%				$	98,845					$	73,211					35		%
																					$	111,042					$	87,954					26		%

See Important Information Regarding Non-GAAP Financial Measures, Liquidity Measures, and Select Performance Metrics and a reconciliation of non-GAAP adjustments to Progress' GAAP financial results at the end of this press release.

Other fiscal first quarter 2026 metrics and recent results included:

•Cash and cash equivalents were $113.2 million at the end of the quarter.

•Days sales outstanding was 52 days compared to 48 days in the fiscal first quarter of 2025 and 73 days in the fiscal fourth quarter of 2025.

Anthony Folger, Progress CFO, said: "We delivered particularly strong margins and cash flow in the first quarter and our balance sheet is stronger and better able to support our investments in long-term value creation."

1

2026 Business Outlook

Progress provides the following guidance for the fiscal year ending November 30, 2026 and the fiscal second quarter ending May 31, 2026:

			Updated FY 2026 Guidance (March 30, 2026)												Prior FY 2026 Guidance (January 20, 2026)
(in millions, except percentages and per share amounts)			GAAP						Non-GAAP						GAAP						Non-GAAP
Revenue			$988 - $1,000						$988 - $1,000						$986 - $1,000						$986 - $1,000
Diluted earnings per share			$1.71 - $1.87						$5.91 - $6.03						$1.74 - $1.91						$5.82 - $5.96
Operating margin			16% - 17%						39		%				16% - 17%						39		%
Cash from operations (GAAP) / Adjusted free cash flow (non-GAAP) / Unlevered free cash flow (non-GAAP)			$266 - $278						$263 - $275						$263 - $277						$260 - $274
									$315 - $326												$313 - $326
Effective tax rate			23		%				20		%				21		%				20		%

			Q2 2026 Guidance
(in millions, except per share amounts)			GAAP						Non-GAAP
Revenue			$240 - $246						$240 - $246
Diluted earnings per share			$0.35 - $0.41						$1.47 - $1.53

Based on current exchange rates, the expected positive currency translation impact on our:

•Fiscal year 2026 business outlook compared to 2025 exchange rates is approximately $9.4 million on revenue.

•GAAP and non-GAAP diluted earnings per share for fiscal year 2026 is approximately $0.10.

•Fiscal Q2 2026 business outlook compared to 2025 exchange rates is approximately $2.6 million on revenue.

•GAAP and non-GAAP diluted earnings per share for fiscal Q2 2026 is approximately $0.03.

To the extent that there are changes in exchange rates versus the current environment and/or our expectations, this may have an impact on Progress' business outlook.

Conference Call

Progress will hold a conference call to review its financial results for the fiscal first quarter of 2026 at 5:00 p.m. ET on Monday, March 30, 2026. Participants must register for the conference call here: https://register-conf.media-server.com/register/BI542715e40bbb4fada1a15d15f1d523e3. The webcast can be accessed at: https://edge.media-server.com/mmc/p/p8chxb6v. The conference call will include comments followed by questions and answers. Attendees must register for the webcast and an archived version of the conference call and supporting materials will be available on the Progress website within the investor relations section after the live conference call.

About Progress

Progress Software (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables our customers to develop, deploy and manage responsible AI-powered applications and personalized digital experiences with agility and ease. Businesses of all sizes get a trusted provider in Progress, with the products, expertise and vision they need to turn AI disruption into a competitive advantage. Millions of developers and technologists at hundreds of thousands of organizations depend on Progress every day. Learn more at www.progress.com.

Progress and Progress Software are trademarks or registered trademarks of Progress Software Corporation and/or its subsidiaries or affiliates in the U.S. and other countries. Any other names contained herein may be trademarks of their respective owners.

Investor Contact:						Press Contact:
Michael Micciche						Jeff Young
Progress Software						Progress Software
+1 781 850 8450						+1 781 280 4000
Investor-Relations@progress.com						PR@progress.com

2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

			Three Months Ended
(in thousands, except per share data)			February 28, 2026						February 28, 2025						% Change
Revenue:
Software licenses			$	67,581					$	58,445					16		%
Maintenance, SaaS, and professional services			180,218						179,570						—		%
Total revenue			247,799						238,015						4		%
Costs of revenue:
Cost of software licenses			3,013						2,925						3		%
Cost of maintenance, SaaS, and professional services			32,100						32,884						(2)		%
Amortization of acquired intangibles			8,751						10,422						(16)		%
Total costs of revenue			43,864						46,231						(5)		%
Gross profit			203,935						191,784						6		%
Operating expenses:
Sales and marketing			51,997						51,296						1		%
Product development			50,474						46,375						9		%
General and administrative			26,504						25,623						3		%
Amortization of acquired intangibles			25,617						25,808						(1)		%
Cyber vulnerability response expenses, net			1,358						737						84		%
Restructuring expenses			706						7,029						(90)		%
Acquisition-related expenses			814						2,490						(67)		%
Total operating expenses			157,470						159,358						(1)		%
Income from operations			46,465						32,426						43		%
Other expense, net			(16,173)						(19,124)						15		%
Income before income taxes			30,292						13,302						128		%
Provision for income taxes			7,479						2,356						217		%
Net income			$	22,813					$	10,946					108		%
Earnings per share:
Basic			$	0.54					$	0.25					116		%
Diluted			$	0.53					$	0.24					121		%
Weighted average shares outstanding:
Basic			42,155						43,256						(3)		%
Diluted			42,729						44,887						(5)		%

Stock-based compensation is included in the condensed consolidated statements of operations, as follows:
Cost of revenue			$	1,618					$	1,195					35		%
Sales and marketing			4,083						3,032						35		%
Product development			5,595						4,410						27		%
General and administrative			7,178						6,046						19		%
Total			$	18,474					$	14,683					26		%

3

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)			February 28, 2026						November 30, 2025
Assets
Current assets:
Cash and cash equivalents			$	113,171					$	94,807
Accounts receivable, net			147,612						195,783
Unbilled receivables, current portion			40,759						46,599
Other current assets			68,599						62,776
Total current assets			370,141						399,965
Property and equipment, net			14,901						13,694
Goodwill and intangible assets, net			1,858,830						1,893,082
Right-of-use lease assets			30,595						25,842
Unbilled receivables, non-current portion			28,477						29,950
Other assets			91,830						95,125
Total assets			$	2,394,774					$	2,457,658
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and other current liabilities			$	88,821					$	117,331
Convertible senior notes, current portion, net			359,723						359,163
Operating lease liabilities, current portion			8,811						8,490
Deferred revenue, current portion			330,766						324,750
Total current liabilities			788,121						809,734
Long-term debt, net			540,000						600,000
Operating lease liabilities, non-current portion			25,311						21,077
Deferred revenue, non-current portion			93,845						100,329
Convertible senior notes, non-current portion, net			441,664						441,186
Other non-current liabilities			7,038						6,983
Stockholders' equity:
Common stock and additional paid-in capital			398,454						384,119
Retained earnings			100,341						94,230
Total stockholders' equity			498,795						478,349
Total liabilities and stockholders' equity			$	2,394,774					$	2,457,658

4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

			Three Months Ended
(in thousands)			February 28, 2026						February 28, 2025
Operating activities:
Net income			$	22,813					$	10,946
Depreciation and amortization			37,460						39,209
Stock-based compensation			18,474						14,683
Other non-cash adjustments			7,248						3,070
Changes in operating assets and liabilities			12,631						1,039
Net cash flows from operating activities			98,626						68,947
Capital expenditures			(2,705)						(1,290)
Repurchases of common stock, net of issuances			(14,965)						(23,870)
Dividend equivalent payments to stockholders			—						(359)
Payments for acquisitions			—						(1,195)
Repayment of revolving line of credit			(60,000)						(30,000)
Other			(2,592)						(6,149)
Net change in cash and cash equivalents			18,364						6,084
Cash and cash equivalents, beginning of period			94,807						118,077
Cash and cash equivalents, end of period			$	113,171					$	124,161

5

RECONCILIATIONS OF GAAP TO NON-GAAP SELECTED FINANCIAL MEASURES

(Unaudited)

			Three Months Ended
(in thousands, except per share data)			February 28, 2026						February 28, 2025
Adjusted income from operations:
GAAP income from operations			$	46,465					$	32,426
Amortization of acquired intangibles			34,368						36,230
Stock-based compensation			18,474						14,683
Restructuring expenses			706						7,029
Acquisition-related expenses			814						2,490
Cyber vulnerability response expenses, net			1,358						737
Non-GAAP income from operations			$	102,185					$	93,595
Adjusted net income:
GAAP net income			$	22,813					$	10,946
Amortization of acquired intangibles			34,368						36,230
Stock-based compensation			18,474						14,683
Restructuring expenses			706						7,029
Acquisition-related expenses			814						2,490
Cyber vulnerability response expenses, net			1,358						737
Provision for income taxes			(10,233)						(13,120)
Non-GAAP net income			$	68,300					$	58,995
Adjusted diluted earnings per share:
GAAP diluted earnings per share			$	0.53					$	0.24
Amortization of acquired intangibles			0.80						0.80
Stock-based compensation			0.44						0.32
Restructuring expenses			0.02						0.16
Acquisition-related expenses			0.02						0.06
Cyber vulnerability response expenses, net			0.03						0.02
Provision for income taxes			(0.24)						(0.29)
Non-GAAP diluted earnings per share			$	1.60					$	1.31
Non-GAAP weighted avg shares outstanding - diluted			42,729						44,887

OTHER NON-GAAP FINANCIAL MEASURES

(Unaudited)

Adjusted Free Cash Flow and Unlevered Free Cash Flow
			Three Months Ended
(in thousands)			February 28, 2026						February 28, 2025						% Change
Cash flows from operations			$	98,626					$	68,947					43		%
Purchases of property and equipment			(2,705)						(1,290)						110		%
Free cash flow			95,921						67,657						42		%
Add back: restructuring payments			2,924						5,554						(47)		%
Adjusted free cash flow			$	98,845					$	73,211					35		%
Add back: tax-effected interest expense			12,197						14,743						(17)		%
Unlevered free cash flow			$	111,042					$	87,954					26		%

6

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR FISCAL YEAR 2026 GUIDANCE

(Unaudited)

Fiscal Year 2026 Updated Non-GAAP Operating Margin Guidance
			Fiscal Year Ending November 30, 2026
(in millions)			Low						High
GAAP income from operations			$	162.0					$	170.4
GAAP operating margin			16		%				17		%
Restructuring expense			1.7						1.7
Stock-based compensation			70.6						70.6
Acquisition-related expenses			5.0						5.0
Amortization of acquired intangibles			137.3						137.3
Cyber vulnerability response expenses, net			7.7						7.7
Total adjustments(1)			222.3						222.3
Non-GAAP income from operations			$	384.3					$	392.7
Non-GAAP operating margin			39		%				39		%

Fiscal Year 2026 Updated Non-GAAP Earnings per Share and Effective Tax Rate Guidance
			Fiscal Year Ending November 30, 2026
(in millions, except per share data)			Low						High
GAAP net income			$	73.9					$	81.2
Adjustments (from previous table)			222.3						222.3
Income tax adjustment(2)			(41.5)						(41.3)
Non-GAAP net income			$	254.7					$	262.2
GAAP diluted earnings per share			$	1.71					$	1.87
Non-GAAP diluted earnings per share			$	5.91					$	6.03
Diluted weighted average shares outstanding			43.1						43.5

1 Total adjustments include preliminary estimates relating to the valuation of intangible assets acquired from Nuclia and restructuring expenses. The final amounts will not be available until the Company's internal procedures and reviews are completed.
2 Tax adjustment is based on a non-GAAP effective tax rate of approximately 20%, calculated as follows:
						Fiscal Year Ending November 30, 2026
						Low						High
Non-GAAP income from operations						$	384.3					$	392.7
Other (expense) income						(66.0)						(65.0)
Non-GAAP income from continuing operations before income taxes						318.3						327.7
Non-GAAP net income						254.7						262.2
Tax provision						$	63.6					$	65.5
Non-GAAP tax rate						20		%				20		%

7

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR FISCAL YEAR 2026 GUIDANCE

(Unaudited)

Fiscal Year 2026 Adjusted Free Cash Flow and Unlevered Free Cash Flow Guidance
			Fiscal Year Ending November 30, 2026
(in millions)			Low						High
Cash flows from operations (GAAP)			$	266					$	278
Purchases of property and equipment			(8)						(8)
Add back: restructuring payments			5						5
Adjusted free cash flow (non-GAAP)			263						275
Add back: tax-effected interest expense			52						51
Unlevered free cash flow (non-GAAP)			$	315					$	326

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q2 2026 GUIDANCE

(Unaudited)

Q2 2026 Non-GAAP Earnings per Share Guidance
			Three Months Ending May 31, 2026
			Low						High
GAAP diluted earnings per share			$	0.35					$	0.41
Acquisition-related expense			0.04						0.04
Stock-based compensation			0.43						0.43
Amortization of acquired intangibles			0.82						0.82
Restructuring expense			0.01						0.01
Cyber vulnerability response expenses, net			0.07						0.07
Total adjustments(3)			1.37						1.37
Income tax adjustment			(0.25)						(0.25)
Non-GAAP diluted earnings per share			$	1.47					$	1.53

3 Total adjustments include preliminary estimates relating to the valuation of intangible assets acquired from Nuclia and restructuring expenses. The final amounts will not be available until the Company's internal procedures and reviews are completed.

8

Important Information Regarding Non-GAAP Financial Measures, Liquidity Measures, and Select Performance Metrics

Progress furnishes certain non-GAAP supplemental information to our financial results. We use such non-GAAP financial measures to evaluate our period-over-period operating performance because our management team believes that excluding the effects of certain GAAP-related items helps to illustrate underlying trends in our business and provides us with a more comparable measure of our continuing business, as well as greater understanding of the results from the primary operations of our business. Management also uses such non-GAAP financial measures to establish budgets and operational goals, evaluate performance, and allocate resources. In addition, the compensation of our executives and non-executive employees is based in part on the performance of our business as evaluated by such non-GAAP financial measures. We believe these non-GAAP financial measures enhance investors' overall understanding of our current financial performance and our prospects for the future by: (i) providing more transparency for certain financial measures, (ii) presenting disclosure that helps investors understand how we plan and measure the performance of our business, (iii) affording a view of our operating results that may be more easily compared to our peer companies, and (iv) enabling investors to consider our operating results on both a GAAP and non-GAAP basis (including following the integration period of our prior acquisitions). However, this non-GAAP information is not in accordance with, or an alternative to, generally accepted accounting principles in the United States ("GAAP") and should be considered in conjunction with our GAAP results as the items excluded from the non-GAAP information may have a material impact on Progress' financial results. A reconciliation of non-GAAP adjustments to Progress' GAAP financial results is included in the tables above.

In the noted fiscal periods, we adjusted for the following items from our GAAP financial results to arrive at our non-GAAP financial measures:

•Amortization of acquired intangibles - We exclude amortization of acquired intangibles because those expenses are unrelated to our core operating performance and the intangible assets acquired vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses acquired. Adjustments include preliminary estimates relating to the valuation of intangible assets from Nuclia. The final amounts will not be available until the Company's internal procedures and reviews are completed.

•Stock-based compensation - We exclude stock-based compensation to be consistent with the way management and, in our view, the overall financial community evaluates our performance and the methods used by analysts to calculate consensus estimates. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size, and nature of awards granted. As such, we do not include these charges in operating plans.

•Restructuring expenses - In all periods presented, we exclude restructuring expenses incurred because those expenses distort trends and are not part of our core operating results.

•Acquisition-related expenses - We exclude acquisition-related expenses in order to provide a more meaningful comparison of the financial results to our historical operations and forward-looking guidance and the financial results of less acquisitive peer companies. We consider these types of costs and adjustments, to a great extent, to be unpredictable and dependent on a significant number of factors that are outside of our control. Furthermore, we do not consider these acquisition-related costs and adjustments to be related to the organic continuing operations of the acquired businesses and are generally not relevant to assessing or estimating the long-term performance of the acquired assets. In addition, the size, complexity, and/or volume of past acquisitions, which often drives the magnitude of acquisition-related costs, may not be indicative of the size, complexity, and/or volume of future acquisitions.

•Cyber vulnerability response expenses, net - We exclude certain expenses resulting from the MOVEit Vulnerability, as more thoroughly described in our filings with the Securities and Exchange Commission since June 5, 2023. Such expenses primarily consist of legal and other professional services related thereto. Expenses related to such cyber matters are provided net of expected insurance recoveries, although the timing of recognizing insurance recoveries may differ from the timing of recognizing the associated expenses. Costs associated with the enhancement of our cybersecurity program are not included within this adjustment. We expect to continue to incur legal and other professional services expenses in future periods associated with the MOVEit Vulnerability. Expenses related to such cyber matters are expected to result in operating expenses that would not have otherwise been incurred in the normal course of business operations. We believe that excluding these costs facilitates a more meaningful evaluation of our operating performance and comparisons to our past operating performance.

•Provision for income taxes - We adjust our income tax provision by excluding the tax impact of the non-GAAP adjustments discussed above.

9

•Constant currency - Revenue from our international operations has historically represented a substantial portion of our total revenue. As a result, our revenue results have been impacted, and we expect will continue to be impacted, by fluctuations in foreign currency exchange rates. As exchange rates are an important factor in understanding period-to-period comparisons, we present revenue growth rates on a constant currency basis, which helps improve the understanding of our revenue results and our performance in comparison to prior periods. The constant currency information presented is calculated by translating current period results using prior period weighted average foreign currency exchange rates.

In the noted fiscal periods, we also present the following liquidity measures:

•Adjusted free cash flow ("AFCF") and unlevered free cash flow ("Unlevered FCF") - AFCF is equal to cash flows from operating activities less purchases of property and equipment, plus restructuring payments. Unlevered FCF is AFCF plus tax-effected interest expense on outstanding debt.

In the noted fiscal periods, we also present the following select performance metrics:

•Annualized Recurring Revenue ("ARR") - We disclose ARR as a performance metric to help investors better understand and assess the performance of our business because our mix of revenue generated from recurring sources currently represents the substantial majority of our revenues and is expected to continue in the future. We define ARR as the annualized revenue of all active and contractually binding term-based contracts from all customers at a point in time. ARR includes revenue from maintenance, software upgrade rights, public cloud, and on-premises subscription-based transactions and managed services. ARR mitigates fluctuations in revenue due to seasonality, contract term and the sales mix of subscriptions for term-based licenses and SaaS. We use ARR to understand customer trends and the overall health of our business, helping us to formulate strategic business decisions.

We calculate the annualized value of annual and multi-year contracts, and contracts with terms less than one year, by dividing the total contract value of each contract by the number of months in the term and then multiplying by 12. Annualizing contracts with terms less than one-year results in amounts being included in our ARR that are in excess of the total contract value for those contracts at the end of the reporting period. We generally do not sell non-SaaS-based contracts with a term of less than one year unless a customer is purchasing additional licenses under an existing annual or multi-year contract. The expectation is that at the time of renewal, such contracts with a term less than one year will renew with the same term as the existing contracts being renewed, such that both contracts are co-termed. Historically, such contracts with a term of less than one year renew at rates equal to or better than annual or multi-year contracts.

For SaaS-based contracts, there is a meaningful percentage of monthly auto-renewing contracts for which annualizing the contracts results in amounts being included in our ARR that are in excess of the total contract value for those contracts at the end of the reporting period.

Revenue from term-based license and on-premises subscription arrangements include a portion of the arrangement consideration that is allocated to the software license that is recognized up-front at the point in time control is transferred under ASC 606 revenue recognition principles. ARR for these arrangements is calculated as described above. The expectation is that the total contract value, inclusive of revenue recognized as software license, will be renewed at the end of the contract term.

The calculation is done at constant currency using the current year budgeted exchange rates for all periods presented.

ARR is not defined in GAAP and is not derived from a GAAP measure. Rather, ARR generally aligns to billings (as opposed to GAAP revenue which aligns to the transfer of control of each performance obligation). ARR does not have any standardized meaning and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.

10

•Net Retention Rate ("NRR") - We calculate net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period end ("Prior Period ARR"). We then calculate the ARR from these same customers as of the current period end ("Current Period ARR"). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months but excludes ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the net retention rate. Net retention rate is not calculated in accordance with GAAP and is not derived from a GAAP measure.

Note Regarding Forward-Looking Statements

This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Progress has identified some of these forward-looking statements with words like "believe," "may," "could," "would," "might," "should," "expect," "intend," "plan," "target," "anticipate" and "continue," the negative of these words, other terms of similar meaning or the use of future dates. Forward-looking statements in this press release include, but are not limited to, statements regarding Progress' business outlook (including future acquisition activity) and financial guidance. There are a number of factors that could cause actual results or future events to differ materially from those anticipated by the forward-looking statements, including, without limitation: (i) economic, geopolitical, and market conditions can adversely affect our business, results of operations, and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price; (ii) our international sales and operations subject us to additional risks that can adversely affect our operating results, including risks relating to foreign currency gains and losses; (iii) we may fail to achieve our financial forecasts due to such factors as delays or size reductions in transactions, fewer large transactions in a particular quarter, fluctuations in currency exchange rates, or a decline in our renewal rates for contracts; (iv) if the security measures for our software, services, other offerings or our internal information technology infrastructure are compromised or subject to a successful cyber-attack, or if our software offerings contain significant coding or configuration errors or zero-day vulnerabilities, we may experience reputational harm, legal claims and financial exposure; and the results of inquiries, investigations and legal claims regarding the MOVEit Vulnerability remain uncertain, while the ultimate resolution of these matters could result in losses that may be material to our financial results for a particular period; and (v) future acquisitions may not be successful or may involve unanticipated costs or other integration issues that could disrupt our existing operations. For further information regarding risks and uncertainties associated with Progress' business, please refer to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended November 30, 2025. Progress undertakes no obligation to update any forward-looking statements, which speak only as of the date of this press release.

11

March 30, 2026 Q1 2026 Supplemental Information Progress Financial Results

2© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Forward Looking Statements This presentation contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Progress has identified some of these forward-looking statements with words like “believe,” “may,” “could,” “would,” “might,” “should,” “expect,” “intend,” “plan,” “target,” “anticipate” and “continue,” the negative of these words, other terms of similar meaning or the use of future dates. Forward-looking statements in this presentation include, but are not limited to, statements regarding Progress’s strategy; future revenue growth, operating margin, and cost savings; future acquisitions; and other statements regarding the future operation, direction, prospects, and success of Progress’s business. There are a number of factors that could cause actual results or future performance or achievements to differ materially from those anticipated by the forward-looking statements, including, without limitation: (i) economic, geopolitical, and market conditions can adversely affect our business, results of operations, and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price; (ii) our international sales and operations subject us to additional risks that can adversely affect our operating results, including risks relating to foreign currency gains and losses; (iii) we may fail to achieve our financial forecasts due to such factors as delays or size reductions in transactions, fewer large transactions in a particular quarter, fluctuations in currency exchange rates, or a decline in our renewal rates for contracts; (iv) if the security measures for our software, services, other offerings or our internal information technology infrastructure are compromised or subject to a successful cyber-attack, or if our software offerings contain significant coding or configuration errors or zero-day vulnerabilities, we may experience reputational harm, legal claims and financial exposure; and the results of inquiries, investigations, and legal claims regarding the MOVEit Vulnerability remain uncertain, while the ultimate resolution of these matters could result in losses that may be material to our financial results for a particular period; and (v) future acquisitions may not be successful or may involve unanticipated costs or other integration issues that could disrupt our existing operations. For further information regarding risks and uncertainties associated with Progress' business, please refer to Progress' filings with the U.S. Securities and Exchange Commission, including our quarterly report on Form 10-Q for the fiscal quarter ending February 28, 2026, and our Annual Report on Form 10-K for the fiscal year ended November 30, 2025. Progress undertakes no obligation to update any forward-looking statements, which speak only as of the date of this presentation. Non-GAAP Financial Measures We refer to certain non-GAAP financial measures in this presentation, including but not limited to, non-GAAP revenue, non-GAAP income from operations and operating margin, adjusted free cash flow, annualized recurring revenue ("ARR"), Net Retention Rate ("NRR"), and non-GAAP diluted earnings per share. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles (“GAAP”). Please see "Important Information Regarding Non-GAAP Financial Information" below for additional information. A reconciliation between non-GAAP measures and the most directly comparable GAAP measures appears in our earnings press release for the fiscal first quarter ended February 28, 2026, and fiscal full year ended November 30, 2025, which is furnished on a Form 8-K concurrently with this presentation and is available in the Investor Relations section of our website.

3© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Conference Call Details Please note: Webcast is listen-only. What: When: Time: Register for the Live Call: Access the Webcast: Progress Fiscal Q1 ’26 Financial Results Monday, March 30, 2026 5:00 p.m. ET Use this this link. here.

4© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Summary Highlights Q1 2026 • Revenues of $248M vs. prior guidance of $244M - $250M, up 4% year-over-year as reported, or 2% in constant currency • ARR: $863M, up 2% year-over-year • NRR: 99% • Operating margin: 41% • EPS: $1.60, above mid-point of prior guidance of $1.56 - $1.62 • Adjusted Free Cash Flow: $99M All f igures are non-GAAP. Definitions of non-GAAP financial measures (including ARR and NRR) are found in Important Information Regarding Non-GAAP Financial Information. Rev Growth 4%, Exceptional Margins and Cash Flow Debt Paydown and Buybacks Continue Updated FY ’26 Guidance: Revenue: $988M - $1B EPS: $5.91 - $6.03 Q2 ’26 Guidance: Revenue: $240M - $246M EPS: $1.47 - $1.53

5© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Net Retention % - TTM 102% 101% 100% 100% 100% 99% 100% 99% 99% Annualized Recurring Revenue Trend (Pro Forma) All periods reported in constant currency, using current year budgeted exchange rates ARR growth of 2% year-over-year ShareFile included in all periods Consistent Annual Growth

6© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Total Growth Strategy Invest & Innovate Invest in our products and incorporate the latest technologies and capabilities to sustain relevance well into the future. Acquire & Integrate Disciplined M&A: pay a reasonable multiple for high-quality technology with strong recurring revenue; integrate quickly to reach 40% operating margins. Focus on Customer Success Ensure our customers continue to realize greater value from our products, leading to higher retention rates.

7© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Total Growth Strategy: Driving ARR Growth ARR CAGR of 15% Q1 2021 – Q1 2026 All periods reported in constant currency, using current year budgeted exchange rates Excludes ARR values from acquisitions prior to purchase date

8© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Total Growth Strategy: Driving Revenue Growth Revenue CAGR of 13% 2022 – 2026(E)* * Represents the mid-point of our FY’26 guidance range

9© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Operating Income CAGR of 13% 2022 – 2026(E)* Best-in-class non-GAAP operating margins consistently above 35% * Represents the mid-point of our FY’26 guidance range Total Growth Strategy: Growing Profitability

10© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Unlevered FCF CAGR of 12% 2022 – 2026(E)* * Represents the mid-point of our FY’26 guidance range Total Growth Strategy: Growing Unlevered Free Cash Flow

11© 2025 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved.6 Capital Allocation Strategy PRIMARY FOCUS Continue to prioritize accretive M&A opportunities that meet our disciplined criteria to create the strongest returns. Repurchase shares to offset dilution from our equity programs. • Management has flexibility to increase, reduce, or suspend repurchases depending on market conditions and other considerations including size and timing of proposed M&A. • $20M of shares repurchased in Q1 ’26 Use our significant free cash flow to aggressively pay down debt and reload for the next acquisition. • $60M repaid in Q1 ’26 • Currently modeling $250M in debt repayment for FY '26

12© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Well Defined M&A Framework ▪ Cast a wide net across infrastructure software for AI-resilient businesses ▪ Tight alignment increases synergy potential ▪ ~10-25% of current Progress revenues ▪ Can be financed and integrated efficiently ▪ High recurring revenue and customer retention ▪ Potential to achieve operational efficiency ▪ Focused on sustained returns, accretiveROIC > WACC Financial Characteristics Appropriate Sizing End Market Alignment

13© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Summary Q1 2026 Financial Results Q1 2026 Results Prior Q1 2026 Outlook (provided on January 20, 2026) Revenue $248M $244M - $250M GAAP earnings per share (Diluted) $0.53 $0.47 - $0.53 Non-GAAP earnings per share (Diluted) $1.60 $1.56 - $1.62 GAAP Operating Margin 19% Not guided Non-GAAP Operating Margin 41% Not guided Cash from Operations (GAAP) $99M Not guided Adjusted Free Cash Flow (Non-GAAP) $99M Not guided Unlevered Free Cash Flow (Non-GAAP) $111M Not guided

14© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Business Outlook (as of March 30, 2026) Q2 2026 Current Outlook FY 2026 Prior Outlook (provided on January 20, 2026) FY 2026 Updated Outlook Revenue $240M - $246M $986M - $1B $988M - $1B GAAP EPS $0.35 - $0.41 $1.74 - $1.91 $1.71 - $1.87 Non-GAAP EPS $1.47 - $1.53 $5.82 - $5.96 $5.91 - $6.03 GAAP Operating Margin Not guided 16% - 17% Unchanged Non-GAAP Operating Margin Not guided 39% Unchanged Cash from Operations (GAAP) Not guided $263M - $277M $266M - $278M Adjusted Free Cash Flow (Non- GAAP) Not guided $260M - $274M $263M - $275M Unlevered Free Cash Flow (Non- GAAP) Not guided $313M - $326M $315M - $326M GAAP Effective Tax Rate Not guided 21% 23% Non-GAAP Effective Tax Rate Not guided 20% Unchanged

15© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Outstanding Debt and Potential Impact on Share Count Convertible # 1 Balance: $360M Interest Rate: 1.00% Conversion Price: $57.30 Expiration: April 15, 2026 Capped Call Coverage: up to $89.88* * Subject to downward adjustment for dividend policy Convertible # 2 Balance: $450M Interest Rate: 3.50% Conversion Price: $67.74 Expiration: March 1, 2030 Capped Call Coverage: up to $92.98* * Subject to downward adjustment for dividend policy Revolver (as of 2/28/26) Balance: $540M drawn out of $1.5B Interest Rate: 1.25% to 2.5% above benchmark Current interest rate ~ 5.4% as of Feb 28, 2026 Unused revolver fee: 0.15% - 0.35% Expiration: July 21, 2030 Approximately $5.0M of additional interest expense in FY 2026 for amortization of debt issuance costs $50 $55 $60 $65 $70 $75 $80 Impact of convertible notes on diluted weighted average share count (M)* 0.0 0.0 0.3 0.7 1.4 2.1 2.8 Impact of convertible #2 only on diluted weighted average share count (M)* 0.0 0.0 0.0 0.0 0.2 0.6 1.0 Current Guidance Assumption * Does not contemplate the impact on diluted weighted average share count from other events such as repurchases, issuance under equity plans, etc. Prior Guidance Assumption Future Share Price

Supplemental Financial Information

17© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. ARR Exchange Rate Comparison – 2025 by Quarter* ARR is presented in constant currency, using our current year budgeted exchange rates “ARR at FY25 Rates” represents results reported translated using our FY25 budgeted exchange rates “ARR at FY26 Rates” represents those same results translated using our FY26 budgeted exchange rates

18© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. ARR Exchange Rate Comparison – 2022-2025 ARR is presented in constant currency, using our current year budgeted exchange rates “ARR at FY25 Rates” represents results reported translated using our FY25 budgeted exchange rates “ARR at FY26 Rates” represents those same results translated using our FY26 budgeted exchange rates

19© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Supplemental Revenue Information (Unaudited)

20© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Progress furnishes certain non-GAAP supplemental information to our financial results. We use such non-GAAP financial measures to evaluate our period-over-period operating performance because our management team believes that excluding the effects of certain GAAP-related items helps to illustrate underlying trends in our business and provides us with a more comparable measure of our continuing business, as well as greater understanding of the results from the primary operations of our business. Management also uses such non-GAAP financial measures to establish budgets and operational goals, evaluate performance, and allocate resources. In addition, the compensation of our executives and non-executive employees is based in part on the performance of our business as evaluated by such non-GAAP financial measures. We believe these non-GAAP financial measures enhance investors’ overall understanding of our current financial performance and our prospects for the future by: (i) providing more transparency for certain financial measures, (ii) presenting disclosure that helps investors understand how we plan and measure the performance of our business, (iii) affording a view of our operating results that may be more easily compared to our peer companies, and (iv) enabling investors to consider our operating results on both a GAAP and non-GAAP basis (including following the integration period of our prior acquisit ions). However, this non-GAAP information is not in accordance with, or an alternative to, generally accepted accounting principles in the United States ("GAAP") and should be considered in conjunction with our GAAP results as the items excluded from the non-GAAP information may have a material impact on Progress’ financial results. A reconciliation between non-GAAP measures and the most directly comparable GAAP measures appears in our earnings press release for the fiscal quarter ended February 28, 2026, which is furnished on a Form 8-K concurrently with this presentation and is available on the Progress website at www.progress.com within the investor relations section. In this presentation, we may reference the following non-GAAP financial measures: • Amortization of acquired intangibles - We exclude amortization of acquired intangibles because those expenses are unrelated to our core operating performance and the intangible assets acquired vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses acquired. Adjustments include preliminary estimates relating to the valuation of intangible assets from Nuclia. The final amounts will not be available until the Company's internal procedures and reviews are completed. • Stock-based compensation - We exclude stock-based compensation to be consistent with the way management and, in our view, the overall financial community evaluates our performance and the methods used by analysts to calculate consensus estimates. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size, and nature of awards granted. As such, we do not include these charges in operating plans. • Restructuring expenses - In all periods presented, we exclude restructuring expenses incurred because those expenses distort trends and are not part of our core operating results. • Acquisition-related expenses - We exclude acquisition-related expenses in order to provide a more meaningful comparison of the financial results to our historical operations and forward-looking guidance and the financial results of less acquisitive peer companies. We consider these types of costs and adjustments, to a great extent, to be unpredictable and dependent on a significant number of factors that are outside of our control. Furthermore, we do not consider these acquisition-related costs and adjustments to be related to the organic continuing operations of the acquired businesses and are generally not relevant to assessing or estimating the long-term performance of the acquired assets. In addition, the size, complexity, and/or volume of past acquisitions, which often drives the magnitude of acquisit ion-related costs, may not be indicative of the size, complexity, and/or volume of future acquisitions. • Cyber vulnerability response expenses, net - We exclude certain expenses resulting from the MOVEit Vulnerability, as more thoroughly described in our filings with the Securities and Exchange Commission since June 5, 2023. Such expenses primarily consist of legal and other professional services related thereto. Expenses related to such cyber matters are provided net of expected insurance recoveries, although the timing of recognizing insurance recoveries may differ from the timing of recognizing the associated expenses. Costs associated with the enhancement of our cybersecurity program are not included within this adjustment. We expect to continue to incur legal and other professional services expenses in future periods associated with the MOVEit Vulnerability. Expenses related to such cyber matters are expected to result in operating expenses that would not have otherwise been incurred in the normal course of business operations. We believe that excluding these costs facilitates a more meaningful evaluation of our operating performance and comparisons to our past operating performance. Important Information Regarding Non-GAAP Financial Information

21© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Important Information Regarding Non-GAAP Financial Information • Provision for income taxes - We adjust our income tax provision by excluding the tax impact of the non-GAAP adjustments discussed above. • Constant currency - Revenue from our international operations has historically represented a substantial portion of our total revenue. As a result, our revenue results have been impacted, and we expect will continue to be impacted, by fluctuations in foreign currency exchange rates. As exchange rates are an important factor in understanding period-to-period comparisons, we present revenue growth rates on a constant currency basis, which helps improve the understanding of our revenue results and our performance in comparison to prior periods. The constant currency information presented is calculated by translating current period results using prior period weighted average foreign currency exchange rates. In the noted f iscal periods, we also present the following liquidity measures: • Adjusted free cash flow ("AFCF") and unlevered free cash flow ("Unlevered FCF") - AFCF is equal to cash flows from operating activit ies less purchases of property and equipment, plus restructuring payments. Unlevered FCF is AFCF plus tax-effected interest expense on outstanding debt. In the noted f iscal periods, we also present the following select performance metrics: • Annualized Recurring Revenue (“ARR”) - We disclose ARR as a performance metric to help investors better understand and assess the performance of our business because our mix of revenue generated from recurring sources currently represents the substantial majority of our revenues and is expected to continue in the future. We define ARR as the annualized revenue of all active and contractually binding term-based contracts from all customers at a point in time. ARR includes revenue from maintenance, software upgrade rights, public cloud, and on-premises subscription-based transactions and managed services. ARR mitigates fluctuations in revenue due to seasonality, contract term and the sales mix of subscriptions for term-based licenses and SaaS. We use ARR to understand customer trends and the overall health of our business, helping us to formulate strategic business decisions. We calculate the annualized value of annual and multi-year contracts, and contracts with terms less than one year, by dividing the total contract value of each contract by the number of months in the term and then multiplying by 12. Annualizing contracts with terms less than one-year results in amounts being included in our ARR that are in excess of the total contract value for those contracts at the end of the reporting period. We generally do not sell non-SaaS- based contracts with a term of less than one year unless a customer is purchasing additional licenses under an existing annual or multi-year contract. The expectation is that at the time of renewal, such contracts with a term less than one year will renew with the same term as the existing contracts being renewed, such that both contracts are co-termed. Historically, such contracts with a term of less than one year renew at rates equal to or better than annual or multi-year contracts. For SaaS-based contracts, there is a meaningful percentage of monthly auto-renewing contracts for which annualizing the contracts results in amounts being included in our ARR that are in excess of the total contract value for those contracts at the end of the reporting period. Revenue from term-based license and on-premises subscription arrangements include a portion of the arrangement consideration that is allocated to the software license that is recognized up-front at the point in time control is transferred under ASC 606 revenue recognition principles. ARR for these arrangements is calculated as described above. The expectation is that the total contract value, inclusive of revenue recognized as software license, will be renewed at the end of the contract term. The calculation is done at constant currency using the current year budgeted exchange rates for all periods presented.

22© 2026 Progress Software Corporation and/or its subsidiaries or aff iliates. All rights reserved. Important Information Regarding Non-GAAP Financial Information • ARR continued - ARR is not defined in GAAP and is not derived from a GAAP measure. Rather, ARR generally aligns to billings (as opposed to GAAP revenue which aligns to the transfer of control of each performance obligation). ARR does not have any standardized meaning and is therefore unlikely to be comparable to similarly titled measures presented by other comp anies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers. • Net Retention Rate ("NRR") - We calculate net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period end ("Prior Period ARR"). We then calculate the ARR from these same customers as of the current period end ("Current Period ARR"). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months but excludes ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the net retention rate. Net retention rate is not calculated in accordance with GAAP and is not derived from a GAAP measure.

FAQ

How did Progress Software (PRGS) perform in its Q1 2026 results?

Progress Software delivered solid Q1 2026 results with revenue of $247.8 million, up 4% year-over-year, and strong profitability. GAAP diluted EPS more than doubled to $0.53, while non-GAAP diluted EPS increased 22% to $1.60, reflecting higher margins and disciplined costs.

What were Progress Software (PRGS) margins and earnings in Q1 2026?

Progress reported a GAAP operating margin of 19% and non-GAAP operating margin of 41% in Q1 2026. GAAP net income rose to $22.8 million, with diluted EPS of $0.53, while non-GAAP net income reached $68.3 million and non-GAAP diluted EPS was $1.60.

What guidance did Progress Software (PRGS) give for fiscal 2026?

For fiscal 2026, Progress guides revenue to $988 million–$1.0 billion and GAAP diluted EPS to $1.71–$1.87. Non-GAAP diluted EPS is expected between $5.91 and $6.03, with a targeted non-GAAP operating margin of 39% and GAAP operating margin of 16–17%.

How strong was Progress Software’s (PRGS) cash flow in Q1 2026?

Progress generated robust cash in Q1 2026, with cash flows from operations of $98.6 million, up 43% year-over-year. Adjusted free cash flow reached $98.8 million, and unlevered free cash flow was $111.0 million, supporting both debt reduction and share repurchases.

What are Progress Software’s (PRGS) key recurring revenue metrics?

Progress reported Annualized Recurring Revenue of $863 million in Q1 2026, up 2% year-over-year on a constant currency basis. Its Net Retention Rate was 99%, indicating that revenue from existing customers was broadly stable after accounting for expansion, contraction, and churn.

What Q2 2026 guidance did Progress Software (PRGS) provide?

For Q2 2026, Progress expects revenue between $240 million and $246 million. GAAP diluted EPS is guided to $0.35–$0.41, while non-GAAP diluted EPS is expected between $1.47 and $1.53, reflecting continued focus on margins and profitability.

How is Progress Software (PRGS) managing debt and share repurchases?

In Q1 2026, Progress repaid $60 million on its revolving credit facility and repurchased about $15 million of common stock. For fiscal 2026, the company is modeling approximately $250 million of debt repayment while still prioritizing disciplined acquisitions and offsetting equity dilution.

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