Progress Software to acquire Domo business for $400 million
The software provider reported second-quarter revenue growth of 7% as it moves to expand its data platform capabilities.
Progress Software (PRGS), the enterprise software provider, entered into an agreement to acquire Domo's AI and data platform business for a cash purchase price of $400 million.
The acquisition comes as the company seeks to offset a multi-quarter deceleration in organic growth. Revenue growth fell from 40% year-over-year in the third quarter of 2025 to 7% in the second quarter of 2026.
Annualized Recurring Revenue growth followed a similar trajectory, dropping from 47% year-over-year in the third quarter of 2025 to a steady 2% across the most recent three quarters. Despite the slowdown in top-line expansion, the company maintained a stable non-GAAP operating margin of 40% in the second quarter of 2026, compared to 41% in the first quarter and 38% in the fourth quarter of 2025.
The Domo transaction is expected to close in the fourth fiscal quarter of 2026. The deal will add approximately 2,400 customers and contribute trailing twelve-month revenue of about $318 million as of April 2026.
Progress reiterated its fiscal third-quarter guidance for revenue and non-GAAP earnings per share. The company anticipates results will be within or above the high end of the guidance provided on June 30, 2026.
The trailing twelve-month net leverage ratio stood at 2.9X as of June 30, 2026. Progress expects the Domo acquisition to have no material impact on this ratio, keeping it below 3.0X.