Progress Software Closes Domo Deal and Lifts Full-Year Revenue
Third-quarter revenue was $246 million as ARR reached $873 million and the company raised fiscal 2026 revenue guidance to $1.044 billion–$1.052 billion.
Progress Software (PRGS) closed its $400 million cash purchase of Domo’s AI and data platform business in the fiscal third quarter ended August 31, 2026, and lifted full-year revenue guidance to $1.044 billion–$1.052 billion from a prior range of $990 million–$1.002 billion.
The AI infrastructure software company said the deal, agreed on July 22, adds Domo’s products, a customer base of more than 2,400 businesses, and cloud data-warehouse partnerships to Progress’s data platform. Chief Executive Yogesh Gupta said the close strengthens the company’s ability to help customers unlock data and accelerate AI-powered innovation. Chief Financial Officer Anthony Folger said the company looks forward to integrating Domo and continuing its Total Growth Strategy.
Revenue of $246 million decreased 2% year over year on both an actual and a constant-currency basis, a reversal from the 7% year-over-year increase reported in the fiscal second quarter ended May 31. Software licenses were $63.6 million. Maintenance, SaaS, and professional services were $182.4 million. Gross profit was $203.5 million.
Annualized recurring revenue was $873 million, up 1% year over year on a constant-currency basis, after a 2% increase to $868 million in the prior quarter. Gupta said the company delivered steady growth in ARR and earnings through execution and disciplined expense management.
GAAP income from operations was $46.6 million, and GAAP operating margin was 19%. Non-GAAP income from operations was $105.3 million, and non-GAAP operating margin was 43%. Diluted earnings were $0.55 a share, up 25% from $0.44 a year earlier. Non-GAAP diluted earnings were $1.69 a share. GAAP net income was $22.8 million.
Cash from operations was $88.0 million. Adjusted free cash flow was $87.2 million. Unlevered free cash flow was $100.7 million. Folger cited year-over-year growth in ARR and adjusted free cash flow of more than 1% and 17%, respectively. Days sales outstanding were 42 days, compared with 55 days in the fiscal third quarter of 2025. Cash and cash equivalents were $113.7 million at quarter-end. Long-term debt was $790.0 million. The current portion of convertible senior notes was zero.
Cyber vulnerability response expenses, net, were $3.5 million. Acquisition-related expenses were $3.9 million. Restructuring expenses were $0.1 million. The company said it expects to continue incurring legal and other professional-services expenses related to the MOVEit vulnerability.
For the fiscal year ending November 30, 2026, Progress now guides to GAAP diluted earnings of $1.18–$1.28 a share and non-GAAP diluted earnings of $6.15–$6.23 a share, versus prior GAAP guidance of $1.60–$1.74 and non-GAAP guidance of $6.09–$6.21. GAAP operating margin is guided at 13% and non-GAAP operating margin at 38%. Cash from operations is guided at $274 million–$282 million, adjusted free cash flow at $275 million–$283 million, and unlevered free cash flow at $330 million–$338 million. The company said the outlook includes preliminary estimates for Domo intangible-asset valuation and restructuring.
For the fiscal fourth quarter ending November 30, 2026, Progress guides revenue of $297 million–$305 million, GAAP diluted loss of $(0.41)–$(0.32) a share, and non-GAAP diluted earnings of $1.24–$1.33 a share. Based on current exchange rates, the company said the expected positive currency translation impact on fiscal 2026 revenue versus 2025 rates is approximately $9.4 million, or about $0.11 a share on GAAP and non-GAAP diluted earnings.
Gupta said organizations seeking context and control to realize the potential of AI position Progress to help them drive business outcomes with confidence. The company provides context drawn from data, content, and workflows, and control over the security, governance, and cost of AI initiatives.