Progress Software Corp key statistics and ratios

In fiscal 2025, Progress Software Corp had return on equity of 15.9%, an operating margin of 15.7%, debt equal to 292.7% of equity and a current ratio of 0.49. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Progress Software Corp: financial ratios, annual
Fiscal year	2009Nov 2009	2010Nov 2010	2011Nov 2011	2012Nov 2012	2013Nov 2013	2014Nov 2014	2015Nov 2015	2016Nov 2016	2017Nov 2017	2018Nov 2018	2019Nov 2019	2020Nov 2020	2021Nov 2021	2022Nov 2022	2023Nov 2023	2024Nov 2024	2025Nov 2025	LTMAug 2026
Gross margin	81.1%	88.3%	89.0%	88.6%	89.5%	89.7%	83.1%	83.8%	80.5%	82.3%	81.8%	86.0%	85.2%	84.3%	81.8%	82.7%	80.8%	82.2%
Operating margin	10.3%	26.0%	32.6%	21.3%	19.1%	24.3%	3.9%	−7.3%	14.5%	17.9%	9.7%	24.4%	21.9%	21.9%	15.9%	16.5%	15.7%	17.7%
Net margin	6.6%	13.7%	17.9%	14.9%	22.4%	14.9%	−2.3%	−13.7%	7.3%	13.1%	6.4%	18.0%	14.8%	15.8%	10.1%	9.1%	7.5%	9.2%
Free-cash-flow margin	11.2%	24.6%	32.7%	30.3%	0.1%	30.0%	25.8%	23.9%	25.7%	30.1%	30.1%	31.3%	32.7%	30.9%	24.2%	27.4%	23.5%	31.9%
Return on equity	5.9%	7.7%	9.1%	7.5%	13.0%	9.4%	−1.7%	−11.5%	6.9%	13.6%	8.1%	23.6%	20.7%	23.4%	16.4%	15.2%	15.9%	18.3%
Return on assets	4.1%	5.5%	6.6%	5.4%	9.6%	7.1%	−1.1%	−6.8%	3.9%	7.3%	3.5%	8.3%	6.5%	6.9%	4.7%	3.3%	2.9%	3.9%
Asset turnover	0.62	0.41	0.37	0.36	0.43	0.48	0.48	0.50	0.54	0.56	0.54	0.46	0.44	0.43	0.46	0.36	0.39	0.42
Current ratio	1.58	2.04	1.80	2.19	2.05	2.45	1.62	1.65	1.27	1.24	1.18	0.91	1.05	1.34	0.94	0.81	0.49	0.80
Debt to equity	0.2%	0.1%	0.1%	0.0%	0.0%	0.0%	27.6%	30.5%	30.6%	36.3%	90.0%	111.1%	152.0%	157.6%	159.1%	351.0%	292.7%	232.6%
Interest cover (operating income ÷ interest)	—	—	—	—	98.8x	141.2x	3.9x	n/m	12.4x	13.2x	4.0x	10.6x	5.8x	8.4x	3.6x	3.9x	2.2x	2.7x
Effective tax rate	36.0%	34.3%	34.0%	33.9%	36.6%	36.4%	—	—	44.7%	18.3%	7.4%	17.5%	17.9%	18.9%	11.9%	27.4%	10.4%	16.7%
R&D as % of revenue	18.9%	14.2%	11.4%	14.0%	17.2%	17.7%	23.0%	21.9%	19.4%	21.0%	21.4%	20.0%	19.4%	19.0%	19.1%	19.4%	19.7%	19.5%
Capital spending as % of revenue	1.5%	2.7%	5.1%	2.4%	1.3%	2.4%	1.9%	1.4%	0.8%	1.9%	1.0%	1.5%	0.9%	1.0%	0.8%	0.7%	0.6%	0.9%
Free cash flow ÷ net income	169.1%	179.9%	183.2%	203.1%	0.5%	201.6%	—	—	352.5%	229.7%	471.5%	173.5%	221.7%	195.7%	239.8%	301.4%	313.8%	345.4%
Dividends ÷ net income	—	—	—	—	—	—	—	—	83.1%	51.9%	105.2%	37.5%	40.2%	32.7%	45.0%	46.0%	1.1%	0.5%
Dividends and buybacks ÷ free cash flow	9.4%	33.9%	183.1%	84.4%	>999%	52.8%	33.8%	81.6%	95.8%	127.8%	42.4%	65.0%	38.3%	58.1%	38.9%	57.3%	46.2%	35.3%

US$ thousands unless shown otherwise. Fiscal quarters.

Progress Software Corp: financial ratios, quarterly
Quarter	2024 Q4Nov 2024	2025 Q1Feb 2025	2025 Q2May 2025	2025 Q3Aug 2025	2025 Q4Nov 2025	2026 Q1Feb 2026	2026 Q2May 2026	2026 Q3Aug 2026
Gross margin	83.0%	80.6%	80.1%	81.0%	81.6%	82.3%	82.3%	82.7%
Operating margin	10.0%	13.6%	16.3%	17.6%	15.2%	18.8%	17.8%	18.9%
Net margin	0.5%	4.6%	7.2%	7.8%	10.2%	9.2%	8.3%	9.3%
Free-cash-flow margin	7.8%	28.4%	12.4%	29.0%	23.7%	38.7%	30.4%	35.1%
Current ratio	0.81	0.80	0.43	0.44	0.49	0.47	0.81	0.80
Debt to equity	347.8%	349.7%	243.0%	222.1%	292.7%	268.9%	255.3%	232.6%
R&D as % of revenue	19.2%	19.5%	19.6%	19.8%	19.7%	20.4%	19.3%	18.7%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

1 of 6 checks passed · August 31, 2026

What it owns · $2.3bn

Short-term assets $330mLonger-term assets $2.0bn

What it owes, and who funded it · $945m

Short-term liabilities $415mShareholders' equity $530m

Short-term assets cover short-term liabilities $330m of assets due within a year against $415m of liabilities due within a year.
Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
More cash than debt $114m of cash against $1.2bn of debt.
Debt below 40% of shareholders' equity Debt is 233% of equity.
Debt burden no higher than five years ago Debt to equity moved from 167% to 233% over five years.
A year's operating cash flow covers at least 20% of debt $328m of operating cash flow against $1.2bn of debt.
Operating profit covers interest at least five times over Operating income of $177m against $65m of interest.

From Progress Software Corp's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

64 /100

Moderate moat

How hard Progress Software's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 20 / 20

Cash operating profit has been a median 23.1% of total assets over 10 years.
Pricing power 20 / 20

Gross margin has been a median 82.5%, moving by 1.4 percentage points (standard deviation) across 10 years.
Durability 5 / 20

Operating margin has been a median 17.6%; its worst year was -5.1%.
Cash conversion 20 / 20

Free cash flow was positive in 10 of 10 years, at a median 30.3% of revenue.
Discipline 14 / 20

The diluted share count fell 5.0% over five years; stock-based pay has been a median 5.8% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (78 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Progress Software Corp's SEC filings (10-K and 10-Q), retrieved October 29, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Progress Software Corp.