Progress Software Corporation (NASDAQ:PRGS) is one of the best small cap stocks to buy with huge upside potential. Progress Software Corporation (NASDAQ:PRGS) announced on December 16 its debut in The Forrester Wave™: Digital Experience Platforms, Q4 2025, as one of the included nine vendors. Progress Software (PRGS) Slashes 13% After Earnings Performance Management reported that the inclusion reflects the company’s growing influence in the digital experience platform (DXP) market, along with its commitm ...

Celebrating Excellence: Announcing the 2025 Sitefinity Digital Agency Partner Awards New award category spotlights advances in AI-powered digital experiences; Industry leaders recognized for excellence and collaboration New award category spotlights advances in AI-powered digital experiences; Industry leaders recognized for excellence and collaboration BURLINGTON, Mass., Dec. 18, 2025 (GLOBE NEWSWIRE) -- Progress Software, the trusted provider of AI-powered digital experience and infrastructure softwar ...

Core Insights - Progress Software has been recognized as one of the top nine vendors in The Forrester Wave™: Digital Experience Platforms, Q4 2025, marking its first appearance in this influential report, which reflects its growing influence in the digital experience platform market [1][2] Group 1: Recognition and Market Position - The Forrester report identifies Progress as an ideal fit for midsize, multibrand organizations managing multiple microsites and portals, such as banks and governments, highlighting its ease of use and low-code flexibility [2] - Progress achieved the highest score of 5.0 in the Search criterion, thanks to its AI-native capability, Progress® Agentic RAG, which transforms static websites into dynamic, personalized answer engines [2][3] Group 2: Product Offerings and Capabilities - Progress' Digital Experience (DX) portfolio, including Progress® Sitefinity®, enables organizations to build and deliver expansive digital experiences, driving customer acquisition and retention [3] - The integration of Agentic RAG has evolved Progress' offerings into a generative, adaptive digital experience platform, allowing for the dynamic assembly of user-tailored experiences across channels [3] Group 3: Strategic Commitment - The company emphasizes its commitment to providing modern tools that help organizations succeed in a rapidly evolving digital landscape dominated by AI [3] - Progress aims to empower organizations to achieve transformational success by enabling the development and management of AI-powered applications and personalized digital experiences [5]

With the stock markets reeling somewhat as the AI trade shows signs of weakness, it's a great time for investors to focus on rotating our portfolios to value stocks. Tech and high multiples don't always have to coincide. InWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seek ...

Core Viewpoint - Bill Ackman and Michael Burry have expressed strong conviction in the potential of Fannie Mae and Freddie Mac, with implications tied to the Trump administration's decisions that could significantly impact these stocks [2][14]. Company Overview - Fannie Mae and Freddie Mac are government-sponsored entities (GSEs) that play a crucial role in the mortgage market by providing liquidity and serving as a secondary market for mortgages [4][5]. - Both entities have a monopoly in their business due to their implied government backing, which allows them to purchase mortgages from banks and package them into mortgage-backed securities [5]. Historical Context - The U.S. government intervened during the Great Recession, injecting over $187 billion into Fannie and Freddie, which resulted in the government acquiring senior preferred stock and warrants for nearly 80% of each company's common shares [6]. - A controversial "net worth sweep" agreement was established, allowing the government to collect over $300 billion from the GSEs' profits [7]. Current Financial Status - Fannie Mae generated at least $17 billion in profits in both 2023 and 2024, with over $105 billion in shareholder equity by the end of Q3 2023, although it is approximately $44 billion short of meeting regulatory capital requirements [8]. - The Trump administration is considering an initial public offering (IPO) for Fannie and Freddie, potentially valued at around $30 billion, which would be the largest IPO ever [9]. Challenges to IPO - Significant dilution is a concern due to the government's existing preferred stock and warrants, which could affect new investors [9]. - The potential increase in mortgage rates by 0.5% to 1% post-IPO is another challenge, as the GSEs would lose their implied government backing, making them riskier [12][13]. Valuation Perspectives - Current market caps are approximately $13 billion for Fannie Mae and $7 billion for Freddie Mac, but estimates suggest they could be worth multiples of their current trading values if the IPO is successful [15]. - Ackman estimates that Fannie and Freddie could collectively be worth $400 billion if their stocks transition to the New York Stock Exchange, while Burry anticipates they could trade at 1.5 to 2 times their book value post-IPO [16]. Investment Considerations - Junior preferred shares are considered a safer investment with less risk, while common shares present a higher risk-reward scenario [18].

Core Insights - Progress Software has released its Q4 2025 developer toolsets, introducing Agentic AI capabilities that enhance development efficiency and application quality, with early adopters reporting up to 50% faster development cycles [1][2][4] Group 1: New Features and Capabilities - The Agentic UI Generator allows developers to create enterprise-grade page layouts from simple natural language prompts, significantly speeding up the development process [2][4] - Twelve new component-level AI coding assistants have been integrated across .NET and JavaScript frameworks, increasing developer productivity by at least 30% [6] - AI-driven debugging features have been introduced in Progress® Telerik® Fiddler™ Everywhere, enabling seamless troubleshooting within developers' IDEs [6] Group 2: Market Impact and Innovation - The new AI capabilities are expected to fundamentally change how development teams build applications, reducing development time from days to hours [3] - Progress Software's proactive approach to partnering with AI-focused customers highlights its commitment to innovation in the software development space [3] - The release marks a significant milestone for Telerik and Kendo UI, positioning them as leaders in modern application development [4]

Core Viewpoint - Progress Software's stock has dropped 36% in 2025 despite consistently beating expectations and raising guidance, raising questions about whether the stock is undervalued [2] Company Overview - Progress Software, based in Burlington, Massachusetts, has a growth strategy focused on acquisitions, primarily targeting small database and business software companies [3] - The company employs 3,000 people and serves 86,000 customers, generating approximately $250 million in revenue in the third quarter, with an average revenue per customer of $3,000 [4] Legal Challenges - A significant uncertainty for Progress's future is a lawsuit stemming from a breach in its MOVEit file transfer app, potentially exposing the personal data of 95.8 million individuals across 2,773 organizations [5] - The financial liability from the legal proceedings could range from $30 million to over $500 million, depending on the outcome [6] Bull Case - The bullish perspective on Progress Software is supported by its high margins, low valuation (8x earnings), and strong recurring revenue growth (47%) [7] - Successful integration of the ShareFile acquisition and plans to reduce debt by $160 million this year could improve operations [8] - The company's AI capabilities are expected to enhance pricing power and customer acquisition, potentially leading to faster growth [8] Customer Value Proposition - Progress Software provides AI-driven solutions to help small businesses improve productivity and customer satisfaction, boasting a satisfaction rate of 93% to 94% [10] - The company enables clients to utilize generative AI for marketing and operational efficiencies, allowing faster response times and improved service delivery [12] Bear Case - Approximately 12% of Progress shares are sold short, indicating bearish sentiment among investors [15] - High debt levels, totaling over $1.9 billion, and risks associated with acquisitions could negatively impact earnings [16] - Weak organic growth and competitive challenges in various product categories raise concerns about the company's ability to sustain revenue growth [16] - Questions regarding the quality of earnings have emerged, particularly with a decline in GAAP operating margins from 25% in Q3 2024 to 18% in Q3 2025 [16]

Core Insights - Progress Software has launched its SaaS Retrieval-Augmented Generation (RAG) platform, Progress® Agentic RAG, on AWS Marketplace, facilitating easier access for organizations to utilize generative AI for unstructured data [1][2][3] Group 1: Product Features - Progress Agentic RAG is designed as a no-code platform that transforms unstructured data into actionable intelligence using trustworthy generative AI and AI agents [2][3] - The platform supports multilingual data processing, making it suitable for global organizations aiming to improve productivity and decision-making [3] Group 2: Market Positioning - The availability of Progress Agentic RAG on AWS Marketplace simplifies access to advanced AI solutions for customers, allowing for streamlined purchase and management [2][3] - Progress Software aims to remove barriers for organizations to adopt and scale transformative AI solutions confidently [3] Group 3: Company Overview - Progress Software empowers organizations to achieve transformational success through AI-powered applications and digital experiences, serving over 4 million developers and technologists globally [5]

Core Insights - Progress Software has announced early access to Progress® Agentic RAG for Sitefinity, a new capability that integrates retrieval-augmented generation (RAG) with real-time content assembly, enabling hyper-personalized digital experiences [1][2] - This innovation positions Progress as the first provider to offer a generative content management system (CMS) with built-in enterprise-grade RAG capabilities, enhancing how organizations deliver intelligent content [1][2] Group 1: Product Features - Progress Agentic RAG for Sitefinity transforms static information into dynamic, AI-driven contextual experiences tailored to individual user needs and goals [2][4] - The solution combines advanced retrieval and real-time experience assembly, allowing organizations to create brand-governed, hyper-personalized interactions [2][3] - It provides source traceability, brand governance, and compliance controls, replacing static pages with intelligent, trustworthy experiences [3][4] Group 2: Market Context - As AI adoption accelerates, organizations face challenges in accessing valuable knowledge trapped in various systems, while users demand direct and verified answers [2][5] - Traditional websites with pre-structured content are becoming obsolete, necessitating a shift towards modern, prompt-driven, dynamic information experiences [5] Group 3: Strategic Advantage - The new capabilities allow organizations to deepen engagement and personalize at scale, providing a competitive edge in a crowded digital landscape [3][4] - Progress Software aims to empower organizations to achieve transformational success by enabling the development of responsible AI-powered applications and digital experiences [6]

Core Insights - Progress Federal Solutions has achieved "Awardable" status in the DoD's Tradewinds Solutions Marketplace, enabling rapid procurement of its Data Platform by U.S. Department of Defense customers [1][3] - The Progress Data Platform integrates database, search, and semantic AI capabilities, aimed at enhancing decision-making and operational efficiency for defense and civilian agencies [1][4] Company Overview - Progress Federal Solutions is a subsidiary of Progress Software, focusing on delivering AI-powered solutions tailored for U.S. federal, defense, and public sector organizations [3][7] - The company emphasizes its commitment to scalable, secure, and innovative AI solutions that support government agencies in achieving their objectives [3] Product Features - The Progress Data Platform allows agencies to integrate, manage, and operationalize complex data, providing a unified environment for structured and unstructured data [4][9] - Key functionalities include real-time information access, government-grade security, and the application of semantic AI for enhanced intelligence and situational awareness [9] Marketplace Context - The Tradewinds Solutions Marketplace is designed to facilitate the procurement and adoption of AI/ML, data, and analytics capabilities within the DoD [2][6] - Solutions in the marketplace are assessed through competitive procedures, ensuring they meet significant challenges faced by the DoD [6]