PROS(US:PRO)2025-10-27 20:18Financial Performance - Total revenue for Q3 2025 was $91.7 million, an increase of 11% year-over-year from $82.7 million in Q3 2024[3] - Subscription revenue grew by 13% year-over-year to $76.0 million in Q3 2025, up from $67.1 million in Q3 2024[6] - Gross profit increased by 16% year-over-year to $63.1 million, with a total gross margin of 69%, up approximately 300 basis points from the previous year[6] - The company reported a net loss of $4.2 million in Q3 2025, compared to a net income of $0.2 million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $15.0 million, compared to $9.3 million in Q3 2024, reflecting a year-over-year increase of 61%[3] - Total revenue for the three months ended September 30, 2025, was $91.676 million, a 10.4% increase from $82.702 million in the same period of 2024[29] - Subscription revenue for the nine months ended September 30, 2025, reached $220.169 million, up 11.8% from $197.017 million in 2024[29] - Gross profit for the three months ended September 30, 2025, was $63.137 million, compared to $54.404 million in 2024, reflecting a gross margin improvement[29] - Net loss for the three months ended September 30, 2025, was $4.247 million, compared to a net income of $0.235 million in the same period of 2024[29] - Non-GAAP gross profit for Q3 2025 increased by 15% to $64,881,000 from $56,319,000 in Q3 2024[33] - Non-GAAP income from operations for the nine months ended September 30, 2025, rose by 73% to $28,458,000 compared to $16,439,000 in the same period of 2024[33] - Non-GAAP net income for Q3 2025 was $10,413,000, a 59% increase from $6,557,000 in Q3 2024[33] - Non-GAAP subscription gross profit for the nine months ended September 30, 2025, was $177,474,000, reflecting a 13% increase compared to $156,689,000 in the same period of 2024[39] - Free cash flow for Q3 2025 was $11.5 million, significantly up from $1.4 million in Q3 2024[3] - Free cash flow for the nine months ended September 30, 2025, was $15,815,000, significantly higher than $2,643,000 in the same period of 2024[37] Assets and Liabilities - Total current assets increased to $275.752 million as of September 30, 2025, from $239.116 million at the end of 2024, representing a 15.3% growth[27] - Total liabilities rose to $521.107 million as of September 30, 2025, compared to $488.605 million at the end of 2024, indicating a 6.6% increase[27] - The company reported a cash and cash equivalents balance of $188.404 million as of September 30, 2025, up from $161.983 million at the end of 2024[27] - The company’s accumulated deficit increased to $677.419 million as of September 30, 2025, from $667.727 million at the end of 2024[27] Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $66.003 million, compared to $54.373 million in the same period of 2024, reflecting increased investment in R&D and marketing[29] - Share-based compensation for Q3 2025 was $13,799,000, compared to $7,271,000 in Q3 2024, reflecting a 90% increase[33] - Share-based compensation increased to $13,799,000 in Q3 2025 from $7,271,000 in Q3 2024, marking an increase of 89%[37] - Transaction costs for Q3 2025 were $2,258,000, while there were no transaction costs reported in Q3 2024[37] - GAAP (loss) income from operations for Q3 2025 was $(2,866,000), a decline from $31,000 in Q3 2024[37] - Amortization of acquisition-related intangibles decreased to $956,000 in Q3 2025 from $1,074,000 in Q3 2024[37] Strategic Initiatives - PROS Holdings, Inc. announced a pending acquisition by Thoma Bravo L.P. valued at approximately $1.4 billion, or $23.25 per share, representing a premium of about 53.2%[4] - The company will not host a Q3 earnings conference call and has suspended financial guidance due to the pending acquisition[5] - The company has filed a preliminary proxy statement with the SEC on October 22, 2025, regarding a proposed transaction, indicating ongoing strategic initiatives[22] Market Presence - The company welcomed new customers including Bleckmann and Kraft Heinz, and expanded adoption within existing customers like Adobe and American Airlines[11] - PROS achieved the highest ranking in G2's Fall 2025 Enterprise Grid for Pricing Software, highlighting its market presence and product value[11]