Progress(US:PRGS)2026-01-20 21:12Financial Performance - Total revenue for fiscal year 2025 was $977.8 million, an increase of 29.9% from $753.4 million in fiscal year 2024 [251]. - Software licenses revenue decreased to $237.9 million in fiscal year 2025 from $249.3 million in fiscal year 2024, a decline of 4.8% [251]. - Maintenance, SaaS, and professional services revenue increased significantly to $739.9 million, up 46.7% from $504.1 million in fiscal year 2024 [251]. - Gross profit for fiscal year 2025 was $790.3 million, representing a gross margin of approximately 80.8% [251]. - Net income for fiscal year 2025 was $73.1 million, an increase of 6.3% compared to $68.4 million in fiscal year 2024 [251]. - Comprehensive income for the fiscal year ended November 30, 2025, was $76,199,000, compared to $64,389,000 in 2024, reflecting a significant increase of 18.3% [253]. - Cash flows from operating activities for the fiscal year ended November 30, 2025, totaled $235,187,000, up from $211,494,000 in 2024, indicating a growth of 11.2% [256]. - The company reported $595.336 million in revenue from the United States for fiscal year 2025, compared to $421.890 million in 2024, reflecting a growth of approximately 41.0% [384]. - Basic earnings per share for the fiscal year ended November 30, 2025, was $1.70, an increase from $1.58 in 2024 [410]. - Diluted earnings per share for the fiscal year ended November 30, 2025, was $1.66, compared to $1.54 in 2024 [410]. Debt and Financial Obligations - As of November 30, 2025, the company had approximately $1.4 billion in consolidated indebtedness, which could limit cash flow and expose it to financial risks [131]. - The company has a $1.5 billion secured revolving credit facility that matures in July 2030, which may be used for operations, strategic acquisitions, and share repurchases [134]. - The company reported a total of $600.0 million outstanding under the revolving credit facility at a borrowing rate of 5.92% as of November 30, 2025 [234]. - The company repaid $130 million on the Credit Facility during fiscal year 2025, with an interest rate of 5.92% as of November 30, 2025 [353]. - As of November 30, 2025, total debt was $1.4 billion, down from $1.5 billion in 2024, with a current portion of long-term debt of $359.2 million [339]. Tax Liabilities and Impacts - The company is subject to various tax liabilities, including income and non-income taxes, which could adversely affect its financial condition and results of operations [127][128]. - The company may incur additional tax liabilities due to audits by tax authorities, which could negatively impact cash flows and financial results [127]. - The provision for income taxes for the fiscal year ended November 30, 2025, was $8.5 million, a decrease from $25.8 million in 2024 [401]. - Deferred tax assets totaled $137.9 million as of November 30, 2025, with significant components including $20.1 million in deferred revenue and $19.6 million in tax credit and loss carryforwards [402]. - The total deferred tax liabilities were $61.6 million as of November 30, 2025, with goodwill accounting for $31.0 million of this total [402]. - The total amount of unrecognized tax benefits as of November 30, 2025, was $4.8 million, with $0.9 million recorded in other noncurrent liabilities [406]. Currency and Exchange Rate Risks - Approximately one-third of the company's revenue is denominated in foreign currencies, making it susceptible to fluctuations in exchange rates, which have historically impacted revenue results [120]. - The company has entered into foreign exchange forward contracts to hedge against currency fluctuations, but these may not fully mitigate the adverse impacts [120]. - A hypothetical 10% adverse movement in foreign currency exchange rates would negatively impact revenue by approximately $20.0 million, or 2% [236]. - The company recognized realized and unrealized gains of $0.9 million from forward contracts in foreign currency loss for fiscal year 2025 [235]. - The company reported a foreign currency translation adjustment of $3,066,000 in 2025, a recovery from a loss of $2,914,000 in 2024 [253]. Acquisitions and Related Costs - The company acquired Nuclia in 2025, enhancing its SaaS offerings, following the acquisition of ShareFile in 2024 [260]. - The acquisition of ShareFile was completed for an aggregate purchase price of $875.0 million, funded through $730.0 million in borrowings and cash on hand [319]. - The acquisition of MarkLogic was completed for a base purchase price of $355.0 million, with $161.8 million recorded as goodwill [329][334]. - Acquisition-related costs for ShareFile were approximately $15.6 million in fiscal year 2024 and $3.8 million in fiscal year 2025 [323]. - The fair value of the contingent consideration related to the Nuclia acquisition is estimated at $1.1 million, with a total purchase price of $21.4 million allocated primarily to purchased technology and goodwill [317]. Stock and Equity - The number of shares outstanding as of November 30, 2025, was 42,336,000, a decrease from 43,361,000 in 2024, indicating a reduction in share count [254]. - The company repurchased and retired 2.1 million shares of common stock for $105 million in fiscal year 2025, with $202.2 million remaining under the current share repurchase authorization [368]. - The company has 200 million shares of authorized common stock, with 42,335,700 shares issued and outstanding as of November 30, 2025 [366]. - The total intrinsic value of stock options exercised in fiscal year 2025 was $5.646 million [380]. - The fair value of stock options granted in fiscal year 2025 was estimated at $15.22 per share [378]. Operational and Other Expenses - The company incurred restructuring expenses of $3.8 million for the fiscal year ended November 30, 2025, following a 4% reduction in global workforce [393]. - Stock-based compensation increased to $64,768,000 in 2025 from $46,756,000 in 2024, marking a rise of 38.5% [256]. - The total net operating lease cost for the fiscal year ended November 30, 2025, was $11.1 million, compared to $10.9 million in 2024 and $9.1 million in 2023 [359]. - The company recorded no asset impairment charges in the years presented [282]. - The company recognized depreciation and amortization expense related to property and equipment of $6.2 million for the year ended November 30, 2025 [313].