Progress(US:PRGS)2025-06-30 20:47Q2 2025 Financial Highlights - Revenues reached $237 million, a 35% year-over-year increase in constant currency, surpassing prior guidance of $235 million - $241 million[9] - Annual Recurring Revenue (ARR) reached $838 million, up 46% year-over-year in constant currency, or 2% pro-forma[9] - The company achieved a Net Retention Rate (NRR) of 100%[9] - Operating margin was 40%[9] - Earnings per share (EPS) was $1.40, exceeding the high end of prior guidance of $1.28 - $1.34[9] Guidance - Q3 2025 guidance projects revenue between $237 million and $243 million, with EPS between $1.28 and $1.34[9] - Fiscal Year 2025 revenue guidance is updated to $962 million - $974 million, increased from $958 million - $970 million[9] - Fiscal Year 2025 EPS guidance is updated to $5.28 - $5.40, increased from $5.25 - $5.37[9] Growth Strategy - The company's ARR has a Compound Annual Growth Rate (CAGR) of 19% from Q2 2020 to Q2 2025[20] - Revenue has a CAGR of 15% from 2021 to 2025(E), based on the midpoint of FY25 guidance[22] - Operating income has a CAGR of 13% from 2021 to 2025(E), based on the midpoint of FY25 guidance[24] - Unlevered Free Cash Flow (FCF) has a CAGR of 11% from 2021 to 2025(E), based on the midpoint of FY25 guidance[26] Capital Allocation - The company repaid $40 million in debt in Q2 2025, bringing the year-to-date total to $70 million[30] - The company is currently modeling $160 million in debt repayment for FY2025[30] - The company repurchased $20 million of shares in Q2 2025, bringing the year-to-date total to $50 million[30] - ShareFile adds over $250 million of ARR[11]