Progress Software's Q2 slide deck drops July 1. ARR, free cash flow, and any guidance change will drive the after-market move.
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Progress Software released its second-quarter fiscal 2026 earnings presentation on July 1, the standard companion to its conference call. The slide deck, posted on the company's investor relations page, covers the three months ended May 31 and typically includes quarterly revenue, earnings per share, free cash flow, and the annualized recurring revenue (ARR) metric that drives valuation for a subscription-heavy software business.
The company sells application development and data connectivity tools – OpenEdge, Telerik, Chef – on a recurring license and maintenance model. That makes ARR trends and dollar-based retention rates the figures that move the stock more than headline EPS. Progress ended fiscal Q1 with ARR of roughly $580 million, up 8% year over year. Q2 will show whether that pace held or decelerated.
Cash flow matters just as much. Progress has historically generated free cash flow margins above 30%, supported by high renewal rates and low capital intensity. A miss on FCF would pressure the valuation multiple more than a revenue shortfall, because the market prices software stocks on cash generation, not accounting profit.
The call, scheduled for 5:00 PM Eastern, includes a Q&A segment where analysts press on customer retention, deal sizes, and the competitive picture against low-code platforms and cloud-native middleware. The slide deck itself may contain a fiscal-year outlook, which will anchor expectations for the second half. Management has guided for fiscal 2026 revenue between $805 million and $815 million, with non-GAAP EPS near $4.70. Any change to those numbers will drive the after-market move.
Progress shares have traded in a $55-$70 range over the past year, roughly in line with mid-cap software peers. The stock's forward P/E sits near 16x, a discount to the sector median of 22x. The Q2 report either justifies that discount or closes it.
For more context on how subscription software metrics affect positioning, see our stock market analysis. Broader market analysis on the software sector's earnings trends is also available.
The call replay will be posted on Progress's site after the session ends.
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