Progress Software announced solid financial results for its fiscal second quarter ended May 31, 2025. The company reported revenue of $237 million, a 36% increase year-over-year, and Annualized Recurring Revenue (ARR) of $838 million, representing 46% year-over-year growth. The Net Retention Rate (NRR) remained strong at 100%.
The company raised its full-year 2025 guidance for revenue, operating margin, earnings per share, and cash flow, reflecting confidence in its business and continued strong execution. Progress also made significant progress on debt repayment, paying down another $40 million on its revolving credit facility during the quarter, staying on track for its $160 million debt paydown goal for the year.
In a separate announcement, Progress Software acquired Nuclia, an innovator in agentic Retrieval-Augmented Generation (RAG) AI solutions. Nuclia provides easy-to-use RAG-as-a-service technology, enabling organizations to leverage proprietary business information for verifiable, accurate GenAI answers. While immaterial to Progress's financials, this acquisition strategically extends the Progress Data Platform and creates new opportunities in the agentic RAG AI market.
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