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BURLINGTON, Mass. - Progress Software Corporation (NASDAQ:PRGS), a technology company with a market capitalization of $2.06 billion and impressive gross profit margins of 85.71%, announced Tuesday it has secured an expanded revolving credit facility of $1.5 billion, up from its previous $900 million facility, through a Fifth Amended and Restated Credit Agreement.
The new agreement extends the maturity date to July 31, 2030, and replaces the company’s existing secured credit facility. As of the closing date, $660 million in revolving credit loans remain outstanding. According to InvestingPro data, the company’s total debt stands at $1.49 billion, with a current ratio of 0.43.
"This new credit facility provides scale and flexibility, both of which are important to support Progress’ continued growth," said Progress CFO Anthony Folger in the press release. "With our increased liquidity, Progress is exceptionally well positioned to deliver on our Total Growth Strategy through additional accretive acquisitions." The company has demonstrated strong growth potential, with revenue increasing by 22.1% over the last twelve months.
JPMorgan Chase Bank, N.A. served as Administrative Agent for the transaction, with Citibank, N.A. and Wells Fargo Bank, N.A. acting as Syndication Agents. Several other financial institutions participated as Documentation Agents and Joint Lead Arrangers.
Progress Software, which provides AI-powered digital experience and infrastructure software, trades on the Nasdaq under the ticker PRGS. For deeper insights into PRGS’s valuation and growth prospects, including 8 additional ProTips and comprehensive financial analysis, visit InvestingPro.
The announcement was made in a company press release issued Tuesday.
In other recent news, Progress Software reported its second-quarter earnings for fiscal year 2025, exceeding expectations with an earnings per share (EPS) of $1.40, surpassing the forecasted $1.30. However, the company’s revenue slightly missed estimates, coming in at $237 million compared to the expected $237.53 million. Revenue grew by 36% year-over-year, and Annual Recurring Revenue (ARR) increased by 46% to $838 million. DA Davidson raised its price target for Progress Software to $75, citing the company’s consistent business strength and its recent acquisition of Nuclia, which is expected to enhance the Progress platform. The firm maintained a Buy rating. Citi, on the other hand, lowered its price target to $57 while keeping a Neutral rating, pointing to challenges such as softer-than-expected cash flow and gross margin compression. Despite these concerns, Citi acknowledged the company’s solid management in debt reduction. Progress Software’s recent acquisition of Nuclia, a Retrieval-Augmented Generation as a service provider, is seen as a strategic move to enhance its product offerings. The integration of ShareFile, a previous acquisition, is reportedly ahead of schedule, suggesting strong operational execution.
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