Progress Software: Focus On Organic Prospects, Balance Sheet Deleveraging
Summarize this article with:
Gary Alexander32.84K FollowersFollow5ShareSavePlay(10min)CommentsSummaryProgress Software offers compelling value after a >30% YTD decline, trading at a low multiple of earnings and free cash flow.PRGS’s strategy centers on acquiring SaaS companies, driving recurring revenue, and supporting organic ARR growth.Deleveraging is a key 2026 theme, with net debt at ~$1.33 billion and FY25 FCF guidance raised to $232–242 million.I reiterate a "Buy" rating, citing strong acquisition integration, improved cash flow, and attractive valuation amid sector rotation. your_photo/iStock via Getty Images With the stock markets reeling somewhat as the AI trade shows signs of weakness, it's a great time for investors to focus on rotating our portfolios to value stocks. Tech and high multiples don't always have to coincide. InThis article was written byGary Alexander32.84K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.