PROGRESS SOFTWARE CORP /MAPRGS

PROGRESS SOFTWARE CORP /MA Earnings Per Share Disclosure

10-KFiled Jan 20, 20262 min read
Earnings Per Share
We compute basic earnings per share using the weighted average number of common shares outstanding. We compute diluted earnings per share using the weighted average number of common shares outstanding plus the effect of outstanding dilutive stock options, restricted stock units, and deferred stock units, using the treasury stock method and the effect of our convertible debt using the if-converted method. The following table sets forth the calculation of basic and diluted earnings per share:
 
 Fiscal Year Ended
(in thousands, except per share data)November 30, 2025November 30, 2024November 30, 2023
Net income$73,133 $68,438 $70,197 
Weighted average shares outstanding42,996 43,268 43,456 
Effect of dilution from common stock equivalents891 992 1,158 
Effect of dilution from if-converted convertible notes132 167 44 
Diluted weighted average shares outstanding44,019 44,427 44,658 
Earnings per share:
Basic$1.70 $1.58 $1.62 
Diluted$1.66 $1.54 $1.57 

We excluded stock awards representing approximately 1,088,000 shares, 699,000 shares, and 297,000 shares of common stock from the calculation of diluted earnings per share in the fiscal years ended November 30, 2025, 2024, and 2023, respectively, because these awards were anti-dilutive.

The dilutive impact of the convertible debt on diluted earnings per share is measured using the if-converted method. However, because the principal amount will be settled in cash, the dilutive impact of applying the if-converted method is limited to the in-the-money portion, if any. During the fiscal years ended November 30, 2025, 2024, and 2023, we included the 2026 Notes in our diluted earnings per share calculation. During the fiscal years ended November 30, 2025 and 2024, we excluded the 2030 Notes in our diluted earnings per share calculation because the conversion feature in the 2030 Notes was out of the money.

Historical Timeline

Fiscal YearFiled
2025Jan 20, 2026Showing above
2024Jan 21, 2025
2023Jan 26, 2024
2022Jan 27, 2023
2021Jan 27, 2022
2020Jan 27, 2021

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance