PROGRESS SOFTWARE CORP /MAPRGS
PROGRESS SOFTWARE CORP /MA Revenue Disclosure
Revenue Recognition
Timing of Revenue Recognition
Our revenues are derived from licensing our products, and from related services, which consist of maintenance, SaaS, and professional services. Information relating to revenue from external customers by revenue type is as follows:
| Fiscal Year Ended | |||||||||||||||||
| (in thousands) | November 30, 2025 | November 30, 2024 | November 30, 2023 | ||||||||||||||
| Performance obligations transferred at a point in time: | |||||||||||||||||
| Software licenses | $ | 237,887 | $ | 249,331 | $ | 220,789 | |||||||||||
| Performance obligations transferred over time: | |||||||||||||||||
| Maintenance | 410,174 | 410,556 | 401,501 | ||||||||||||||
| SaaS | 287,928 | 44,564 | 20,693 | ||||||||||||||
| Professional services | 41,842 | 48,958 | 51,456 | ||||||||||||||
| Total revenue | $ | 977,831 | $ | 753,409 | $ | 694,439 | |||||||||||
Geographic Revenue
In the following table, revenue attributed to the United States includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from Canada, EMEA, Latin America, and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows:
| Fiscal Year Ended | |||||||||||||||||
| (in thousands) | November 30, 2025 | November 30, 2024 | November 30, 2023 | ||||||||||||||
| United States | $ | 595,336 | $ | 421,890 | $ | 380,672 | |||||||||||
| Canada | 28,430 | 25,105 | 30,998 | ||||||||||||||
| EMEA | 280,908 | 245,287 | 222,862 | ||||||||||||||
| Latin America | 21,667 | 20,305 | 21,112 | ||||||||||||||
| Asia Pacific | 51,490 | 40,822 | 38,795 | ||||||||||||||
| Total revenue | $ | 977,831 | $ | 753,409 | $ | 694,439 | |||||||||||
No single customer, partner, or country outside of the U.S. has accounted for more than 10% of our consolidated revenue in any year presented.
Contract Balances
Unbilled Receivables and Contract Assets
The timing of revenue recognition may differ from the timing of customer billing. When revenue is recognized prior to billing and the right to the amount due from customers is conditioned only on the passage of time, we record an unbilled receivable on our consolidated balance sheets. Our multi-year term license arrangements, which are typically billed annually, result in revenue recognition in advance of billing and the recognition of unbilled receivables.
As of November 30, 2025, billing of our non-current unbilled receivables is expected to occur as follows:
| (in thousands) | |||||
| 2027 | $ | 18,172 | |||
| 2028 | 6,868 | ||||
| 2029 | 4,910 | ||||
| Total | $ | 29,950 | |||
Contract assets arise when revenue is recognized in excess of billings and the right to the amount due from customers is conditioned on something other than the passage of time, such as the completion of a related performance obligation. We did not have any net contract assets as of November 30, 2025 or 2024.
Deferred Revenue
Deferred revenue is recorded when revenue is recognized subsequent to customer invoicing. Deferred revenue expected to be recognized as revenue more than one year subsequent to the balance sheet date is included in long-term liabilities on the consolidated balance sheets. Our deferred revenue balance is primarily made up of deferred maintenance and deferred revenue related to our SaaS offerings.
As of November 30, 2025, the changes in deferred revenue were as follows:
| (in thousands) | |||||
| Balance, December 1, 2023 | $ | 295,036 | |||
| Billings and other | 766,626 | ||||
| Acquired from business combinations | 96,159 | ||||
| Revenue recognized that was deferred in prior periods | (270,965) | ||||
| Revenue recognized from current period arrangements | (482,444) | ||||
| Balance, November 30, 2024 | $ | 404,412 | |||
| Billings and other | 998,498 | ||||
| Revenue recognized that was deferred in prior periods | (372,029) | ||||
| Revenue recognized from current period arrangements | (605,802) | ||||
| Balance, November 30, 2025 | $ | 425,079 | |||
Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of November 30, 2025, transaction price allocated to remaining performance obligations was $536.3 million. We expect to recognize approximately 74% of the revenue within the next year and the remainder thereafter.
Deferred Contract Costs
Deferred contract costs, which include certain sales incentive programs, are incremental and recoverable costs of obtaining a contract with a customer. Incremental costs of obtaining a contract with a customer are recognized as an asset if the expected benefit of those costs is longer than one year. We have applied the practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include a large majority of our sales incentive programs as we have determined that annual compensation is commensurate with annual sales activities.
Certain of our sales incentive programs meet the requirements to be capitalized. Depending upon the sales incentive program and the related revenue arrangement, such capitalized costs are amortized over the longer of (i) the product life, which is generally to five years; or (ii) the term of the related revenue contract. We determined that a to five year product life represents the period of benefit that we receive from these incremental costs based on both qualitative and quantitative factors, which include customer contracts, industry norms, and product upgrades. Total deferred contract costs were $6.5 million, $6.7 million, and $7.6 million as of November 30, 2025, 2024, and 2023, respectively, and are included in other current assets and other assets on our consolidated balance sheets. Amortization of deferred contract costs is included in sales and marketing expense on our consolidated statement of operations and was minimal in all periods presented.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 20, 2026 | Showing above |
| 2024 | Jan 21, 2025 | |
| 2023 | Jan 26, 2024 | |
| 2022 | Jan 27, 2023 | |
| 2021 | Jan 27, 2022 | |
| 2020 | Jan 27, 2021 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.