PROS Holdings (PRO) AI Stock Analysis

• Market Cap: $781.43M
• Dividend Yield: N/A
• Average Volume (3M): 599.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 7.97%
• EPS Growth: 74.22%
• Country: US
• Employees: 1,501
• Sector: Technology
• Sector Strength: 67
• Industry: Software - Application
• EPS (TTM): 0.13
• Shares Outstanding: 47,852,470
• 10 Day Avg. Volume: 694,873
• 30 Day Avg. Volume: 599,330
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.84
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $27.83
• Price Target Upside: 64.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

PROS Holdings exhibits strong revenue growth and strategic advancements in AI, yet is hindered by profitability challenges and financial instability. Technical indicators are negative, contributing to downward pressure on stock price. While earnings call and corporate events show positive momentum, ongoing risks and valuation concerns weigh down the overall score.

Positive Factors

Operational Efficiency

Profitability continues to improve with operating margins up 980bps Y/Y to 11.7% in 4Q.

Sales and Profitability

The company also drove record Subscription and Overall Gross Margins at 81% and 70%, respectively.

Travel Segment Performance

Solid recovery in its Travel segment supports positive outlook for the company.

Negative Factors

Valuation Concerns

Price target reduced from $30 to $25 to reflect current valuation trends.

PROS Holdings Business Overview & Revenue Model

Company Description

PROS Holdings, Inc. provides solutions that optimize the processes of selling and shopping in the digital economy worldwide. The company offers PROS Smart Configure Price Quote that improves sales productivity and accelerate deal velocity by automating common sales tasks; and PROS Smart Price Optimization and Management that enables businesses to optimize, personalize and harmonize pricing across the complexity of their go-to-market channels in the context of dynamic market and competitive conditions. It offers PROS Airline Revenue Optimization; PROS Airline Revenue Management solution that delivers algorithmic forecasting and network optimization for the travel industry; PROS Airline Real-Time Dynamic Pricing that offers accurate booking class availability and seat prices; and PROS Airline Group Sales Optimizer which enables airlines and their travel agent partners to create and manage group bookings, contracts, and policies. Further, it provides PROS Digital Retail, a configurable end-to-end solution for airlines to optimize the traveler experience from inspiration to post-trip; and PROS digital offer marketing solutions provide performance content management and search engine marketing tools that enable businesses in the travel industry. Additionally, the company offers software-related services, such as implementation, configuration, consulting, training, and maintenance and support services. It sells its software solutions to customers in various industries, including automotive and industrial manufacturing, transportation and logistics, chemicals and energy, food and beverage, healthcare, high tech, and travel. The company markets and sells its software solutions through its sales force, as well as through partners, resellers, and systems integrators. PROS Holdings, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

How the Company Makes Money

PROS Holdings makes money primarily through the sale of its software solutions, which are offered via a Software-as-a-Service (SaaS) model. The company generates revenue through subscription fees for its cloud-based products, which provide businesses with dynamic pricing, revenue management, and sales optimization capabilities. Additionally, PROS earns income from professional services, which include consulting, implementation, and training to help clients effectively integrate and utilize their software solutions. Key revenue streams include recurring subscription revenues and non-recurring services revenue. The company also leverages strategic partnerships and collaborations to expand its market reach and enhance its product offerings, further contributing to its earnings.

PROS Holdings Financial Statement Overview

Summary

PROS Holdings shows strong revenue growth and effective cash management. However, ongoing net losses and high leverage present financial risks. Positive cash flow trends and high gross margins offer potential for future improvements.

Income Statement

PROS Holdings has shown consistent revenue growth over the analyzed period, with a 5.4% increase in TTM compared to the previous year. The gross profit margin for TTM is strong at 66.55%, indicating effective cost management. However, profitability metrics remain concerning as the company continues to operate at a net loss, with a TTM net profit margin of -3.81% and negative EBIT and EBITDA margins. Despite these challenges, the steady revenue growth and high gross profit margin suggest potential for future profitability improvements.

Balance Sheet

The balance sheet reveals significant financial leverage, with the company exhibiting a negative stockholders' equity of -$65.81 million in TTM, highlighting a high debt-to-equity ratio. This presents substantial financial risk. The equity ratio is negative due to the company's liabilities exceeding its assets, which underscores the need for strategic financial restructuring. However, the company's ability to maintain cash and short-term investments at $160.02 million offers some liquidity comfort.

Cash Flow

Cash flows indicate positive trends, with a strong free cash flow growth rate in TTM. Operating cash flow exceeds net income, reflecting efficient cash generation from operations despite ongoing losses. The free cash flow to net income ratio is positive, driven by controlled capital expenditure, suggesting the company is managing its cash resources effectively to support operations and potential growth opportunities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
330.37M	303.71M	276.14M	251.42M	252.42M
	Gross Profit
217.04M	188.40M	166.06M	146.50M	147.79M
	EBIT
-19.02M	-50.60M	-76.54M	-71.96M	-66.08M
	EBITDA
-5.76M	-39.57M	-61.53M	-60.77M	-51.58M
	Net Income Common Stockholders
-20.48M	-56.35M	-82.25M	-81.21M	-76.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
161.98M	168.75M	203.63M	227.55M	329.13M
	Total Assets
419.90M	421.83M	452.95M	494.48M	539.97M
	Total Debt
300.89M	324.76M	325.63M	334.78M	268.06M
	Net Debt
138.91M	156.02M	122.00M	107.22M	-61.07M
	Total Liabilities
488.61M	499.71M	488.43M	490.90M	422.93M
	Stockholders Equity
-68.70M	-77.87M	-35.47M	3.58M	117.04M
Cash Flow		Free Cash Flow
26.22M	7.29M	-24.77M	-21.35M	-79.57M
	Operating Cash Flow
27.38M	9.88M	-23.91M	-18.55M	-49.39M
	Investing Cash Flow
-1.22M	-2.70M	-1.14M	-85.17M	-30.46M
	Financing Cash Flow
-32.34M	-32.36M	1.07M	2.47M	102.91M

PROS Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRO, the sentiment is Neutral. The current price of 16.91 is above the 20-day moving average (MA) of 16.70, below the 50-day MA of 18.93, and below the 200-day MA of 20.98, indicating a neutral trend. The MACD of -0.56 indicates Negative momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 46.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRO.

PROS Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTEX	75 Outperform	$1.01B	84.95	6.26%	―	7.71%	―
OLO	73 Outperform	$1.24B	―	0.49%	―	23.31%	―
DSP	66 Neutral	$937.70M	438.53	4.15%	―	30.64%	―
BASE	65 Neutral	$930.10M	―	-57.86%	―	16.35%	14.27%
Sector *	60 Neutral	$10.94B	10.37	-6.73%	2.98%	7.75%	-12.61%
PRO	59 Neutral	$781.43M	―	29.80%	―	7.97%	74.22%
BLND	51 Neutral	$845.67M	―	-93.00%	―	3.30%	68.45%

PROS Holdings Corporate Events

PROS Holdings Announces Key Decisions at Annual Meeting

On May 8, 2025, PROS Holdings, Inc. held its annual meeting of stockholders, where several key decisions were made. Stockholders elected Catherine Lesjak and John Strosahl as Class III directors and Andres Reiner as a Class I director. They approved executive officer compensation and amendments to the 2017 Equity Incentive Plan, increasing authorized shares by three million. Additionally, PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

Spark’s Take on PRO Stock

According to Spark, TipRanks’ AI Analyst, PRO is a Neutral.

PROS Holdings exhibits strong revenue growth and strategic advancements in AI, yet is hindered by profitability challenges and financial instability. Technical indicators are negative, contributing to downward pressure on stock price. While earnings call and corporate events show positive momentum, ongoing risks and valuation concerns weigh down the overall score.

To see Spark’s full report on PRO stock, click here.

PROS Holdings Announces New CEO Appointment

On May 1, 2025, PROS Holdings announced the appointment of Jeffrey B. Cotten as the new President and CEO, effective June 2, 2025, succeeding Andres Reiner who is retiring. The company also reported strong financial results for Q1 2025, with a 10% increase in subscription revenue and a significant improvement in operating cash flow, highlighting the growing adoption of its AI-driven solutions and its recognition as a leader in the CPQ solutions market.

Spark’s Take on PRO Stock

According to Spark, TipRanks’ AI Analyst, PRO is a Neutral.

PROS Holdings exhibits strong revenue growth and strategic advancements in AI. However, the company is hindered by profitability challenges, financial instability, and negative technical indicators. While recent earnings highlight potential, ongoing risks and negative valuation metrics weigh down the overall score.

To see Spark’s full report on PRO stock, click here.

PROS Holdings Appoints Katie May to Board

On March 18, 2025, PROS Holdings announced the appointment of Katie May to its Board of Directors as an independent director. May brings over 20 years of experience in SaaS, digital commerce, and high-growth marketplaces, having successfully scaled multiple companies to exits, including an IPO and strategic acquisitions. Her addition is expected to enhance PROS’s strategic direction as it continues to focus on AI, pricing, and commerce, aiming to drive long-term success and value for shareholders.