pro-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

___________________________________________________________________________

FORM 10-Q

_________________________________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 001-33554

___________________________________________________________________________

PROS HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

__________________________________________________________________________


Delaware						76-0168604
(State of Incorporation)						(I.R.S. Employer Identification No.)

3200 Kirby Drive, Suite 600

77098

Houston

(Address of Principal Executive Offices)

(Zip Code)

(713)

335-5151

(Registrant's telephone number, including area code)

(Former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common stock $0.001 par value per share

PRO

New York Stock Exchange

Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant's Common Stock, $0.001 par value, was 47,852,469 as of April 23, 2025.


		Page
PART I. FINANCIAL INFORMATION
Item 1.	Interim Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Comprehensive Loss	5
	Condensed Consolidated Statements of Cash Flows	6
	Condensed Consolidated Statements of Stockholders' (Deficit) Equity	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	21
Item 4.	Controls and Procedures	21

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	22
Item 4.	Mine Safety Disclosure	22
Item 5.	Other Information	22
Item 6.	Exhibits	23
Signatures		24


	March 31, 2025		December 31, 2024
Assets:
Current assets:
Cash and cash equivalents	$	160,023	$	161,983

Trade and other receivables, net of allowance of $991 and $922, respectively	68,936		64,982
Deferred costs, current	4,757		4,634
Prepaid and other current assets	10,346		7,517

Total current assets	244,062		239,116
Restricted cash	10,000		10,000
Property and equipment, net	18,870		19,745
Operating lease right-of-use assets	19,579		16,066
Deferred costs, noncurrent	12,408		11,515
Intangibles, net	6,071		7,044
Goodwill	107,224		107,278


Other assets, noncurrent	8,945		9,138
Total assets	$	427,159	$	419,902
Liabilities and Stockholders' (Deficit) Equity:
Current liabilities:
Accounts payable and other liabilities	$	5,314	$	8,589
Accrued liabilities	15,827		14,085
Accrued payroll and other employee benefits	15,321		27,117
Operating lease liabilities, current	6,024		6,227
Deferred revenue, current	146,113		130,977

Total current liabilities	188,599		186,995
Deferred revenue, noncurrent	5,033		5,438
Convertible debt, net	270,424		270,797
Operating lease liabilities, noncurrent	27,347		23,870
Other liabilities, noncurrent	1,569		1,505
Total liabilities	492,972		488,605
Commitments and contingencies (see Note 9)
Stockholders' (deficit) equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued	—		—
Common stock, $0.001 par value, 75,000,000 shares authorized; 52,477,489 and 52,083,732 shares issued, respectively; 47,796,766 and 47,403,009 shares outstanding, respectively	52		52
Additional paid-in capital	641,750		634,212
Treasury stock, 4,680,723 common shares, at cost	(29,847)		(29,847)
Accumulated deficit	(671,416)		(667,727)
Accumulated other comprehensive loss	(6,352)		(5,393)

Total stockholders' (deficit) equity	(65,813)		(68,703)
Total liabilities and stockholders' (deficit) equity	$	427,159	$	419,902


	Three Months Ended March 31,
		2025		2024
Revenue:
Subscription		$	70,830	$	64,349
Maintenance and support		2,730		3,595
Total subscription, maintenance and support		73,560		67,944

Services		12,762		12,744
Total revenue		86,322		80,688
Cost of revenue:
Subscription		14,549		14,613
Maintenance and support		1,701		1,862
Total cost of subscription, maintenance and support		16,250		16,475

Services		11,682		12,358
Total cost of revenue		27,932		28,833
Gross profit		58,390		51,855
Operating expenses:
Selling and marketing		24,008		22,682
Research and development		22,607		24,413
General and administrative		15,600		15,062


Loss from operations		(3,825)		(10,302)
Convertible debt interest and amortization		(1,128)		(1,202)
Other income, net		1,912		458
Loss before income tax provision		(3,041)		(11,046)
Income tax provision		648		311
Net loss		$	(3,689)	$	(11,357)



Net loss per share:
Basic and diluted		$	(0.08)	$	(0.24)

Weighted average number of shares:
Basic and diluted		47,650		46,817

Other comprehensive loss, net of tax:
Foreign currency translation adjustment		$	(959)	$	(173)

Other comprehensive loss, net of tax		(959)		(173)
Comprehensive loss		$	(4,648)	$	(11,530)


	Three Months Ended March 31, 2025
















	Common Stock			Additional Paid-In Capital		Treasury Stock			Accumulated Deficit		Accumulated other comprehensive loss		Total Stockholders’ (Deficit) Equity
	Shares	Amount				Shares	Amount
Balance at December 31, 2024	47,403,009	$	52	$	634,212	4,680,723	$	(29,847)	$	(667,727)	$	(5,393)	$	(68,703)

Stock awards net settlement	338,585	—		(4,161)		—	—		—		—		(4,161)
Proceeds from employee stock plans	55,172	—		1,030		—	—		—		—		1,030







Noncash share-based compensation	—	—		10,669		—	—		—		—		10,669

Other comprehensive loss	—	—		—		—	—		—		(959)		(959)
Net loss	—	—		—		—	—		(3,689)		—		(3,689)
Balance at March 31, 2025	47,796,766	$	52	$	641,750	4,680,723	$	(29,847)	$	(671,416)	$	(6,352)	$	(65,813)


	Three Months Ended March 31, 2024
	Common Stock			Additional Paid-In Capital		Treasury Stock			Accumulated Deficit		Accumulated other comprehensive loss		Total Stockholders’ (Deficit) Equity
	Shares	Amount				Shares	Amount
Balance at December 31, 2023	46,503,861	$	51	$	604,084	4,680,723	$	(29,847)	$	(647,252)	$	(4,909)	$	(77,873)
Stock awards net settlement	424,171	1		(8,339)		—	—		—		—		(8,338)
Proceeds from employee stock plans	40,408	—		1,024		—	—		—		—		1,024








Noncash share-based compensation	—	—		12,700		—	—		—		—		12,700
Other comprehensive loss	—	—		—		—	—		—		(173)		(173)
Net loss	—	—		—		—	—		(11,357)		—		(11,357)
Balance at March 31, 2024	46,968,440	$	52	$	609,469	4,680,723	$	(29,847)	$	(658,609)	$	(5,082)	$	(84,017)


Year Ending December 31,	Amount
Remaining 2025	$	6,553
2026	4,860
2027	4,717
2028	4,827
2029	4,828
2030	4,557
Thereafter	11,072
Total operating lease payments	41,414
Less: Imputed interest	(8,043)

Total operating lease liabilities	$	33,371


	Three Months Ended March 31,
(in thousands, except per share data)		2025		2024
Numerator:
Net loss		$	(3,689)	$	(11,357)
Denominator:
Weighted average shares (basic)		47,650		46,817
Dilutive effect of potential common shares		—		—
Weighted average shares (diluted)		47,650		46,817
Basic loss per share		$	(0.08)	$	(0.24)
Diluted loss per share		$	(0.08)	$	(0.24)


Award type	March 31, 2025	December 31, 2024

Restricted stock units (time-based)	3,770	2,660



Market stock units	540	439


	Three Months Ended March 31, 2025
Volatility	51.51	%
Risk-free interest rate	4.25	%
Expected award life in years	2.96
Dividend yield	—	%


	Date of Issuance	Unpaid Principal Balance		Contractual Interest Rates



1% Convertible Notes due in 2024 ("2024 Notes")	May 2019	$	—		1%
2.25% Convertible Notes due in 2027 ("2027 Notes")	September 2020 and October 2023	$	266,816		2.25%
Total Notes		$	266,816


	Three Months Ended March 31,
		2025	2024
(in thousands)			Revenue		Percent		Revenue		Percent
United States of America			$	30,880	36	%	$	26,933	33	%
Europe			25,995		30	%	25,671		32	%
The rest of the world			29,447		34	%	28,084		35	%
Total revenue			$	86,322	100	%	$	80,688	100	%


	Three Months Ended March 31,
		2025		2024
Coupon interest		$	1,501	$	1,555
Amortization of debt issuance costs		289		323
Amortization of debt premium		(662)		(676)
Total		$	1,128	$	1,202


	Three Months Ended March 31,
(Dollars in thousands)	2025		2024
Net cash provided by (used in) operating activities	$	1,215	$	(4,644)
Net cash provided by (used in) investing activities	15		(353)
Net cash used in financing activities	(3,131)		(7,314)
Effect of foreign currency rates on cash	(59)		(13)
Net change in cash, cash equivalents and restricted cash	$	(1,960)	$	(12,324)


	March 31, 2025		December 31, 2024

Principal	$	266,816	$	266,816
Debt premium, net of amortization	6,430		7,092
Debt issuance costs, net of amortization	(2,822)		(3,111)
Net carrying amount	$	270,424	$	270,797


	Three Months Ended March 31,	Variance
(Dollars in thousands)		2025		2024		$		%
Subscription		$	70,830	$	64,349	$	6,481	10	%
Maintenance and support		2,730		3,595		(865)		(24)	%
Total subscription, maintenance and support		73,560		67,944		5,616		8	%
Services		12,762		12,744		18		—	%
Total revenue		$	86,322	$	80,688	$	5,634	7	%

SEC Form 10-Q filed by PROS Holdings Inc.