TLDR: PROS Holdings has significantly raised its 2025 financial outlook, now targeting subscription Annual Recurring Revenue (ARR) between $310 million and $313 million. This upward revision follows a strong second quarter performance and is largely attributed to the ongoing expansion of its innovative AI agent platform.
PROS Holdings, a leading provider of AI-powered solutions, has announced a substantial increase in its 2025 financial projections, signaling robust growth and confidence in its strategic direction. The company now anticipates subscription Annual Recurring Revenue (ARR) to reach between $310 million and $313 million, representing an 11% year-over-year growth at the midpoint. This revised outlook comes on the heels of a strong second quarter in 2025, where PROS exceeded its own guidance across all key metrics.
Jeffrey B. Cotten, the recently appointed CEO of PROS Holdings, emphasized the company’s strong position at the ‘forefront’ of AI-powered solutions. Cotten stated, ‘We delivered a strong second quarter, exceeding the high end of our guidance ranges across all metrics and putting us in a position to raise our full year outlook for both subscription revenue and subscription ARR.’ He further highlighted significant product innovation, key customer acquisitions, and expanding partnerships, particularly within the B2B and airline sectors.
A pivotal element of PROS’s growth strategy is the introduction of ‘PROS AI agents.’ Cotten noted that ‘Our agents are designed to drive goal-oriented execution across a wide range of use cases using deep domain expertise from sales to pricing to rebates and revenue management.’ These AI agents are currently in pilot phases and are expected to be available for customer testing in Q3, playing a crucial role in the company’s long-term growth by accelerating the value delivery of PROS’s offerings. The company’s rich history and continuous innovation in AI are seen as a sustainable competitive advantage.
Financially, PROS reported impressive Q2 results. Stefan B. Schulz, CFO, stated, ‘We grew subscription revenue 12% year-over-year to $73.3 million and total revenue 8% year-over-year to $88.7 million, both exceeding the guidance ranges.’ Non-GAAP earnings per share for the second quarter reached $0.13, surpassing both previous guidance and analyst consensus. Schulz also pointed to improved profitability and enhanced financial flexibility following a debt exchange that reduced outstanding 2027 notes.
For the third quarter, PROS projects subscription revenue between $74.8 million and $75.3 million, and total revenue between $90.5 million and $91.5 million. Adjusted EBITDA is forecast to be between $11 million and $12 million, with non-GAAP earnings per share in the range of $0.15 to $0.17. For the full year 2025, total revenue is now expected to be between $360 million and $362 million, representing 9% growth year-over-year at the midpoint. Adjusted EBITDA guidance remains confirmed at $42 million to $44 million, with free cash flow anticipated between $40 million and $44 million.
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In addition to its AI agent platform, PROS has forged a new strategic partnership with Commerce (formerly BigCommerce) to integrate enterprise-grade pricing and CPQ (Configure, Price, Quote) capabilities into e-commerce solutions, further broadening its distribution and co-sell opportunities. The company’s focus on operational rigor, top-of-funnel growth, and leveraging partnerships is expected to drive continued momentum in both B2B and travel segments, solidifying its leadership in AI-powered enterprise solutions.
