Good day, and thank you for standing by. Welcome to Progress Software First Quarter 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, Michael Micciche, SVP of Investor Relations. Please go ahead.
Okay. Thank you, Olivia. Thanks for your help today. Good afternoon, everyone, and thanks for joining us for Progress Software's First Fiscal Quarter 2025 Financial Results Conference Call. On the line with me this afternoon are Yogesh Gupta, President and Chief Executive Officer, and Anthony Folger, our CFO. As always, we'll begin the call with our Safe Harbor Statement. During this call, we will discuss our outlook for future financial and operating performance, corporate strategies, product plans, cost initiatives, the integration of ShareFile, which closed on October 31, 2024, and other information that might be considered forward-looking. Such forward-looking information represents Progress Software's outlook and guidance only as of today and is subject to risks and uncertainties.
For a description of the risk factors that may affect our results, please refer to the risk factor sections in our filings with the SEC. Progress Software assumes no obligation to update forward-looking statements included in this call. Additionally, please note that all the financial figures referenced in this call are non-GAAP unless otherwise indicated. You can find a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP figures in our financial results press release, which was issued after the market closed today. This document contains additional information related to our financial results for the first fiscal quarter of 2025, and I recommend that you reference it for specific details. We have also provided a PowerPoint presentation that contains supplemental data for the first quarter, and that slide deck provides highlights and additional financial metrics.
Both the earnings release and the supplemental presentation are available on the Investor Relations section of our website at investors.progress.com under the Investor Events and Presentations tab. Today's call is being recorded in its entirety and will be available for replay on the Investor Relations section of our website shortly after we finish. With all that out of the way, Yogesh, I'll turn it over to you.
Thank you, Mike. Good afternoon, and thank you for joining us today as we announce the results from our first quarter of fiscal 2025. We're extremely pleased with our solid start to the year, as you can see from the numbers and the updated guidance in our earnings release. Our annualized recurring revenue, or ARR, increased 48% over last year in constant currency, predominantly driven by ShareFile with additional contribution from the rest of our business. Our net retention rate again surpassed 100%. For the quarter, revenues came in at the high end of our guidance at $238 million, up 30% in constant currency, showing steady continuous demand for our solutions. Earnings per share of $1.31 significantly exceeded the upper end of the range we provided at the end of Q4, which illustrates that our whole team is executing well while also keeping expenses in check.
Our operating margins of 39% this quarter are indicative of our company-wide focus on expense management and execution, as well as faster ShareFile integration. At a high level, our results show several positives, and Anthony will take you through the details of the quarter later. Perhaps most important, the integration of ShareFile is going very well, as you can see from its significant contribution to ARR, revenues, as well as expense savings. Each of the milestones and key areas of integration we anticipated are either on track or ahead of plan. During the quarter, we paid down $30 million on our revolver, ahead of our original plan to start paying down debt in the second quarter, and in line with our intent to delever rapidly so that we can be ready for the next deal.
We remain very focused on prudent capital allocation and on using all facets of our capital allocation strategy to provide solid returns on invested capital. To that end, we also repurchased $30 million of our stock, consistent with our goal of returning capital directly to shareholders in the form of opportunistic buybacks. From a macro perspective, we have seen no disruption stemming from the uncertainty in the environment thus far, particularly as it pertains to our relatively modest federal government business, and we continue to monitor the developments closely. All in, our first quarter of 2025 was very solid across the board, and our teams are once again showing their excellence in running the business efficiently while meeting and exceeding our operational targets. Let me now provide a little more detail on ShareFile and revisit a couple of highlights of the deal.
We ended Q1 about four months into the integration, and with everything proceeding as expected and probably a bit better in many ways. Our transition services agreement with CSG is working out well. While we still have more steps to complete, our progress has been faster than anticipated, and we continue to believe that we can complete the integration and reach our 40% operating margin target for the acquired business by the end of this fiscal year. The people integration efforts with our ShareFile colleagues have gone extremely well as the collective teams have embraced our common culture and are moving forward as one. The hiring and integration of teams in locations such as India, Costa Rica, and Bulgaria has been rapid, and we're excited about the progress on the people front. As a reminder, ShareFile is a native SaaS platform with 100% recurring revenue and solid net retention rates.
In addition to the robust, durable revenues and cash flow that ShareFile will generate, we now have extensive expertise running a significant SaaS business at scale with excellent gross margins. Before we acquired ShareFile, our SaaS platforms only accounted for around 3% of our total revenues, and now SaaS is nearly 30% of our revenue. In addition, the addition of ShareFile is helping us in a number of ways. For example, the strong cloud operations platform and significant cash flows from an optimized SaaS business opens up a larger segment of potential M&A candidates. Previously, we looked at many SaaS businesses and were hesitant because their gross margins and operational capabilities were unappealing to us.