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PEGA

Pegasystems Inc.

PEGA

Pegasystems Inc. • NASDAQ
$54.77 ▲ 0.83% (+0.45)
Market Cap $9.38 B
52w High $68.10
52w Low $29.84
Dividend Yield 0.09%
P/E 35.8
Volume 396.26K
Outstanding Shares 171.28M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $381.35M ▼ $260.993M ▲ $43.364M ▲ 11.371% ▲ $0.25 ▲ $30.52M ▼
Q2-2025 $384.512M ▼ $257.659M ▲ $30.077M ▼ 7.822% ▼ $0.18 ▼ $31.407M ▼
Q1-2025 $475.633M ▼ $246.194M ▲ $85.422M ▼ 17.96% ▼ $0.497 ▼ $133.3M ▼
Q4-2024 $490.83M ▲ $245.486M ▲ $119.09M ▲ 24.263% ▲ $0.692 ▲ $178.094M ▲
Q3-2024 $325.05M $240.005M $-14.39M -4.427% $-0.084 $-5.509M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $351.362M ▼ $1.293B ▼ $695.956M ▼ $596.83M ▼
Q2-2025 $411.567M ▲ $1.324B ▲ $699.875M ▼ $624.542M ▲
Q1-2025 $371.736M ▼ $1.322B ▼ $710.681M ▼ $611.269M ▲
Q4-2024 $739.973M ▲ $1.768B ▲ $1.183B ▲ $585.48M ▲
Q3-2024 $702.99M $1.579B $1.106B $473.023M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $43.364M ▲ $56.3M ▼ $1.902M ▲ $-110.075M ▼ $-52.309M ▼ $60.315M ▼
Q2-2025 $30.077M ▼ $86.268M ▼ $-48.9M ▼ $-70.33M ▲ $-29.125M ▲ $84.133M ▼
Q1-2025 $85.422M ▼ $204.228M ▲ $261.895M ▲ $-575.986M ▼ $-106.293M ▼ $202.348M ▲
Q4-2024 $119.09M ▲ $95.229M ▲ $13.423M ▲ $-57.163M ▼ $42.464M ▲ $92.438M ▲
Q3-2024 $-14.39M $30.454M $-6.299M $4.446M $36.034M $27.39M

Revenue by Products

Product Q3-2024Q4-2024Q1-2025Q3-2025
Consulting
Consulting
 $60.00M ▲$50.00M ▼$60.00M ▲$60.00M ▲
Maintenance
Maintenance
 $300.00M ▲$0 ▼$80.00M ▲$360.00M ▲
Pega Cloud
Pega Cloud
 $1.06Bn ▲$0 ▼$150.00M ▲$1.29Bn ▲
Perpetual License
Perpetual License
 $0 ▲$0 ▲$0 ▲$0 ▲
Subscription License
Subscription License
 $50.00M ▲$200.00M ▲$190.00M ▼$60.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Revenue has risen steadily over the past five years, showing a business that is successfully selling more software and services over time. Profitability has also improved: the company moved from meaningful losses a few years ago to solidly positive operating profit and net income in the last two years. This suggests past investments, restructuring, or cloud-transition pains are starting to pay off. That said, profit margins still look more like a company in mid-transition than a fully mature, highly efficient software franchise, and results have been somewhat volatile, especially around 2022, which stands out as a weak year. Overall, the trend is clearly in the right direction, but not yet “smooth and settled.”

Balance Sheet

Balance Sheet The balance sheet shows a business that has strengthened its financial foundation after a rough patch. Total assets have grown, and the company has rebuilt shareholders’ equity from a low base in 2022, which eases some balance sheet concerns. Cash on hand has increased in recent years, giving Pegasystems more flexibility. Debt remains material and higher than the cash balance, so this is not a net-cash, zero-debt profile, but the leverage does not appear extreme. The direction of travel—more equity, more cash, stable debt—is favorable and points to improving financial resilience, though ongoing discipline will be important.

Cash Flow

Cash Flow Cash generation has improved meaningfully. Operating cash flow has shifted from roughly breakeven levels to clearly positive, and free cash flow is now consistently positive as well. Capital spending is modest, reflecting an asset-light software model, so most operating cash can flow through to free cash flow when the business performs well. This pattern suggests that the accounting recovery in profits is backed by real cash, not just non-cash adjustments. The overall cash profile looks much healthier than in the past, though the cushion is not so large that the company can ignore execution risks or market downturns.

Competitive Edge

Competitive Edge Pegasystems occupies a focused position in enterprise software, especially where large organizations need to manage complex customer journeys and business processes. Its main edge comes from a unified platform that combines customer engagement, workflow automation, and decisioning in one place, which can be hard and costly for clients to replace once implemented. High switching costs and deep integration into critical processes give it a sticky, long-lived customer base, particularly in heavily regulated sectors like banking, insurance, healthcare, and government. However, it competes with very strong players such as Salesforce and ServiceNow, as well as broader cloud ecosystems, so it must continually prove that its specialized strengths in complex process automation and AI-driven decisioning are worth choosing over more general platforms. Long sales cycles and dependence on large enterprise deals add to competitive pressure and can make growth uneven.

Innovation and R&D

Innovation and R&D Innovation is a central part of Pegasystems’ identity. The company is heavily focused on AI, low-code tools, and intelligent automation, all wrapped into its Pega Infinity platform. Its AI-powered Customer Decision Hub and emphasis on “Next-Best-Action” are clear differentiators, aiming to move beyond traditional CRM into real-time, personalized decisioning. Recent and planned releases—such as GenAI capabilities and the shift toward an “agentic enterprise” with AI agents that help design and run processes—show a strong push to stay at the forefront of enterprise AI. This offers significant upside if customers embrace these tools at scale, as it can deepen the moat and expand deal sizes. The flip side is execution risk: many large competitors are pursuing similar AI ambitions, and Pegasystems must demonstrate that its innovations deliver practical, measurable value rather than just matching industry buzzwords.

Summary

Overall, Pegasystems looks like a business that has come through a difficult period and is emerging with stronger financial performance and a clearer strategic identity. Revenue and profits are trending upward, and cash flows now support the story told by the income statement. The balance sheet has improved, though the company still carries notable debt and is not in an ultra-conservative financial position. Competitively, Pega is well entrenched with big, complex customers and benefits from high switching costs, but it operates in a fiercely contested market against much larger platforms. Its heavy focus on AI, low-code, and unified process automation gives it a distinctive angle, yet also raises execution stakes as expectations around AI are high. In short, this is a maturing, more disciplined software business with meaningful strengths in a specialized niche, balanced by competitive intensity and the need to keep delivering on an ambitious innovation roadmap.

NEWS

November 25, 2025 · 4:05 PM UTC

Pega to Present at Upcoming Investor Conferences

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November 17, 2025 · 10:14 AM UTC

Pega Named a Leader in Real-Time Interaction Management Software by Independent Research Firm

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November 12, 2025 · 4:05 PM UTC

Pega to Present at Upcoming Investor Conference

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October 28, 2025 · 9:00 AM UTC

Pega Strengthens Privacy and Security in Pega Blueprint with Data Sovereignty Capabilities

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October 24, 2025 · 11:19 AM UTC

Pega Named a Leader in Gartner® Magic Quadrant™ and Recognized in Critical Capabilities Report for Business Orchestration and Automation Technology

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