Pegasystems Inc Financials
This page shows Pegasystems Inc (PEGA) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Pegasystems Inc has an operating margin of 15.1%, meaning the company retains $15 of operating profit per $100 of revenue. This strong profitability earns a score of 75/100, reflecting efficient cost management and pricing power. This is up from 8.3% the prior year.
Pegasystems Inc's revenue surged 16.6% year-over-year to $1.7B, reflecting rapid business expansion. This strong growth earns a score of 76/100.
Pegasystems Inc carries a low D/E ratio of 1.07, meaning only $1.07 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 71/100, indicating a strong balance sheet with room for future borrowing.
Pegasystems Inc's current ratio of 1.33 indicates adequate short-term liquidity, earning a score of 33/100. The company can meet its near-term obligations, though with limited headroom.
Pegasystems Inc converts 28.1% of revenue into free cash flow ($490.7M). This strong cash generation earns a score of 100/100.
Pegasystems Inc earns a strong 50.0% return on equity (ROE), meaning it generates $50 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is up from 16.9% the prior year.
Pegasystems Inc scores 7.55, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($7.6B) relative to total liabilities ($844.5M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Pegasystems Inc passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Pegasystems Inc generates $1.28 in operating cash flow ($505.2M OCF vs $393.4M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Pegasystems Inc earns $204.7 in operating income for every $1 of interest expense ($263.1M vs $1.3M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Pegasystems Inc generated $1.7B in revenue in fiscal year 2025. This represents an increase of 16.6% from the prior year.
Pegasystems Inc's EBITDA was $276.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 95.7% from the prior year.
Pegasystems Inc generated $490.7M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 45.1% from the prior year.
Pegasystems Inc reported $393.4M in net income in fiscal year 2025. This represents an increase of 296.7% from the prior year.
Pegasystems Inc earned $2.13 per diluted share (EPS) in fiscal year 2025. This represents an increase of 287.3% from the prior year.
Pegasystems Inc held $212.4M in cash against $467K in long-term debt as of fiscal year 2025.
Pegasystems Inc paid $0.10 per share in dividends in fiscal year 2025. This represents an increase of 75.0% from the prior year.
Pegasystems Inc had 169M shares outstanding in fiscal year 2025. This represents an increase of 96.8% from the prior year.
Pegasystems Inc's gross margin was 75.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 2.0 percentage points from the prior year.
Pegasystems Inc's operating margin was 15.1% in fiscal year 2025, reflecting core business profitability. This is up 6.8 percentage points from the prior year.
Pegasystems Inc's net profit margin was 22.5% in fiscal year 2025, showing the share of revenue converted to profit. This is up 15.9 percentage points from the prior year.
Pegasystems Inc's ROE was 50.0% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 33.0 percentage points from the prior year.
Pegasystems Inc invested $312.7M in research and development in fiscal year 2025. This represents an increase of 4.9% from the prior year.
Pegasystems Inc spent $499.7M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 634.2% from the prior year.
Pegasystems Inc invested $14.5M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 88.1% from the prior year.
PEGA Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q4'23 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $504.3M+32.2% | $381.4M-0.8% | $384.5M-19.2% | $475.6M-3.1% | $490.8M+3.5% | $474.2M+41.7% | $334.6M+12.2% | $298.3M |
| Cost of Revenue | $103.5M-2.3% | $105.9M-3.4% | $109.6M+7.0% | $102.5M+0.1% | $102.4M+12.9% | $90.6M-3.3% | $93.8M-2.5% | $96.1M |
| Gross Profit | $400.9M+45.5% | $275.5M+0.2% | $274.9M-26.3% | $373.2M-3.9% | $388.5M+1.3% | $383.6M+59.2% | $240.9M+19.2% | $202.1M |
| R&D Expenses | $80.9M+2.7% | $78.8M0.0% | $78.8M+6.1% | $74.3M-2.7% | $76.4M+7.2% | $71.3M-4.9% | $75.0M+1.4% | $73.9M |
| SG&A Expenses | $41.0M-2.6% | $42.1M+32.5% | $31.8M-6.0% | $33.8M+19.9% | $28.2M+23.4% | $22.9M-16.4% | $27.3M+16.4% | $23.5M |
| Operating Income | $104.4M+621.3% | $14.5M-16.3% | $17.3M-86.4% | $127.0M-11.2% | $143.0M-7.9% | $155.3M+1535.5% | -$10.8M+73.8% | -$41.3M |
| Interest Expense | $113K-21.5% | $144K+14300.0% | $1K-99.9% | $1.0M-42.6% | $1.8M+8.6% | $1.6M+7.4% | $1.5M-13.8% | $1.8M |
| Income Tax | -$129.6M-572.6% | -$19.3M-298.9% | -$4.8M-111.8% | $40.9M+16.6% | $35.1M+186.7% | $12.2M+245.2% | $3.5M-46.3% | $6.6M |
| Net Income | $234.6M+440.9% | $43.4M+44.2% | $30.1M-64.8% | $85.4M-28.3% | $119.1M-16.5% | $142.7M+2060.0% | -$7.3M+84.4% | -$46.8M |
| EPS (Diluted) | $0.81+237.5% | $0.24+41.2% | $0.17-81.3% | $0.91+24.7% | $0.73-42.5% | $1.27+1511.1% | $-0.09+83.9% | $-0.56 |
PEGA Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q4'23 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.6B+26.2% | $1.3B-2.4% | $1.3B+0.2% | $1.3B-25.2% | $1.8B+17.0% | $1.5B+23.6% | $1.2B+2.5% | $1.2B |
| Current Assets | $978.3M+20.5% | $811.8M-4.0% | $845.6M-0.1% | $846.5M-36.5% | $1.3B+29.6% | $1.0B+32.5% | $776.5M+5.3% | $737.5M |
| Cash & Equivalents | $212.4M+42.9% | $148.7M-26.2% | $201.6M-12.8% | $231.1M-31.4% | $337.1M+46.6% | $229.9M+36.0% | $169.0M-9.6% | $186.9M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $264.7M+64.5% | $160.9M+2.8% | $156.5M-22.9% | $202.9M-33.6% | $305.5M+1.8% | $300.2M+77.8% | $168.8M+3.0% | $163.9M |
| Goodwill | $81.5M+0.1% | $81.4M-0.2% | $81.5M+0.4% | $81.2M+0.1% | $81.1M-0.6% | $81.6M+0.2% | $81.4M-0.2% | $81.6M |
| Total Liabilities | $844.5M+21.3% | $696.0M-0.6% | $699.9M-1.5% | $710.7M-39.9% | $1.2B+2.2% | $1.2B+9.7% | $1.1B+0.7% | $1.0B |
| Current Liabilities | $737.8M+23.5% | $597.5M-0.4% | $599.6M-1.6% | $609.1M-43.9% | $1.1B+88.2% | $577.1M+22.1% | $472.8M+2.5% | $461.1M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $787.4M+31.9% | $596.8M-4.4% | $624.5M+2.2% | $611.3M+4.4% | $585.5M+65.5% | $353.8M+111.1% | $167.6M+15.3% | $145.4M |
| Retained Earnings | $463.4M+98.1% | $233.9M+19.5% | $195.7M+14.6% | $170.8M+94.3% | $87.9M+1109.8% | -$8.7M+94.2% | -$151.4M-5.1% | -$144.1M |
PEGA Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q4'23 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $158.4M+181.4% | $56.3M-34.7% | $86.3M-57.8% | $204.2M+114.5% | $95.2M+19.2% | $79.9M+230.5% | $24.2M-47.1% | $45.6M |
| Capital Expenditures | $6.0M+34.7% | $4.5M+109.4% | $2.1M+13.6% | $1.9M-32.6% | $2.8M+11.2% | $2.5M+642.6% | $338K-86.2% | $2.4M |
| Free Cash Flow | $152.4M+194.1% | $51.8M-38.4% | $84.1M-58.4% | $202.3M+118.9% | $92.4M+19.5% | $77.4M+224.6% | $23.8M-44.8% | $43.2M |
| Investing Cash Flow | -$17.7M-1028.0% | $1.9M+103.9% | -$48.9M-118.7% | $261.9M+1851.1% | $13.4M+150.5% | -$26.6M+33.8% | -$40.2M-232.1% | $30.4M |
| Financing Cash Flow | -$78.2M+28.9% | -$110.1M-56.5% | -$70.3M+87.8% | -$576.0M-907.6% | -$57.2M-1963.2% | $3.1M+56.8% | $2.0M+103.4% | -$57.6M |
| Dividends Paid | $5.1M-0.8% | $5.2M+100.9% | $2.6M-0.6% | $2.6M+0.4% | $2.6M+2.7% | $2.5M+0.4% | $2.5M+0.3% | $2.5M |
| Share Buybacks | $105.0M-26.6% | $143.0M+6.3% | $134.5M+14.7% | $117.2M+106.3% | $56.8M | $0+100.0% | -$1.4M-551.4% | $315K |
PEGA Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q4'23 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 79.5%+7.2pp | 72.2%+0.7pp | 71.5%-7.0pp | 78.5%-0.7pp | 79.1%-1.7pp | 80.9%+8.9pp | 72.0%+4.2pp | 67.8% |
| Operating Margin | 20.7%+16.9pp | 3.8%-0.7pp | 4.5%-22.2pp | 26.7%-2.4pp | 29.1%-3.6pp | 32.7%+36.0pp | -3.2%+10.6pp | -13.8% |
| Net Margin | 46.5%+35.1pp | 11.4%+3.5pp | 7.8%-10.1pp | 18.0%-6.3pp | 24.3%-5.8pp | 30.1%+32.3pp | -2.2%+13.5pp | -15.7% |
| Return on Equity | 29.8%+22.5pp | 7.3%+2.5pp | 4.8%-9.2pp | 14.0%-6.4pp | 20.3%-20.0pp | 40.3% | N/A | N/A |
| Return on Assets | 14.4%+11.0pp | 3.4%+1.1pp | 2.3%-4.2pp | 6.5%-0.3pp | 6.7%-2.7pp | 9.4%+10.0pp | -0.6%+3.3pp | -3.9% |
| Current Ratio | 1.33-0.0 | 1.36-0.1 | 1.41+0.0 | 1.39+0.2 | 1.23-0.6 | 1.78+0.1 | 1.64+0.0 | 1.60 |
| Debt-to-Equity | 1.07-0.1 | 1.17+0.0 | 1.12-0.0 | 1.16-0.9 | 2.02-1.2 | 3.27-3.0 | 6.29-0.9 | 7.20 |
| FCF Margin | 30.2%+16.6pp | 13.6%-8.3pp | 21.9%-20.7pp | 42.5%+23.7pp | 18.8%+2.5pp | 16.3%+9.2pp | 7.1%-7.4pp | 14.5% |
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Frequently Asked Questions
What is Pegasystems Inc's annual revenue?
Pegasystems Inc (PEGA) reported $1.7B in total revenue for fiscal year 2025. This represents a 16.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Pegasystems Inc's revenue growing?
Pegasystems Inc (PEGA) revenue grew by 16.6% year-over-year, from $1.5B to $1.7B in fiscal year 2025.
Is Pegasystems Inc profitable?
Yes, Pegasystems Inc (PEGA) reported a net income of $393.4M in fiscal year 2025, with a net profit margin of 22.5%.
What is Pegasystems Inc's earnings per share (EPS)?
Pegasystems Inc (PEGA) reported diluted earnings per share of $2.13 for fiscal year 2025. This represents a 287.3% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Pegasystems Inc's EBITDA?
Pegasystems Inc (PEGA) had EBITDA of $276.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Pegasystems Inc have?
As of fiscal year 2025, Pegasystems Inc (PEGA) had $212.4M in cash and equivalents against $467K in long-term debt.
What is Pegasystems Inc's gross margin?
Pegasystems Inc (PEGA) had a gross margin of 75.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Pegasystems Inc's operating margin?
Pegasystems Inc (PEGA) had an operating margin of 15.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Pegasystems Inc's net profit margin?
Pegasystems Inc (PEGA) had a net profit margin of 22.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Pegasystems Inc pay dividends?
Yes, Pegasystems Inc (PEGA) paid $0.10 per share in dividends during fiscal year 2025.
What is Pegasystems Inc's return on equity (ROE)?
Pegasystems Inc (PEGA) has a return on equity of 50.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Pegasystems Inc's free cash flow?
Pegasystems Inc (PEGA) generated $490.7M in free cash flow during fiscal year 2025. This represents a 45.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Pegasystems Inc's operating cash flow?
Pegasystems Inc (PEGA) generated $505.2M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Pegasystems Inc's total assets?
Pegasystems Inc (PEGA) had $1.6B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Pegasystems Inc's capital expenditures?
Pegasystems Inc (PEGA) invested $14.5M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Pegasystems Inc spend on research and development?
Pegasystems Inc (PEGA) invested $312.7M in research and development during fiscal year 2025.
Does Pegasystems Inc buy back shares?
Yes, Pegasystems Inc (PEGA) spent $499.7M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
How many shares does Pegasystems Inc have outstanding?
Pegasystems Inc (PEGA) had 169M shares outstanding as of fiscal year 2025.
What is Pegasystems Inc's current ratio?
Pegasystems Inc (PEGA) had a current ratio of 1.33 as of fiscal year 2025, which is considered adequate.
What is Pegasystems Inc's debt-to-equity ratio?
Pegasystems Inc (PEGA) had a debt-to-equity ratio of 1.07 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Pegasystems Inc's return on assets (ROA)?
Pegasystems Inc (PEGA) had a return on assets of 24.1% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Pegasystems Inc's Altman Z-Score?
Pegasystems Inc (PEGA) has an Altman Z-Score of 7.55, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Pegasystems Inc's Piotroski F-Score?
Pegasystems Inc (PEGA) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Pegasystems Inc's earnings high quality?
Pegasystems Inc (PEGA) has an earnings quality ratio of 1.28x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Pegasystems Inc cover its interest payments?
Pegasystems Inc (PEGA) has an interest coverage ratio of 204.7x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Pegasystems Inc?
Pegasystems Inc (PEGA) scores 76 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.