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).
High gross margins and minimal reinvestment needs let Pegasystems turn modest sales growth into much larger cash generation.
The least obvious shift is cash conversion quality: from FY2022 to FY2025, revenue rose only about32.5% , but operating cash flow moved from$22.3M to$505.2M while capex stayed just$14.5M in FY2025. That means the FY2025 profit surge was not only an accounting event from the tax benefit; the business had already become a low-capital-intensity cash engine.
A small improvement in gross margin from
Balance-sheet strain eased sharply as liabilities fell from
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Pegasystems Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Pegasystems Inc has an operating margin of 15.1%, meaning the company retains $15 of operating profit per $100 of revenue. This results in a moderate score of 54/100, indicating healthy but not exceptional operating efficiency. 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 66/100.
Pegasystems Inc has a moderate D/E ratio of 1.07. This balance of debt and equity financing earns a leverage score of 45/100.
Pegasystems Inc's current ratio of 1.33 indicates adequate short-term liquidity, earning a score of 34/100. 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 90/100.
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 68/100. This is up from 16.9% the prior year.
Pegasystems Inc scores 5.98, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($5.4B) relative to total liabilities ($844.5M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Pegasystems Inc passes 7 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 2 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
Earnings & Revenue
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 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.
Cash & Balance Sheet
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 held $212.4M in cash against $0 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.
Margins & Returns
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.
Capital Allocation
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 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $430.0M-14.7% | $504.3M+32.2% | $381.4M-0.8% | $384.5M-19.2% | $475.6M-3.1% | $490.8M+51.0% | $325.1M-7.4% | $351.2M |
| Cost of Revenue | $106.8M+3.2% | $103.5M-2.3% | $105.9M-3.4% | $109.6M+7.0% | $102.5M+0.1% | $102.4M+5.8% | $96.7M-0.2% | $96.9M |
| Gross Profit | $323.2M-19.4% | $400.9M+45.5% | $275.5M+0.2% | $274.9M-26.3% | $373.2M-3.9% | $388.5M+70.1% | $228.3M-10.2% | $254.2M |
| R&D Expenses | $82.0M+1.5% | $80.9M+2.7% | $78.8M0.0% | $78.8M+6.1% | $74.3M-2.7% | $76.4M+3.0% | $74.2M-1.7% | $75.4M |
| SG&A Expenses | $48.6M+18.5% | $41.0M-2.6% | $42.1M+32.5% | $31.8M-6.0% | $33.8M+19.9% | $28.2M-21.0% | $35.7M+40.4% | $25.4M |
| Operating Income | $37.1M-64.4% | $104.4M+621.3% | $14.5M-16.3% | $17.3M-86.4% | $127.0M-11.2% | $143.0M+1326.2% | -$11.7M-189.9% | $13.0M |
| Interest Expense | $44K-61.1% | $113K-21.5% | $144K+14300.0% | $1K-99.9% | $1.0M-42.6% | $1.8M+9.1% | $1.6M-1.0% | $1.7M |
| Income Tax | $6.9M+105.4% | -$129.6M-572.6% | -$19.3M-298.9% | -$4.8M-111.8% | $40.9M+16.6% | $35.1M+1168.6% | $2.8M-68.0% | $8.6M |
| Net Income | $32.8M-86.0% | $234.6M+440.9% | $43.4M+44.2% | $30.1M-64.8% | $85.4M-28.3% | $119.1M+927.6% | -$14.4M-317.6% | $6.6M |
| EPS (Diluted) | $0.18 | N/A | $0.24+41.2% | $0.17-63.0% | $0.46 | N/A | $-0.08-300.0% | $0.04 |
PEGA Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.6B-5.0% | $1.6B+26.2% | $1.3B-2.4% | $1.3B+0.2% | $1.3B-25.2% | $1.8B+12.0% | $1.6B+2.8% | $1.5B |
| Current Assets | $903.9M-7.6% | $978.3M+20.5% | $811.8M-4.0% | $845.6M-0.1% | $846.5M-36.5% | $1.3B+19.2% | $1.1B+4.4% | $1.1B |
| Cash & Equivalents | $270.0M+27.1% | $212.4M+42.9% | $148.7M-26.2% | $201.6M-12.8% | $231.1M-31.4% | $337.1M+17.2% | $287.6M+11.4% | $258.3M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $173.9M-34.3% | $264.7M+64.5% | $160.9M+2.8% | $156.5M-22.9% | $202.9M-33.6% | $305.5M+75.9% | $173.6M+4.8% | $165.7M |
| Goodwill | $81.4M-0.2% | $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 |
| Total Liabilities | $845.1M+0.1% | $844.5M+21.3% | $696.0M-0.6% | $699.9M-1.5% | $710.7M-39.9% | $1.2B+6.9% | $1.1B+0.5% | $1.1B |
| Current Liabilities | $743.4M+0.8% | $737.8M+23.5% | $597.5M-0.4% | $599.6M-1.6% | $609.1M-43.9% | $1.1B+6.0% | $1.0B+0.8% | $1.0B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $705.9M-10.3% | $787.4M+31.9% | $596.8M-4.4% | $624.5M+2.2% | $611.3M+4.4% | $585.5M+23.8% | $473.0M+8.6% | $435.4M |
| Retained Earnings | $491.1M+6.0% | $463.4M+98.1% | $233.9M+19.5% | $195.7M+14.6% | $170.8M+94.3% | $87.9M+407.3% | -$28.6M-101.2% | -$14.2M |
PEGA Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $212.3M+34.0% | $158.4M+181.4% | $56.3M-34.7% | $86.3M-57.8% | $204.2M+114.5% | $95.2M+212.7% | $30.5M-24.0% | $40.1M |
| Capital Expenditures | $5.7M-4.9% | $6.0M+34.7% | $4.5M+109.4% | $2.1M+13.6% | $1.9M-32.6% | $2.8M-8.9% | $3.1M+144.5% | $1.3M |
| Free Cash Flow | $206.5M+35.5% | $152.4M+194.1% | $51.8M-38.4% | $84.1M-58.4% | $202.3M+118.9% | $92.4M+237.5% | $27.4M-29.5% | $38.8M |
| Investing Cash Flow | $2.8M+115.6% | -$17.7M-1028.0% | $1.9M+103.9% | -$48.9M-118.7% | $261.9M+1851.1% | $13.4M+313.1% | -$6.3M+91.9% | -$77.3M |
| Financing Cash Flow | -$154.2M-97.0% | -$78.2M+28.9% | -$110.1M-56.5% | -$70.3M+87.8% | -$576.0M-907.6% | -$57.2M-1385.7% | $4.4M-3.4% | $4.6M |
| Dividends Paid | $5.1M-0.1% | $5.1M-0.8% | $5.2M+100.9% | $2.6M-0.6% | $2.6M+0.4% | $2.6M+0.5% | $2.6M+0.4% | $2.5M |
| Share Buybacks | $167.3M+59.3% | $105.0M-26.6% | $143.0M+6.3% | $134.5M+14.7% | $117.2M+106.3% | $56.8M+405.0% | $11.2M | $0 |
PEGA Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 75.2%-4.3pp | 79.5%+7.2pp | 72.2%+0.7pp | 71.5%-7.0pp | 78.5%-0.7pp | 79.1%+8.9pp | 70.3%-2.1pp | 72.4% |
| Operating Margin | 8.6%-12.0pp | 20.7%+16.9pp | 3.8%-0.7pp | 4.5%-22.2pp | 26.7%-2.4pp | 29.1%+32.7pp | -3.6%-7.3pp | 3.7% |
| Net Margin | 7.6%-38.9pp | 46.5%+35.1pp | 11.4%+3.5pp | 7.8%-10.1pp | 18.0%-6.3pp | 24.3%+28.7pp | -4.4%-6.3pp | 1.9% |
| Return on Equity | 4.6%-25.1pp | 29.8%+22.5pp | 7.3%+2.5pp | 4.8%-9.2pp | 14.0%-6.4pp | 20.3%+23.4pp | -3.0%-4.6pp | 1.5% |
| Return on Assets | 2.1%-12.3pp | 14.4%+11.0pp | 3.4%+1.1pp | 2.3%-4.2pp | 6.5%-0.3pp | 6.7%+7.6pp | -0.9%-1.3pp | 0.4% |
| Current Ratio | 1.22-0.1 | 1.33-0.0 | 1.36-0.1 | 1.41+0.0 | 1.39+0.2 | 1.23+0.1 | 1.09+0.0 | 1.05 |
| Debt-to-Equity | 1.20+0.1 | 1.07-0.1 | 1.17+0.0 | 1.12-0.0 | 1.16-0.9 | 2.02-0.3 | 2.34-0.2 | 2.53 |
| FCF Margin | 48.0%+17.8pp | 30.2%+16.6pp | 13.6%-8.3pp | 21.9%-20.7pp | 42.5%+23.7pp | 18.8%+10.4pp | 8.4%-2.6pp | 11.1% |
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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 EBITDA?
Pegasystems Inc (PEGA) had EBITDA of $276.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
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.
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 5.98, 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 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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 60 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.