PEGANasdaqServices-Computer Processing & Data PreparationUS GAAP · USD

Pegasystems Inc

Pegasystems Inc. develops enterprise software for AI-powered decisioning, workflow automation, customer engagement, and low-code application development. Its Pega Infinity platform is used by organizations to automate customer service, orchestrate business processes, and modernize legacy systems, with customers spanning commercial enterprises and government agencies, primarily in the United States and international markets.

Ask about the company
Revenue1,746m USD
+16.6 %y/y
Operating profit (EBIT)263m USD
+112.4 %y/y
EBIT margin15.1%
+6.8 ppy/y
Net income393m USD
+296.7 %y/y
Free cash flow491m USD
+45.1 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-50005001,0001,5002,000m USD2020: 1,018 m USD2020: EBIT -144 m USD20202021: 1,212 m USD2021: EBIT -95 m USD20212022: 1,318 m USD2022: EBIT -109 m USD20222023: 1,433 m USD2023: EBIT 81 m USD20232024: 1,497 m USD2024: EBIT 124 m USD20242025: 1,746 m USD2025: EBIT 263 m USD20251,746263
RevenueOperating profit (EBIT)
Ask Clarifo about Pegasystems Inc

Business

Share of revenue
Subscription services58 %

Cloud-hosted and software subscription access to Pega's platform and applications.

Subscription license29 %

Term and multi-year software license arrangements for Pega software.

Consulting13 %

Implementation, advisory, and billable professional services supporting deployments.

Products

Reported · share of revenue
39.9%29.1%18.0%13.1%FY2025100 %
  • Pega Cloud39.9 %
  • Subscription License29.1 %
  • Maintenance18.0 %
  • Consulting13.1 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Pega sells primarily to large enterprises and government agencies that need to automate complex customer interactions and internal workflows. Its solutions are used across industries such as financial services, communications and media, insurance, consumer services, manufacturing, and high tech, where buyers value real-time decisioning, case management, and process automation.

Financial services

Banks and financial institutions buy decisioning, customer service, KYC, and dispute-management applications to automate regulated workflows.

Communications and media

Telecom and media customers use Pega for customer engagement, order management, service assurance, and network operations.

Insurance

Insurers deploy Pega for underwriting, policyholder service, claims, and sales/distribution workflows.

Consumer services

Retail, hospitality, transportation, utilities, and internet providers use Pega for customer service and enterprise operations.

Manufacturing and high tech

Industrial and technology customers use the platform to orchestrate supply chain, service, and aftermarket processes.

Government

Public-sector buyers use Pega to modernize service delivery and automate mission-critical workflows.

Strategy

Pega’s strategy centers on expanding its enterprise AI decisioning and workflow automation platform across marketing, sales, service, operations, and IT buyers. It also emphasizes deeper relationships with existing clients, new client acquisition, and partner-led distribution through systems integrators, hyperscalers, and Blueprint-enabled collaboration.

Grow adoption of Pega Cloud and subscription offeringsShort term

Recurring cloud and subscription usage broadens platform penetration and supports long-term customer relationships.

Broaden enterprise AI and workflow automation use casesMedium term

More use cases increase platform stickiness and make Pega relevant across business functions.

Leverage partners to extend market reachMedium term

Systems integrators and hyperscalers can improve sales coverage and implementation capacity.

Geography

Q1/2026

Pegasystems is headquartered in the United States and serves customers globally through direct sales, partners, and cloud delivery. The company’s disclosures emphasize U.S. and foreign cash holdings, and consulting activity in international regions, indicating a meaningful international operating footprint even though country-level revenue is not disclosed in the excerpts.

United States56 %
Europe, Middle East and Africa19 %
United Kingdom13 %
Asia Pacific12 %

Share of the revenue the company reports by geography.

Risks

Pega faces intense competition from large software vendors and from customers building internal alternatives, which can pressure pricing and win rates. Its cloud model depends on third-party hosting and secure handling of client data, so cybersecurity, privacy, and service reliability are material operational risks. The company also depends on successful product innovation and subscription execution as customers continue shifting from maintenance and legacy license models.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Competitive pressure in CRM, AI, automation, and low-code markets1Cybersecurity and data privacy incidents2Execution risk in subscription transition3Dependence on third-party hosting infrastructure4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Competitive pressure in CRM, AI, automation, and low-code marketsImpact: HighLikelihood: Medium

    The market is fragmented and includes large vendors with broad product suites and sales reach.

    Exposure: Enterprise software sales and renewals

  2. Cybersecurity and data privacy incidentsImpact: HighLikelihood: Medium

    Pega Cloud stores and transmits client data, and the company relies on complex third-party and client environments.

    Exposure: Cloud services and customer trust

  3. Execution risk in subscription transitionImpact: HighLikelihood: Medium

    The business model depends on scaling subscription offerings and retaining customers through product upgrades.

    Exposure: Revenue mix and cash flow

  4. Dependence on third-party hosting infrastructureImpact: MediumLikelihood: Medium

    Cloud subscriptions require external hosting, creating recurring cost and service continuity exposure.

    Exposure: Pega Cloud gross margin and uptime

Ask Clarifo about Pegasystems Inc

Accounting

Judgemental items
Revenue recognition across multiple contract types

Subscription services, subscription license, consulting, and maintenance may be recognized differently and over different periods.

Impact: Affects revenue timing, backlog conversion, and quarterly comparability

Backlog and remaining performance obligations

Longer-duration contracts create visibility into future revenue but require judgment in measuring remaining obligations.

Impact: Affects revenue outlook and contract quality assessment

Cloud hosting and third-party service costs

Pega Cloud relies on external hosting, which affects cost recognition and gross margin presentation.

Impact: Affects profitability of cloud subscriptions

Foreign cash and repatriation taxes

The company holds cash in U.S. and foreign entities and may incur taxes if foreign funds are repatriated.

Impact: Affects liquidity, tax expense, and capital allocation

Similar listed companies

Publicly listed companies with a comparable business focus.

Fastly, Inc.

FSLY · Services-Prepackaged Software

IMA Tech

IMAA · Services-Prepackaged Software

Zeta Global Holdings Corp.

ZETA · Services-Prepackaged Software

Upland Software, Inc.

UPLD · Services-Prepackaged Software

Veea Inc

VEEAW · Services-Computer Integrated Systems Design

EGAIN Corp

EGAN · Services-Prepackaged Software

Last updated: 24/09/2026