PEGASYSTEMS INC

Listed Company

PEGACIK 0001013857NasdaqLarge AcceleratedServices-Computer Processing & Data PreparationMassachusettsFY ends Dec 31

Period

FY 2025

Revenue

$1.75B

Net Income

$393.44M

Total Assets

$1.63B

Equity

$787.38M

Shares Out

168.77M

Op. Cash Flow

$505.23M

Business

PEGASYSTEMS INC develops, markets, licenses, hosts, and supports enterprise software that enables organizations to optimize decisions and processes in real time using AI-powered decisioning and workflow automation. Its main products and services include the Pega Platform, Pega Infinity applications (Customer Decision Hub, Customer Service, Sales Automation), Pega Cloud, Blueprint, low-code development, and professional services such as consulting, client success, support, and training. Key business segments center on 1:1 customer engagement, customer service, and workflow automation delivered via its Center-out Business® architecture. The company sells through direct sales, global partners, systems integrators, cloud hyperscalers, and training and implementation partners to global enterprises and government agencies.

Summary from filing dated 2025-02-12

Financials

Consolidated Statement of Income

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Total revenue	1,746	1,497	1,433	1,318	1,212
Total cost of revenue	421	391	378	369	336
Gross profit	1,324	1,107	1,054	949	875
Selling and marketing	579	535	559	625	626
Research and development	313	298	296	294	261
General and administrative	149	113	97	118	84
Litigation settlement, net of recoveries	10	32	0	0	—
Restructuring	12	5	22	22	0
Total operating expenses	1,061	983	973	1,059	970
Income from operations	263	124	81	−109	−95
Foreign currency transaction (loss)	−15	−912,000	−5	5	−6
Interest income	14	26	9	2	704,000
Interest expense	−1	−7	−7	−8	—
(Loss) on capped call transactions	−223,000	−663,000	−1	−57	−24
Other income, net	20	1	19	7	89,000
Income before (benefit from) provision for income taxes	281	143	95	−162	−132
(Benefit from) provision for income taxes	−113	43	28	184	−69
Net income	393	99	68	−346	−63
Basic (in dollars per share)	2.3	0.58	0.41	−4.22	−0.77
Diluted (in dollars per share)	2.13	0.55	0.37	−4.22	−0.77
Basic (in shares)	171	171	166	82	81
Diluted (in shares)	185	179	170	82	81

Consolidated Balance Sheet

As of · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Cash and cash equivalents	212	337	230	145	160
Marketable securities	213	403	193	152	203
Total cash, cash equivalents, and marketable securities	426	740	423	297	363
Accounts receivable, net	265	305	300	255	183
Unbilled receivables, net	166	173	237	214	227
Other current assets	121	115	68	80	68
Total current assets	978	1,334	1,029	846	840
Long-term unbilled receivables, net	103	61	—	96	130
Goodwill	82	81	82	81	82
Other long-term assets	469	292	315	334	542
Total assets	1,632	1,768	1,511	1,358	1,594
Accounts payable	13	6	11	18	15
Accrued expenses	45	32	40	50	64
Accrued compensation and related expenses	149	138	127	—	—
Deferred revenue	509	424	378	325	276
Convertible senior notes, net	0	467	0	—	—
Other current liabilities	22	19	21	17	9
Total current liabilities	738	1,086	577	539	485
Long-term operating lease liabilities	61	68	67	79	88
Other long-term liabilities	46	29	14	15	13
Total liabilities	844	1,183	1,157	1,227	1,177
Commitments and contingencies (Note 20)	—	—	—	—	—
Preferred stock, $0.01 par value, 1,000 shares authorized; none issued	0	0	0	0	0
Common stock, $0.01 par value, 400,000 shares authorized; 170,347 and 172,224 shares issued and outstanding as of December 31, 2025 and 2024, respectively	2	2	838,000	824,000	817,000
Additional paid-in capital	331	526	380	230	146
Retained earnings	463	88	−9	−77	276
Net unrealized gain on available-for-sale securities, net of tax	127,000	230,000	669,000	517,000	686,000
Foreign currency translation adjustments	−9	−30	−19	−24	−8
Total stockholders equity	787	585	354	131	416
Total liabilities and stockholders equity	1,632	1,768	1,511	1,358	1,594

Consolidated Statement of Cash Flows

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Stock-based compensation	155	143	143	122	116
Amortization of deferred commissions	69	62	59	53	41
Amortization of intangible assets and depreciation	14	18	19	19	29
Amortization of right-of-use lease assets	12	18	16	16	13
Deferred income taxes	−171	−2	363,000	169	−75
(Accretion) of investments	−3	−15	−3	2	4
(Gain) on investments	−20	−869,000	−11	−7	−89,000
(Gain) on repurchases of convertible senior notes	0	−459,000	−8	0	0
Other non-cash	2	4	6	5	8
Accounts receivable, unbilled receivables, and contract assets	19	79	−58	−51	−12
Other current assets	−1	−50	11	−9	17
Other current liabilities	25	−7	−9	529,000	−19
Deferred revenue	77	48	45	63	41
Deferred commissions	−65	−58	−45	−54	−71
Other long-term assets and liabilities	−15	7	−24	−13	−16
Cash provided by operating activities	505	346	218	22	39
Purchases of investments	−349	−559	−287	−41	−79
Proceeds from maturities and called investments	379	365	243	67	106
Sales of investments	181	0	11	24	61
Investment in property and equipment	−15	−8	−17	−35	−10
Cash provided by (used in) investing activities	197	−203	−51	13	73
Repurchases of convertible senior notes	−468	−34	−89	0	0
Dividend payments to stockholders	−15	−10	−10	−10	−10
Proceeds from employee stock purchase plan	7	7	8	9	11
Proceeds from stock option exercises	158	81	11	0	0
Common stock repurchases for tax withholdings for net settlement of equity awards	−18	−5	−2	−21	−70
Common stock repurchases under stock repurchase program	−500	−68	0	−26	−53
Other	0	7,000	341,000	0	0
Cash (used in) financing activities	−835	−30	−82	−47	−122
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	7	−4	3	−3	−2
Net (decrease) increase in cash, cash equivalents and restricted cash	−125	109	88	−15	−12
Interest paid on convertible notes	2	4	4	5	—
Income taxes paid, net	22	82	12	8	−5
Investment in property and equipment included in accounts payable and accrued liabilities	2	2	66,000	10	2

Filings

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