PEGASYSTEMS (PEGA) Company Report

Pega reported mid-teens ACV growth in Q3 2025, with 14% annualized ACV growth through the first three quarters of 2025, exceeding its full-year 2025 guide of 12%.
Pega Cloud ACV grew 27% year-over-year in Q3 2025, driven by client demand for cloud migration due to security, usability, and AI integration. The company anticipates 70%-75% of its ACV will be on Pega Cloud in the next few years.
The new Pega Blueprint product, leveraging AI for application design and workflow building, is accelerating sales cycles, improving win rates, and expanding Pega's addressable market by simplifying platform use.
Pega maintains a deep strategic partnership with AWS, utilizing AWS Transform with Blueprint for mainframe modernization, and has a long-term target of $700 million+ in free cash flow by 2028.

3 days ago

Transcript

Pega Discusses 2025 Momentum, Cloud Growth, and AI Strategy at UBS Conference

PEGA

Guidance Update

Product Launch

New Projects/Investments

Pega attributes its accelerating growth and free cash flow in 2025 to a sales transformation, the release of Pega Blueprint, and an increased focus on new logos.
The company reported mid-teens ACV growth in Q3 2025, with annualized ACV growth at 14% through the first three quarters, exceeding its full-year 2025 guide of 12%.
Pega Cloud ACV grew 27% year-over-year in Q3 2025, driven by client desires for enhanced security, usability, and the ability to leverage AI for modernizing complex applications.
Pega Blueprint, an AI-powered design agent, is evolving to enable faster application building without deep technical expertise, leading to faster pipeline build, better win rates, and opening up new market opportunities.
Pega announced a five-year strategic agreement with AWS in July 2025, leveraging AWS Transform to modernize legacy COBOL mainframe applications, particularly in financial services and the public sector.

3 days ago

Transcript

Pegasystems Reports Strong 2025 Performance and Strategic Growth Drivers

PEGA

Revenue Acceleration/Inflection

Product Launch

Guidance Update

Pegasystems reported mid-teens ACV growth in Q3 2025 and 14% annualized ACV growth through the first three quarters of 2025, surpassing its full-year 2025 guide of 12%. Pega Cloud ACV also saw significant growth, increasing 27% year-over-year in Q3 2025.
The company's Pega Blueprint initiative, which uses AI as a design agent, is accelerating growth by simplifying application development, improving sales efficiency, and expanding the addressable market to both existing and new clients.
A five-year strategic agreement with AWS, announced in July 2025, positions Pega as a key partner in legacy transformation, particularly for modernizing COBOL mainframe applications in sectors like financial services and the public sector.
Pega is on track to achieve its long-term target of $700 million+ free cash flow in 2028, driven by its predictable recurring revenue model and high retention rates, with current free cash flow at a 30% level.

3 days ago

Transcript

Pegasystems Discusses Business Transformation, Blueprint AI, and Financial Performance

PEGA

New Projects/Investments

Revenue Acceleration/Inflection

Guidance Update

Pegasystems has undergone significant business transformations, including a shift to cloud (over 50% of business on Pega Cloud) and subscription models, leading to a substantial increase in Free Cash Flow from $20 million three years ago to approaching $500 million currently.
The company's new Pega Blueprint is a Generative Design Agent that dramatically accelerates digital transformation by reducing upfront design time from months to an afternoon, expanding Pega's addressable market, and improving new client acquisition.
Pega's licensing model is based on activity usage, which is well-suited for the AI era, and Blueprint helps address enterprise AI security concerns by operating in the design phase. The company is approaching a Rule of 45 and targets Free Cash Flow of $700 million or greater within three years.

Nov 18, 2025, 6:20 PM

Transcript

PEGA Discusses Business Transformation and AI Strategy at Conference

PEGA

New Projects/Investments

Revenue Acceleration/Inflection

Guidance Update

PEGA has undergone significant business transformation, with over 50% of its business now on Pega Cloud, up from 3% ten years ago. This shift has contributed to a substantial increase in free cash flow, from $20 million three years ago to approaching $500 million currently.
The company's new Pega Blueprint product, a generative AI design agent, is accelerating digital transformation for clients by reducing the upfront design and ideation phase from 3-12 months to potentially an afternoon. This is expanding PEGA's addressable market and serving as a lead-in for sales, including for new logo acquisition.
PEGA's licensing model shifted years ago to a case-based approach, focusing on activity usage rather than user licenses, which aligns well with the current AI landscape. The company is also enabling autonomous partner selling by providing branded Blueprints to system integrators and hyperscalers.
PEGA is approaching a "Rule of 45" (ACV growth + free cash flow margin in the low 40s) and aims for $700 million or greater in free cash flow within three years, up from the current year's expectation of approaching $500 million. Gross margins have improved significantly to above 80% from 30-40% five to six years ago.

Nov 18, 2025, 6:20 PM

Transcript

Pegasystems Highlights Business Transformation, Financial Performance, and Blueprint's Impact

PEGA

Product Launch

Revenue Acceleration/Inflection

New Projects/Investments

Pegasystems has undergone significant business transformation, including a subscription transition and increased cloud adoption, with Pega Cloud now accounting for over 50% of its business, up from 3% ten years ago.
The company's free cash flow has grown from $20 million three years ago to approaching $500 million, with a target of $700 million or greater in three years. Gross margins have also improved from 30-40% five to six years ago to above 80%.
Pega Blueprint, a new generative AI design agent, is designed to accelerate digital transformation by reducing upfront design time from 3-12 months to an afternoon, expanding the addressable market, and lowering barriers to entry for new clients.
Pega is approaching a Rule of 45 (ACV growth plus free cash flow margin), up from a Rule of 20, with this mindset now embedded in its culture.
Blueprint's monetization is based on a case-based (activity usage) licensing model, and the company is pursuing autonomous partner selling with system integrators and hyperscalers.

Nov 18, 2025, 6:20 PM

Transcript

Appian Announces Third Quarter 2025 Financial Results and 2025 Guidance

PEGA

Earnings

Guidance Update

Revenue Acceleration/Inflection

Appian reported third quarter 2025 total revenue of $187.0 million, an increase of 21% year-over-year, with cloud subscriptions revenue also increasing 21% year-over-year to $113.6 million.
For the third quarter ended September 30, 2025, GAAP net income was $7.8 million, compared to a GAAP net loss of $(2.1) million in the prior year period. Non-GAAP net income per share was $0.32, up from $0.02 in the third quarter of 2024.
Adjusted EBITDA for Q3 2025 was $32.2 million, significantly up from $10.8 million in the third quarter of 2024.
For the fourth quarter of 2025, Appian expects total revenue to be between $187.0 million and $191.0 million, and non-GAAP net income per share between $0.04 and $0.08.
Full year 2025 guidance projects total revenue between $711.0 million and $715.0 million, with adjusted EBITDA expected to be between $67.0 million and $70.0 million.

Nov 6, 2025, 12:05 PM

Press Release

PEGA Reports Record Q3 2025 Results Driven by Cloud and AI Strategy

PEGA

Earnings

Revenue Acceleration/Inflection

Share Buyback

Pega delivered record results in Q3 2025, with Pega Cloud Annual Contract Value (ACV), revenue, and free cash flow all reaching new highs and demonstrating continued acceleration.
Annual Contract Value (ACV) grew 14% year over year. Through the first nine months of 2025, the company added over $147 million in net new ACV in constant currency, surpassing the total net new ACV added in the entire year of 2024.
Pega Cloud ACV grew 27% year over year and represented the fastest-growing component of Pega's total ACV, with Pega Cloud margins approaching 80% in Q3.
The company's differentiated AI strategy, centered around Pega Blueprint, is resonating with clients, shortening sales cycles, and accelerating time from design to production.
PEGA completed its largest share repurchase quarter ever, reflecting a strong commitment to return capital to shareholders.

Oct 22, 2025, 12:00 PM

Transcript

PEGA Reports Record Q3 2025 Results Driven by AI Strategy and Cloud Growth

PEGA

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Pegasystems (PEGA) reported record results in Q3 2025, with Annual Contract Value (ACV) growing 14% year-over-year and Pega Cloud ACV increasing 27% year-over-year. The company also completed its largest share repurchase quarter ever.
The strong performance is attributed to PEGA's differentiated AI strategy, which uses Pega GenAI Blueprint for application design and a robust workflow engine for reliable runtime execution, accelerating sales cycles and time to production.
Pega Cloud margins are approaching 80% in Q3, reflecting the scalability of the platform and the ongoing shift towards a cloud-native business model.
Net new ACV through the first nine months of 2025 exceeded the total net new ACV for all of 2024, driven by the positive impact of Pega GenAI Blueprint and legacy transformation opportunities.
The company anticipates new logos will become a more meaningful driver of future ACV growth through a successful partner strategy.

Oct 22, 2025, 12:00 PM

Transcript

Pegasystems Inc. reports Q3 2025 financial results

PEGA

Earnings

Revenue Acceleration/Inflection

Share Buyback

Pegasystems Inc. (PEGA) reported its Q3 2025 financial results on October 21, 2025, with Annual Contract Value (ACV) growing 14% year over year and Pega Cloud ACV increasing 27% year over year.
The company demonstrated improved profitability, reporting net income of $43,364 thousand and diluted earnings per share of $0.24 for Q3 2025, a significant improvement from a net loss and negative EPS in Q3 2024.
Cash flow from operations and free cash flow both grew 38% year over year. For the nine months ended September 30, 2025, cash provided by operating activities was $346,796 thousand and free cash flow was $338,311 thousand.
PEGA engaged in capital allocation by repurchasing 8.7 million shares for $393 million year to date.

Oct 21, 2025, 8:07 PM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for PEGASYSTEMS.

Ask Fintool AI Agent

Get instant answers from SEC filings, earnings calls & more

What did Alan Trefler say about margins?What are PEGASYSTEMS's strategic priorities?How is PEGASYSTEMS positioned vs competitors?How did PEGASYSTEMS do last quarter?

Let Fintool AI Agent track PEGASYSTEMS's earnings for you

Get instant analysis when filings drop