PEGASYSTEMS (PEGA) Company Report

Pega's Chief Technology Officer, Don Schuerman, emphasized the company's early and continuous evolution of its Blueprint offering, which utilizes Gen AI and agentic AI to significantly accelerate sales conversations and compress the design phase of delivery cycles.
Blueprint's capabilities have expanded to include designing business rules and injecting agentic features for application modernization and legacy transformation, notably through a partnership with AWS Transform for reimagining COBOL and Lotus Notes applications.
Pega's strategy for agentic AI focuses on integrating large language models to reduce barriers to entry and accelerate sales, prioritizing business value and interoperability rather than aiming to be the sole "agent platform".
The Infinity 25 release introduced orchestration agents and document agents, enhancing workflow initiation and document processing capabilities.
Blueprint and agentic AI are also transforming customer service by enabling faster authoring of self-service workflows and empowering self-service agents to manage complex requests, accelerating the deflection of calls from contact centers.

Dec 11, 2025, 7:00 PM

Transcript

Pega Discusses Gen AI Strategy and Blueprint's Impact on Sales and App Modernization

PEGA

Product Launch

New Projects/Investments

Revenue Acceleration/Inflection

Pega's Chief Technology Officer, Don Schuerman, outlined the company's strategy for integrating Generative AI (Gen AI) and agentic AI, focusing on applying these technologies to solve enterprise business problems and improve efficiency, customer experiences, and profitability.
The Blueprint offering is a core component of Pega's strategy, designed to accelerate sales conversations and delivery cycles by rapidly generating actionable prototypes from client business needs, significantly compressing the initial sales phase.
Blueprint has evolved to support app modernization and legacy transformation, including a partnership with AWS Transform to analyze legacy code (e.g., COBOL, .NET) and generate reimagined cloud-based application prototypes.
Pega's Infinity 25 release introduced new agent capabilities, such as orchestration agents and document agents, and emphasizes interoperability, allowing workflows to be built once and deployed across various channels, including self-service and contact centers.
Blueprint is transforming Pega's go-to-market approach by enabling less technical, more business-focused sales conversations, leading to faster deal closures, and empowering partners with branded Blueprint versions to accelerate their client engagements.

Dec 11, 2025, 7:00 PM

Transcript

Pega's CTO Discusses AI Integration and Blueprint's Impact

PEGA

New Projects/Investments

Revenue Acceleration/Inflection

Product Launch

Pega's Chief Technology Officer, Don Schuerman, emphasized the company's strategy of aggressively integrating Large Language Models (LLMs) into its platform to expand its addressable market and accelerate sales.
The Blueprint offering is a significant innovation, leveraging generative AI and agentic AI to compress delivery cycle design phases from weeks to days and transform sales conversations through rapid prototyping.
Pega is actively engaged in application modernization, partnering with AWS and Global System Integrators to help clients migrate and reimagine legacy systems (e.g., COBOL, Lotus Notes) into modern cloud-based applications using Blueprint.
AI, facilitated by Blueprint and agentic capabilities, is transforming customer service by enabling self-service agents and deflecting contact center interactions, which is a key business driver for clients.
The success of Blueprint has led to accelerated business and increased internal momentum and enthusiasm within Pega.

Dec 11, 2025, 7:00 PM

Transcript

Pega Discusses 2025 Momentum, Blueprint, and Cloud Strategy at UBS Conference

PEGA

Revenue Acceleration/Inflection

New Projects/Investments

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.

Dec 2, 2025, 5:55 PM

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.

Dec 2, 2025, 5:55 PM

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.

Dec 2, 2025, 5:55 PM

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

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PEGASYSTEMS (PEGA)

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