PEGA Nasdaq Application Software Financials FY2016βFY2025
Pegasystems had $1.7B of revenue in fiscal 2025, up 16.6% on the year before. Over five years, revenue changed +11.4% a year on average.
Hi! I read Pegasystemsβs latest annual report (fiscal 2025). Here is what stands out:
Good So-so Weak
Are sales growing?
+16.6%
Yes. Sales grew 16.6% last year.
Does it make a profit?
22.5%
Yes. It keeps 22.5% of every sale as profit.
Does profit turn into cash?
28.1%
Yes. 28.1% of sales ends up as free cash.
Is debt under control?
Net cash
Yes. It has more cash than debt.
How healthy are the accounts?
6 / 9
Mixed. It passes 6 of 9 health tests.
How is the share priced?
22.6x
One share costs 22.6 times its yearly profit per share. Typical for its sector: 33.5x.
Rules of thumb on reported numbers. A starting point, not a recommendation.
About these figures. Share counts and per-share figures for earlier years are restated for a stock split (2-for-1), so every year is on today's share basis.
Is it selling more, and how much does it keep?
KIRA Β· Pegasystems had $1.7B of revenue in fiscal 2025, up 16.6% on the year before. Over five years, revenue changed +11.4% a year on average. Its operating margin was 15.1%, up 6.8Β pts: of every 100 in sales, about 15 is left after running the business.
In plain words: Revenue is all the money customers paid. The margins show how many cents of each dollar of sales are left over at each step: after making the product (gross), after running the business (operating) and after everything, tax included (net).
Revenue
Revenue
Margins, % of revenue
Margins, % of revenue
KIRA Β· Pegasystems made $393M of net profit in fiscal 2025. From fiscal 2016 to 2025, diluted EPS grew 25.3% a year.
Loss periods are shown in red.
In plain words: Net income is the profit left after every cost and tax. Earnings per share (EPS) splits that profit across every share, so it shows what one share earned.
Net income
Net income
Diluted EPS
Diluted EPS
How much cash comes in, and where does it go?
KIRA Β· Free cash flow was $491M in fiscal 2025, 28.1% of revenue.
Cash from operations minus capital spending.
In plain words: Profit on paper is not the same as cash in the bank. Free cash flow is the cash left after paying to run and maintain the business: the money it can hand back to shareholders, save or invest.
Free cash flow
Free cash flow
Cash from operations vs capital spending
Cash from operations vs capital spending
KIRA Β· Pegasystems returned $515M to shareholders in fiscal 2025, 105% of free cash flow. The diluted share count rose 3.1%.
In plain words: Companies hand cash back in two ways: dividends (cash paid to shareholders) and buybacks (buying back their own shares, so each remaining share owns a bigger slice).
Dividends and buybacks
Dividends and buybacks
Diluted shares outstanding (annual)
KIRA Β· In the last 12 months, insiders sold $24.7M of shares on the open market and bought none.
Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. βPlanβ marks trades under a pre-arranged Rule 10b5-1 plan.
In plain words: Insiders are the people who run or own a big part of the company. Buying with their own money can signal confidence; selling often has personal reasons, like taxes or diversifying.
Bought, 12 months
$0.0M
0 insiders
Sold, 12 months
$24.7M
6 insiders
Of sales under plans
69%
$17.1M
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Oct 1, 2026 | Dianne LedinghamDirector | Sold plan | 1,000 | $34.15 | $0.0M | Form 4 |
| Sep 16, 2026 | Efstathios A KouninisSVP, Chief Accounting Officer | Sold | 982 | $37.35 | $0.0M | Form 4 |
| Sep 15, 2026 | Dianne LedinghamDirector | Sold plan | 1,000 | $38.00 | $0.0M | Form 4 |
| Sep 11, 2026 | Rifat Kerim AkgonulChief Product Officer | Sold | 7,000 | $36.03 | $0.3M | Form 4 |
| Sep 11, 2026 | Kenneth StillwellCOO, CFO | Sold | 39,627 | $35.77 | $1.4M | Form 4 |
| Sep 3, 2026 | Efstathios A KouninisSVP, Chief Accounting Officer | Sold | 1,063 | $38.75 | $0.0M | Form 4 |
| Aug 31, 2026 | Efstathios A KouninisSVP, Chief Accounting Officer | Sold | 1,012 | $36.50 | $0.0M | Form 4 |
| Aug 25, 2026 | Rifat Kerim AkgonulChief Product Officer | Sold | 3,000 | $33.99 | $0.1M | Form 4 |
| Aug 10, 2026 | Efstathios A KouninisSVP, Chief Accounting Officer | Sold | 860 | $33.10 | $0.0M | Form 4 |
| Aug 7, 2026 | Efstathios A KouninisSVP, Chief Accounting Officer | Sold | 860 | $32.30 | $0.0M | Form 4 |
| Jun 16, 2026 | Efstathios A KouninisSVP, Chief Accounting Officer | Sold | 750 | $32.31 | $0.0M | Form 4 |
| Jun 1, 2026 | Efstathios A KouninisSVP, Chief Accounting Officer | Sold | 750 | $36.99 | $0.0M | Form 4 |
| May 29, 2026 | Efstathios A KouninisSVP, Chief Accounting Officer | Sold | 750 | $34.75 | $0.0M | Form 4 |
| May 19, 2026 | Rifat Kerim AkgonulChief Product Officer | Sold | 4,545 | $33.35 | $0.2M | Form 4 |
| May 5, 2026 | Kenneth StillwellCOO, CFO | Sold | 8,383 | $36.45 | $0.3M | Form 4 |
| Apr 1, 2026 | Kenneth StillwellCOO, CFO | Sold plan | 1,000 | $43.17 | $0.0M | Form 4 |
| Mar 17, 2026 | Efstathios A KouninisSVP, Chief Accounting Officer | Sold | 1,000 | $42.88 | $0.0M | Form 4 |
| Mar 16, 2026 | Rifat Kerim AkgonulChief Product Officer | Sold | 7,594 | $43.39 | $0.3M | Form 4 |
| Mar 11, 2026 | Rifat Kerim AkgonulChief Product Officer | Sold | 8,088 | $43.57 | $0.4M | Form 4 |
| Mar 10, 2026 | Leon TreflerChief of Clients and Markets | Sold | 6,700 | $44.76 | $0.3M | Form 4 |
| Mar 10, 2026 | Kenneth StillwellCOO, CFO | Sold | 44,000 | $44.81 | $2.0M | Form 4 |
| Mar 2, 2026 | Rifat Kerim AkgonulChief Product Officer | Sold | 7,000 | $43.84 | $0.3M | Form 4 |
| Mar 2, 2026 | Kenneth StillwellCOO, CFO | Sold plan | 1,000 | $43.37 | $0.0M | Form 4 |
| Feb 18, 2026 | Alan TreflerC.E.O. & Chairman, Director, 10% owner | Sold plan | 17,930 | $45.03 | $0.8M | Form 4 |
| Feb 17, 2026 | Alan TreflerC.E.O. & Chairman, Director, 10% owner | Sold plan | 11,742 | $45.12 | $0.5M | Form 4 |
| Feb 13, 2026 | Rifat Kerim AkgonulChief Product Officer | Sold | 7,000 | $43.17 | $0.3M | Form 4 |
| Feb 2, 2026 | Kenneth StillwellCOO, CFO | Sold plan | 1,000 | $43.69 | $0.0M | Form 4 |
| Jan 22, 2026 | Alan TreflerC.E.O. & Chairman, Director, 10% owner | Sold plan | 45,000 | $49.56 | $2.2M | Form 4 |
| Jan 21, 2026 | Alan TreflerC.E.O. & Chairman, Director, 10% owner | Sold plan | 45,000 | $49.02 | $2.2M | Form 4 |
| Jan 2, 2026 | Kenneth StillwellCOO, CFO | Sold plan | 4,000 | $59.99 | $0.2M | Form 4 |
| Dec 18, 2025 | Alan TreflerC.E.O. & Chairman, Director, 10% owner | Sold plan | 45,000 | $58.68 | $2.6M | Form 4 |
| Dec 17, 2025 | Alan TreflerC.E.O. & Chairman, Director, 10% owner | Sold plan | 45,000 | $58.13 | $2.6M | Form 4 |
| Dec 8, 2025 | Rifat Kerim AkgonulChief Product Officer | Sold plan | 4,000 | $60.19 | $0.2M | Form 4 |
| Dec 5, 2025 | Kenneth StillwellCOO, CFO | Sold | 14,405 | $57.87 | $0.8M | Form 4 |
| Nov 6, 2025 | Alan TreflerC.E.O. & Chairman, Director, 10% owner | Sold plan | 45,000 | $58.67 | $2.6M | Form 4 |
| Nov 5, 2025 | Alan TreflerC.E.O. & Chairman, Director, 10% owner | Sold plan | 45,000 | $60.03 | $2.7M | Form 4 |
| Nov 3, 2025 | Kenneth StillwellCOO, CFO | Sold | 11,442 | $62.18 | $0.7M | Form 4 |
| Oct 27, 2025 | Efstathios A KouninisSVP, Chief Accounting Officer | Sold | 4,425 | $67.25 | $0.3M | Form 4 |
| Oct 24, 2025 | Kenneth StillwellCOO, CFO | Sold | 17,171 | $66.40 | $1.1M | Form 4 |
| Oct 23, 2025 | Leon TreflerChief of Clients and Markets | Sold | 14,865 | $63.40 | $0.9M | Form 4 |
| Oct 23, 2025 | Efstathios A KouninisSVP, Chief Accounting Officer | Sold | 3,993 | $65.50 | $0.3M | Form 4 |
| Oct 22, 2025 | Alan TreflerC.E.O. & Chairman, Director, 10% owner | Sold plan | 45,000 | $64.23 | $2.9M | Form 4 |
| Oct 21, 2025 | Alan TreflerC.E.O. & Chairman, Director, 10% owner | Sold plan | 45,000 | $56.73 | $2.6M | Form 4 |
Can it carry its debts, and how well does it use its money?
KIRA Β· Pegasystems has $426M more cash than debt.
Cash, debt and the ratios that show how comfortably Pegasystems can carry it.
In plain words: What the company owns and what it owes. More cash than debt is a cushion for bad times; a lot of debt leaves less room when business slows down.
Cash vs debt (incl. leases)
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | $363M | $297M | $423M | $740M | $426M |
| Debt incl. finance leases | $591M | $594M | $499M | $0.0M | $0.0M |
| Net debt / EBITDA | β | β | 0.8x | β5.2x | β1.5x |
| Debt / equity | 1.4x | 4.5x | 1.4x | 0.0x | 0.0x |
| Interest coverage | β11.9x | β14.0x | 11.8x | 18.1x | 204.8x |
| Current ratio | 1.7x | 1.6x | 1.8x | 1.2x | 1.3x |
| Quick ratio | 1.7x | 1.6x | 1.8x | 1.2x | 1.3x |
| Total assets | $1.6B | $1.4B | $1.5B | $1.8B | $1.6B |
| Total liabilities | $1.2B | $1.2B | $1.2B | $1.2B | $845M |
| Shareholders' equity | $416M | $131M | $354M | $586M | $787M |
| Net debt (β = net cash) | $228M | $296M | $76.1M | β$740M | β$426M |
After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
In plain words: How much profit the business makes on the money put into it. A higher percentage means each dollar invested works harder.
Return on capital, equity and assets (annual)
KIRA Β· Pegasystems passes 6 of 9 financial health tests (Piotroski F-score).
Nine pass/fail tests of profitability, funding and efficiency. 8β9 is strong, 0β2 weak.
In plain words: Nine yes/no tests of financial health, one point each. A green tick is a pass: 7 to 9 points is solid, 0 to 3 is weak.
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | β | β | β |
| Cash from operations is positive | β | β | β |
| Return on assets rose | β | β | β |
| Cash from operations exceeds net income | β | β | β |
| Debt fell relative to assets | β | β | β |
| Current ratio rose | β | β | β |
| Share count didn't rise | β | β | β |
| Gross margin rose | β | β | β |
| Revenue rose relative to assets | β | β | β |
| F-score | 8 / 9 | 6 / 9 | 6 / 9 |
| Accruals ratio | β10.5% | β15.1% | β6.6% |
| Altman Z'' | 2.63 | 2.07 | 3.96 |
What does the share cost, and how does it compare?
KIRA Β· At $36.42 a share, the company is worth $6.1B: 22.6 times its earnings of the last four quarters.
Change the assumptions and see what they imply per share. These are models, not forecasts or price targets β the answer depends entirely on what you put in.
In plain words: Move the sliders to try your own guesses about growth. The result is what one share would be worth if those guesses came true. Different guesses give very different answers.
Value per share
β
Adds net cash of $426M and divides by 184.8M diluted shares. Ten years of cash flows plus a terminal value, discounted to today.
Value per share
β
Reference multiples: today 22.6x Β· peers β Β· sector 33.5x.
KIRA Β· Pegasystems grew sales faster than 3 of its 4 similar companies. Its P/E is higher than 1 of 1.
Each companyβs latest fiscal year. Fiscal years end in different months, so periods donβt line up exactly.
In plain words: The same numbers for similar companies, so you can tell whether a figure is high or low for this kind of business.
| Company | Market cap | Growth | Op. margin | FCF margin | ROIC | P/E | F-score | |
|---|---|---|---|---|---|---|---|---|
| Pegasystems PEGA | $6.1B | 16.6% | 15.1% | 28.1% | β | 22.6x | 6 | |
| Bill BILL | $5.1B | 13.0% | β4.4% | 25.0% | β1.7% | β | 4 | Compare β |
| Unity Software U | $17.7B | 2.0% | β25.9% | 21.8% | β10.3% | β | 5 | Compare β |
| Samsara IOT | $26.5B | 29.6% | β3.3% | 12.8% | β | β | β | Compare β |
| Fair Isaac FICO | $16.1B | 15.9% | 46.5% | 38.7% | 65.6% | 20.5x | 7 | Compare β |
Every number, year by year.
Amounts in USD. Hover a ratioβs name for its definition.
In plain words: Every number we have, year by year. Download it as a spreadsheet if you want to dig deeper.
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | $762M | $889M | $892M | $911M | $1.0B | $1.2B | $1.3B | $1.4B | $1.5B | $1.7B |
| Gross profit | $523M | $609M | $590M | $601M | $707M | $875M | $949M | $1.1B | $1.1B | $1.3B |
| Research and development | $146M | $163M | $182M | $205M | $237M | $261M | $294M | $296M | $298M | $313M |
| Operating income | $50.6M | $93.2M | β$17.0M | β$135M | β$144M | β$94.7M | β$109M | $81.0M | $124M | $263M |
| Interest expense | β | β | $0.0M | $0.2M | $19.4M | $8.0M | $7.8M | $6.9M | $6.8M | $1.3M |
| Pretax income | $55.3M | $86.2M | β$11.5M | β$135M | β$125M | β$132M | β$162M | $95.4M | $143M | $281M |
| Income tax | $10.3M | β$12.3M | β$22.2M | β$44.4M | β$63.5M | β$68.9M | $184M | $27.6M | $43.4M | β$113M |
| Net income | $45.0M | $98.5M | $10.6M | β$90.4M | β$61.4M | β$63.0M | β$346M | $67.8M | $99.2M | $393M |
| Diluted EPS | $0.28 | $0.59 | $0.07 | β$0.57 | β$0.38 | β$0.39 | β$2.11 | $0.37 | $0.55 | $2.13 |
| Diluted shares | 0.16B | 0.17B | 0.17B | 0.16B | 0.16B | 0.16B | 0.16B | 0.17B | 0.18B | 0.18B |
| Cash flow | ||||||||||
| Cash from operations | $39.9M | $158M | $104M | β$42.2M | β$0.6M | $39.1M | $22.3M | $218M | $346M | $505M |
| Capital expenditure | $19.1M | $13.7M | $11.9M | $10.6M | $25.4M | $10.5M | $35.4M | $16.8M | $7.7M | $14.5M |
| Free cash flow | $20.8M | $144M | $92.5M | β$52.8M | β$25.9M | $28.7M | β$13.0M | $201M | $338M | $491M |
| Depreciation and amortization | $24.1M | $24.7M | $25.3M | $21.4M | $21.3M | $28.6M | $18.8M | $18.7M | $17.6M | $13.7M |
| Stock-based compensation | $40.8M | $53.3M | $63.9M | $80.9M | $103M | $116M | $122M | $143M | $143M | $155M |
| Acquisitions | $49.1M | $0.3M | $0.8M | $10.9M | $0.0M | $5.0M | $0.9M | $0.0M | $0.0M | $0.0M |
| Share buybacks | $27.2M | $4.3M | $54.4M | $22.1M | $28.0M | $52.7M | $25.7M | $0.0M | $68.1M | $500M |
| Dividends paid | $9.2M | $9.3M | $9.4M | $9.5M | $9.6M | $9.8M | $9.8M | $10.0M | $10.2M | $15.4M |
| Dividends and buybacks | $36.4M | $13.6M | $63.9M | $31.6M | $37.6M | $62.5M | $35.5M | $10.0M | $78.3M | $515M |
| Balance sheet | ||||||||||
| Cash and short-term investments | $134M | $224M | $207M | $68.4M | $465M | $363M | $297M | $423M | $740M | $426M |
| Total debt | β | β | β | $0.0M | $518M | $591M | $594M | $499M | $0.0M | $0.0M |
| Finance lease liabilities | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Current assets | $425M | $648M | $611M | $506M | $977M | $840M | $847M | $1.0B | $1.3B | $978M |
| Current liabilities | $288M | $295M | $332M | $378M | $460M | $485M | $539M | $577M | $1.1B | $738M |
| Inventory | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Property and equipment, net | $38.3M | $40.4M | $36.6M | $34.3M | $40.4M | $26.8M | $55.1M | $47.3M | $41.8M | $45.2M |
| Total assets | $655M | $1.0B | $983M | $985M | $1.6B | $1.6B | $1.4B | $1.5B | $1.8B | $1.6B |
| Total liabilities | $319M | $357M | $361M | $446M | $1.1B | $1.2B | $1.2B | $1.2B | $1.2B | $845M |
| Shareholders' equity | $549M | $656M | $622M | $539M | $542M | $416M | $131M | $354M | $586M | $787M |
| Margins | ||||||||||
| Gross margin | 68.6% | 68.5% | 66.2% | 66.0% | 69.4% | 72.2% | 72.0% | 73.6% | 73.9% | 75.9% |
| Operating margin | 6.6% | 10.5% | β1.9% | β14.8% | β14.1% | β7.8% | β8.3% | 5.7% | 8.3% | 15.1% |
| EBITDA margin | 9.8% | 13.3% | 0.9% | β12.5% | β12.0% | β5.5% | β6.9% | 7.0% | 9.5% | 15.9% |
| Net margin | 5.9% | 11.1% | 1.2% | β9.9% | β6.0% | β5.2% | β26.2% | 4.7% | 6.6% | 22.5% |
| FCF margin | 2.7% | 16.3% | 10.4% | β5.8% | β2.6% | 2.4% | β1.0% | 14.0% | 22.6% | 28.1% |
| Returns | ||||||||||
| Return on capital | β | β | β | β | β21.3% | β12.1% | β16.1% | 13.4% | β | β |
| Return on capital employed | 13.9% | 17.2% | β2.5% | β21.5% | β16.4% | β8.4% | β11.4% | 9.2% | 15.3% | 33.4% |
| Return on equity | 8.4% | 16.4% | 1.7% | β15.6% | β11.4% | β13.2% | β126.4% | 28.0% | 21.1% | 57.3% |
| Return on assets | 7.0% | 11.8% | 1.1% | β9.2% | β4.7% | β3.9% | β23.4% | 4.7% | 6.1% | 23.1% |
| Growth | ||||||||||
| Revenue growth | 11.7% | 16.6% | 0.4% | 2.2% | 11.7% | 19.1% | 8.8% | 8.7% | 4.5% | 16.6% |
| Net income growth | 23.9% | 118.9% | β89.2% | β951.8% | β | β | β | β | 46.3% | 296.7% |
| EPS growth | 21.7% | 112.5% | β89.1% | β976.9% | β | β | β | β | 48.7% | 287.3% |
| FCF growth | β63.4% | 595.2% | β36.0% | β157.1% | β | β | β145.5% | β | 68.3% | 45.1% |
| Share count change | 0.9% | 3.9% | 0.3% | β4.8% | 1.6% | 1.3% | 0.7% | 3.6% | 5.6% | 3.1% |
| Financial health | ||||||||||
| Net debt / EBITDA | β | β | β | β | β | β | β | 0.8x | β5.2x | β1.5x |
| Debt / equity | β | β | β | 0.0x | 1.0x | 1.4x | 4.5x | 1.4x | 0.0x | 0.0x |
| Interest coverage | β | β | β1,703.2x | β636.2x | β7.4x | β11.9x | β14.0x | 11.8x | 18.1x | 204.8x |
| Current ratio | 1.5x | 2.2x | 1.8x | 1.3x | 2.1x | 1.7x | 1.6x | 1.8x | 1.2x | 1.3x |
| Quick ratio | 1.5x | 2.2x | 1.8x | 1.3x | 2.1x | 1.7x | 1.6x | 1.8x | 1.2x | 1.3x |
| Capital allocation | ||||||||||
| Capex / revenue | 2.5% | 1.6% | 1.3% | 1.2% | 2.5% | 0.9% | 2.7% | 1.2% | 0.5% | 0.8% |
| Stock comp / revenue | 5.4% | 6.0% | 7.2% | 8.9% | 10.1% | 9.6% | 9.3% | 10.0% | 9.5% | 8.9% |
| Payouts / FCF | 175.2% | 9.4% | 69.1% | β | β | 218.0% | β | 5.0% | 23.1% | 105.0% |
| Quality scores | ||||||||||
| Piotroski F-score | β | β | β | β | 5.0 | 5.0 | 3.0 | 8.0 | 6.0 | 6.0 |
| Altman Z'' | 4.7 | 6.5 | 5.3 | 2.6 | 2.7 | 2.0 | 0.9 | 2.6 | 2.1 | 4.0 |
| Accruals ratio | 0.8% | β7.2% | β9.4% | β4.9% | β4.7% | β6.4% | β24.9% | β10.5% | β15.1% | β6.6% |
Source: SEC EDGAR XBRL filings (CIK 0001013857). Data updated October 20, 2026. Quarterly fourth quarters are the full year minus the first nine months. For information only β not investment advice. Check the original filings before relying on any figure.
