Open the filing on EDGARPega Unlocks AI Potential in Q3 2025
- Annual Contract Value (ACV) grows 14% year over year
- Pega Cloud ACV increases 27% year over year
- Cash flow from operations and free cash flow grow 38% year over year
- Repurchased 8.7M shares for $393M year to date
WALTHAM, Mass. - October 21, 2025 - Pegasystems Inc. (NASDAQ: PEGA), the Enterprise Transformation Company™, released its financial results for the third quarter of 2025.
“Our differentiated AI strategy continues to resonate deeply with clients, prospects, and partners, unlocking new levels of speed, predictability, and scale in enterprise applications,” said Alan Trefler, founder and CEO. “The results speak for themselves as clients and partners embrace Pega Blueprint and commit to strategic transformation with Pega.”
“Our strong sales performance, powered by the momentum of Pega Blueprint, drove Q3 2025,“ said Ken Stillwell, Pega COO and CFO. “Pega Cloud ACV growth accelerated again, and we’ve generated $347M in operating cash flow allowing us to have a significant year of buybacks. These outcomes reflect our financial discipline, our digital transformation leadership, and the expanding AI opportunity.”
Financial and performance metrics
Refer to the schedules at the end of this release for additional information, including a reconciliation of GAAP and non-GAAP measures.
Reconciliation of ACV and Constant Currency ACV
| (in millions, except percentages) | September 30, 2024 | September 30, 2025 | 1-Year Change |
| ACV | | $1,360 | | $1,557 | 14% |
| Impact of changes in foreign exchange rates | - | | (5) | | |
| Constant currency ACV | | $1,360 | | $1,552 | 14% |
Note: Constant currency ACV is calculated by applying the September 30, 2024 foreign exchange rates to current period shown.
Cash Flow Growth
| (Dollars in thousands,except per share amounts) | Three Months Ended September 30, | | | | Nine Months Ended September 30, | | |
| 2025 | | 2024 | | Change | | 2025 | | 2024 | | Change | |
| Total revenue | $381,350 | | $325,050 | | 17% | | | $1,241,495 | | $1,006,350 | | 23% | |
| Net income (loss) - GAAP | $43,364 | | $(14,390) | | | * | | $158,863 | | $(19,901) | | | * |
| Net income - non-GAAP | $55,164 | | $34,594 | | 59% | | | $245,857 | | $122,589 | | 101% | |
| Diluted earnings (loss) per share - GAAP | $0.24 | | $(0.08) | | | * | | $0.86 | | $(0.12) | | | * |
| Diluted earnings per share - non-GAAP | $0.30 | | $0.19 | | 58% | | | $1.34 | | $0.69 | | 94% | |
* Not meaningful
Per share amounts have been recast for all prior periods to reflect the effect of the Company’s two-for-one forward common stock split effected in the form of a stock dividend distributed on June 20, 2025.
| (Dollars in thousands) | Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change |
| | 2025 | | | 2024 | | | | 2025 | | | 2024 | |
| Pega Cloud | $184,549 | | 48% | $144,108 | | 44% | $40,441 | 28% | | $502,415 | 40% | | $409,096 | 41% | $93,319 | 23% |
| Maintenance | 79,649 | | 21% | 80,702 | | 25% | (1,053) | (1)% | | 235,288 | 20% | | 242,047 | 24% | (6,759) | (3)% |
| Subscription services | 264,198 | | 69% | 224,810 | | 69% | 39,388 | 18% | | 737,703 | 60% | | 651,143 | 65% | 86,560 | 13% |
| Subscription license | 60,600 | | 16% | 45,420 | | 14% | 15,180 | 33% | | 327,118 | 26% | | 193,405 | 19% | 133,713 | 69% |
| Subscription | 324,798 | | 85% | 270,230 | | 83% | 54,568 | 20% | | 1,064,821 | 86% | | 844,548 | 84% | 220,273 | 26% |
| Consulting | 56,394 | | 15% | 54,364 | | 17% | 2,030 | 4% | | 174,639 | 14% | | 160,451 | 16% | 14,188 | 9% |
| Perpetual license | 158 | | - % | 456 | | - % | (298) | (65)% | | 2,035 | - % | | 1,351 | - % | 684 | 51% |
| Total revenue | $381,350 | | 100% | $325,050 | | 100% | $56,300 | 17% | | $1,241,495 | 100% | | $1,006,350 | 100% | $235,145 | 23% |
Quarterly conference call
A conference call and audio-only webcast will be conducted at 8:00 a.m. EDT on Wednesday, October 22, 2025.
Members of the public and investors are invited to join the call and participate in the question and answer session by dialing 1 (800) 715-9871 (domestic) or 1 (646) 307-1963 (international) and using Conference ID 5464305, or via https://events.q4inc.com/attendee/290880287 by logging onto www.pega.com at least five minutes prior to the event's broadcast and clicking on the webcast icon in the Investors section.
Discussion of non-GAAP financial measures
Our non-GAAP financial measures should only be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. We believe that these measures help investors understand our core operating results and prospects, which is consistent with how management measures and forecasts our performance without the effect of often one-time charges and other items outside our normal operations. Management uses these measures to assess the performance of the company's operations and establish operational goals and incentives. They are not a substitute for financial measures prepared under U.S. GAAP. Refer to the schedules at the end of this release for additional information, including a reconciliation of GAAP and non-GAAP measures.
Forward-looking statements
Certain statements in this press release may be "forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995.
Words such as expects, anticipates, intends, plans, believes, will, could, should, estimates, may, targets, strategies, intends to, projects, forecasts, guidance, likely, and usually or variations of such words and other similar expressions identify forward-looking statements. These statements represent our views only as of the date the statement was made and are based on current expectations and assumptions.
Forward-looking statements deal with future events and are subject to risks and uncertainties that are difficult to predict, including, but not limited to:
- our future financial performance and business plans;
- the adequacy of our liquidity and capital resources;
- the successful execution of investments in artificial intelligence;
- the continued payment of our quarterly dividends;
- the timing of revenue recognition;
- variation in demand for our products and services, including among clients in the public sector;
- reliance on key personnel;
- reliance on third-party service providers, including hosting providers;
- compliance with our debt obligations and covenants;
- foreign currency exchange rates;
- potential legal and financial liabilities, as well as damage to our reputation, due to cyber-attacks;
- security breaches and security flaws;
- our ability to protect our intellectual property rights, costs associated with defending such rights, intellectual property rights claims, and other related claims by third parties against us, including related costs, damages, and other relief that may be granted against us;
- our ongoing litigation with Appian Corp. and associated legal proceedings;
- our client retention rate; and
- management of our growth.
These risks and others that may cause actual results to differ materially from those expressed in such forward-looking statements are described further in Part I of our Annual Report on Form 10-K for the year ended December 31, 2024, and other filings we make with the SEC.
Investors are cautioned not to place undue reliance on such forward-looking statements, and there are no assurances that the results included in such statements will be achieved. Although subsequent events may cause our view to change, except as required by applicable law, we do not undertake and expressly disclaim any obligation to publicly update or revise these forward-looking statements, whether as the result of new information, future events, or otherwise.
Any forward-looking statements in this press release represent our views as of October 21, 2025.
About Pegasystems
Pega provides the leading AI-powered platform for enterprise transformation. The world’s most influential organizations trust our technology to reimagine how work gets done by automating workflows, personalizing customer experiences, and modernizing legacy systems. Since 1983, our scalable, flexible architecture has fueled continuous innovation, helping clients accelerate their path to the autonomous enterprise. Ready to Build for Change®? Visit www.pega.com.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Revenue | | | | |
| Subscription services | $264,198 | | $224,810 | | $737,703 | | $651,143 | |
| Subscription license | 60,600 | | 45,420 | | 327,118 | | 193,405 | |
| Consulting | 56,394 | | 54,364 | | 174,639 | | 160,451 | |
| Perpetual license | 158 | | 456 | | 2,035 | | 1,351 | |
| Total revenue | 381,350 | | 325,050 | | 1,241,495 | | 1,006,350 | |
| Cost of revenue | | | | |
| Subscription services | 42,978 | | 36,868 | | 122,616 | | 108,930 | |
| Subscription license | 314 | | 384 | | 1,060 | | 1,504 | |
| Consulting | 62,601 | | 59,451 | | 194,235 | | 177,864 | |
| Perpetual license | - | | 3 | | 6 | | 12 | |
| Total cost of revenue | 105,893 | | 96,706 | | 317,917 | | 288,310 | |
| Gross profit | 275,457 | | 228,344 | | 923,578 | | 718,040 | |
| Operating expenses | | | | |
| Selling and marketing | 140,129 | | 127,669 | | 425,329 | | 395,125 | |
| Research and development | 78,756 | | 74,157 | | 231,826 | | 221,695 | |
| General and administrative | 42,108 | | 35,694 | | 107,724 | | 84,641 | |
| Litigation settlement, net of recoveries | - | | - | | - | | 32,403 | |
| Restructuring | (5) | | 2,485 | | (38) | | 3,283 | |
| Total operating expenses | 260,988 | | 240,005 | | 764,841 | | 737,147 | |
| Income (loss) from operations | 14,469 | | (11,661) | | 158,737 | | (19,107) | |
| Foreign currency transaction gain (loss) | 7,154 | | (4,405) | | (12,179) | | (7,230) | |
| Interest income | 2,660 | | 6,769 | | 11,243 | | 18,835 | |
| Interest expense | (144) | | (1,639) | | (1,172) | | (5,047) | |
| (Loss) on capped call transactions | - | | (689) | | (223) | | (667) | |
| Other (loss) income, net | (43) | | - | | 19,247 | | 1,684 | |
| Income (loss) before (benefit from) provision for income taxes | 24,096 | | (11,625) | | 175,653 | | (11,532) | |
| (Benefit from) provision for income taxes | (19,268) | | 2,765 | | 16,790 | | 8,369 | |
| Net income (loss) | $43,364 | | $(14,390) | | $158,863 | | $(19,901) | |
| Earnings (loss) per share | | | | |
| Basic | $0.25 | | $(0.08) | | $0.93 | | $(0.12) | |
| Diluted | $0.24 | | $(0.08) | | $0.86 | | $(0.12) | |
| Weighted-average number of common shares outstanding | | | | |
| Basic | 170,567 | | 171,250 | | 171,045 | | 170,036 | |
| Diluted | 184,095 | | 171,250 | | 185,005 | | 170,036 | |
The number of common shares and per share amounts have been recast for all prior periods to reflect the effect of the Company’s two-for-one forward common stock split effected in the form of a stock dividend distributed on June 20, 2025.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| September 30, 2025 | December 31, 2024 |
|---|
| Assets | | |
| Current assets: | | |
| Cash and cash equivalents | $148,699 | $337,103 |
| Marketable securities | 202,663 | 402,870 |
| Total cash, cash equivalents, and marketable securities | 351,362 | 739,973 |
| Accounts receivable, net | 160,919 | 305,468 |
| Unbilled receivables, net | 175,732 | 173,085 |
| Other current assets | 123,791 | 115,178 |
| Total current assets | 811,804 | 1,333,704 |
| Long-term unbilled receivables, net | 105,863 | 61,407 |
| Goodwill | 81,402 | 81,113 |
| Other long-term assets | 293,717 | 292,049 |
| Total assets | $1,292,786 | $1,768,273 |
| Liabilities and stockholders’ equity | | |
| Current liabilities: | | |
| Accounts payable | $8,057 | $6,226 |
| Accrued expenses | 51,857 | 31,544 |
| Accrued compensation and related expenses | 111,650 | 138,042 |
| Deferred revenue | 404,757 | 423,910 |
| Convertible senior notes, net | - | 467,470 |
| Other current liabilities | 21,131 | 18,866 |
| Total current liabilities | 597,452 | 1,086,058 |
| Long-term operating lease liabilities | 62,402 | 67,647 |
| Other long-term liabilities | 36,102 | 29,088 |
| Total liabilities | 695,956 | 1,182,793 |
| Total stockholders’ equity | 596,830 | 585,480 |
| Total liabilities and stockholders’ equity | $1,292,786 | $1,768,273 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Nine Months Ended September 30, |
|---|
| 2025 | 2024 |
|---|
| Net income (loss) | $158,863 | | $(19,901) | |
| Adjustments to reconcile net income (loss) to cash provided by operating activities | | |
| Non-cash items | 182,243 | | 180,036 | |
| Change in operating assets and liabilities, net | 5,690 | | 90,562 | |
| Cash provided by operating activities | 346,796 | | 250,697 | |
| Cash provided by (used in) investing activities | 214,897 | | (215,999) | |
| Cash (used in) provided by financing activities | (756,391) | | 26,949 | |
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 6,971 | | 4,591 | |
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (187,727) | | 66,238 | |
| Cash, cash equivalents, and restricted cash, beginning of period | 341,529 | | 232,827 | |
| Cash, cash equivalents, and restricted cash, end of period | $153,802 | | $299,065 | |
RECONCILIATION OF SELECTED GAAP AND NON-GAAP MEASURES
(in thousands, except percentages and per share amounts)
| Three Months Ended September 30, | | Nine Months Ended September 30, |
|---|
| 2025 | | 2024 | | Change | | 2025 | | 2024 | | Change | |
| Net income (loss) - GAAP | $43,364 | | $(14,390) | | | * | | $158,863 | | $(19,901) | | | * |
| Stock-based compensation | 43,041 | | 37,213 | | | | 121,196 | | 108,218 | | |
| Restructuring | (5) | | 2,485 | | | | (38) | | 3,283 | | |
| Legal fees | 10,024 | | 9,863 | | | | 22,977 | | 14,214 | | |
| Litigation settlement, net of recoveries | - | | - | | | | - | | 32,403 | | |
| Amortization of intangible assets | 627 | | 700 | | | | 2,003 | | 2,453 | | |
| Interest on convertible senior notes | - | | 621 | | | | 394 | | 1,857 | | |
| Capped call transactions | - | | 689 | | | | 223 | | 667 | | |
| Foreign currency transaction (gain) loss | (7,154) | | 4,405 | | | | 12,179 | | 7,230 | | |
| Other | 94 | | - | | | | (19,386) | | (1,628) | | |
| Income taxes | (34,827) | | (6,992) | | | | (52,554) | | (26,207) | | |
| Net income - non-GAAP | $55,164 | | $34,594 | | 59% | | | $245,857 | | $122,589 | | 101% | |
| Diluted earnings (loss) per share - GAAP | $0.24 | | $(0.08) | | | * | | $0.86 | | $(0.12) | | | * |
| non-GAAP adjustments | 0.06 | | 0.27 | | | | 0.48 | | 0.81 | | |
| Diluted earnings per share - non-GAAP | $0.30 | | $0.19 | | 58% | | | $1.34 | | $0.69 | | 94% | |
| Diluted weighted-average number of common shares outstanding - GAAP | 184,095 | | 171,250 | | 8% | | | 185,005 | | 170,036 | | 9% | |
| Capped call transactions | - | | - | | | | (1,599) | | - | | |
| Stock-based compensation | - | | 8,194 | | | | - | | 7,024 | | |
| Diluted weighted-average number of common shares outstanding - non-GAAP | 184,095 | | 179,444 | | 3% | | | 183,406 | | 177,060 | | 4% | |
* Not meaningful
Our non-GAAP financial measures reflect the following adjustments:
- Stock-based compensation: We have excluded stock-based compensation from our non-GAAP operating expenses and profitability measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to our revenues recognized during the periods presented and is expected to contribute to our future revenues, we continue to evaluate our business performance, excluding stock-based compensation.
- Restructuring: We have excluded restructuring from our non-GAAP financial measures. Restructuring fluctuates in amount and frequency and is significantly affected by the timing and size of our restructuring activities. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as these amounts are not representative of our core business operations and ongoing operational performance.
- Legal fees: Legal and related fees arising from proceedings outside the ordinary course of business. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.
- Litigation settlement, net of recoveries: Cost to settle litigation, net of insurance recoveries, arising from proceedings outside the ordinary course of business. See "Note 20. Commitments And Contingencies" in Item 8 of our Annual Report filed on Form 10-K for the year ended December 31, 2024 and prior filings for further information. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.
- Amortization of intangible assets: We have excluded the amortization of intangible assets from our non-GAAP operating expenses and profitability measures. Amortization of intangible assets fluctuates in amount and frequency and is significantly affected by the timing and size of acquisitions. Investors should note that intangible assets contributed to our revenues recognized during the periods presented and are expected to contribute to future revenues. Amortization of intangible assets is likely to recur in future periods. We believe excluding these amounts provides a useful comparison of our operational performance in different periods.
- Interest on convertible senior notes: In February 2020, we issued convertible senior notes (the “Notes”), due March 1, 2025, in a private placement. The Notes accrued interest at an annual rate of 0.75%, paid semi-annually in arrears on March 1 and September 1. The outstanding Notes were repaid in their entirety at maturity. We believe that excluding the amortization of issuance costs provides a useful comparison of our operational performance in different periods.
- Capped call transactions: We have excluded gains and losses related to our capped call transactions held at fair value under U.S. GAAP. The capped call transactions were expected to reduce common stock dilution and/or offset any potential cash payments we must make, other than for principal and interest, upon conversion of the Notes. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.
- Foreign currency transaction (gain) loss: We have excluded foreign currency transaction gains and losses from our non-GAAP profitability measures. Foreign currency transaction gains and losses fluctuate in amount and frequency and are significantly affected by foreign exchange market rates. Foreign currency transaction gains and losses are likely to recur in future periods. We believe excluding these amounts provides a useful comparison of our operational performance in different periods.
- Other: We have excluded gains and losses from our venture investments. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.
- Diluted weighted-average number of common shares outstanding:
- Capped call transactions: In periods of GAAP net income, the shares calculated by applying the if-converted method related to the Company’s Notes are included in the diluted weighted-average shares outstanding if they are dilutive. The capped call transactions were expected to reduce common stock dilution and/or offset any potential cash payments the Company must make, other than for principal and interest, upon conversion of the Notes. We believe that including the expected impact of the capped call transactions in our non-GAAP financial measures provides a useful comparison of our operational performance in different periods.
- Stock-based compensation: In periods of non-GAAP net income, we have included the dilutive impact of stock-based compensation in our non-GAAP weighted-average shares. In periods of GAAP net loss, these shares would have been excluded from our GAAP results as they would be anti-dilutive for GAAP. We believe including the dilutive effect of stock-based compensation in our non-GAAP financial measures in periods of net income is helpful to investors as this provides a useful comparison of our operational performance in different periods
(1) Per share amounts have been recast for all prior periods to reflect the effect of the Company’s two-for-one forward common stock split effected in the form of a stock dividend distributed on June 20, 2025.
(2) Stock-based compensation:
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| (Dollars in thousands) | | 2025 | | 2024 | | 2025 | | 2024 |
| Cost of revenue | $6,626 | | $6,894 | | $21,737 | | $20,558 | |
| Selling and marketing | 15,009 | | 14,169 | | 45,168 | | 41,621 | |
| Research and development | 7,914 | | 7,308 | | 23,789 | | 22,779 | |
| General and administrative | 13,492 | | 8,842 | | 30,502 | | 23,260 | |
| $43,041 | | $37,213 | | $121,196 | | $108,218 | |
| Income tax benefit | $(547) | | $(512) | | $(1,700) | | $(1,377) | |
(3) Effective income tax rates:
| Nine Months Ended September 30, |
|---|
| 2025 | 2024 |
|---|
| GAAP | 10% | | (73)% | |
| non-GAAP | 22% | | 22% | |
Our GAAP effective income tax rate is subject to significant fluctuations due to several factors, including our stock-based compensation plans, research and development tax credits, and the valuation allowance on our deferred tax assets in the U.S. and U.K. We determine our non-GAAP income tax rate using applicable rates in taxing jurisdictions and assessing certain factors, including historical and forecasted earnings by jurisdiction, discrete items, and ability to realize tax assets. We believe it is beneficial for our management to review our non-GAAP results consistent with our annual plan’s effective income tax rate as established at the beginning of each year, given tax rate volatility.
RECONCILIATION OF FREE CASH FLOW AND OTHER METRICS
(in thousands, except percentages)
| Nine Months Ended September 30, | Change |
|---|
| 2025 | | 2024 | | |
| Cash provided by operating activities | $346,796 | | 250,697 | 38% |
| Investment in property and equipment | (8,485) | | (4,921) | |
| Free cash flow | $338,311 | | $245,776 | 38% |
| Supplemental information | | | | |
| Litigation settlement, net of recoveries | $ - | | $32,403 | |
| Legal fees | 15,022 | | 9,232 | |
| Restructuring | 1,681 | | 4,214 | |
| Interest paid on convertible senior notes | 1,754 | | 3,767 | |
| Income taxes, net of refunds | 7,993 | | 32,246 | |
| $26,450 | | $81,862 | |
(1) Our non-GAAP free cash flow is defined as cash provided by operating activities less investment in property and equipment. Investment in property and equipment fluctuates in amount and frequency and is significantly affected by the timing and size of investments in our facilities and equipment. We provide information on free cash flow to enable investors to assess our ability to generate cash without incurring additional external financings. This information is not a substitute for financial measures prepared under U.S. GAAP.
(2) The supplemental information discloses items that affect our cash flows and are considered by management not to be representative of our core business operations and ongoing operational performance.
- Litigation settlement, net of recoveries: Cost to settle litigation, net of insurance recoveries, arising from proceedings outside the ordinary course of business. See "Note 20. Commitments And Contingencies" in Item 8 of our Annual Report filed on Form 10-K for the year ended December 31, 2024 and prior filings for further information.
- Legal fees: Legal and related fees arising from proceedings outside the ordinary course of business.
- Restructuring: Restructuring fluctuates in amount and frequency and is significantly affected by the timing and size of our restructuring activities.
- Interest paid on convertible senior notes: In February 2020, we issued convertible senior notes (the “Notes”), due March 1, 2025, in a private placement. The Notes accrued interest at an annual rate of 0.75%, payable semi-annually in arrears on March 1 and September 1. The outstanding Notes were repaid in their entirety at maturity.
- Income taxes, net of refunds: Direct income taxes paid net of refunds received.
ANNUAL CONTRACT VALUE
(in thousands, except percentages)
Annual contract value (“ACV”) - ACV represents the annualized value of our active contracts as of the measurement date. The contract's total value is divided by its duration in years to calculate ACV. ACV is a performance measure that we believe provides useful information to our management and investors.
| September 30, 2025 | September 30, 2024 | Change | Constant Currency Change |
|---|
| Pega Cloud | $815,370 | $640,574 | $174,796 | 27% | 27% |
| Maintenance | 296,955 | 306,753 | (9,798) | (3)% | (4)% |
| Subscription services | 1,112,325 | 947,327 | 164,998 | 17% | 17% |
| Subscription license | 444,601 | 412,678 | 31,923 | 8% | 8% |
| $1,556,926 | $1,360,005 | $196,921 | 14% | 14% |
BACKLOG
(in thousands, except percentages)
Remaining performance obligations (“Backlog”) - Expected future revenue from existing non-cancellable contracts:
As of September 30, 2025:
| Subscription services | Subscription license | Perpetual license | Consulting | Total |
|---|
| Pega Cloud | | Maintenance | | | |
| 1 year or less | $609,511 | | $199,651 | $46,228 | $158 | $43,979 | $899,527 | 51% |
| 1-2 years | 319,940 | | 71,730 | 4,404 | - | 2,478 | 398,552 | 23% |
| 2-3 years | 164,125 | | 48,668 | 746 | - | 114 | 213,653 | 12% |
| Greater than 3 years | 195,133 | | 40,385 | 7,220 | - | 56 | 242,794 | 14% |
| $1,288,709 | | $360,434 | $58,598 | $158 | $46,627 | $1,754,526 | 100% |
| % of Total | 73% | | 21% | 3% | - % | 3% | 100% | |
| Change since September 30, 2024 | | | | | | | |
| $224,173 | | $62,538 | $7,589 | $(2,411) | $(12,646) | $279,243 | |
| 21% | | 21% | 15% | (94)% | (21)% | 19% | |
As of September 30, 2024:
| Subscription services | Subscription license | Perpetual license | Consulting | Total |
|---|
| Pega Cloud | | Maintenance | | | |
| 1 year or less | $495,637 | | $188,905 | $38,175 | $2,252 | $54,203 | $779,172 | 53% |
| 1-2 years | 310,020 | | 63,701 | 9,686 | 317 | 3,062 | 386,786 | 26% |
| 2-3 years | 146,877 | | 26,436 | 3,046 | - | 2,008 | 178,367 | 12% |
| Greater than 3 years | 112,002 | | 18,854 | 102 | - | - | 130,958 | 9% |
| $1,064,536 | | $297,896 | $51,009 | $2,569 | $59,273 | $1,475,283 | 100% |
| % of Total | 73% | | 20% | 3% | - % | 4% | 100% | |
RECONCILIATION OF GAAP BACKLOG AND CONSTANT CURRENCY BACKLOG
(in millions, except percentages)
| September 30, 2024 | September 30, 2025 | 1 Year Growth Rate |
|---|
| Backlog - GAAP | $1,475 | $1,755 | 19% |
| Impact of changes in foreign exchange rates | - | (10) | |
| Constant currency backlog | $1,475 | $1,745 | 18% |
Note: Constant currency backlog is calculated by applying the September 30, 2024 foreign exchange rates to current period shown.
Contacts
Lisa Pintchman
VP, Corporate Communications lisapintchman.rogers@pega.com
617-866-6022
Peter Welburn
VP, Corporate Development & Investor Relations
PegaInvestorRelations@pega.com
617-498-8968
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