Pegasystems Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 21 April 2026: press release. The quarter’s numbers.

Key takeaways

Total revenue fell 10%: Total revenue was $429,973 thousand against $475,633 thousand a year earlier, a decline of 10%. Source
Pega Cloud revenue rose 36%: Pega Cloud revenue was $205,031 thousand, up from $151,123 thousand, and 48% of total revenue against 32% a year earlier. Source
Earnings per share declined: GAAP net income was $32,764 thousand, down 62%, and non-GAAP net income was $83,068 thousand, down 41%. GAAP diluted EPS was $0.18 against $0.46, and non-GAAP diluted EPS was $0.46 against $0.76. Source
Subscription license revenue fell 49%: Subscription license revenue was $94,852 thousand against $187,721 thousand, and 22% of total revenue against 39% a year earlier. Source
Gross profit fell to $323 million: Gross profit was $323,219 thousand against $373,183 thousand. Total cost of revenue rose to $106,754 thousand from $102,450 thousand. Source
Operating income fell to $37 million: Income from operations was $37,149 thousand against $126,989 thousand a year earlier. Foreign currency transaction was a $1,850 thousand gain against a $5,325 thousand loss. Source
ACV grew 12% year over year: Annual contract value reached $1,622 million against $1,445 million, up 12%, or 11% in constant currency. Source
Pega Cloud ACV up 29%: Pega Cloud ACV was $906,652 thousand, up 29%, or 27% in constant currency. Maintenance ACV fell 7% and subscription license ACV fell 2%. Source
Free cash flow rose 2%: Cash provided by operating activities was $212,251 thousand, up 4%. Free cash flow was $206,525 thousand, up 2%, after $5,726 thousand of investment in property and equipment. Source

“We continue to be differentiated in the market and of great value as enterprises recognize the need for a sustainable AI architecture.”
Alan Trefler, founder and CEO, Pegasystems

Results and growth drivers

Total revenue fell 10%: Total revenue was $429,973 thousand against $475,633 thousand a year earlier, a decline of 10%. Source
Pega Cloud revenue rose 36%: Pega Cloud revenue was $205,031 thousand, up from $151,123 thousand, and 48% of total revenue against 32% a year earlier. Source
Earnings per share declined: GAAP net income was $32,764 thousand, down 62%, and non-GAAP net income was $83,068 thousand, down 41%. GAAP diluted EPS was $0.18 against $0.46, and non-GAAP diluted EPS was $0.46 against $0.76. Source

Revenue mix by line

Subscription license revenue fell 49%: Subscription license revenue was $94,852 thousand against $187,721 thousand, and 22% of total revenue against 39% a year earlier. Source
Subscription services grew 23%: Subscription services revenue was $280,348 thousand, up 23%, and 65% of total revenue. Pega Cloud and maintenance are reported within this line. Source
Total subscription revenue down 10%: Total subscription revenue was $375,200 thousand against $415,212 thousand, down 10%, and held at 87% of total revenue in both periods. Source
Maintenance revenue slightly lower: Maintenance revenue was $75,317 thousand against $76,368 thousand, down 1%. Source
Consulting revenue declined 9%: Consulting revenue was $54,773 thousand against $60,421 thousand, down 9%, and 13% of total revenue in both periods. Source

“As enterprises move past the experimental phase of AI and demand real ROI, Pega's proven ability to generate measurable value allows us to showcase the financial impact we provide to our clients”
Ken Stillwell, COO and CFO, Pegasystems

Costs, margins and profit

Operating expenses rose 16%: Total operating expenses were $286,070 thousand, up from $246,194 thousand. General and administrative rose to $48,573 thousand from $33,828 thousand. Restructuring was a $153 thousand credit against $11 thousand a year earlier. Source
Selling and R&D costs increased: Selling and marketing expense was $155,603 thousand against $138,069 thousand. Research and development expense was $82,047 thousand against $74,286 thousand. Source
Gross profit fell to $323 million: Gross profit was $323,219 thousand against $373,183 thousand. Total cost of revenue rose to $106,754 thousand from $102,450 thousand. Source
Operating income fell to $37 million: Income from operations was $37,149 thousand against $126,989 thousand a year earlier. Foreign currency transaction was a $1,850 thousand gain against a $5,325 thousand loss. Source

Demand and order book

ACV grew 12% year over year: Annual contract value reached $1,622 million against $1,445 million, up 12%, or 11% in constant currency. Source
Pega Cloud ACV up 29%: Pega Cloud ACV was $906,652 thousand, up 29%, or 27% in constant currency. Maintenance ACV fell 7% and subscription license ACV fell 2%. Source
Backlog rose 16%: Remaining performance obligations, called backlog, were $2,011 million against $1,728 million, up 16%, or 14% in constant currency. Backlog due within one year was 51% of the total. Source
Subscription services ACV up 18%: Subscription services ACV was $1,183,486 thousand, up 18%, or 16% in constant currency. Source

Cash flow and balance sheet

Free cash flow rose 2%: Cash provided by operating activities was $212,251 thousand, up 4%. Free cash flow was $206,525 thousand, up 2%, after $5,726 thousand of investment in property and equipment. Source
Cash and securities increased: Cash, cash equivalents and marketable securities were $473,954 thousand at March 31, 2026, against $425,799 thousand at December 31, 2025. Source
Receivables fell, deferred revenue rose: Accounts receivable, net fell to $173,856 thousand from $264,713 thousand. Deferred revenue rose to $557,449 thousand from $509,275 thousand. Source
Stockholders' equity declined: Total stockholders' equity was $705,915 thousand at March 31, 2026, against $787,381 thousand at December 31, 2025. Source
Diluted share count down 5%: GAAP diluted weighted-average shares were 178,841 thousand against 188,826 thousand, down 5%. Source

Blueprint AI and strategy

Blueprint AI credited for Pega Cloud: The release headline credits Blueprint AI with Pega Cloud momentum in the first quarter of 2026. Source
Workflow engine as AI harness: The CEO described Blueprint AI as helping enterprises reimagine their businesses, with the workflow engine providing the harness for predictable outcomes. Source
AI value linked to ACV growth: The COO and CFO said the company's position supports ACV growth and cash flow margin expansion. Source

Legal costs and tax

Legal fees rose to $20 million: Legal fees excluded from non-GAAP results were $19,964 thousand against $6,544 thousand a year earlier. The release defines these as costs of proceedings outside the ordinary course of business. Source
GAAP tax rate lower at 17%: The GAAP effective income tax rate was 17% against 32% a year earlier. The non-GAAP rate was 22% in both periods, and the company said the GAAP rate fluctuates with several factors. Source

Figures management reported

Figure	Reported
Annual contract value (ACV) Source	$1,622 million, up 12% (11% constant currency)
Pega Cloud ACV Source	$906,652 thousand, up 29% (27% constant currency)
Backlog (remaining performance obligations) Source	$2,011 million, up 16% (14% constant currency)
Pega Cloud revenue Source	$205,031 thousand, up 36%
Subscription revenue Source	$375,200 thousand, down 10%

Risks management discussed

External: Changes in foreign exchange rates reduced reported ACV by $24 million, according to the ACV reconciliation. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Blueprint AI Drives Pega Cloud Momentum in Q1 2026

Pega Cloud Annual Contract Value (ACV) increases 29% year over year (27% in constant currency)
ACV grows 12% year over year (11% in constant currency)
Cash flow from operations and free cash flow both exceed $200M

WALTHAM, Mass. - April 21, 2026 - Pegasystems Inc. (NASDAQ: PEGA), the Enterprise Transformation Company™, released its financial results for the first quarter of 2026.

“Pega’s Blueprint AI helps enterprises reimagine their businesses while Pega’s powerful workflow engine provides the harness that ensures predictable outcomes,” said Alan Trefler, founder and CEO, Pegasystems. “We continue to be differentiated in the market and of great value as enterprises recognize the need for a sustainable AI architecture.”

“As enterprises move past the experimental phase of AI and demand real ROI, Pega's proven ability to generate measurable value allows us to showcase the financial impact we provide to our clients," said Ken Stillwell, COO and CFO, Pegasystems. "This positions us well to drive ACV growth and expand cash flow margins.”

Financial and performance metrics

Reconciliation of ACV and Constant Currency ACV

(in millions, except percentages)	March 31, 2025		March 31, 2026		1-Year Change
ACV		$1,445		$1,622	12%
Impact of changes in foreign exchange rates	-		(24)
Constant currency ACV		$1,445		$1,598	11%

Note: Constant currency ACV is calculated by applying the March 31, 2025 foreign exchange rates to current period shown.

Refer to the schedules at the end of this release for additional information, including a reconciliation of GAAP and non-GAAP measures.

Cash Flow Growth

(Dollars in thousands, except per share amounts)	Three Months Ended March 31,
	2026		2025		Change
Total revenue		$429,973		$475,633		(10)%
Net income - GAAP		$32,764		$85,422		(62)%
Net income - non-GAAP		$83,068		$140,542		(41)%
Diluted earnings per share - GAAP		$0.18		$0.46		(61)%
Diluted earnings per share - non-GAAP		$0.46		$0.76		(39)%

(Dollars in thousands)	Three Months Ended March 31,			Change
	2026	2025
Pega Cloud			$205,031	48%	$151,123	32%	$53,908	36%
Maintenance			75,317	17%	76,368	16%	(1,051)	(1)%
Subscription services			280,348	65%	227,491	48%	52,857	23%
Subscription license			94,852	22%	187,721	39%	(92,869)	(49)%
Subscription			375,200	87%	415,212	87%	(40,012)	(10)%
Consulting			54,773	13%	60,421	13%	(5,648)	(9)%
Total revenue			$429,973	100%	$475,633	100%	$(45,660)	(10)%

Quarterly conference call

A conference call and audio-only webcast will be conducted at 8:00 a.m. EDT on Wednesday, April 22, 2026.

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 9410633, or via https://events.q4inc.com/attendee/156449953 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, including statements about the growth and development of our business and market.

Words such as expects, anticipates, intends, plans, believes, will, could, should, estimates, may, targets, strategies, intends to, projects, positions, 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 timing of revenue recognition;
variation in demand for our products and services;
reliance on key personnel;
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, 2025, 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 April 21, 2026.

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 March 31,
	2026	2025
Revenue
Subscription services	$280,348	$227,491
Subscription license	94,852	187,721
Consulting	54,773	60,421
Total revenue	429,973	475,633
Cost of revenue
Subscription services	49,449	38,128
Subscription license	471	388
Consulting	56,834	63,934
Total cost of revenue	106,754	102,450
Gross profit	323,219	373,183
Operating expenses
Selling and marketing	155,603	138,069
Research and development	82,047	74,286
General and administrative	48,573	33,828
Restructuring	(153)	11
Total operating expenses	286,070	246,194
Income from operations	37,149	126,989
Foreign currency transaction gain (loss)	1,850	(5,325)
Interest income	2,954	5,335
Interest expense	(44)	(1,027)
(Loss) on capped call transactions	-	(223)
Other (loss) income, net	(2,204)	561
Income before provision for income taxes	39,705	126,310
Provision for income taxes	6,941	40,888
Net income	$32,764	$85,422
Earnings per share
Basic	$0.19	$0.50
Diluted	$0.18	$0.46
Weighted-average number of common shares outstanding
Basic	168,817	171,804
Diluted	178,841	188,826

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	March 31, 2026	December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$269,962	$212,447
Marketable securities	203,992	213,352
Total cash, cash equivalents, and marketable securities	473,954	425,799
Accounts receivable, net	173,856	264,713
Unbilled receivables, net	142,057	166,478
Other current assets	114,010	121,305
Total current assets	903,877	978,295
Long-term unbilled receivables, net	87,459	102,544
Goodwill	81,380	81,506
Long-term deferred income taxes	174,251	175,472
Other long-term assets	304,031	294,027
Total assets	$1,550,998	$1,631,844
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$14,206	$12,924
Accrued expenses	79,464	44,847
Accrued compensation and related expenses	67,222	148,797
Deferred revenue	557,449	509,275
Other current liabilities	25,061	21,935
Total current liabilities	743,402	737,778
Long-term operating lease liabilities	57,075	60,825
Other long-term liabilities	44,606	45,860
Total liabilities	845,083	844,463
Total stockholders’ equity	705,915	787,381
Total liabilities and stockholders’ equity	$1,550,998	$1,631,844

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Three Months Ended March 31,
	2026	2025
Net income	$32,764	$85,422
Adjustments to reconcile net income to cash provided by operating activities
Non-cash items	68,681	70,409
Change in operating assets and liabilities, net	110,806	48,397
Cash provided by operating activities	212,251	204,228
Cash provided by investing activities	2,760	261,895
Cash (used in) financing activities	(154,163)	(575,986)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(2,898)	3,570
Net increase (decrease) in cash, cash equivalents, and restricted cash	57,950	(106,293)
Cash, cash equivalents, and restricted cash, beginning of period	216,360	341,529
Cash, cash equivalents, and restricted cash, end of period	$274,310	$235,236

RECONCILIATION OF SELECTED GAAP AND NON-GAAP MEASURES

(in thousands, except percentages and per share amounts)

	Three Months Ended March 31,
	2026		2025		Change
Net income - GAAP		$32,764		$85,422		(62)%
Stock-based compensation		45,815		41,425
Legal fees		19,964		6,544
Amortization of intangible assets		783		701
Restructuring		(153)		11
Foreign currency transaction (gain) loss		(1,850)		5,325
Interest on convertible senior notes		-		394
Capped call transactions		-		223
Other		2,233		(751)
Income taxes		(16,488)		1,248
Net income - non-GAAP		$83,068		$140,542		(41)%
Diluted earnings per share - GAAP		$0.18		$0.46		(61)%
non-GAAP adjustments		0.28		0.30
Diluted earnings per share - non-GAAP		$0.46		$0.76		(39)%
Diluted weighted-average number of common shares outstanding - GAAP		178,841		188,826		(5)%
Capped call transactions		-		(4,850)
Diluted weighted-average number of common shares outstanding - non-GAAP		178,841		183,976		(3)%

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.
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.
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.
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.
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.
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.
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 our 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 we 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.

(1) Stock-based compensation:

	Three Months Ended March 31,
(Dollars in thousands)		2026		2025
Cost of revenue	$7,876		$7,823
Selling and marketing	18,454		15,781
Research and development	10,019		8,385
General and administrative	9,466		9,436
	$45,815		$41,425
Income tax benefit	$(9,164)		$(587)

(2) Effective income tax rates:

	Three Months Ended March 31,
	2026	2025
GAAP	17%	32%
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)

	Three Months Ended March 31,			Change
2026		2025
Cash provided by operating activities	$212,251		204,228	4%
Investment in property and equipment	(5,726)		(1,880)
Free cash flow	$206,525		$202,348	2%
Supplemental information
Legal fees	$2,801		$2,413
Restructuring	6,711		1,184
Interest paid on convertible senior notes	-		1,754
Income taxes, net of refunds	5,233		4,102
	$14,745		$9,453

(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.

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 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.
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.

	March 31, 2026	March 31, 2025	Change		Constant Currency Change
Pega Cloud	$906,652	$701,311	$205,341	29%	27%
Maintenance	276,834	298,422	(21,588)	(7)%	(8)%
Subscription services	1,183,486	999,733	183,753	18%	16%
Subscription license	438,514	445,677	(7,163)	(2)%	(2)%
	$1,622,000	$1,445,410	$176,590	12%	11%

BACKLOG

(in thousands, except percentages)

Remaining performance obligations (“Backlog”) - Expected future revenue from existing non-cancellable contracts:

As of March 31, 2026:

	Subscription services			Subscription license	Consulting	Total
Pega Cloud		Maintenance
1 year or less	$709,105		$212,262	$64,878	$42,884	$1,029,129	51%
1-2 years	384,966		77,207	1,402	3,758	467,333	23%
2-3 years	213,496		53,806	11,150	1,378	279,830	14%
Greater than 3 years	204,057		28,945	1,013	430	234,445	12%
	$1,511,624		$372,220	$78,443	$48,450	$2,010,737	100%
% of Total	75%		19%	4%	2%	100%
Change since March 31, 2025
	$260,513		$(12,178)	$33,260	$643	$282,238
	21%		(3)%	74%	1%	16%

As of March 31, 2025:

	Subscription services			Subscription license	Consulting	Total
Pega Cloud		Maintenance
1 year or less	$572,341		$229,180	$33,519	$45,320	$880,360	50%
1-2 years	331,572		73,500	3,718	2,291	411,081	24%
2-3 years	161,259		37,779	731	144	199,913	12%
Greater than 3 years	185,939		43,939	7,215	52	237,145	14%
	$1,251,111		$384,398	$45,183	$47,807	$1,728,499	100%
% of Total	72%		22%	3%	3%	100%

RECONCILIATION OF GAAP BACKLOG AND CONSTANT CURRENCY BACKLOG

(in millions, except percentages)

	March 31, 2025	March 31, 2026	1 Year Growth Rate
Backlog - GAAP	$1,728	$2,011	16%
Impact of changes in foreign exchange rates	-	(38)
Constant currency backlog	$1,728	$1,973	14%

Note: Constant currency backlog is calculated by applying the March 31, 2025 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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