Detailed financial statements for Pegasystems Inc. (PEGA): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Pegasystems Inc., founded in 1983 and headquartered in Cambridge, Massachusetts, is a global provider of enterprise software solutions. The company's operations span the United States, the wider Americas, the United Kingdom, other European nations, the Middle East, Africa, and the Asia-Pacific region, encompassing development, marketing, licensing, hosting, and support services.
Analysis Summary
Pegasystems Inc. reported revenue of $1.75B in the most recent fiscal year, growing at a 5-year CAGR of 11.4%.
Trailing-twelve-month margins: gross margin 75.9%, operating margin 9.9%, net margin 16.9%.
At $33.93 (closing price, October 30, 2026), PEGA trades at a P/E of 21.07 and an ROE of 45.30%. Market capitalisation stands at $5.6B.
Balance sheet quality for PEGA: debt-to-equity ratio of 0.13, current ratio of 1.04 over the last 12 months, net cash position of $349.8M at the end of the last fiscal year. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $490.7M represents 125% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $750.3M | $840.6M | $891.6M | $911.4M | $1.02B | $1.21B | $1.32B | $1.43B | $1.50B | $1.75B |
| Cost of Revenue | $239.3M | $279.7M | $301.8M | $310.0M | $310.9M | $336.4M | $368.6M | $378.5M | $390.7M | $421.4M |
| Gross Profit | $523.0M | $608.8M | $589.8M | $601.4M | $706.6M | $875.3M | $949.2M | $1.05B | $1.11B | $1.32B |
| Research & Development | $145.5M | $162.9M | $181.7M | $205.2M | $237.0M | $260.6M | $294.3M | $295.5M | $298.1M | $312.7M |
| Selling, General & Admin | $323.9M | $352.7M | $425.1M | $531.0M | $613.1M | $709.4M | $742.5M | $655.9M | $647.6M | $727.4M |
| Operating Expenses | $472.3M | $515.6M | $606.8M | $736.2M | $850.1M | $970.0M | $1.06B | $973.2M | $982.6M | $1.06B |
| Operating Income | $50.6M | $93.2M | -$17.0M | -$134.9M | -$143.5M | -$94.7M | -$109.4M | $81.0M | $123.9M | $263.1M |
| EBITDA | $77.7M | $117.9M | $13.8M | -$113.2M | -$84.2M | -$95.4M | -$119.3M | $137.0M | $184.9M | $307.8M |
| Interest Expense | 0 | 0 | 0 | 0 | $19.4M | $8.0M | $7.8M | $6.9M | $6.8M | $1.3M |
| Pre-tax Income | $35.2M | $37.1M | -$11.5M | -$134.8M | -$124.9M | -$132.0M | -$161.8M | $95.4M | $142.6M | $280.6M |
| Income Tax | $8.2M | $4.2M | -$22.2M | -$44.4M | -$63.5M | -$68.9M | $183.8M | $27.6M | $43.4M | -$112.8M |
| Net Income | $27.0M | $32.9M | $10.6M | -$90.4M | -$61.4M | -$63.0M | -$345.6M | $67.8M | $99.2M | $393.4M |
| EPS | $0.17 | $0.64 | $0.07 | -$0.57 | -$0.38 | -$0.39 | -$2.11 | $0.41 | $0.58 | $2.30 |
| EPS (Diluted) | $0.17 | $0.59 | $0.06 | -$0.57 | -$0.38 | -$0.39 | -$2.11 | $0.40 | $0.55 | $2.13 |
| Shares Outstanding (Diluted) | 159.5 M | 165.7 M | 166.1 M | 158.1 M | 160.7 M | 162.8 M | 163.9 M | 169.8 M | 179.3 M | 184.8 M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $504.3M | $430.0M | $420.7M | $393.4M |
| Gross Profit | $400.9M | $323.2M | $312.7M | $289.5M |
| Operating Income | $104.4M | $37.1M | $16.6M | $14.9M |
| EBITDA | $112.6M | $46.0M | $20.4M | $24.8M |
| Net Income | $234.6M | $32.8M | $13.3M | $14.1M |
| EPS | $1.38 | $0.19 | $0.08 | $0.09 |
| EPS (Diluted) | $1.27 | $0.18 | $0.08 | $0.08 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $70.6M | $162.3M | $114.4M | $68.4M | $171.9M | $160.0M | $145.1M | $229.9M | $337.1M | $212.4M |
| Short-term Investments | $63.2M | $61.5M | $93.0M | 0 | $293.3M | $202.8M | $152.2M | $193.4M | $402.9M | $213.4M |
| Receivables | $279.2M | $382.8M | $353.5M | $379.9M | $438.3M | $447.7M | $511.8M | $562.5M | $552.9M | $482.6M |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $398.8M | $472.1M | $610.6M | $505.6M | $976.9M | $840.2M | $846.5M | $1.03B | $1.33B | $978.3M |
| Property, Plant & Equipment | $38.3M | $40.4M | $36.6M | $34.3M | $108.0M | $114.4M | $131.2M | $111.5M | $104.2M | $105.8M |
| Goodwill | $73.2M | $73.0M | $72.9M | $79.0M | $79.2M | $81.9M | $81.4M | $81.6M | $81.1M | $81.5M |
| Intangible Assets | $44.2M | $31.9M | $21.2M | $19.7M | $15.7M | $14.1M | $10.9M | $7.0M | $3.8M | $1.2M |
| Total Assets | $654.7M | $721.6M | $982.6M | $984.8M | $1.60B | $1.59B | $1.36B | $1.51B | $1.77B | $1.63B |
| Accounts Payable | $14.4M | $17.4M | $16.5M | $17.5M | $24.0M | $15.3M | $18.2M | $11.3M | $6.2M | $12.9M |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $467.5M | 0 |
| Total Current Liabilities | $284.0M | $313.2M | $331.8M | $378.0M | $460.1M | $485.4M | $538.9M | $577.1M | $1.09B | $737.8M |
| Long-term Debt | 0 | 0 | 0 | 0 | $518.2M | $590.7M | $593.6M | $499.4M | 0 | 0 |
| Total Liabilities | $318.8M | $350.5M | $361.0M | $445.8M | $1.06B | $1.18B | $1.23B | $1.16B | $1.18B | $844.5M |
| Retained Earnings | $198.3M | $221.9M | $510.9M | $410.9M | $339.9M | $276.4M | -$76.5M | -$8.7M | $87.9M | $463.4M |
| Total Equity | $335.9M | $371.1M | $621.5M | $539.0M | $542.2M | $416.1M | $130.8M | $353.8M | $585.5M | $787.4M |
| Total Debt | 0 | 0 | 0 | $52.6M | $595.8M | $685.5M | $687.7M | $581.3M | $549.7M | $76.0M |
| Net Debt | -$133.8M | -$223.7M | -$207.4M | -$15.8M | $130.6M | $322.8M | $390.5M | $157.9M | -$190.3M | -$349.8M |
| Working Capital | $114.7M | $158.9M | $278.8M | $127.7M | $516.8M | $354.8M | $307.5M | $452.0M | $247.6M | $240.5M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $148.7M | $212.4M | $270.0M | $185.1M |
| Total Assets | $1.29B | $1.63B | $1.55B | $1.38B |
| Total Liabilities | $696.0M | $844.5M | $845.1M | $823.7M |
| Total Equity | $596.8M | $787.4M | $705.9M | $560.4M |
| Total Debt | $76.8M | $76.0M | $72.1M | $72.0M |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $27.0M | $32.9M | $10.6M | -$90.4M | -$61.4M | -$63.0M | -$345.6M | $67.8M | $99.2M | $393.4M |
| Depreciation & Amortization | $24.1M | $24.7M | $25.3M | $21.4M | $21.3M | $28.6M | $34.7M | $34.7M | $35.4M | $25.9M |
| Stock-based Compensation | $40.8M | $53.3M | $63.9M | $80.9M | $103.1M | $115.9M | $122.2M | $143.4M | $142.7M | $155.2M |
| Change in Working Capital | -$44.5M | $32.6M | $20.7M | -$51.0M | -$33.0M | -$59.5M | -$64.4M | -$78.0M | $19.2M | $39.4M |
| Operating Cash Flow | $39.9M | $158.2M | $104.4M | -$42.2M | -$563,000 | $39.1M | $22.3M | $217.8M | $345.9M | $505.2M |
| Capital Expenditure | -$19.1M | -$13.7M | -$11.9M | -$10.6M | -$25.4M | -$10.5M | -$35.4M | -$16.8M | -$7.7M | -$14.5M |
| Acquisitions | -$49.1M | -$297,000 | -$800,000 | -$10.9M | $296.3M | -$5.0M | -$922,000 | 0 | 0 | 0 |
| Stock Repurchased | -$43.4M | -$45.0M | -$92.0M | -$67.0M | -$103.5M | -$122.6M | -$46.3M | -$1.9M | -$73.5M | -$499.7M |
| Dividends Paid | -$9.2M | -$9.3M | -$9.4M | -$9.5M | -$9.6M | -$9.8M | -$9.8M | -$10.0M | -$10.2M | -$15.4M |
| Free Cash Flow | $20.8M | $144.5M | $92.5M | -$52.8M | -$25.9M | $28.7M | -$13.0M | $201.0M | $338.2M | $490.7M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $56.3M | $158.4M | $212.3M | $86.0M |
| Capital Expenditure | -$4.5M | -$6.0M | -$5.7M | $5.7M |
| Free Cash Flow | $51.8M | $152.4M | $206.5M | $91.7M |
| Dividends Paid | -$5.2M | -$5.1M | -$5.1M | -$5.1M |
| Stock-based Compensation | $43.0M | $34.0M | $45.8M | -$45.8M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +12.0% | +6.1% | +2.2% | +11.6% | +19.1% | +8.8% | +8.7% | +4.5% | +16.6% | |
| Net Income Growth (YoY) | +22.0% | -67.8% | -951.8% | +32.1% | -2.7% | -448.2% | +119.6% | +46.3% | +296.7% | |
| EPS Growth (YoY) | +263.7% | -89.4% | -943.2% | +33.3% | -2.6% | -441.0% | +119.4% | +41.5% | +296.6% | |
| Shares Change (YoY) | +3.9% | +0.3% | -4.8% | +1.6% | +1.3% | +0.7% | +3.6% | +5.6% | +3.1% | |
| FCF Growth (YoY) | +595.2% | -36.0% | -157.1% | +50.9% | +210.5% | -145.5% | +1,641.1% | +68.3% | +45.1% | |
| Gross Margin | 69.7% | 72.4% | 66.2% | 66.0% | 69.4% | 72.2% | 72.0% | 73.6% | 73.9% | 75.9% |
| Operating Margin | 6.8% | 11.1% | -1.9% | -14.8% | -14.1% | -7.8% | -8.3% | 5.7% | 8.3% | 15.1% |
| EBITDA Margin | 10.4% | 14.0% | 1.5% | -12.4% | -8.3% | -7.9% | -9.1% | 9.6% | 12.3% | 17.6% |
| Net Margin | 3.6% | 3.9% | 1.2% | -9.9% | -6.0% | -5.2% | -26.2% | 4.7% | 6.6% | 22.5% |
| FCF Margin | 2.8% | 17.2% | 10.4% | -5.8% | -2.5% | 2.4% | -1.0% | 14.0% | 22.6% | 28.1% |
| Effective Tax Rate | 23.3% | 11.2% | 192.0% | 32.9% | 50.9% | 52.2% | -113.6% | 29.0% | 30.5% | -40.2% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.13 | $0.87 | $0.56 | -$0.33 | -$0.16 | $0.18 | -$0.08 | $1.18 | $1.89 | $2.66 |
| Dividends Per Share | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.08 |
| Shares Outstanding (Basic) | 152.7 M | 154.9 M | 157.1 M | 158.1 M | 160.7 M | 162.8 M | 163.9 M | 166.3 M | 170.5 M | 170.8 M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 45.30% |
| Return on Invested Capital | 25.99% |
| Return on Assets | 22.16% |
| Gross Margin | 75.86% |
| Operating Margin | 9.90% |
| Net Margin | 16.86% |
Financial Health
| Debt / Equity | 0.13 |
| Current Ratio | 1.04 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 9.42 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 102.86 | 37.05 | 353.85 | -69.88 | -175.34 | -143.36 | -8.11 | 59.59 | 80.34 | 25.97 |
| P/B | 8.18 | 9.84 | 6.05 | 11.68 | 19.75 | 21.87 | 21.44 | 11.48 | 13.57 | 12.95 |
| P/S | 3.66 | 4.34 | 4.22 | 6.91 | 10.52 | 7.51 | 2.13 | 2.84 | 5.31 | 5.84 |
| Gross Margin | 69.7% | 72.4% | 66.2% | 66.0% | 69.4% | 72.2% | 72.0% | 73.6% | 73.9% | 75.9% |
| Operating Margin | 6.8% | 11.1% | -1.9% | -14.8% | -14.1% | -7.8% | -8.3% | 5.7% | 8.3% | 15.1% |
| Net Margin | 3.6% | 3.9% | 1.2% | -9.9% | -6.0% | -5.2% | -26.2% | 4.7% | 6.6% | 22.5% |
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