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Sep 30
Pegasystems Q3 2025 Earnings Report
Pegasystems reported strong Q3 results with solid revenue growth and a return to profitability.
Key Takeaways
Pegasystems delivered a solid Q3 2025, posting $381.4M in revenue, a return to positive GAAP net income, and robust Pega Cloud ACV growth. Operational discipline and AI-driven momentum were key drivers.
Revenue reached $381.4M, up from $325.1M a year ago.
GAAP Net Income was $43.4M, reversing a prior-year loss.
Pega Cloud ACV grew 27% YoY, driven by client demand.
Operating cash flow hit $347M, enabling $393M in share buybacks YTD.
Pegasystems
Pegasystems
Pegasystems Revenue by Segment
Revenue by Segment
Pega Cloud Revenue
CapyFin.comSubscription License Revenue
CapyFin.comConsulting Revenue
CapyFin.comPerpetual License Revenue
CapyFin.comMaintenance Revenue
CapyFin.com Forward Guidance
Pegasystems projects continued strength driven by AI adoption, operational execution, and subscription momentum.
Positive Outlook
- Strong adoption of Pega Blueprint and AI strategy
- Accelerated Pega Cloud ACV growth
- Robust operating cash flow
- Ongoing share repurchases
- Improved profitability metrics
Challenges Ahead
- No detailed FY26 guidance provided
- Dependence on large enterprise digital transformation trends
- Fluctuations in FX impact reported ACV and backlog
- Decline in maintenance revenue
- Ongoing legal fees and restructuring costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income