Slide 1: Pegasystems Investor Presentation Q4 2025
Pegasystems Investor Presentation Q4 2025 NASDAQ: PEGA pegainvestorrelations@pega.com February 10, 2026 © Pegasystems Inc.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including the size of the current and future market opportunity, growth of the business, and our 2026 guidance. Words such as expects,
Slide 3: Pega overview
Pega overview © Pegasystems Inc. 3
Slide 4: The future belongs to the Autonomous Enterprise
The future belongs to the Autonomous Enterprise Our vision To change the way the world builds software to reimagine AI transformation Our software AI-powered platform that accelerates enterprise transformation What we do Accelerate transformation with Pega Blueprint and Predictable AI © Pegasystems
Slide 5: Pega Infinity
Pega Infinity Software built on a Center-out® agent architecture Industry solutions Business solution 1:1 Customer Customer Workflow Legacy Engagement Service Automation Transformation AI DECISIONING Drive more growth and Enhance customer Increase operational Accelerate enterprise AgentX Live Data r
Slide 6: The world's leading enterprise-scale organizations
The world’s leading enterprise-scale organizations They are using Pega to connect workflows and interactions across the customer lifecycle Communications Financial services Government Healthcare Insurance service providers 1:1 customer Acquisition & supply Personalized • • • Customer • • 1:1 custome
Slide 7: Driving growth and free cash flow
Driving growth and free cash flow Founded: 1983 HQ: Waltham, MA Employees: 5,000+ Q4 2025 14% 28% ACV Growth Pega Cloud ACV Growth (in constant currency)(1) (in constant currency)(1) $491M FY25 Free Cash Flow (2) (1) Constant currency change since December 31, 2024. (2) Our non-GAAP free cash flow i
Slide 8: Key investment highlights
Key investment highlights • Growing enterprise software company, with a view towards a $150B+ market opportunity • Large enterprise client base in key verticals: Communications service providers, financial services, government, healthcare, and insurance • A proven technology leader in AI decisioning
Slide 9: Solution overview
Solution overview © Pegasystems Inc. 9
Slide 10: Enterprises accelerate their transformation with Pega Blueprint and Predictable AI
Enterprises accelerate their transformation with Pega Blueprint and Predictable AI Reimagine and replace brittle technology on a pragmatic, powerful platform architected for AI, agents, and automation TRANSFORM TRANSFORM TRANSFORM TRANSFORM Legacy Operations Service & Sales Personalization Cut costs
Slide 11: Center-out Agent Architecture
Center-out® Agent Architecture Orchestrate AI agents, workflows, and decisions to accelerate enterprise transformation Automate Access & store with AI data anywhere Embed anywhere: Connect meet users where to anything they are Consistency Virtualize the across channels data model Large language mode
Slide 12: Reimagine your AI transformation journey with a Blueprint
Reimagine your AI transformation journey with a Blueprint Securely build smarter, more automated workflows – all integrated with best-practices Design-time reasoning applies best practices from • Pega enterprise experience • Partner ecosystems • The Internet • Your own documents Design Optimize Auto
Slide 13: Analyst firms recognize Pega as a leader
Analyst firms The Forrester Wave recognize Pega AI Decisioning Platforms, Q2 2025 as a leader The Forrester Wave Real-Time Interaction Management, Q4 2025 for our AI-powered platform for enterprise The Forrester Wave transformation CRM Software, Q1 2025 2025 Gartner® Magic Quadrant for Business Orch
Slide 14: Business overview
Business overview © Pegasystems Inc. 14
Slide 15: Why Pega wins
Why Pega wins Differentiated Ease of Depth of Strong Deep Vertical Robust architecture integration platform team Expertise ROI functionality © Pegasystems Inc. 15
Slide 16: Selling high-value use cases to the world's largest enterprises
Selling high-value use cases to the world’s largest enterprises Legacy Workflow Customer Customer transformation automation service engagement CIO / IT Leaders COO / Operations Leaders CXO / Contact Center Leaders CMO / Marketing Leaders Reduce maintenance costs, Enhance efficiency, improve Deliver
Slide 17: Financial details
Financial details © Pegasystems Inc. 17
Slide 18: Financial outlook
Financial outlook • Massive market opportunity • Subscription journey • Recurring model • Margin expansion opportunities © Pegasystems Inc. 18
Slide 19: Pursuing a massive market opportunity in platform & CRM
Pursuing a massive market opportunity in platform & CRM FY 29 $150B+ FY 25 $90B+ Source: IDC Worldwide Semi-annual Software Tracker (May 2025) © Pegasystems Inc. 19
Slide 20: Evolution of our subscription journey
Evolution of our subscription journey From… To… Perpetual Recurring Less Predictable More Predictable Lagging Growth & Margins Rule of 40 Driven SUBSCRIPTION TRANSITION TIMELINE 2017 2023 © Pegasystems Inc. 20
Slide 21: Recurring subscription model: ACV as reported
Recurring subscription model: Annual Contract Value (ACV) as reported Growth since December 31, 2024 ACV Reported: 17% ACV Constant Currency: 14% 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
Slide 22: Cash flow growth
Cash flow growth Note: For additional information refer to explanatory notes on slide 37 © Pegasystems Inc. 22 22
Slide 23: 2026 guidance
2026 guidance As of February 10, 2026, we are providing the following guidance: Year Ended December 31, 2026 Annual contract value growth 15% Year Ended December 31, 2026 GAAP Non-GAAP Revenue $2.0 Billion $2.0 Billion Diluted earnings per share $1.87 $2.75 Year Ended December 31, 2026 Cash provided
Slide 24: What this all means
What this all means Striving to build a growing, recurring business to drive increased value While And To drive Sustain expanding increasing shareholder growth margins cash flow value With a view towards: • Continuing our technology leadership • Driving ACV growth • Balancing growth & margin • Impro
Slide 25: © Pegasystems Inc. 25
© Pegasystems Inc. 25
Slide 26: Corporate Social Responsibility at Pega
Corporate Social Responsibility at Pega E S G ENVIRONMENTAL SOCIAL GOVERNANCE We are committed to reducing the We strive to be a responsible We believe that corporate environmental impact of our corporate citizen and active governance is important to ensure operations on air, land, and water contrib
Slide 27: Reported ACV: Pega Cloud ACV up 33% as reported
Reported ACV: Pega Cloud ACV up 33% as reported Growth since December 31, 2024 Total ACV: 17% (14% constant currency) Pega Cloud ACV: 33% (28% constant currency) Client Cloud ACV: 3% (1% constant currency) ACV represents the annualized value of our active contracts as of the measurement date. The co
Slide 28: Reported ACV: Pega Cloud, maintenance, and subscription license
Reported ACV: Pega Cloud, maintenance, and subscription license (term) as reported Growth since December 31, 2024 Total ACV: 17% (14% constant currency) Pega Cloud ACV: 33% (28% constant currency) Client Cloud ACV: 3% (1% constant currency) ACV represents the annualized value of our active contracts
Slide 29: 2025 net ACV add is $190M, an increase of 37% over 2024
2025 net ACV add is $190M, an increase of 37% over 2024 Constant currency ACV using December 31, 2024 rates Growth since December 31, 2024: Net ACV Add: 37% ACV represents the annualized value of our active contracts as of the measurement date. The contract's total value is divided by its duration i
Slide 30: Pega Cloud revenue
Pega Cloud revenue Trailing 12 months Cloud Transition Begins © Pegasystems Inc. 30 30
Slide 31: Pega backlog
Pega backlog: Pega Cloud backlog up 36% & represents 74% of total backlog as reported Growth since December 31, 2024 28% Total 35% Current 38% Long-term © Pegasystems Inc. 31 31
Slide 32: Pega Cloud gross margin
Pega Cloud gross margin Pega Cloud gross margin has improved over time © Pegasystems Inc. 32
Slide 33: Operating and free cash flow reconciliation
Operating and free cash flow reconciliation Year Ended December 31, (dollars in thousands) 2025 2024 2023 2022 Cash provided by operating activities $ 505,227 $ 345,926 $ 217,785 $ 22,336 Investment in property and equipment (14,504) (7,712) (16,781) (35,379) Free cash flow (1) $ 490,723 $ 338,214 $
Slide 34: Net income and EPS guidance reconciliation
Net income and EPS guidance reconciliation (in millions, except per share amounts) 2026 Net Income - GAAP $ 344 Stock-based compensation 158 Legal fees 30 Incomes taxes (26) Net Income - Non-GAAP $ 506 Diluted earnings per share - GAAP $ 1.87 Non-GAAP adjustments 0.88 Diluted earnings per share - no
Slide 35: Free cash flow guidance reconciliation
Free cash flow guidance reconciliation (in millions) 2026 Cash provided by operating activities $ 595 Investment in property and equipment (20) Free cash flow $ 575 Supplemental information Legal fees $ 30 Restructuring 12 Litigation settlement, net of recoveries 10 Income taxes (1) 63 $ 115 (1) Evo