Slide 1: Pegasystems Investor Presentation Q1 2026
Pegasystems Investor Presentation Q1 2026 NASDAQ: PEGA pegainvestorrelations@pega.com April 21, 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, and growth of the business. Words such as expects, anticipates, inten
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™ © Pegasystem
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
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 • Customer • Personalized • 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+ Q1 2026 11% 27% ACV Growth Pega Cloud ACV Growth (in constant currency) (1) (in constant currency)(1) $207M Q1 2026 Free Cash Flow (2) (1) Constant currency change since March 31, 2025. (2) Our non-GAAP free cash flow
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 fE® PEGA
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 cos
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 recognize Pega The Forrester Wave™ 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™ CRM Software, Q1 2025 transformation 2025 Gartner® Magic Quadrant™ for Business
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 and 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
Recurring subscription model Annual Contract Value (ACV) as reported Growth since March 31, 2025 ACV Reported: 12% ACV Constant Currency: 11% $1,622M 1,600M $1,445M 1,400M 1,200M 1,000M March 31, 2025 March 31, 2026 ACV represents the annualized value of our active contracts as of the measurement da
Slide 22: Cash flow growth
Cash flow growth Operating Cash Flow Free Cash Flow Growth Growth 250M 250M $212M $207M $204M $202M 200M 200M $180M $180M 150M 150M 100M 100M $68M $57M 50M 50M 0M 0M 2023 2024 2025 2026 2023 2024 2025 2026 Three Months Ended March 31, Three Months Ended March 31, Note: For additional information ref
Slide 23: 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 24: © Pegasystems Inc.
© Pegasystems Inc. 24
Slide 25: 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 26: Reported ACV
Reported ACV: Pega Cloud ACV up 29% as reported Growth since March 31, 2025: Total ACV: 12% (11% constant currency) $1,622M $1,445M Pega Cloud ACV: 29% (27% constant currency) $907M $701M Client Cloud ACV: (4)% $744M $715M ((5)% constant currency) March 31, 2025 March 31, 2026 Pega Cloud Client Clou
Slide 27: Reported ACV
Reported ACV: Pega Cloud, maintenance, and subscription license (term) as reported Growth since March 31, 2025: Total ACV: 12% (11% constant currency) $1,622M $1,445M Pega Cloud ACV: 29% (27% constant currency) $907M $701M $298M $277M Client Cloud ACV: (4)% ((5)% constant currency) $446M $438M March
Slide 28: Pega Cloud Revenue
Pega Cloud Revenue Trailing 12 Months $750M $696M $559M $461M $384M $301M Cloud Transition $208M Begins $134M $83M $51M Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q4 2025 Q1 2026 © Pegasystems Inc. 28 28
Slide 29: Pega backlog
Pega backlog: Pega Cloud backlog up 21% & represents 75% of total backlog as reported Growth since March 31, 2025: $2,500M 16% Total $2,011M $2,000M $1,728M $499 $1,500M $477 $709 24% Current $1,000M $572 18% Long-term $500M $803 $679 $0M March 31, 2025 March 31, 2026 Other Backlog Pega Cloud Curren
Slide 30: Pega Cloud gross margin
Pega Cloud gross margin Pega Cloud gross margin has improved over time Pega Cloud Gross Margin (%) 79% 79% 78% 74% 70% 67% 63% 51% 2019 2020 2021 2022 2023 2024 2025 Trailing 12 Months* *As of March 31, 2026 © Pegasystems Inc. 30
Slide 31: Operating and free cash flow reconciliation
Operating and free cash flow reconciliation Three Months Ended March 31, (dollars in thousands) 2026 2025 2024 2023 Cash provided by operating activities $ 212,251 $ 204,228 $ 180,146 $ 68,107 Investment in property and equipment (5,726) (1,880) (604) (11,487) Free cash flow (1) $ 206,525 $ 202,348