Pegasystems Inc. · NASDAQ:PEGA
Pegasystems — Q3 2026 Earnings Presentation
34 slides from Pegasystems's earnings presentation, Oct 20, 2026
Slide 1: Pegasystems Investor Presentation Q3 2026
Pegasystems Investor Presentation Q3 2026 NASDAQ: PEGA pegainvestorrelations@pega.com October 20, 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 enterprise transformation with AI Our software AI-powered platform that optimizes and automates workflows and decisions, predictably and at scale What we do Accelerate transformation w
Slide 5: Pega Infinity
Pega Infinity™ ® Enterprise software built on a Center-out® agent architecture Industry solutions Business solution 1:1 Customer Customer Workflow Legacy Engagement Service Automation Transformation Drive more growth and Enhance customer Increase operational Accelerate enterprise AI DECISIONING MCP
Slide 6: Leading enterprises run mission-critical work on Pega
Leading enterprises run mission-critical work on Pega Connecting workflows and decisions across the customer lifecycle Communications Financial services Government Healthcare Insurance service providers • 1:1 customer • Acquisition & supply • Customer • Personalized • 1:1 customer engagement chain m
Slide 7: Driving growth and free cash flow
Driving growth and free cash flow Founded: 1983 HQ: Waltham, MA Employees: 5,000+ Q3 2026 7% 20% ACV Growth Pega Cloud ACV Growth (in constant currency) (1) (in constant currency)(1) $290M Year-to-Date (YTD) Free Cash Flow (2) (1) Constant currency change since September 30, 2025. (2) Our non-GAAP f
Slide 8: Key investment highlights
Key investment highlights • Growing enterprise software company, with a view towards a $180B+ 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: Pega AI optimizes and automates workflows and decisions
Pega AI optimizes and automates workflows and decisions Reimagine how work Run with predictable Build for change® gets done outcomes and cost at AI speed Transform legacy systems and Orchestrate agents, people, & Deliver fast and effectively without redesign processes for the AI era. systems. escala
Slide 11: Enterprises transform mission-critical work with Pega Blueprint and Predictable AI
Enterprises transform mission-critical work with Pega Blueprint® and Predictable AI™ Reimagine work, run with predictable outcomes and cost, and Build For Change® at AI speed Legacy Operations Service & Sales Engagement Transformation Modernize fast on a Shrink cycle time without Improve efficiency
Slide 12: Center-out is the application architecture for the AI world
Center out® is the application architecture for the AI world 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 models Customer Knowledge & AI DECISIONING documents Cloud ser
Slide 13: Reimagine your business with Pega Blueprint AI
Reimagine your business with Pega Blueprint AI™ Rapid discovery Design, build & optimize workflows and apps Unlock logic & data to the cloud Pega Blueprint AI Agents Design-time AI reasoning applies best practices from: Pega, partners, Your data stays yours the client, and • Documents stored securel
Slide 14: Build better and faster with Infinity Studio
Build better and faster with Infinity Studio™ © Pegasystems Inc. 14
Slide 15: Orchestrate mission critical work predictably
Orchestrate mission critical work predictably Invoke processes from agents and agents from processes Application control agent leverages Semantic AI to find the right workflow, agents, knowledge Pega Conversational Agent Any Agent MCP / A2A Intake Review Process Resolve Collect information Agent ste
Slide 16: Orchestrate mission critical work predictably
Orchestrate mission critical work predictably Invoke processes from agents and agents from processes in any application Fabric control agent Fabric registry leverages Semantic AI to find the right Agentic Process Fabric weaves workflow, agents, together workflows, knowledge, and knowledge data acros
Slide 17: Change you can trust, validated by evidence
Change you can The Forrester Wave™ trust, validated by AI Platforms, Q3 2026 evidence The Forrester Wave™ Real-Time Interaction Management, Q4 2025 recognized by leading industry analysts for decisioning, orchestration, The Forrester Wave™ and process intelligence Customer Service Solutions, Q1 2026
Slide 18: Business overview
Business overview © Pegasystems Inc. 18
Slide 19: Why Pega wins
Why Pega wins Differentiated Ease of Depth of Strong Deep Vertical Robust architecture integration platform team Expertise ROI functionality © Pegasystems Inc. 19
Slide 20: Financial details
Financial details © Pegasystems Inc. 20
Slide 21: Financial outlook
Financial outlook • Massive market opportunity • Subscription journey • Recurring model • Margin expansion opportunities © Pegasystems Inc. 21
Slide 22: Pursuing a massive market opportunity in platform & CRM
Pursuing a massive market opportunity in platform & CRM FY 30 $183B+ FY 26 $109B+ Source: IDC Worldwide Semi-annual Software Tracker (May 2026) © Pegasystems Inc. 22
Slide 23: 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. 23
Slide 24: Recurring subscription model
Recurring subscription model Annual Contract Value (ACV) as reported Growth since September 30, 2025 ACV Reported: 6% $1,653M ACV Constant Currency: 7% 1,600M $1,557M 1,400M 1,200M 1,000M September 30, 2025 September 30, 2026 ACV represents the annualized value of our active contracts as of the meas
Slide 25: Cash flow growth
Cash flow growth Operating Cash Flow Free Cash Flow Growth Growth 400M 400M $347M $338M $304M 300M 300M $290M $251M $246M 200M 200M $138M $124M 100M 100M 0M 0M 2023 2024 2025 2026 2023 2024 2025 2026 Nine Months Ended September 30, Nine Months Ended September 30, Note: For additional information ref
Slide 26: 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 27: © Pegasystems Inc.
© Pegasystems Inc. 27
Slide 28: 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 29: Reported ACV: Pega Cloud ACV up 20% as reported
Reported ACV: Pega Cloud ACV up 20% as reported Growth since September 30, 2025: Total ACV: 6% (7% constant currency) $1,653M $1,557M Pega Cloud ACV: 20% $815M $976M Client Cloud ACV: (9)% $742M ((8)% constant currency) $677M September 30, 2025 September 30, 2026 Pega Cloud Client Cloud ACV represen
Slide 30: Reported ACV: Pega Cloud, maintenance, and subscription license
Reported ACV: Pega Cloud, maintenance, and subscription license (term) as reported Growth since September 30, 2025: Total ACV: 6% (7% constant currency) $1,653M $1,557M Pega Cloud ACV: 20% $815M $976M $297M $261M Client Cloud ACV: (9)% ((8)% constant currency) $445M $416M September 30, 2025 Septembe
Slide 31: Pega Cloud Revenue
Pega Cloud Revenue Trailing 12 Months $831M $696M $559M $461M $384M $301M Cloud Transition Begins $208M $134M $83M $51M Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q4 2025 Q3 2026 © Pegasystems Inc. 31 31
Slide 32: Pega backlog
Pega backlog: Pega Cloud backlog up 24% & represents 80% of total backlog as reported Growth since September 30, 2025: $2,500M 15% Total $2,009M $2,000M $1,755M $413 $1,500M $466 $730 20% Current $1,000M $610 28% Long-term $500M $867 $679 $0M September 30, 2025 September 30, 2026 Other Backlog Pega
Slide 33: Pega Cloud Gross Margin
Pega Cloud gross margin Pega Cloud gross margin has improved over time Pega Cloud Gross Margin (%) 79% 78% 78% 74% 70% 67% 63% 51% 2019 2020 2021 2022 2023 2024 2025 Trailing 12 Months* *As of September 30, 2026 © Pegasystems Inc. 33
Slide 34: Operating and free cash flow reconciliation
Operating and free cash flow reconciliation Nine Months Ended September 30, (dollars in thousands) 2026 2025 2024 2023 Cash provided by operating activities $ 304,299 $ 346,796 $ 250,697 $ 137,920 Investment in property and equipment (14,474) (8,485) (4,921) (14,271) Free cash flow (1) $ 289,825 $ 3