Q3 / FY'26 Investor deck (q3 investor deck 2026)

Pegasystems Investor Presentation Q3 2026

pegainvestorrelations@pega.com

October 20, 2026

© Pegasystems Inc.

© Pegasystems Inc. 3

Our vision

Our software

What we do

Accelerate transformation with Pega Blueprint® and Predictable AI™

© Pegasystems Inc. 4

P® ega Infinity™

AI DECISIONING

MCP

& DX API™

Live Data Agents™

WORKFLOW AUTOMATION

CASE MANAGEMENT

Situational Layer Cake

Industry solutions

Business solution

Pega Cloud®

Enterprise software built on a Center-out® agent architecture

Leading enterprises run mission-critical work on Pega

Connecting workflows and decisions across the customer lifecycle

Communications service providers

• 1:1 customer engagement

• Customer service

• Order management

• Network operations

• Shared services

• Sales management

  Financial services

• 1:1 customer engagement

• Onboarding & KYC

• Lending

• Customer service

• Operations

• Payment exceptions

• Financial crime

  Government

• Acquisition & supply chain modernization

• Citizen service

• Enterprise modernization

• Investigative case management

• Grants & financial management

• Licensing

• Customer engagement

  Healthcare

• Customer engagement

• Onboarding & enrollment

• Customer service

• Claims

• Operations

• Care management services

  Insurance

  • Personalized engagement

  • High performing sales

  • Carrier distribution management

  • Underwriting automation

  • Service excellence

  • Claims optimization

ACV Growth

Founded: 1983 HQ: Waltham, MA Employees: 5,000+

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 free cash flow is defined as cash provided by operating activities less investment in property and equipment. Investment in property and equipment fluctuates in amount and frequency and is significantly affected by the timing and size of investments in our facilities and equipment. We provide information on free cash flow to enable investors to assess our ability to generate cash without incurring additional external financings. This information is not a substitute for financial measures prepared under U.S. GAAP.

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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 and business orchestration and automation

• Mission critical to our clients

• Managing the business with a Rule of 40 mindset

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© Pegasystems Inc. 9

Reimagine how work gets done

Run with predictable outcomes and cost

Build for change®

at AI speed

Transform legacy systems and redesign processes for the AI era.

Pega Blueprint AI®

Orchestrate agents, people, & systems.

Open agentic orchestration with

Pega Platform™

Deliver fast and effectively without escalating tech debt.

Open agentic engineering with

Infinity Studio™

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 Transformation

Operations

Service & Sales

Engagement

Modernize fast on a governed foundation

GO-LIVE in 40 HOURS

Shrink cycle time without losing control

FROM 1 DAY to <3 SECS

Improve efficiency + experience reliably

30%+ NPS GAINS

Scale decisioning leaders can stand behind

10x CONVERSION

Center out® is the application architecture for the AI world

Automate

with AI

Embed anywhere: meet users where they are

Consistency

across channels

Virtualize the data model

Connect

to anything

Access & store

data anywhere

Large language models

Customer

AI DECISIONING

Knowledge & documents

AgentX™ &

WORKFLOW AUTOMATION

Cloud services & databases

Employee

Agents

DX API™

MCP compliant

CASE MANAGEMENT

Situational Layer Cake™

Live Data Agents™

Pega Cloud™ Managed storage

Legacy systems & databases

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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

Your data stays yours

• Documents stored securely & privately

• Enterprise-grade privacy & compliance

• Your data is never used to train models

Design-time AI reasoning applies best practices from: Pega, partners, the client, and the internet

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Build better and faster with Infinity Studio™

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Pega Conversational Agent

Application control agent leverages Semantic AI to find the right workflow, agents, knowledge

Any Agent

MCP / A2A

Intake

Review Process Resolve

Orchestrate any agent

MCP / A2A

Pega Conversational Agent

Fabric control agent leverages Semantic AI to find the right workflow, agents, knowledge

Fabric registry

Agentic Process Fabric weaves together workflows, knowledge, and data across Pega apps

Any Agent

MCP / A2A

Intake

Review Process Resolve

Collect information

Agent step

Orchestrate any agent

MCP / A2A

recognized by leading industry analysts for decisioning, orchestration, and process intelligence

The Forrester Wave™

The Forrester Wave™

The Forrester Wave™

2026 Gartner® Magic Quadrant™

2026 Gartner® Magic Quadrant™

The Forrester Wave™

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Differentiated architecture

Ease of integration

Depth of platform functionality

Strong team

Deep Vertical Expertise

Robust ROI

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• Massive market opportunity

• Subscription journey

• Recurring model

• Margin expansion opportunities

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FY 30

$183B+

FY 26

$109B+

From…

Perpetual

Less Predictable

Lagging Growth & Margins

To…

Recurring

More Predictable Rule of 40 Driven

SUBSCRIPTION TRANSITION TIMELINE

2017 2023

$1,653M

Growth since September 30, 2025

ACV Reported: 6%

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 measurement date. The contract's total value is divided by its duration in years to calculate ACV. ACV is a performance measure that we believe provides useful information to our management and investors.

400M

Operating Cash Flow Growth

$347M

$304M

$251M

$138M

400M

Free Cash Flow Growth

$338M

$290M

$246M

$124M

300M 300M

200M 200M

100M 100M

0M

2023 2024 2025 2026

Nine Months Ended September 30,

Note: For additional information refer to explanatory notes on slide 34

0M

2023 2024 2025 2026

Nine Months Ended September 30,

Striving to build a growing, recurring business to drive increased value

Sustain growth

While expanding margins

And increasing cash flow

To drive shareholder value

With a view towards:

• Continuing our technology leadership

• Improving sales productivity

• Executing our target organization go-to-market strategy

• Driving ACV growth

• Leveraging Pega Cloud

  • Balancing growth & margin

  • Returning capital to shareholders

  • Rule of 40 driven

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Corporate Social Responsibility at Pega

ENVIRONMENTAL

We are committed to reducing the environmental impact of our operations on air, land, and water

SOCIAL

We strive to be a responsible corporate citizen and active contributor in communities where our employees, partners, and clients' work

GOVERNANCE

We believe that corporate governance is important to ensure that Pega is managed for the longterm benefit of all our stakeholders

https://www.pega.com/corporate-social-responsibility

© Pegasystems Inc.

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Pega Cloud ACV up 20% as reported Growth since September 30, 2025:

$1,653M

Total ACV: 6%

$1,557M

$677M

$742M

$815M

$976M

(7% constant currency)

Pega Cloud ACV: 20%

Client Cloud ACV: (9)% ((8)% constant currency)

September 30, 2025 September 30, 2026

Pega Cloud Client Cloud

Growth since September 30, 2025:

$1,557M

$1,653M

Total ACV: 6%

$416M

$445M

$815M

$976M

(7% constant currency)

Pega Cloud ACV: 20%

Client Cloud ACV: (9)%

((8)% constant currency)

September 30, 2025 September 30, 2026

Pega Cloud Maintenance Subscription License (Term)

$831M

$696M

$559M

$461M

Cloud Transition Begins

$51M

$83M

$134M

$208M

$301M

$384M

Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q4 2025 Q3 2026

$2,500M

$2,009M

$413

$2,000M

$466

$1,755M

$1,500M

$1,000M

$867

$500M

Growth since September 30, 2025:

15% Total

20% Current

28% Long-term

$0M

September 30, 2025 September 30, 2026

Other Backlog Pega Cloud Current Pega Cloud Long-Term

78%

79%

78%

74%

70%

67%

63%

Pega Cloud Gross Margin (%)

51%

2019 2020 2021 2022 2023 2024 2025 Trailing 12

Months*

Nine Months Ended September 30,

1. Our non-GAAP free cash flow is defined as cash provided by operating activities less investment in property and equipment. Investment in property and equipment fluctuates in amount and frequency and is significantly affected by the timing and size of investments in our facilities and equipment. We provide information on free cash flow to enable investors to assess our ability to generate cash without incurring additional external financings. This information is not a substitute for financial measures prepared under U.S. GAAP.

2. The supplemental information below identifies certain items included in operating cash flow that may affect comparability between periods.

   • Litigation settlement: Cost to settle litigation arising from proceedings outside the ordinary course of business. See "Note 16. Commitments and Contingencies" in Item 1 of our Quarterly Report filing on Form 10-Q for the period ended September 30, 2026 and prior filings for further information.

   • Legal fees: Legal and related fees arising from proceedings outside the ordinary course of business.

   • Restructuring: Restructuring fluctuates in amount and frequency and is significantly affected by the timing and size of our restructuring activities.

   • Interest on convertible senior notes: In February 2020, we issued convertible senior notes (the "Notes"), due March 1, 2025, in a private placement. The Notes accrued interest at an annual rate of 0.75%, paid semi-annually in arrears on March 1 and September 1. The outstanding Notes were repaid in their entirety at maturity.

   • Other: One-time cash flow items not part of our ongoing operations.

   • Income taxes, net of refunds: Direct income taxes paid net of refunds received.

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