Pegasystems : Q4 / FY'25 Investor deck (pega 21026 q4 deck)

About this update from Pegasystems Inc.

Pegasystems Investor Presentation Q4 2025 NASDAQ: PEGA [email protected] February 10, 2026 © Pegasystems Inc. Pega overview © Pegasystems Inc. 3 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 Inc. 4 Pega Infinity Industry solutions Business solution Software built on a Center-out® agent architecture AgentX & DX API AI DECISIONING Live Data Agents WORKFLOW AUTOMATION CASE MANAGEMENT Situational Layer Cake 1:1 Customer Engagement Customer Service Workflow Automation Legacy Transformation Drive more growth and retention with real-time AI to deliver next-best actions, orchestrate customer journeys, and optimize engagement across channels to improve outcomes and maximize enterprise value. Enhance customer satisfaction and reduce costs with AI-powered case management automation and journey orchestration to streamline processes, improve responsive, and drive efficient resolutions. Increase operational efficiency and reduce costs by automating workflows end-to-end with AI-powered orchestration, low-code tools, and unified data to streamline processes, improve agility, and drive fast deployment. Accelerate enterprise modernization and eliminate costs by retiring legacy systems fast with AI-driven analysis and low-code automation to redesign workflows, integrate operations, and deploy cloud solutions. Pega Customer Decision Hub Pega Customer Service Pega Sales Automation Pega Platform Pega RPA Pega Platform Pega Blueprint Pega Cloud ® The world's leading enterprise-scale organizations They are using Pega to connect workflows and interactions 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 Driving growth and free cash flow 14% ACV Growth Founded : 1983 HQ : Waltham, MA Employees : 5,000+ Q4 2025 28% Pega Cloud ACV Growth (in constant currency) (1) (in constant currency) (1) $491M FY25 Free Cash Flow (2) Constant currency change since December 31, 2024. 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. © Pegasystems Inc. 7 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 and business orchestration and automation Mission critical to our clients Managing the business with a Rule of 40 mindset © Pegasystems Inc. 8 Solution overview © Pegasystems Inc. 9 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 Legacy TRANSFORM Operations TRANSFORM Service & Sales TRANSFORM Personalization Cut costs, reduce risk, unlock data & innovation GO-LIVE in 40 HOURS Boost efficiency 45%+ FROM 1 DAY to <3 SECS Save $10Ms & raise satisfaction 30%+ NPS GAINS Generate $200M incremental revenue yearly 10x CONVERSION © Pegasystems Inc. 10 Center-out ® Agent Architecture Orchestrate AI agents, workflows, and decisions to accelerate enterprise transformation 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 Employee Agents AgentX & DX API MCP compliant WORKFLOW AUTOMATION CASE MANAGEMENT Situational Layer Cake Live Data Agents Cloud services & databases Pega Cloud Managed storage Legacy systems & databases © Pegasystems Inc. 11 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 GenAI Analysis Automate Your data stays yours Blueprint uses your documents to inform the design Blueprint never stores, shares, or reuses your documents Aligns with enterprise-grade privacy & compliance standards We won't use Blueprint data to train the models or spam you Rapid discovery Optimize workflows, fast Unlock data to the cloud with marketing offers Analyst firms recognize Pega as a leader for our AI-powered platform for enterprise transformation The Forrester Wave AI Decisioning Platforms, Q2 2025 The Forrester Wave Real-Time Interaction Management, Q4 2025 The Forrester Wave CRM Software, Q1 2025 2025 Gartner® Magic Quadrant for Business Orchestration and Automation Technologies 2025 Gartner® Magic Quadrant for Process Mining Platforms The Forrester Wave Digital Process Automation Software, Q3 2025 Business overview © Pegasystems Inc. 14 Why Pega wins Differentiated architecture Ease of integration Depth of platform functionality Strong team Deep Vertical Expertise Robust ROI Selling high-value use cases to the world's largest enterprises Legacy transformation CIO / IT Leaders Workflow automation COO / Operations Leaders Customer service CXO / Contact Center Leaders Customer engagement CMO / Marketing Leaders Reduce maintenance costs, improve resiliency, innovate for better efficiency & experiences with an AI-led approach to legacy transformation that enables clients to retire legacy apps - reimagining business processes as modern, cloud-native workflow applications + moving data to the cloud. Modernization | Integration | Scale Total Cost of Ownership (TCO) Enhance efficiency, improve customer experience & boost employee productivity with intelligent automation that transforms workflows into streamlined, automated processes that are connected and orchestrated end-to-end. Efficiency | Cost reduction Speed | Resilience | Risk Deliver efficient, personalized experiences with end-to-end workflow automation that drives consistency and empowers customers to self-solve -implementing incrementally from one low-code platform. Net Promoter Score | AHT Cost reduction | Self-service Optimize Customer Lifetime Value (CLV) with an always-on brain for the business that unifies data, analytics, and channels into a single connected experience -to build meaningful customer centricity into how they engage while also driving growth. Personalization | Growth Retention | Acquisition Financial details © Pegasystems Inc. 17 Financial outlook Massive market opportunity Subscription journey Recurring model Margin expansion opportunities © Pegasystems Inc. 18 Pursuing a massive market opportunity in platform & CRM FY 29 $150B+ FY 25 $90B+ Evolution of our subscription journey From… Perpetual Less Predictable Lagging Growth & Margins To… Recurring More Predictable Rule of 40 Driven SUBSCRIPTION TRANSITION TIMELINE 2017 2023 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 calculate ACV. ACV is a performance measure that we believe provides useful information to our management and investors. Cash flow growth Note: For additional information refer to explanatory notes on slide 37 2026 guidance As of February 10, 2026, we are providing the following guidance: Year Ended December 31, 2026 15% Annual contract value growth 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 $595 Million $575 Million Cash provided by operating activities Free cash flow Note: See a reconciliation of our GAAP to Non-GAAP guidance on slide 38 What this all means 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 © Pegasystems Inc. 25 Corporate Social Responsibility at Pega E S G 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. © Pegasystems Inc. 26 26 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) 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) 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 in years to calculate ACV. ACV is a performance measure that we believe provides useful information to our management and investors. Pega Cloud revenue Trailing 12 months Cloud Transition Begins © Pegasystems Inc. Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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