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

Pegasystems Investor Presentation Q4 2025

NASDAQ: PEGA

pegainvestorrelations@pega.com

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

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+

28%

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 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

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Solution overview

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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

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

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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

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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

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Financial outlook

• Massive market opportunity

• Subscription journey

• Recurring model

• Margin expansion opportunities

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Pursuing a massive market opportunity

in platform & CRM

FY 29

$150B+

FY 25

$90B+

Evolution of our subscription journey

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:

15%

Annual contract value growth

$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

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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.

© 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.