PEGA · Nasdaq · Technology
Pegasystems Inc. (PEGA) — Rank #9 by gross profitability (GP/assets 1.00) · ROE 71.7% · Piotroski F-Score 7 / 9.
As-of 2026-10-30 · CIK 0001013857 · all metrics point-in-time as of the filing date.
About
Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific.
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It provides Pega Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine, which can predict a customer's behavior and recommend the next best action to take across channels in real-time; Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity; and Pega Platform, a software for AI-powered workflow automation for increasing the efficiency of clients' processes and operational workflows. The company also offers Situational Layer Cake that organizes logic into layers that map to the unique dimensions of a client's business, such as customer types, lines of business, geographies, etc.; Pega GenAI Blueprint to rapidly prototype and accelerate the development and deployment of applications; Pega Cloud that allows clients to develop, test, and deploy applications; Pega Catalyst, which helps clients to transform and prototype their customer journeys; Pega Academy, which offers enablement content for Pega product implementations, such as instructor-led and online training to its employees, clients, and partners; and global service assurance and client support services. It primarily markets its software and services to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer industries through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc.
was incorporated in 1983 and is headquartered in Waltham, Massachusetts.
- Industry
- Software - Application
- Sector
- Technology
- State
- MA
- Filer Category
- Large accelerated filer
- Fiscal Year End
- December 31
- Website
- pega.com
Company Snapshot
P/E and reverse DCF are the primary valuation lenses at this stage.
Market Cap
—
P/E (annual)
—
P/S (annual)
—
P/B
—
P/OCF (annual)
—
Shareholder Yield
—
Employees
5,598
Industry
Software - Application
Exchange
Nasdaq
10/12
Flags passed
PEGA passes 10/12 quality flags
2 cautions to review
- CAUTIONDilution above 2%
Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
- CAUTIONDisclosure regression
A previously-disclosed line item is no longer reported — worth checking the filing for why
- PASSGross margin holding
- PASSFCF not negative from investment
- PASSRevenue not declining
- PASSOperating margin holding
- PASSFree cash flow intact
- PASSPasses safety gate
- PASSBalance sheet stable
- PASSNo competitive retreat
- PASSSBC not compressing margin
- PASSNo valuation convergence
Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing · RPO outpacing revenue · Sequential beat (rev + EPS)
A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
1/2 passFCF yield, shareholder yield, and buyback activity are the primary reads at this stage.
Profitability
Does it make money well?
No warning flags · GP/assets 1.00
Gross profitability (GP / assets)
1.00
Primary signal (Novy-Marx).
3rd of 14 SIC 7374 peers
Return on equity
71.7%
Gross margin
75.9%
6th of 14 SIC 7374 peers
Revenue growth (YoY)
16.6%
RPO growth (YoY)
27.8%
Remaining performance obligations growth — RPO > revenue = forward demand building.
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
9.8%
Revenue CAGR (5Y)
11.4%
Earnings CAGR (3Y)
—
FCF CAGR (3Y)
—
Cash Flow Health
Is the cash real?
No warning flags · FCF 25% above net income
Free cash flow
$490.72M
Operating cash flow minus capex.
Positive free cash flow
FCF vs net income
24.7%
(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.
FCF not below net income
Fails when free cash flow is below net income (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
8.9%
Stock-based comp intensity.
Balance Sheet Strength
Can it survive a storm?
Caution: Dilution above 2% · net cash $309.71M, F-Score 7/9
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
1.42
10th of 12 SIC 7374 peers (best = lowest)
Current ratio
1.04×
13th of 14 SIC 7374 peers
Quick ratio
0.65×
Net cash
$309.71M
Cash & equivalents minus total debt.
Piotroski F-Score
7 / 9
Fundamental-strength score (0-9).
Valuation
Is the price reasonable?
No warning flags
Dividend safety
Composite score
3.8 / 5
Capital allocation quality
Composite score
1.7 / 5
Lifecycle Phase History
Price History
Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports