Pegasystems Inc. Reports Strong Revenue Growth

By Tamara Parker • Wednesday, October 22 06:08 • Permanent Link

Pegasystems Inc. has recently released its 10-Q report, providing a detailed look at the company's financial condition and results of operations. Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software in various regions worldwide, catering primarily to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer services markets.

In the three months ended September 30, 2025, Pega Cloud revenue increased by 28% to $184,549, compared to $144,108 in the same period in 2024. The company's subscription services revenue also saw a significant increase of 18% to $264,198 in the same period. The total revenue for the quarter was $381,350, a 17% increase from the same period in 2024.

The company reported a gross profit of $275,457 in the quarter, representing a 21% increase from the same period in 2024. Pega Cloud gross profit percentage increased to 80%, up from 79% in the same period in 2024. The company's operating expenses also saw an increase, with selling and marketing expenses rising by 10% to $140,129, research and development expenses increasing by 6% to $78,756, and general and administrative expenses rising by 18% to $42,108 in the three months ended September 30, 2025.

Pegasystems Inc. reported a foreign currency transaction gain of $7,154 and interest income of $2,660 in the three months ended September 30, 2025. The company also reported a net other income of $9,627 in the same period.

In the nine months ended September 30, 2025, the company's cash provided by operating activities increased by 38% to $346,796, compared to $250,697 in the same period in 2024. The company's free cash flow, defined as cash provided by operating activities less investment in property and equipment, also increased by 38% to $338,311 in the nine months ended September 30, 2025.

Pegasystems Inc. continues to show positive growth in its financial performance, with increases in revenue and gross profit. The company's focus on Pega Cloud and subscription services has contributed to its overall growth in the past year. Following these announcements, the company's shares moved 2.64%, and are now trading at a price of $54.79. If you want to know more, read the company's complete 10-Q report here.

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