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Earnings transcript
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PEGA
Pegasystems Inc.
$34.16
-0.95
(-2.71%)
| Exchange: | NASDAQ |
| Market Cap: | 5.709B |
| Shares Outstanding: | 48.333M |
Delayed data
About The Company
| Sector: | Technology | |||||
| Industry: | Software – Application | |||||
| CEO: | Alan Trefler | |||||
| Full Time Employees: | 5443 | |||||
| Address: |
| |||||
| Website: | https://www.pega.com |
Pegasystems Inc., founded in 1983 and headquartered in Cambridge, Massachusetts, is a global provider of enterprise software solutions. The company’s operations span the United States, the wider Americas, the United Kingdom, other European nations, the Middle East, Africa, and the Asia-Pacific region, encompassing development, marketing, licensing, hosting, and support services. Their product portfolio includes the Pega Platform, designed for application development, and Pega Infinity, an integrated software suite that merges customer engagement capabilities with digital process automation. Pegasystems also offers specialized customer engagement applications such as the Pega Customer Decision Hub, which helps businesses enhance customer acquisition and overall experience across various digital and traditional channels. Other key applications include Pega Sales Automation, which streamlines sales workflows, and Pega Customer Service, engineered to anticipate client needs, facilitate connections between customers and company resources, automate service interactions, and ultimately improve both the customer experience and employee productivity. Further expanding its offerings, Pegasystems provides intelligent automation software and Pega Cloud, an internet-based infrastructure enabling clients to develop, test, and deploy applications, including the Pega Platform itself. Complementing its software, the company offers Pega Academy for comprehensive training (both in-person and online) to its staff, customers, and partners, alongside extensive guidance, implementation, and technical support services. Pegasystems primarily serves a broad spectrum of industries, including financial services, life sciences, healthcare, communications, media, government, insurance, manufacturing, high-tech, and consumer services, leveraging both a direct sales force and strategic partnerships with technology providers and application developers.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 1,432,616 | 1,497,180 | 1,745,812 |
| Gross Profit | 1,054,133 | 1,106,515 | 1,324,430 |
| EBITDA | 136,974 | 184,898 | 307,824 |
| Operating Income | 80,954 | 123,882 | 263,100 |
| Net Income | 67,808 | 99,189 | 393,437 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 1,510,736 | 1,768,273 | 1,631,844 |
| Total Liabilities | 1,156,898 | 1,182,793 | 844,463 |
| Total Stockholders Equity | 353,838 | 585,480 | 787,381 |
| Total Debt | 581,269 | 549,668 | 60,825 |
| Cash and Cash Equivalents | 229,902 | 337,103 | 212,447 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 217,785 | 345,926 | 505,227 |
| Capital Expenditure | -16,781 | -7,712 | 0 |
| Free Cash Flow | 201,004 | 338,214 | 505,227 |
| Net Income | 67,808 | 99,189 | 393,437 |
| Net Change in Cash | 87,773 | 108,702 | -125,169 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2028 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 2,454,532.083 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 2,480,340.850 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 2,467,436.467 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 111,017.520 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 112,184.840 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 111,601.180 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 525,997.346 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 751,424.516 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 638,710.931 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 1,205,644.347 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 1,218,321.384 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 1,211,982.865 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 3.440 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 4.070 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 2.850 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 5 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 3 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeForward P/E Ratios
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Login — it's freeSWOT Analysis
Strengths (preview)
- Robust Revenue Performance: PEGA has demonstrated consistent revenue growth as per the latest income statements, reflecting strong demand for its software solutions in the technology sector. This aligns with industry trends favoring digital transformation and automation.
- Solid Financial Health: The company exhibits a favorable current ratio (TTM) and quick ratio (TTM), indicating strong liquidity to meet short-term obligations. Additionally, positive free cash flow (TTM) underscores operational efficiency and financial stability.
- Innovation Focus: Insights from earnings call transcripts highlight PEGA’s commitment to innovation, with ongoing investments in AI and cloud-based solutions, positioning the company as a leader in customer engagement and operational efficiency software.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates PEGA intrinsic value between $53.89 – $55.52 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
[intrinsic_calculator]
Common questions about PEGA valuation
Is Pegasystems Inc. (PEGA) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for Pegasystems Inc. (PEGA) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is PEGA a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether PEGA trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is PEGA’s P/E ratio?
You can see PEGA’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for PEGA?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is PEGA a good long-term investment?
Whether PEGA fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
PEGA
1-day price chart preview. Log in for 1W through 5Y ranges and period tabs.
Daily snapshot
-2.71
Trading Metrics:
| Open: | 34.58 | Previous Close: | 35.11 | |
| Day Low: | 33.22 | Day High: | 35.17 | |
| Year Low: | 32 | Year High: | 68.1 | |
| Price Avg 50: | 37.51 | Price Avg 200: | 49.57 | |
| Volume: | 2.112M | Average Volume: | 2.134M |
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Login — it's freePEGA full analysis
Welcome to MARKETSNAP’s SWOT analysis for Pegasystems, or PEGA as it’s known on the ticker. If you’re not familiar with Pegasystems, let me give you the quick rundown. This company operates in the software industry, specifically focusing on business process management and customer relationship management solutions. They’re a key player in helping businesses automate and optimize their operations through innovative tech. With a solid market cap and a global presence, Pegasystems has carved out a niche in a competitive sector…
