Form 8-K

8-K — PEGASYSTEMS INC

Accession: 0001013857-26-000049

Filed: 2026-07-21

Period: 2026-07-21

CIK: 0001013857

SIC: 7374 (SERVICES-COMPUTER PROCESSING & DATA PREPARATION)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — pega-20260721.htm (Primary)

EX-99.1 (q22026_ex-991.htm)

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8-K

8-K (Primary)

Filename: pega-20260721.htm · Sequence: 1

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________

FORM 8-K

_________________________________

Current Report

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 21, 2026

____________________

PEGASYSTEMS INC.

(Exact name of Registrant as specified in its charter)

_________________________________

Massachusetts

1-11859

04-2787865

(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

225 Wyman Street, Waltham, MA 02451

(Address of principal executive offices, including zip code)

(617) 374-9600

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☒

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading symbol(s) Name of each exchange on which registered

Common Stock, $.01 par value per share PEGA NASDAQ Global Select Market

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 21, 2026, Pegasystems Inc. issued a press release announcing its financial results for the second quarter of 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety.

The information in this Item 2.02 and the Exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

Exhibit No. Description

99.1

Press release issued by Pegasystems Inc.

104

Cover Page Interactive Data File (formatted as Inline XBRL)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Pegasystems Inc.

Dated: July 21, 2026 By: /s/ KENNETH STILLWELL

Kenneth Stillwell

Chief Operating Officer and Chief Financial Officer

(Principal Financial Officer)

EX-99.1

Filename: q22026_ex-991.htm · Sequence: 2

Document

EXHIBIT 99.1

Pega Drives Cash Flow and Releases AI Innovation in Q2 2026

•Pega Cloud Annual Contract Value (ACV) increases 22% year over year

•ACV grows 7% year over year (8% in constant currency)

•Cash flow from operations and free cash flow both exceed $285M in first half of 2026

•Clients react with enthusiasm to Pega’s ‘no per-token cost’

WALTHAM, Mass. — July 21, 2026 — Pegasystems Inc. (NASDAQ: PEGA), the Enterprise Transformation Company™, released its financial results for the second quarter of 2026.

"Pega Infinity™ 26 uniquely deploys the power of AI with predictable outcomes and predicable costs by applying agents at design time to optimize run-time token use,” said Alan Trefler, founder and CEO, Pega. "Letting language models do everything is risky and expensive, and using AI to write mountains of code creates significant barriers to the ongoing change that enterprise clients require. Pega structures business applications in a way that makes sense to business and IT to Build for Change®.”

"Pega generated record first-half cash flow and returned substantial capital to shareholders,” said Ken Stillwell, COO and CFO, Pega. “As the market shifts from AI experimentation to tokenomics and reliable business outcomes, that evolution plays directly to Pega’s strengths, and we remain confident in our strategy to capitalize on the opportunity ahead.”

EXHIBIT 99.1

(continued)

Financial and performance metrics (1)

Unprecedented changes in the AI market caused clients to delay their purchasing decisions. As a result, our ACV growth rate significantly slowed during the six months ended June 30, 2026, as compared to the same period last year. These factors may continue to adversely affect the ACV growth rate for the rest of the year.

Reconciliation of ACV and Constant Currency ACV

(in millions, except percentages) June 30, 2025 June 30, 2026

1-Year Change

ACV $ 1,514 $ 1,620 7 %

Impact of changes in foreign exchange rates — 10

Constant currency ACV

$ 1,514 $ 1,630 8 %

Note: Constant currency ACV is calculated by applying the June 30, 2025 foreign exchange rates to current period shown.

(1) Refer to the schedules at the end of this release for additional information, including a reconciliation of GAAP and non-GAAP measures.

EXHIBIT 99.1

(continued)

Cash Flow Growth

As a result of the factors discussed under ACV above, our cash flow generation may continue to be adversely affected for the rest of the year.

(Dollars in thousands,

except per share amounts) Three Months Ended

June 30, Six Months Ended

June 30,

2026 2025 Change 2026 2025 Change

Total revenue $ 420,716 $ 384,512 9 % $ 850,689 $ 860,145 (1) %

Net income - GAAP $ 13,334 $ 30,077 (56) % $ 46,098 $ 115,499 (60) %

Net income - non-GAAP $ 59,533 $ 50,151 19 % $ 142,601 $ 190,693 (25) %

Diluted earnings per share - GAAP $ 0.08 $ 0.17 (53) % $ 0.26 $ 0.63 (59) %

Diluted earnings per share - non-GAAP $ 0.35 $ 0.28 25 % $ 0.81 $ 1.04 (22) %

(Dollars in thousands) Three Months Ended

June 30, Change Six Months Ended

June 30, Change

2026 2025 2026 2025

Pega Cloud $ 213,934 51 % $ 166,743 43 % $ 47,191 28 % $ 418,965 49 % $ 317,866 37 % $ 101,099 32 %

Maintenance 74,528 18 % 79,271 21 % (4,743) (6) % 149,845 18 % 155,639 18 % (5,794) (4) %

Subscription services 288,462 69 % 246,014 64 % 42,448 17 % 568,810 67 % 473,505 55 % 95,305 20 %

Subscription license 82,028 19 % 80,674 21 % 1,354 2 % 176,880 21 % 268,395 31 % (91,515) (34) %

Subscription 370,490 88 % 326,688 85 % 43,802 13 % 745,690 88 % 741,900 86 % 3,790 1 %

Consulting 50,226 12 % 57,824 15 % (7,598) (13) % 104,999 12 % 118,245 14 % (13,246) (11) %

Total revenue

$ 420,716 100 % $ 384,512 100 % $ 36,204 9 % $ 850,689 100 % $ 860,145 100 % $ (9,456) (1) %

Quarterly conference call

A conference call and audio-only webcast will be conducted at 8:00 a.m. EDT on Wednesday, July 22, 2026.

Members of the public and investors are invited to join the call and participate in the question and answer session by dialing 1 (833) 461-5787 (domestic) or 1 (626) 884-3620 (international) and using Conference ID 421269211, or via https://events.q4inc.com/attendee/421269211 by logging onto www.pega.com at least five minutes prior to the event's broadcast and clicking on the webcast icon in the Investors section.

Discussion of non-GAAP financial measures

Our non-GAAP financial measures should only be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. We believe that these measures help investors understand our core operating results and prospects, which is consistent with how management measures and forecasts our performance without the effect of often one-time charges and other items outside our normal operations. Management uses these measures to assess the performance of the company's operations and establish operational goals and incentives. They are not a substitute for financial measures prepared under U.S. GAAP. Refer to the schedules at the end of this release for additional information, including a reconciliation of GAAP and non-GAAP measures.

Forward-looking statements

Certain statements in this press release may be "forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including statements about the growth and development of our business and market.

Words such as expects, anticipates, intends, plans, believes, will, could, should, estimates, may, targets, strategies, intends to, projects, positions, forecasts, guidance, likely, and usually or variations of such words and other similar expressions identify forward-looking statements. These statements represent our views only as of the date the statement was made and are based on current expectations and assumptions.

Forward-looking statements deal with future events and are subject to risks and uncertainties that are difficult to predict, including, but not limited to:

•our future financial performance and business plans;

•the adequacy of our liquidity and capital resources;

•the successful execution of investments in artificial intelligence;

•the timing of revenue recognition;

•variation in demand for our products and services;

•reliance on key personnel;

•potential legal and financial liabilities, as well as damage to our reputation, due to cyber-attacks;

•security breaches and security flaws;

•our ability to protect our intellectual property rights, costs associated with defending such rights, intellectual property rights claims, and other related claims by third parties against us, including related costs, damages, and other relief that may be granted against us;

•our ongoing litigation with Appian Corp. and associated legal proceedings;

•our client retention rate; and

•management of our growth.

These risks and others that may cause actual results to differ materially from those expressed in such forward-looking statements are described further in Part I of our Annual Report on Form 10-K for the year ended December 31, 2025, and other filings we make with the SEC.

Investors are cautioned not to place undue reliance on such forward-looking statements, and there are no assurances that the results included in such statements will be achieved. Although subsequent events may cause our view to change, except as required by applicable law, we do not undertake and expressly disclaim any obligation to publicly update or revise these forward-looking statements, whether as the result of new information, future events, or otherwise.

Any forward-looking statements in this press release represent our views as of July 21, 2026.

About Pegasystems

Pega delivers the platform to reimagine, run, and evolve the processes and decisions an enterprise can't afford to get wrong. We combine AI with proven architecture to keep mission-critical operations governed, scalable, and continuously adaptable. Since 1983, the world's largest organizations have trusted Pega to turn transformation ambition into durable results. Learn more at www.pega.com.

Press contact:

Ilena Ryan

Director of PR

ilena.ryan@pega.com

617-866-6722

Investor contact:

Peter Welburn

VP, Corporate Development & Investor Relations

PegaInvestorRelations@pega.com

617-498-8968

All trademarks are the property of their respective owners.

PEGASYSTEMS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

Three Months Ended

June 30, Six Months Ended

June 30,

2026 2025 2026 2025

Revenue

Subscription services $ 288,462 $ 246,014 $ 568,810 $ 473,505

Subscription license 82,028 80,674 176,880 268,395

Consulting 50,226 57,824 104,999 118,245

Total revenue 420,716 384,512 850,689 860,145

Cost of revenue

Subscription services 53,941 41,510 103,390 79,638

Subscription license 267 364 738 752

Consulting 53,821 67,700 110,655 131,634

Total cost of revenue 108,029 109,574 214,783 212,024

Gross profit 312,687 274,938 635,906 648,121

Operating expenses

Selling and marketing 165,408 147,131 321,011 285,200

Research and development 84,168 78,784 166,215 153,070

General and administrative 43,740 31,788 92,313 65,616

Restructuring 2,735 (44) 2,582 (33)

Total operating expenses 296,051 257,659 582,121 503,853

Income from operations 16,636 17,279 53,785 144,268

Foreign currency transaction (loss) gain (1,364) (14,008) 486 (19,333)

Interest income 2,500 3,248 5,454 8,583

Interest expense (45) (1) (89) (1,028)

(Loss) on capped call transactions — — — (223)

Other income (loss), net 786 18,729 (1,418) 19,290

Income before provision for (benefit from) income taxes 18,513 25,247 58,218 151,557

Provision for (benefit from) income taxes 5,179 (4,830) 12,120 36,058

Net income $ 13,334 $ 30,077 $ 46,098 $ 115,499

Earnings per share

Basic $ 0.08 $ 0.18 $ 0.28 $ 0.67

Diluted $ 0.08 $ 0.17 $ 0.26 $ 0.63

Weighted-average number of common shares outstanding

Basic 165,613 170,776 167,206 171,287

Diluted 171,765 182,160 175,294 185,477

PEGASYSTEMS INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

June 30, 2026 December 31, 2025

Assets

Current assets:

Cash and cash equivalents $ 185,110 $ 212,447

Marketable securities 176,797 213,352

Total cash, cash equivalents, and marketable securities 361,907 425,799

Accounts receivable, net 143,213 264,713

Unbilled receivables, net 154,029 166,478

Other current assets 102,559 121,305

Total current assets 761,708 978,295

Long-term unbilled receivables, net 77,947 102,544

Goodwill 81,265 81,506

Long-term deferred income taxes

176,903 175,472

Other long-term assets 286,220 294,027

Total assets $ 1,384,043 $ 1,631,844

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable $ 52,964 $ 12,924

Accrued expenses 92,295 44,847

Accrued compensation and related expenses 87,583 148,797

Deferred revenue 462,532 509,275

Other current liabilities 23,886 21,935

Total current liabilities 719,260 737,778

Long-term operating lease liabilities 56,996 60,825

Other long-term liabilities 47,403 45,860

Total liabilities 823,659 844,463

Total stockholders’ equity 560,384 787,381

Total liabilities and stockholders’ equity $ 1,384,043 $ 1,631,844

PEGASYSTEMS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Six Months Ended

June 30,

2026 2025

Net income $ 46,098 $ 115,499

Adjustments to reconcile net income to cash provided by operating activities

Non-cash items 125,635 123,170

Change in operating assets and liabilities, net 126,492 51,827

Cash provided by operating activities 298,225 290,496

Cash provided by investing activities 25,832 212,995

Cash (used in) financing activities (349,030) (646,316)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash (2,299) 7,407

Net (decrease) in cash, cash equivalents, and restricted cash (27,272) (135,418)

Cash, cash equivalents, and restricted cash, beginning of period 216,360 341,529

Cash, cash equivalents, and restricted cash, end of period $ 189,088 $ 206,111

PEGASYSTEMS INC.

RECONCILIATION OF SELECTED GAAP AND NON-GAAP MEASURES

(in thousands, except percentages and per share amounts)

Three Months Ended

June 30, Six Months Ended

June 30,

2026 2025 Change 2026 2025 Change

Net income - GAAP $ 13,334 $ 30,077 (56) % $ 46,098 $ 115,499 (60) %

Stock-based compensation (1)

36,226 36,730 82,041 78,155

Legal fees 17,950 6,409 37,914 12,953

Amortization of intangible assets 237 675 1,020 1,376

Restructuring 2,735 (44) 2,582 (33)

Foreign currency transaction loss (gain) 1,364 14,008 (486) 19,333

Interest on convertible senior notes — — — 394

Capped call transactions — — — 223

Other

(700) (18,729) 1,533 (19,480)

Income taxes (2)

(11,613) (18,975) (28,101) (17,727)

Net income - non-GAAP $ 59,533 $ 50,151 19 % $ 142,601 $ 190,693 (25) %

Diluted earnings per share - GAAP $ 0.08 $ 0.17 (53) % $ 0.26 $ 0.63 (59) %

non-GAAP adjustments 0.27 0.11 0.55 0.41

Diluted earnings per share - non-GAAP $ 0.35 $ 0.28 25 % $ 0.81 $ 1.04 (22) %

Diluted weighted-average number of common shares outstanding - GAAP 171,765 182,160 (6) % 175,294 185,477 (5) %

Capped call transactions — — — (2,412)

Diluted weighted-average number of common shares outstanding - non-GAAP 171,765 182,160 (6) % 175,294 183,065 (4) %

Our non-GAAP financial measures reflect the following adjustments:

•Stock-based compensation: We have excluded stock-based compensation from our non-GAAP operating expenses and profitability measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to our revenues recognized during the periods presented and is expected to contribute to our future revenues, we continue to evaluate our business performance, excluding stock-based compensation.

•Legal fees: Legal and related fees arising from proceedings outside the ordinary course of business. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.

•Amortization of intangible assets: We have excluded the amortization of intangible assets from our non-GAAP operating expenses and profitability measures. Amortization of intangible assets fluctuates in amount and frequency and is significantly affected by the timing and size of acquisitions. Investors should note that intangible assets contributed to our revenues recognized during the periods presented and are expected to contribute to future revenues. Amortization of intangible assets is likely to recur in future periods. We believe excluding these amounts provides a useful comparison of our operational performance in different periods.

•Restructuring: We have excluded restructuring from our non-GAAP financial measures. Restructuring fluctuates in amount and frequency and is significantly affected by the timing and size of our restructuring activities. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as these amounts are not representative of our core business operations and ongoing operational performance.

•Foreign currency transaction loss (gain): We have excluded foreign currency transaction gains and losses from our non-GAAP profitability measures. Foreign currency transaction gains and losses fluctuate in amount and frequency and are significantly affected by foreign exchange market rates. Foreign currency transaction gains and losses are likely to recur in future periods. We believe excluding these amounts provides a useful comparison of our operational performance in different periods.

•Interest on convertible senior notes: In February 2020, we issued convertible senior notes (the “Notes”), due March 1, 2025, in a private placement. The Notes accrued interest at an annual rate of 0.75%, paid semi-annually in arrears on March 1 and September 1. The outstanding Notes were repaid in their entirety at maturity. We believe that excluding the amortization of issuance costs provides a useful comparison of our operational performance in different periods.

•Capped call transactions: We have excluded gains and losses related to our capped call transactions held at fair value under U.S. GAAP. The capped call transactions were expected to reduce common stock dilution and/or offset any potential cash payments we must make, other than for principal and interest, upon conversion of the Notes. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.

•Other: We have excluded gains and losses from our venture investments and other one-time, non-operating items. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.

•Diluted weighted-average number of common shares outstanding:

•Capped call transactions: In periods of GAAP net income, the shares calculated by applying the if-converted method related to our Notes are included in the diluted weighted-average shares outstanding if they are dilutive. The capped call transactions were expected to reduce common stock dilution and/or offset any potential cash payments we must make, other than for principal and interest, upon conversion of the Notes. We believe that including the expected impact of the capped call transactions in our non-GAAP financial measures provides a useful comparison of our operational performance in different periods.

(1) Stock-based compensation:

Three Months Ended

June 30, Six Months Ended

June 30,

(Dollars in thousands)

2026 2025 2026 2025

Cost of revenue $ 6,752 $ 7,288 $ 14,628 $ 15,111

Selling and marketing 14,555 14,378 33,009 30,159

Research and development 7,943 7,490 17,962 15,875

General and administrative 6,976 7,574 16,442 17,010

$ 36,226 $ 36,730 $ 82,041 $ 78,155

Income tax benefit $ (7,091) $ (566) $ (16,255) $ (1,153)

(2) Effective income tax rates:

Six Months Ended

June 30,

2026 2025

GAAP 21 % 24 %

non-GAAP 22 % 22 %

Our GAAP effective income tax rate is subject to significant fluctuations due to several factors, including our stock-based compensation plans, research and development tax credits, and the valuation allowance on our deferred tax assets in the U.S. and U.K. We determine our non-GAAP income tax rate using applicable rates in taxing jurisdictions and assessing certain factors, including historical and forecasted earnings by jurisdiction, discrete items, and ability to realize tax assets. We believe it is beneficial for our management to review our non-GAAP results consistent with our annual plan’s effective income tax rate as established at the beginning of each year, given tax rate volatility.

PEGASYSTEMS INC.

RECONCILIATION OF FREE CASH FLOW (1) AND OTHER METRICS

(in thousands, except percentages)

Six Months Ended

June 30,

Change

2026 2025

Cash provided by operating activities $ 298,225 290,496 3 %

Investment in property and equipment (9,967) (4,015)

Free cash flow (1)

$ 288,258 $ 286,481 1 %

Supplemental information (2)

Legal fees

$ 9,188 $ 10,020

Restructuring 11,449 1,354

Interest paid on convertible senior notes — 1,754

Other (689) —

Income taxes, net of refunds 10,842 (702)

$ 30,790 $ 12,426

(1) 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.

(2) The supplemental information below identifies certain items included in operating cash flow that may affect comparability between periods.

•Legal fees: Legal and related fees arising from proceedings outside the ordinary course of business.

•Restructuring: Restructuring fluctuates in amount and frequency and is significantly affected by the timing and size of our restructuring activities.

•Interest paid on convertible senior notes: In February 2020, we issued the Notes, due March 1, 2025, in a private placement. The Notes accrued interest at an annual rate of 0.75%, paid semi-annually in arrears on March 1 and September 1. The outstanding Notes were repaid in their entirety at maturity.

•Other: One-time cash flow items not part of our ongoing operations.

•Income taxes, net of refunds: Direct income taxes paid net of refunds received.

PEGASYSTEMS INC.

ANNUAL CONTRACT VALUE

(in thousands, except percentages)

Annual contract value (“ACV”) - 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.

June 30, 2026 June 30, 2025 Change

Constant Currency Change

Pega Cloud $ 926,290 $ 761,051 $ 165,239 22 % 22 %

Maintenance

271,328 301,375 (30,047) (10) % (9) %

Subscription services

1,197,618 1,062,426 135,192 13 % 13 %

Subscription license

422,316 451,591 (29,275) (6) % (6) %

$ 1,619,934 $ 1,514,017 $ 105,917 7 % 8 %

PEGASYSTEMS INC.

BACKLOG

(in thousands, except percentages)

Remaining performance obligations (“Backlog”) - Expected future revenue from existing non-cancellable contracts:

As of June 30, 2026:

Subscription services Subscription license Consulting Total

Pega Cloud Maintenance

1 year or less

$ 704,447 $ 198,492 $ 42,537 $ 47,220 $ 992,696 49 %

1-2 years

393,855 82,004 1,546 3,747 481,152 24 %

2-3 years

222,052 50,070 7,583 899 280,604 14 %

Greater than 3 years

241,679 20,480 958 1,062 264,179 13 %

$ 1,562,033 $ 351,046 $ 52,624 $ 52,928 $ 2,018,631 100 %

% of Total 77 % 17 % 3 % 3 % 100 %

Change since June 30, 2025

$ 240,835 $ (45,683) $ (21,826) $ 9,976 $ 183,302

18 % (12) % (29) % 23 % 10 %

As of June 30, 2025:

Subscription services Subscription license Consulting Total

Pega Cloud Maintenance

1 year or less

$ 603,683 $ 220,954 $ 62,222 $ 39,798 $ 926,657 51 %

1-2 years

334,586 79,345 4,262 2,846 421,039 23 %

2-3 years

172,513 49,587 746 252 223,098 12 %

Greater than 3 years

210,416 46,843 7,220 56 264,535 14 %

$ 1,321,198 $ 396,729 $ 74,450 $ 42,952 $ 1,835,329 100 %

% of Total 72 % 22 % 4 % 2 % 100 %

PEGASYSTEMS INC.

RECONCILIATION OF GAAP BACKLOG AND CONSTANT CURRENCY BACKLOG

(in millions, except percentages)

June 30, 2025 June 30, 2026 1 Year Growth Rate

Backlog - GAAP $ 1,835 $ 2,019 10 %

Impact of changes in foreign exchange rates — 20

Constant currency backlog

$ 1,835 $ 2,039 11 %

Note: Constant currency backlog is calculated by applying the June 30, 2025 foreign exchange rates to current period shown.

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COVER PAGE

Jul. 21, 2026

Cover [Abstract]

Document Type

8-K

Document Period End Date

Jul. 21, 2026

Entity Registrant Name

PEGASYSTEMS INC.

Entity Incorporation, State or Country Code

Entity File Number

1-11859

Entity Tax Identification Number

04-2787865

Entity Address, Address Line One

225 Wyman Street

Entity Address, City or Town

Waltham

Entity Address, State or Province

Entity Address, Postal Zip Code

02451

City Area Code

617

Local Phone Number

374-9600

Written Communications

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Soliciting Material

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false

Pre-commencement Issuer Tender Offer

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Title of 12(b) Security

Common Stock, $.01 par value per share

Trading Symbol

PEGA

Security Exchange Name

NASDAQ

Entity Emerging Growth Company

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- Definition

Area code of city

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No definition available.

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- Definition

Cover page.

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No definition available.

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For the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.

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No definition available.

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Period Type:

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- Definition

The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.

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No definition available.

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- Definition

Address Line 1 such as Attn, Building Name, Street Name

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Name of the City or Town

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No definition available.

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Code for the postal or zip code

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No definition available.

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Name of the state or province.

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No definition available.

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- Definition

A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

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- Definition

Indicate if registrant meets the emerging growth company criteria.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

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- Definition

Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.

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No definition available.

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Two-character EDGAR code representing the state or country of incorporation.

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No definition available.

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- Definition

The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

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The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

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- Definition

Local phone number for entity.

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No definition available.

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- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 13e

-Subsection 4c

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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 14d

-Subsection 2b

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- Definition

Title of a 12(b) registered security.

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-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b

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- Definition

Name of the Exchange on which a security is registered.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection d1-1

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Name:

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- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 14a

-Subsection 12

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- Definition

Trading symbol of an instrument as listed on an exchange.

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- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Securities Act

-Number 230

-Section 425

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