PEGA

EX-99.1

2 q12026_ex-991.htm

EX-99.1

Document

EXHIBIT 99.1

Blueprint AI Drives Pega Cloud Momentum in Q1 2026

•Pega Cloud Annual Contract Value (ACV) increases 29% year over year (27% in constant currency)

•ACV grows 12% year over year (11% in constant currency)

•Cash flow from operations and free cash flow both exceed $200M

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

“Pega’s Blueprint AI helps enterprises reimagine their businesses while Pega’s powerful workflow engine provides the harness that ensures predictable outcomes,” said Alan Trefler, founder and CEO, Pegasystems. “We continue to be differentiated in the market and of great value as enterprises recognize the need for a sustainable AI architecture.”

“As enterprises move past the experimental phase of AI and demand real ROI, Pega's proven ability to generate measurable value allows us to showcase the financial impact we provide to our clients," said Ken Stillwell, COO and CFO, Pegasystems. "This positions us well to drive ACV growth and expand cash flow margins.”

Financial and performance metrics (1)

Reconciliation of ACV and Constant Currency ACV

(in millions, except percentages)March 31, 2025March 31, 2026 1-Year Change

ACV$1,445$1,62212 %

Impact of changes in foreign exchange rates— (24)

Constant currency ACV $1,445$1,59811 %

Note: Constant currency ACV is calculated by applying the March 31, 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.

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EXHIBIT 99.1

(continued)

Cash Flow Growth

(Dollars in thousands, except per share amounts)Three Months Ended March 31,

20262025Change

Total revenue$429,973 $475,633 (10)%

Net income - GAAP$32,764 $85,422 (62)%

Net income - non-GAAP$83,068 $140,542 (41)%

Diluted earnings per share - GAAP$0.18 $0.46 (61)%

Diluted earnings per share - non-GAAP$0.46 $0.76 (39)%

(Dollars in thousands)Three Months Ended March 31,Change

20262025

Pega Cloud$205,031 48 %$151,123 32 %$53,908 36 %

Maintenance75,317 17 %76,368 16 %(1,051)(1)%

Subscription services280,348 65 %227,491 48 %52,857 23 %

Subscription license94,852 22 %187,721 39 %(92,869)(49)%

Subscription375,200 87 %415,212 87 %(40,012)(10)%

Consulting54,773 13 %60,421 13 %(5,648)(9)%

Total revenue $429,973 100 %$475,633 100 %$(45,660)(10)%

Quarterly conference call

A conference call and audio-only webcast will be conducted at 8:00 a.m. EDT on Wednesday, April 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 (800) 715-9871 (domestic) or 1 (646) 307-1963 (international) and using Conference ID 9410633, or via https://events.q4inc.com/attendee/156449953 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.

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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

pega-20260210false000101385700010138572026-02-102026-02-10

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): February 10, 2026

PEGASYSTEMS INC.

(Exact name of Registrant as specified in its charter)

Massachusetts1-11859 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 classTrading symbol(s)Name of each exchange on which registered Common Stock, $.01 par value per sharePEGANASDAQ 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 February 10, 2026, Pegasystems Inc. issued a press release announcing its financial results for the fourth quarter and full-year 2025. 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 8.01    OTHER EVENTS

On February 10, 2026, Pegasystems Inc. announced an expansion of its current share repurchase program. Under this expansion, the expiration date of the current repurchase program has been extended from June 30, 2026 to June 30, 2027, and the amount of its common stock that Pegasystems is authorized to repurchase has been increased by $1 billion.

ITEM 9.01    FINANCIAL STATEMENTS AND EXHIBITS

Exhibit No.Description 99.1Press release issued by Pegasystems Inc.

104Cover 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:February 10, 2026By:/s/ KENNETH STILLWELL Kenneth Stillwell Chief Operating Officer and Chief Financial Officer (Principal Financial Officer)

pega-20251021false000101385700010138572025-10-212025-10-21

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): October 21, 2025

PEGASYSTEMS INC.

(Exact name of Registrant as specified in its charter)

Massachusetts1-11859 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 classTrading symbol(s)Name of each exchange on which registered Common Stock, $.01 par value per sharePEGANASDAQ 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 October 21, 2025, Pegasystems Inc. issued a press release announcing its financial results for the third quarter of 2025. 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 99.1Press release issued by Pegasystems Inc.

104Cover 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:October 21, 2025By:/s/ KENNETH STILLWELL Kenneth Stillwell Chief Operating Officer and Chief Financial Officer (Principal Financial Officer)