Pegasystems Inc

Pegasystems maintains a conservative capital structure with zero reported debt, resulting in a debt-to-equity ratio of 0.0. The balance sheet holds $269.96 million in cash and equivalents against total liabilities of $845.08 million, yielding a current ratio of 1.22. While the absence of debt mitigates interest rate risk, the current ratio sits close to the minimum comfort range, indicating medium liquidity risk. The company generated $212.25 million in operating cash flow and $206.53 million in free cash flow during Q1 2026, demonstrating strong cash conversion despite modest capital expenditures of $5.73 million.

Profitability metrics show a gross profit of $323.22 million on $429.97 million in revenue, implying a gross margin of approximately 75%. Operating income was $37.15 million, leading to a net income of $32.76 million. Return on equity stands at 4.64% and return on assets at 2.11%, which are relatively low returns on the capital base. The valuation multiples are elevated, with a P/E ratio of 152.26 and an EV/EBITDA of 112.64, reflecting high growth expectations or a compressed earnings base in the current period.

The company’s revenue is derived from its software offerings, specifically AI-powered design and low-code development platforms. There is no segment or geographic breakdown provided in the available data to assess concentration risk by region or product line. The business model focuses on accelerating time-to-value for enterprise clients while reducing risk through legacy application reimagining.

Growth trajectory analysis is limited by the absence of historical period data in the input. However, comparing Q1 2026 net income of $32.76 million to Q1 2025 net income of $85.42 million reveals a significant year-over-year decline in profitability. This decline coincides with restructuring activities, including employee severance costs of $153,000 in Q1 2026 compared to $3,000 in the prior year period.

Risk assessment highlights high dilution risk, driven by a diluted share count of 178.84 million versus a basic share count of 168.77 million. The difference of approximately 10 million shares indicates substantial outstanding options and RSUs that could dilute existing shareholders. Key flags also note that source documents mention dilution or offering risk, and the company is engaged in ongoing litigation with Appian Corp., which poses potential legal and financial liabilities.

Recent filings indicate the company is adopting new accounting guidance expected to result in disclosure changes only. The company has undertaken restructuring to align roles with an AI-first delivery model, incurring severance and office space reduction costs. Analyst sentiment remains positive, with a mean recommendation of 1.77 (strong buy) and a mean price target of $57.42, significantly above the current market price of $27.90.

Pegasystems Inc (PEGA.O) experienced a notable adjustment in its shareholder registry regarding investor ID 587, with data corrections detected in late June 2026. The most recent update, detected on June 24, 2026, revised the investor’s holding as of March 31, 2026, to 7,284 shares, valued at approximately $0.31 million. This represents a significant increase from the previously reported figure of 617 shares, which had been recorded in an earlier correction detected on June 21, 2026. The reversal of these figures highlights a data integrity event rather than a new market transaction, as both adjustments reference the same reporting period of March 31, 2026. The initial correction on June 21 had reduced the reported stake to 617 shares, but the subsequent update on June 24 restored the higher count of 7,284 shares. This sequence indicates that the final, accurate position for this specific investor during the first quarter of 2026 was the larger holding. Despite this specific holder adjustment, broader material changes to the company’s fundamental profile were not identified. An analysis of 17 fields revealed no material change versus prior analysis, with four schema-expansion fields excluded from the review. Consequently, the core operational and financial metrics of Pegasystems remain stable, with the shareholder data correction being the primary anomaly in the recent reporting cycle. The company continues to operate with a lean executive structure, featuring one officer, and maintains visibility through coverage by four analysts. With 34 top holders and no current index membership, Pegasystems’ ownership structure remains dispersed. The resolution of the data discrepancy for investor ID 587 ensures that the record of the company’s 34 top holders accurately reflects the stake size as of the end of the first quarter of 2026.

Revenue $430.0M; Operating income $37.1M.

• ▍Revenue $430.0M
• ▍Operating income $37.1M
• ▍Net margin 7.6%

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• ▍Revenue $1.24B
• ▍Operating income $158.7M
• ▍Net margin 12.8%

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• ▍Revenue $860.1M
• ▍Operating income $144.3M
• ▍Net margin 13.4%

Revenue $1.75B; Operating income $263.1M.

• ▍Revenue $1.75B
• ▍Operating income $263.1M
• ▍Net margin 22.5%

Revenue $1.50B; Operating income $123.9M.

• ▍Revenue $1.50B
• ▍Operating income $123.9M
• ▍Net margin 6.6%

Revenue $1.50B; Operating income $123.9M.

• ▍Revenue $1.50B
• ▍Operating income $123.9M
• ▍Net margin 6.6%

Revenue $1.43B; Operating income $81.0M.

• ▍Revenue $1.43B
• ▍Operating income $81.0M
• ▍Net margin 4.7%

Revenue $1.43B; Operating income $81.0M.

• ▍Revenue $1.43B
• ▍Operating income $81.0M
• ▍Net margin 4.7%