- Pegasystems Inc. (PEGA, Financial) reports a 16% increase in Annual Contract Value (ACV) year-over-year for Q2 2025.
- Pega Cloud ACV grew by 28% year-over-year, with the cloud backlog increasing by 30%.
- The company achieved a notable 30% growth in both cash flow from operations and free cash flow.
Pegasystems Inc. (PEGA), a leader in enterprise transformation, revealed its financial performance for the second quarter of 2025, highlighting substantial growth in its Annual Contract Value (ACV) and Pega Cloud services. The ACV experienced a year-over-year increase of 16%, with a reported value of $1.514 billion, showcasing the company's strategic positioning in the market.
Pega Cloud ACV demonstrated remarkable year-over-year growth of 28%, and when adjusted for constant currency, it was up by 25%. This growth underscores Pega's continued success in expanding its cloud infrastructure and service offerings. The Pega Cloud backlog also saw a significant 30% increase, signifying strong future demand for its services.
Financial health was further supported by more than a 30% increase in both cash flow from operations and free cash flow, indicating robust financial management and operational efficiency. Total revenue for the quarter reached $384.512 million, marking a 9% increase from the previous year. Net income on a GAAP basis rose dramatically to $30.077 million, a 355% increase compared to the previous year's $6.613 million.
CEO Alan Trefler attributes the company's strong performance to innovative AI strategies, specifically highlighting Pega Blueprint and Pega Infinity workflow engine as key drivers. These innovations helped provide operational consistency and drove enterprise-level transformations effectively.
Investors and stakeholders can join Pega's quarterly conference call scheduled for July 23, 2025, at 8:00 a.m. EDT to delve deeper into these results and future strategies. The call will be accessible via webcast through Pega's website, further emphasizing the company's commitment to transparency and shareholder engagement.
