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Pegasystems PEGA Business Segments — R&D

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Other financials

Income statement

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Revenue$420.7M+9.4%
Gross profit$312.7M+13.7%
Operating income$16.6M-3.7%
Net income$13.3M-55.7%
EPS (diluted)$0.08-52.9%

Balance sheet

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Cash & equivalents$189.1M-8.3%
Total debt$72.0M-8.9%
Total equity$560.4M-10.3%
Total assets$1.4B+4.5%

Cash flow

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Operating cash flow$86.0M-0.3%
CapEx$4.2M+98.6%
Free cash flow$81.7M-2.9%

Valuation

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Market cap$5.21B-47.2%
Enterprise value$5.09B-47.7%
P/E16.1×-28.7×
P/S-2.9×

Profitability

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Gross margin75.6%+0.1pp
Operating margin9.9%-6.5pp
Net margin18.7%+5.5pp
FCF margin28.4%+4.1pp

Returns & leverage

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Return on equity54.7%+13.1pp
Debt / equity0.1×0.0×
Current ratio1.1×-0.4×

Where this comes from

Reported directly by Pegasystems in its filing.

Tagged under the XBRL concept us-gaap:ResearchAndDevelopmentExpense.

The source filing: Pegasystems’s 10-Q, filed July 21, 2026.

Filed
Jul 21, 2026, 4:09 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001013857-26-000050
(in thousands)Three Months Ended June 30, 2026Three Months Ended June 30, 2025Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Total cost of revenue108,029109,574214,783212,024
Selling132,154116,050265,298235,168
Marketing33,25431,08155,71350,032
Research and development84,16878,784166,215153,070
General and administrative43,74031,78892,31365,616
Other segment items, net (1)858(8,012)(1,851)(7,322)
Provision for (benefit from) income taxes5,179(4,830)12,12036,058
Net income$13,334$30,077$46,098$115,499

ITEM 1. FINANCIAL STATEMENTS

FAQ

What is Pegasystems's business segments — R&D?
Pegasystems (PEGA) reported business segments — R&D of $84.17M in Q2 2026.
How has Pegasystems's business segments — R&D changed year-over-year?
Pegasystems's business segments — R&D increased by 6.8% year-over-year, from $78.78M to $84.17M.
What is the long-term trend for Pegasystems's business segments — R&D?
Over 2 years (2023 to 2025), Pegasystems's business segments — R&D has grown at a 2.9% compound annual growth rate (CAGR), from $295.51M to $312.68M.
What does business segments — R&D mean?
This metric measures the investment in innovation, software engineering, and product development for the reportable segment. It reflects the company's commitment to maintaining a competitive edge through continuous platform enhancements and new feature releases. High levels of R&D spending are typically indicative of a focus on long-term product differentiation and market leadership.

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