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Pegasystems PEGA Subscription — Revenue from Contract with Customer, Excluding Assessed Tax

Other product segments

Subscription services
$288.46M+17.3%
Pega Cloud
$213.93M+28.3%
Subscription license
$82.03M+1.7%
Maintenance
$74.53M-6.0%
Consulting
$50.23M-13.1%

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ETROther revenues — Revenue from Contract with Customer, Excluding Assessed Tax
$36.28M-41.5%
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KMXService revenues — Revenue from Contract with Customer, Excluding Assessed Tax
$24.2M+24.1%
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TNLAncillary Revenues — Revenue from Contract with Customer, Excluding Assessed Tax
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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:RevenueFromContractWithCustomerExcludingAssessedTax.

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
Pega Cloud$213,934$166,743$418,965$317,866
Maintenance74,52879,271149,845155,639
Subscription services288,462246,014568,810473,505
Subscription license82,02880,674176,880268,395
Subscription370,490326,688745,690741,900
Consulting50,22657,824104,999118,245
Total revenue$420,716$384,512$850,689$860,145

ITEM 1. FINANCIAL STATEMENTS

FAQ

What is Pegasystems's subscription — revenue from contract with customer, excluding assessed tax?
Pegasystems (PEGA) reported subscription — revenue from contract with customer, excluding assessed tax of $370.49M in Q2 2026.
How has Pegasystems's subscription — revenue from contract with customer, excluding assessed tax changed year-over-year?
Pegasystems's subscription — revenue from contract with customer, excluding assessed tax increased by 13.4% year-over-year, from $326.69M to $370.49M.
What is the long-term trend for Pegasystems's subscription — revenue from contract with customer, excluding assessed tax?
Over 4 years (2021 to 2025), Pegasystems's subscription — revenue from contract with customer, excluding assessed tax has grown at a 12.2% compound annual growth rate (CAGR), from $957.47M to $1.52B.
What does subscription — revenue from contract with customer, excluding assessed tax mean?
This metric represents the total revenue recognized from subscription-based software licenses and cloud services, excluding any sales or value-added taxes collected from customers. It serves as a primary indicator of the company's recurring revenue growth and the successful adoption of its core software platform. By isolating subscription income, investors can evaluate the scalability and stability of the company's primary business model.

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