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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): July 21, 2026
____________________
PEGASYSTEMS INC.
(Exact name of Registrant as specified in its charter)
_________________________________
Massachusetts
1-11859
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 class Trading symbol(s) Name of each exchange on which registered
Common Stock, $.01 par value per share PEGA NASDAQ 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 July 21, 2026, Pegasystems Inc. issued a press release announcing its financial results for the second quarter of 2026. 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
99.1
104
Cover 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: July 21, 2026 By: /s/ KENNETH STILLWELL
Kenneth Stillwell
Chief Operating Officer and Chief Financial Officer
(Principal Financial Officer)


EX-99.1 2 q22026_ex-991.htm EX-99.1 Document
EXHIBIT 99.1
q42019pegalogo.jpg

Pega Drives Cash Flow and Releases AI Innovation in Q2 2026
•Pega Cloud Annual Contract Value (ACV) increases 22% year over year
•ACV grows 7% year over year (8% in constant currency)
•Cash flow from operations and free cash flow both exceed $285M in first half of 2026
•Clients react with enthusiasm to Pega’s ‘no per-token cost’

WALTHAM, Mass. — July 21, 2026 — Pegasystems Inc. (NASDAQ: PEGA), the Enterprise Transformation Company™, released its financial results for the second quarter of 2026.
"Pega Infinity™ 26 uniquely deploys the power of AI with predictable outcomes and predicable costs by applying agents at design time to optimize run-time token use,” said Alan Trefler, founder and CEO, Pega. "Letting language models do everything is risky and expensive, and using AI to write mountains of code creates significant barriers to the ongoing change that enterprise clients require. Pega structures business applications in a way that makes sense to business and IT to Build for Change®.”

"Pega generated record first-half cash flow and returned substantial capital to shareholders,” said Ken Stillwell, COO and CFO, Pega. “As the market shifts from AI experimentation to tokenomics and reliable business outcomes, that evolution plays directly to Pega’s strengths, and we remain confident in our strategy to capitalize on the opportunity ahead.”
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EXHIBIT 99.1
(continued)
Financial and performance metrics (1)
chart-11c2229feab24971a25.jpg
Unprecedented changes in the AI market caused clients to delay their purchasing decisions. As a result, our ACV growth rate significantly slowed during the six months ended June 30, 2026, as compared to the same period last year. These factors may continue to adversely affect the ACV growth rate for the rest of the year.
Reconciliation of ACV and Constant Currency ACV
(in millions, except percentages) June 30, 2025 June 30, 2026
1-Year Change
ACV $ 1,514 $ 1,620 7  %
Impact of changes in foreign exchange rates —  10 
Constant currency ACV
 $ 1,514 $ 1,630 8  %
Note: Constant currency ACV is calculated by applying the June 30, 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.
2
EXHIBIT 99.1
(continued)
Cash Flow Growth
chart-482910582f43486db4d.jpgchart-3140ad4534c94f3a822.jpg
As a result of the factors discussed under ACV above, our cash flow generation may continue to be adversely affected for the rest of the year.
(Dollars in thousands,
except per share amounts)		 Three Months Ended
June 30,		 Six Months Ended
June 30,
2026 2025 Change 2026 2025 Change
Total revenue $ 420,716  $ 384,512  9  % $ 850,689  $ 860,145  (1) %
Net income - GAAP $ 13,334  $ 30,077  (56) % $ 46,098  $ 115,499  (60) %
Net income - non-GAAP $ 59,533  $ 50,151  19  % $ 142,601  $ 190,693  (25) %
Diluted earnings per share - GAAP $ 0.08  $ 0.17  (53) % $ 0.26  $ 0.63  (59) %
Diluted earnings per share - non-GAAP $ 0.35  $ 0.28  25  % $ 0.81  $ 1.04  (22) %
(Dollars in thousands) Three Months Ended
June 30,		 Change Six Months Ended
June 30,		 Change
2026 2025 2026 2025
Pega Cloud $ 213,934  51  % $ 166,743  43  % $ 47,191  28  % $ 418,965  49  % $ 317,866  37  % $ 101,099  32  %
Maintenance 74,528  18  % 79,271  21  % (4,743) (6) % 149,845  18  % 155,639  18  % (5,794) (4) %
Subscription services 288,462  69  % 246,014  64  % 42,448  17  % 568,810  67  % 473,505  55  % 95,305  20  %
Subscription license 82,028  19  % 80,674  21  % 1,354  2  % 176,880  21  % 268,395  31  % (91,515) (34) %
Subscription 370,490  88  % 326,688  85  % 43,802  13  % 745,690  88  % 741,900  86  % 3,790  1  %
Consulting 50,226  12  % 57,824  15  % (7,598) (13) % 104,999  12  % 118,245  14  % (13,246) (11) %
Total revenue
 $ 420,716  100  % $ 384,512  100  % $ 36,204  9  % $ 850,689  100  % $ 860,145  100  % $ (9,456) (1) %
Quarterly conference call
A conference call and audio-only webcast will be conducted at 8:00 a.m. EDT on Wednesday, July 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 (833) 461-5787 (domestic) or 1 (626) 884-3620 (international) and using Conference ID 421269211, or via https://events.q4inc.com/attendee/421269211 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 personnel;
•potential legal and financial liabilities, as well as damage to our reputation, due to cyber-attacks;
•security breaches and security flaws;
•our ability to protect our intellectual property rights, costs associated with defending such rights, intellectual property rights claims, and other related claims by third parties against us, including related costs, damages, and other relief that may be granted against us;
•our ongoing litigation with Appian Corp. and associated legal proceedings;
•our client retention rate; and
•management of our growth.
These risks and others that may cause actual results to differ materially from those expressed in such forward-looking statements are described further in Part I of our Annual Report on Form 10-K for the year ended December 31, 2025, and other filings we make with the SEC.
Investors are cautioned not to place undue reliance on such forward-looking statements, and there are no assurances that the results included in such statements will be achieved. Although subsequent events may cause our view to change, except as required by applicable law, we do not undertake and expressly disclaim any obligation to publicly update or revise these forward-looking statements, whether as the result of new information, future events, or otherwise.
Any forward-looking statements in this press release represent our views as of July 21, 2026.
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About Pegasystems
Pega delivers the platform to reimagine, run, and evolve the processes and decisions an enterprise can't afford to get wrong. We combine AI with proven architecture to keep mission-critical operations governed, scalable, and continuously adaptable. Since 1983, the world's largest organizations have trusted Pega to turn transformation ambition into durable results. Learn more at www.pega.com.
Press contact:
Ilena Ryan
Director of PR
ilena.ryan@pega.com
617-866-6722

Investor contact:
Peter Welburn
VP, Corporate Development & Investor Relations
PegaInvestorRelations@pega.com
617-498-8968
All trademarks are the property of their respective owners.
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PEGASYSTEMS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
June 30,		 Six Months Ended
June 30,
2026 2025 2026 2025
Revenue
Subscription services $ 288,462  $ 246,014  $ 568,810  $ 473,505 
Subscription license 82,028  80,674  176,880  268,395 
Consulting 50,226  57,824  104,999  118,245 
Total revenue 420,716  384,512  850,689  860,145 
Cost of revenue
Subscription services 53,941  41,510  103,390  79,638 
Subscription license 267  364  738  752 
Consulting 53,821  67,700  110,655  131,634 
Total cost of revenue 108,029  109,574  214,783  212,024 
Gross profit 312,687  274,938  635,906  648,121 
Operating expenses
Selling and marketing 165,408  147,131  321,011  285,200 
Research and development 84,168  78,784  166,215  153,070 
General and administrative 43,740  31,788  92,313  65,616 
Restructuring 2,735  (44) 2,582  (33)
Total operating expenses 296,051  257,659  582,121  503,853 
Income from operations 16,636  17,279  53,785  144,268 
Foreign currency transaction (loss) gain (1,364) (14,008) 486  (19,333)
Interest income 2,500  3,248  5,454  8,583 
Interest expense (45) (1) (89) (1,028)
(Loss) on capped call transactions —  —  —  (223)
Other income (loss), net 786  18,729  (1,418) 19,290 
Income before provision for (benefit from) income taxes 18,513  25,247  58,218  151,557 
Provision for (benefit from) income taxes 5,179  (4,830) 12,120  36,058 
Net income $ 13,334  $ 30,077  $ 46,098  $ 115,499 
Earnings per share
Basic $ 0.08  $ 0.18  $ 0.28  $ 0.67 
Diluted $ 0.08  $ 0.17  $ 0.26  $ 0.63 
Weighted-average number of common shares outstanding
Basic 165,613  170,776  167,206  171,287 
Diluted 171,765  182,160  175,294  185,477 
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PEGASYSTEMS INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, 2026 December 31, 2025
Assets
Current assets:
Cash and cash equivalents $ 185,110  $ 212,447 
Marketable securities 176,797  213,352 
Total cash, cash equivalents, and marketable securities 361,907  425,799 
Accounts receivable, net 143,213  264,713 
Unbilled receivables, net 154,029  166,478 
Other current assets 102,559  121,305 
Total current assets 761,708  978,295 
Long-term unbilled receivables, net 77,947  102,544 
Goodwill 81,265  81,506 
Long-term deferred income taxes
 176,903  175,472 
Other long-term assets 286,220  294,027 
Total assets $ 1,384,043  $ 1,631,844 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 52,964  $ 12,924 
Accrued expenses 92,295  44,847 
Accrued compensation and related expenses 87,583  148,797 
Deferred revenue 462,532  509,275 
Other current liabilities 23,886  21,935 
Total current liabilities 719,260  737,778 
Long-term operating lease liabilities 56,996  60,825 
Other long-term liabilities 47,403  45,860 
Total liabilities 823,659  844,463 
Total stockholders’ equity 560,384  787,381 
Total liabilities and stockholders’ equity $ 1,384,043  $ 1,631,844 

PEGASYSTEMS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended
June 30,
2026 2025
Net income $ 46,098  $ 115,499 
Adjustments to reconcile net income to cash provided by operating activities
Non-cash items 125,635  123,170 
Change in operating assets and liabilities, net 126,492  51,827 
Cash provided by operating activities 298,225  290,496 
Cash provided by investing activities 25,832  212,995 
Cash (used in) financing activities (349,030) (646,316)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (2,299) 7,407 
Net (decrease) in cash, cash equivalents, and restricted cash (27,272) (135,418)
Cash, cash equivalents, and restricted cash, beginning of period 216,360  341,529 
Cash, cash equivalents, and restricted cash, end of period $ 189,088  $ 206,111 
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PEGASYSTEMS INC.
RECONCILIATION OF SELECTED GAAP AND NON-GAAP MEASURES
(in thousands, except percentages and per share amounts)
Three Months Ended
June 30,		 Six Months Ended
June 30,
2026 2025 Change 2026 2025 Change
Net income - GAAP $ 13,334  $ 30,077  (56) % $ 46,098  $ 115,499  (60) %
Stock-based compensation (1)
36,226  36,730  82,041  78,155 
Legal fees 17,950  6,409  37,914  12,953 
Amortization of intangible assets 237 675 1,020  1,376 
Restructuring 2,735  (44) 2,582  (33)
Foreign currency transaction loss (gain) 1,364  14,008  (486) 19,333 
Interest on convertible senior notes —  —  —  394 
Capped call transactions —  —  —  223 
Other
 (700) (18,729) 1,533  (19,480)
Income taxes (2)
(11,613) (18,975) (28,101) (17,727)
Net income - non-GAAP $ 59,533  $ 50,151  19  % $ 142,601  $ 190,693  (25) %
Diluted earnings per share - GAAP $ 0.08  $ 0.17  (53) % $ 0.26  $ 0.63  (59) %
non-GAAP adjustments 0.27  0.11  0.55  0.41 
Diluted earnings per share - non-GAAP $ 0.35  $ 0.28  25  % $ 0.81  $ 1.04  (22) %
Diluted weighted-average number of common shares outstanding - GAAP 171,765  182,160  (6) % 175,294  185,477  (5) %
Capped call transactions —  —  —  (2,412)
Diluted weighted-average number of common shares outstanding - non-GAAP 171,765  182,160  (6) % 175,294  183,065  (4) %

Our non-GAAP financial measures reflect the following adjustments:
•Stock-based compensation: We have excluded stock-based compensation from our non-GAAP operating expenses and profitability measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to our revenues recognized during the periods presented and is expected to contribute to our future revenues, we continue to evaluate our business performance, excluding stock-based compensation.
•Legal fees: Legal and related fees arising from proceedings outside the ordinary course of business. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.
•Amortization of intangible assets: We have excluded the amortization of intangible assets from our non-GAAP operating expenses and profitability measures. Amortization of intangible assets fluctuates in amount and frequency and is significantly affected by the timing and size of acquisitions. Investors should note that intangible assets contributed to our revenues recognized during the periods presented and are expected to contribute to future revenues. Amortization of intangible assets is likely to recur in future periods. We believe excluding these amounts provides a useful comparison of our operational performance in different periods.
•Restructuring: We have excluded restructuring from our non-GAAP financial measures. Restructuring fluctuates in amount and frequency and is significantly affected by the timing and size of our restructuring activities. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as these amounts are not representative of our core business operations and ongoing operational performance.
•Foreign currency transaction loss (gain): We have excluded foreign currency transaction gains and losses from our non-GAAP profitability measures. Foreign currency transaction gains and losses fluctuate in amount and frequency and are significantly affected by foreign exchange market rates. Foreign currency transaction gains and losses are likely to recur in future periods. We believe excluding these amounts provides a useful comparison of our operational performance in different periods.
•Interest on convertible senior notes: In February 2020, we issued convertible senior notes (the “Notes”), due March 1, 2025, in a private placement. The Notes accrued interest at an annual rate of 0.75%, paid semi-annually in arrears on March 1 and September 1. The outstanding Notes were repaid in their entirety at maturity. We believe that excluding the amortization of issuance costs provides a useful comparison of our operational performance in different periods.
•Capped call transactions: We have excluded gains and losses related to our capped call transactions held at fair value under U.S. GAAP. The capped call transactions were expected to reduce common stock dilution and/or offset any potential cash payments we must make, other than for principal and interest, upon conversion of the Notes. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.
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•Other: We have excluded gains and losses from our venture investments and other one-time, non-operating items. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.
•Diluted weighted-average number of common shares outstanding:
•Capped call transactions: In periods of GAAP net income, the shares calculated by applying the if-converted method related to our Notes are included in the diluted weighted-average shares outstanding if they are dilutive. The capped call transactions were expected to reduce common stock dilution and/or offset any potential cash payments we must make, other than for principal and interest, upon conversion of the Notes. We believe that including the expected impact of the capped call transactions in our non-GAAP financial measures provides a useful comparison of our operational performance in different periods.
(1) Stock-based compensation:

Three Months Ended
June 30,		 Six Months Ended
June 30,
(Dollars in thousands)
 2026 2025 2026 2025
Cost of revenue $ 6,752  $ 7,288  $ 14,628  $ 15,111 
Selling and marketing 14,555  14,378  33,009  30,159 
Research and development 7,943  7,490  17,962  15,875 
General and administrative 6,976  7,574  16,442  17,010 
$ 36,226  $ 36,730  $ 82,041  $ 78,155 
Income tax benefit $ (7,091) $ (566) $ (16,255) $ (1,153)
(2) Effective income tax rates:
Six Months Ended
June 30,
2026 2025
GAAP 21  % 24  %
non-GAAP 22  % 22  %
Our GAAP effective income tax rate is subject to significant fluctuations due to several factors, including our stock-based compensation plans, research and development tax credits, and the valuation allowance on our deferred tax assets in the U.S. and U.K. We determine our non-GAAP income tax rate using applicable rates in taxing jurisdictions and assessing certain factors, including historical and forecasted earnings by jurisdiction, discrete items, and ability to realize tax assets. We believe it is beneficial for our management to review our non-GAAP results consistent with our annual plan’s effective income tax rate as established at the beginning of each year, given tax rate volatility.
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PEGASYSTEMS INC.
RECONCILIATION OF FREE CASH FLOW (1) AND OTHER METRICS
(in thousands, except percentages)

Six Months Ended
June 30,
Change
2026 2025
Cash provided by operating activities $ 298,225  290,496  3  %
Investment in property and equipment (9,967) (4,015)
Free cash flow (1)
$ 288,258  $ 286,481  1  %
Supplemental information (2)
Legal fees
 $ 9,188  $ 10,020 
Restructuring 11,449  1,354 
Interest paid on convertible senior notes —  1,754 
Other (689) — 
Income taxes, net of refunds 10,842  (702)
$ 30,790  $ 12,426 
(1) Our non-GAAP free cash flow is defined as cash provided by operating activities less investment in property and equipment. Investment in property and equipment fluctuates in amount and frequency and is significantly affected by the timing and size of investments in our facilities and equipment. We provide information on free cash flow to enable investors to assess our ability to generate cash without incurring additional external financings. This information is not a substitute for financial measures prepared under U.S. GAAP.
(2) The supplemental information below identifies certain items included in operating cash flow that may affect comparability between periods.
•Legal fees: Legal and related fees arising from proceedings outside the ordinary course of business.
•Restructuring: Restructuring fluctuates in amount and frequency and is significantly affected by the timing and size of our restructuring activities.
•Interest paid on convertible senior notes: In February 2020, we issued the Notes, due March 1, 2025, in a private placement. The Notes accrued interest at an annual rate of 0.75%, paid semi-annually in arrears on March 1 and September 1. The outstanding Notes were repaid in their entirety at maturity.
•Other: One-time cash flow items not part of our ongoing operations.
•Income taxes, net of refunds: Direct income taxes paid net of refunds received.
PEGASYSTEMS INC.
ANNUAL CONTRACT VALUE
(in thousands, except percentages)

Annual contract value (“ACV”) - ACV represents the annualized value of our active contracts as of the measurement date. The contract's total value is divided by its duration in years to calculate ACV. ACV is a performance measure that we believe provides useful information to our management and investors.
June 30, 2026 June 30, 2025 Change
Constant Currency Change
Pega Cloud $ 926,290  $ 761,051  $ 165,239  22  % 22  %
Maintenance
 271,328  301,375  (30,047) (10) % (9) %
Subscription services
 1,197,618  1,062,426  135,192  13  % 13  %
Subscription license
 422,316  451,591  (29,275) (6) % (6) %
$ 1,619,934  $ 1,514,017  $ 105,917  7  % 8  %
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PEGASYSTEMS INC.
BACKLOG
(in thousands, except percentages)

Remaining performance obligations (“Backlog”) - Expected future revenue from existing non-cancellable contracts:
As of June 30, 2026:
Subscription services Subscription license Consulting Total
Pega Cloud Maintenance
1 year or less
 $ 704,447  $ 198,492  $ 42,537  $ 47,220  $ 992,696  49  %
1-2 years
 393,855  82,004  1,546  3,747  481,152  24  %
2-3 years
 222,052  50,070  7,583  899  280,604  14  %
Greater than 3 years
 241,679  20,480  958  1,062  264,179  13  %
$ 1,562,033  $ 351,046  $ 52,624  $ 52,928  $ 2,018,631  100  %
% of Total 77  % 17  % 3  % 3  % 100  %
Change since June 30, 2025
$ 240,835  $ (45,683) $ (21,826) $ 9,976  $ 183,302 
18  % (12) % (29) % 23  % 10  %
As of June 30, 2025:
Subscription services Subscription license Consulting Total
Pega Cloud Maintenance
1 year or less
 $ 603,683  $ 220,954  $ 62,222  $ 39,798  $ 926,657  51  %
1-2 years
 334,586  79,345  4,262  2,846  421,039  23  %
2-3 years
 172,513  49,587  746  252  223,098  12  %
Greater than 3 years
 210,416  46,843  7,220  56  264,535  14  %
$ 1,321,198  $ 396,729  $ 74,450  $ 42,952  $ 1,835,329  100  %
% of Total 72  % 22  % 4  % 2  % 100  %

PEGASYSTEMS INC.
RECONCILIATION OF GAAP BACKLOG AND CONSTANT CURRENCY BACKLOG
(in millions, except percentages)
June 30, 2025 June 30, 2026 1 Year Growth Rate
Backlog - GAAP $ 1,835  $ 2,019  10  %
Impact of changes in foreign exchange rates —  20 
Constant currency backlog
 $ 1,835  $ 2,039  11  %
Note: Constant currency backlog is calculated by applying the June 30, 2025 foreign exchange rates to current period shown.

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