Filing Flows › Pegasystems (PEGA) › Q1 2025
Pegasystems (PEGA) Q1 2025 earnings results (first quarter 2025)
10-Q filed Apr 22, 2025
Pegasystems (PEGA) reported revenue of $476M for the first quarter 2025 (Q1 2025), +44% from a year earlier and -3% from the quarter before. Operating margin was 26.7%, net earnings $85.4M (18.0% of revenue).
Pegasystems, Q1 2025: revenue $476M (+44% year over year), operating margin 26.7%, net earnings $85.4M, operating cash flow $204M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $476M | -3% | +44% |
| Gross profit | $373M | -4% | +58% |
| Operating profit | $127M | -11% | — |
| Net earnings | $85.4M | -28% | — |
| Operating cash flow | $204M | +114% | +13% |
| Free cash flow | $202M | +119% | +13% |
What changed
Revenue was $475.6M in Q1 2025, up 44% year over year and down 3% from the previous quarter. Subscription license was the largest line at 39% of revenue. Subscription license added $123.2M year over year (up 195%), 85% of the total change. Maintenance declined 6%.
Gross margin was 78.5%, up 7.1 points from a year earlier. Operating profit was $127.0M, a 26.7% margin (up 32.9 points year over year). Operating expenses fell 4% while revenue rose 44%. The fastest-growing cost line was General & admin (+44%). Net earnings were $85.4M. The effective tax rate was 32.4%.
Operating cash flow was $204.2M (up 13% year over year), 239% of net earnings. Non-cash charges added back $3.1M of depreciation and amortization and $41.4M of share-based compensation. Working capital and other items added $74.2M. Capital expenditures of $1.9M left free cash flow of $202.3M.
Questions
What was Pegasystems' revenue in the first quarter 2025?
Pegasystems (PEGA) reported revenue of $476M for the first quarter 2025 (Q1 2025), +44% from a year earlier and -3% from the quarter before.
Was Pegasystems profitable in the first quarter 2025?
Operating profit was $127M (26.7% of revenue) and net earnings $85.4M.
Source: Pegasystems 10-Q on SEC EDGAR.