Filing Flows › Pegasystems (PEGA) › Q2 2025
Pegasystems (PEGA) Q2 2025 earnings results (second quarter 2025)
10-Q filed Jul 22, 2025
Pegasystems (PEGA) reported revenue of $385M for the second quarter 2025 (Q2 2025), +9% from a year earlier and -19% from the quarter before. Operating margin was 4.5%, net earnings $30.1M (7.8% of revenue).
Pegasystems, Q2 2025: revenue $385M (+10% year over year), operating margin 4.5%, net earnings $30.1M, operating cash flow $86.3M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $385M | -19% | +9% |
| Gross profit | $275M | -26% | +8% |
| Operating profit | $17.3M | -86% | +33% |
| Net earnings | $30.1M | -65% | +355% |
| Operating cash flow | $86.3M | -58% | +115% |
| Free cash flow | $84.1M | -58% | +117% |
What changed
Revenue was $384.5M in Q2 2025, up 9% year over year and down 19% from the previous quarter. Pega Cloud was the largest line at 43% of revenue. Pega Cloud added $32.7M year over year (up 24%), 98% of the total change. Subscription license declined 6%.
Gross margin was 71.5%, down 0.9 points from a year earlier. Operating profit was $17.3M, a 4.5% margin (up 0.8 points year over year). Of the extra revenue versus a year earlier, 13% reached operating profit, above the 4% margin then. Operating expenses grew 7% against revenue growth of 9%. The fastest-growing cost line was General & admin (+25%). Net earnings were $30.1M, up 355% year over year. The effective tax rate was -19.1%. Non-operating items added $8.0M, 32% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $86.3M (up 115% year over year), 287% of net earnings. Non-cash charges added back $3.2M of depreciation and amortization and $36.7M of share-based compensation. Working capital and other items added $16.3M. Capital expenditures of $2.1M left free cash flow of $84.1M.
Questions
What was Pegasystems' revenue in the second quarter 2025?
Pegasystems (PEGA) reported revenue of $385M for the second quarter 2025 (Q2 2025), +9% from a year earlier and -19% from the quarter before.
Was Pegasystems profitable in the second quarter 2025?
Operating profit was $17.3M (4.5% of revenue) and net earnings $30.1M.
Source: Pegasystems 10-Q on SEC EDGAR.