Filing Flows › Pegasystems (PEGA) › Q3 2025
Pegasystems (PEGA) Q3 2025 earnings results (third quarter 2025)
10-Q filed Oct 21, 2025
Pegasystems (PEGA) reported revenue of $381M for the third quarter 2025 (Q3 2025), +17% from a year earlier and -0.8% from the quarter before. Operating margin was 3.8%, net earnings $43.4M (11.4% of revenue).
Pegasystems, Q3 2025: revenue $381M (+17% year over year), operating margin 3.8%, net earnings $43.4M, operating cash flow $56.3M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $381M | -0.8% | +17% |
| Gross profit | $275M | +0.2% | +21% |
| Operating profit | $14.5M | -16% | — |
| Net earnings | $43.4M | +44% | — |
| Operating cash flow | $56.3M | -35% | +85% |
| Free cash flow | $51.8M | -38% | +89% |
What changed
Revenue was $381.4M in Q3 2025, up 17% year over year and down 1% from the previous quarter. Pega Cloud was the largest line at 48% of revenue. Pega Cloud added $40.4M year over year (up 28%), 72% of the total change. Perpetual license declined 65%.
Gross margin was 72.2%, up 2.0 points from a year earlier. Operating profit was $14.5M, a 3.8% margin (up 7.4 points year over year). Operating expenses grew 9% against revenue growth of 17%. The fastest-growing cost line was General & admin (+18%). Net earnings were $43.4M. The effective tax rate was -80.0%. Non-operating items added $9.6M, 40% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $56.3M (up 85% year over year), 130% of net earnings. Non-cash charges added back $3.1M of depreciation and amortization and $43.0M of share-based compensation. Working capital and other items used $33.2M. Capital expenditures of $4.5M left free cash flow of $51.8M.
Questions
What was Pegasystems' revenue in the third quarter 2025?
Pegasystems (PEGA) reported revenue of $381M for the third quarter 2025 (Q3 2025), +17% from a year earlier and -0.8% from the quarter before.
Was Pegasystems profitable in the third quarter 2025?
Operating profit was $14.5M (3.8% of revenue) and net earnings $43.4M.
Source: Pegasystems 10-Q on SEC EDGAR.