Filing Flows › Pegasystems (PEGA) › How it makes money
How Pegasystems (PEGA) makes money
Pegasystems (PEGA) made $393M of revenue in the third quarter 2026 (Q3 2026), +3% from a year earlier. Subscription brought in $347M (88%); Consulting brought in $46.2M (12%). Of every dollar of revenue, 74¢ was left as gross profit, 4¢ was left as operating profit, 4¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Subscription | $347M | 88.3% | -6% | +7% |
| ↳ Pega Cloud | $219M | 55.7% | +2% | +19% |
| ↳ Maintenance | $72.7M | 18.5% | -3% | -9% |
| ↳ Subscription license | $55.6M | 14.1% | -32% | -9% |
| Consulting | $46.2M | 11.7% | -8% | -18% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $393M | 100.0% |
| Cost of revenue | $104M | 26.4% |
| Gross profit | $290M | 73.6% |
| Operating expenses | $275M | 69.8% |
| Operating profit | $14.9M | 3.8% |
| Income tax | $3.7M | 0.9% |
| Net earnings | $14.1M | 3.6% |
| Operating cash flow | $6.1M | 1.5% |
| Free cash flow | $1.6M | 0.4% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $393M | +3% |
| Q2 2026 | $421M | +9% |
| Q1 2026 | $430M | -10% |
| Q4 2025 | $504M | +3% |
| Q3 2025 | $381M | +17% |
| Q2 2025 | $385M | +10% |
| Q1 2025 | $476M | +44% |
From Pegasystems' 10-Q filed Oct 20, 2026 (on EDGAR).
Questions
How does Pegasystems make money?
Pegasystems (PEGA) made $393M of revenue in the third quarter 2026 (Q3 2026), +3% from a year earlier. Subscription brought in $347M (88%); Consulting brought in $46.2M (12%). Of every dollar of revenue, 74¢ was left as gross profit, 4¢ was left as operating profit, 4¢ was left as net earnings.
What is Pegasystems' biggest business?
Subscription: $347M in the third quarter 2026, 88% of revenue, +7% from a year earlier.
What is Pegasystems' profit margin?
Net earnings were $14.1M, 3.6% of revenue, in the third quarter 2026; the operating margin was 3.8%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.