What is the 13F Pro Quality Score for PEGA?

13F Pro ranks PEGASYSTEMS INC (PEGA) on the 13F Pro Quality Score, a 0–100 composite of 32 fundamental signals including return on invested capital, free cash flow consistency, balance-sheet strength, earnings quality, growth durability, and valuation discipline. The score refreshes after each 10-K and 10-Q filing on SEC EDGAR. View PEGA's current score at https://13fpro.ai/company/PEGA (free sign-up required for the full ranking).

Where does 13F Pro source PEGA data?

All PEGASYSTEMS INC fundamentals and ownership data come directly from SEC EDGAR. PEGASYSTEMS INC files with the SEC under CIK 1013857. 13F Pro ingests XBRL financial facts from 10-K and 10-Q filings, Form 13F-HR institutional holdings, and Form 4 insider transactions, with no third-party rewrites or estimates.

What sector is PEGA in?

PEGASYSTEMS INC (PEGA) is classified in the Technology sector. 13F Pro publishes sector-level fund flow analysis and quality leaders at https://13fpro.ai/research/sector/technology.

What drives PEGA's revenue?

Per PEGASYSTEMS INC's latest 10-Q filed with the SEC on 2026-07-21, the biggest revenue drivers are: Subscription services ($288.5M, +17% YoY); Subscription license ($82.0M, +2% YoY); Consulting ($50.2M, -13% YoY). Figures are extracted from the filing text and machine-verified against the document. Full breakdown at https://13fpro.ai/company/PEGA.

What are PEGA's largest expenses?

PEGASYSTEMS INC's latest 10-Q reports these as the largest expense items: Selling and marketing ($165.4M, +12% YoY); Cost of revenue ($108.0M, -1% YoY); Research and development ($84.2M, +7% YoY). Sourced directly from SEC EDGAR filing text for Q2 FY2026 (quarter ended June 30, 2026).

How often is PEGA research updated on 13F Pro?

PEGA's fundamentals refresh within hours of each new 10-K or 10-Q filing on SEC EDGAR. Institutional ownership updates after each quarterly 13F filing window. Insider transactions update after each Form 4 filing. The 13F Pro Quality Score recalculates after every fundamentals refresh.

PEGASYSTEMS INC(PEGA)Stock Analysis

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13F Pro Quality Score

70.4/100

Rank #223 of 2,961 stocksTOP 10%

View Technology peers →

Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Nov 14, 2026.

Revenue Growth

71.2/100

Profitability

82.6/100

Balance Sheet

97.4/100

Earnings Quality

60.4/100

Free Cash Flow

82.2/100

Institutional Flow

60.9/100

Revenue Scale

60.5/100

Dilution Risk

17.6/100

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Why PEGA Scores 70/100

exact factor attribution · 2026-09-11

PEGA's composite is driven by profitability and free cash flow, held back by shareholder dilution. Bars show each factor's exact push vs. a median company, using the same weights the ranking engine applies.

Profitability

+4.9 pts

83th pct

Free cash flow

+4.8 pts

82th pct

Capital efficiency

+4.7 pts

97th pct

Revenue growth

+4.2 pts

71th pct

Scale

+1.6 pts

61th pct

Earnings quality

+1.0 pts

60th pct

Institutional flow

+0.5 pts

61th pct

Earnings growth

+0.2 pts

53th pct

Shareholder dilution

-1.6 pts

18th pct

Factor percentiles are cross-sectional ranks across the ~2,800-stock scored universe, computed from SEC EDGAR filings. Not investment advice.

PEGA Stock Analysis & AI Quality Score

Data updated 2026-09-11

AI stock analysis and institutional research for PEGASYSTEMS INC (PEGA), a Technology sector company. 13F Pro's AI-powered ranking engine scores PEGA at 70.4/100 on a 32-signal composite quality model, placing it at rank #223 of 2,961 stocks — the top 10% of the AI-ranked universe. PEGA scores in the top quartile across balance sheet strength (97.4), profitability (82.6), free cash flow (82.2). Shareholder dilution risk is elevated at 17.6/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), PEGASYSTEMS INC reports quarterly revenue of $420.7M, net income of $13.3M, free cash flow of $81.7M. Top institutional holders of PEGA by reported 13-F value include BlackRock, VANGUARD PORTFOLIO MANAGEMENT, AQR CAPITAL MANAGEMENT, based on the most recent SEC filings. PEGA trades on the Nasdaq exchange and files with the SEC under CIK 1013857. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate PEGA daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for PEGASYSTEMS INC directly from SEC EDGAR. PEGASYSTEMS INC's 13F Pro composite quality score has ranged between 27 and 72 since 2021, currently 70.4 — an improving long-term trajectory across 68 quarterly and live scoring snapshots.

✦

Fun facts about PEGASYSTEMS INC

Quirks, history, and lore behind PEGA — the kind of stuff that makes a stock memorable.

1
The Basics
U.S. enterprise software company · mid-cap · listed on Nasdaq · headquartered in Massachusetts.
2
The Numbers
Annual revenue in the range of roughly $1.5 billion, with a heavy tilt toward subscription and cloud contracts — the old perpetual-license era is firmly behind it.
3
The History
Founded in 1983 by a computer scientist who had worked at MIT, it was an early pioneer in rules-based software long before AI became a buzzword.
4
The Secret
Its core platform automates business process management and customer relationship workflows — essentially telling large organizations what to do next, at massive scale.
5
The Lore
Its clients include some of the world's biggest banks, insurers, and government agencies — the kind of customers who don't switch vendors without a multi-year migration nightmare and a few grey hairs.
6
The Giveaway
Its flagship platform carries the "Pega" name, its ticker is those same four letters, and its founder Alan Trefler has run the company for over four decades — chess champion turned software CEO.

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What's Driving PEGA's Business? Latest 10-Q Breakdown

✓ 31/31 datapoints verified

AI-extracted from PEGASYSTEMS INC's 10-Q filed 2026-07-21 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.

Q2 revenue grew 9% to $420.7M as Pega Cloud rose 28% to $213.9M, but net income fell to $13.3M on higher selling, legal, and restructuring costs.

Biggest Revenue Drivers

Subscription services$288.5M+17% YoY

Pega Cloud growth offset a decline in maintenance revenue

Subscription license$82.0M+2% YoY

Primarily due to the timing of client contract renewals

Biggest Revenue Drivers

Total revenue: $420.7M+9% YoY

Subscription services$288.5M+17% YoY

Pega Cloud growth offset a decline in maintenance revenue

Within Subscription services

Pega Cloud$213.9M+28% YoY

Primarily due to expanded adoption of Pega Cloud by our clients

Maintenance$74.5M-6% YoY

Primarily due to clients' shift to Pega Cloud-based offerings, which do not result in maintenance revenue

Subscription license$82.0M+2% YoY

Primarily due to the timing of client contract renewals

Consulting$50.2M-13% YoY

Primarily due to a decrease in consultant billable hours in our Americas region

Largest Expense Items

Selling and marketing$165.4M+12% YoY

Compensation and benefits up $12.6M on higher headcount to expand client engagement

Cost of revenue$108.0M-1% YoY

Subscription services cost rose on personnel investments supporting cloud operations expansion

Research and development$84.2M+7% YoY

Outside professional services up $2.1M and cloud hosting up $1.5M

General and administrative$43.7M+38% YoY

Legal fees and related expenses from proceedings outside the ordinary course of business up $11.5M

Margins: Gross margin improved to 74% from 72%, aided by a smaller consulting loss on lower compensation. Pega Cloud gross margin slipped to 78% from 79% on personnel costs supporting cloud expansion.

Watch Items from the Filing

ACV growth slowed to 7% ($1.62B); the filing says AI-market changes caused clients to delay purchases and may keep hurting ACV and cash flow this year.
Appian trade secrets retrial set for January 11, 2027 after the $2.06B judgment was reversed; the Company cannot reasonably estimate possible damages.
In Appian defamation litigation, Appian seeks $31.8M lost profits, $109.5M disgorgement, and alternatively the Company's entire $2.33B of 2022-2025 profits.
Subscription license backlog fell to $52.6M from $74.5M a year ago, while total backlog rose 10% to $2.02B.
U.S. revenue fell to 47% of total from 54%; U.K. rose to 16% from 11%, and a 10% dollar strengthening would cut net income 14%.

AI-extracted and verified against SEC EDGAR filing text. Not investment advice.

Read the full 10-Q on SEC EDGAR →Share on X

Revenue

Q2 2026

$420.7M

Net Income

Q2 2026

$13.3M

Free Cash Flow

Q2 2026

$81.7M

ROIC

Q2 2026

11.9%

Period

Revenue & Net Income

Earnings Per Share

Key Financials Over Time

Export Financial Table · Pro

Revenue

+16.6% YoY

$1.75BFY 2025

FY22 $1.32BFY23 $1.43BFY24 $1.50BFY25 $1.75B

Net Income

+296.7% YoY

$393.4MFY 2025

FY22 $-345.6MFY23 $67.8MFY24 $99.2MFY25 $393.4M

Operating Income

+112.4% YoY

$263.1MFY 2025

FY22 $-109.4MFY23 $81.0MFY24 $123.9MFY25 $263.1M

EPS (Diluted)

+1449.1% YoY

$2.13FY 2025

FY22 $-1.05FY23 $0.09FY24 $0.14FY25 $2.13

Total Assets

-7.7% YoY

$1.63BFY 2025

FY22 $1.36BFY23 $1.51BFY24 $1.77BFY25 $1.63B

Op. Cash Flow

+46.1% YoY

$505.2MFY 2025

FY22 $22.3MFY23 $217.8MFY24 $345.9MFY25 $505.2M

Free Cash Flow

+45.1% YoY

$490.7MFY 2025

FY22 $-13.0MFY23 $201.0MFY24 $338.2MFY25 $490.7M

Metric	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020
Revenue	$1.75B +16.6%	$1.50B +4.5%	$1.43B +8.7%	$1.32B +8.8%	$1.21B +19.1%	$1.02B
Net Income	$393.4M +296.7%	$99.2M +46.3%	$67.8M +119.6%	$-345.6M -448.2%	$-63.0M -2.7%	$-61.4M
Operating Income	$263.1M +112.4%	$123.9M +53.0%	$81.0M +174.0%	$-109.4M -15.5%	$-94.7M +34.0%	$-143.5M
EPS (Diluted)	$2.13 +1449.1%	$0.14 +48.6%	$0.09 +108.8%	$-1.05 -448.1%	$-0.19 -1.3%	$-0.19
Total Assets	$1.63B -7.7%	$1.77B +17.0%	$1.51B +11.3%	$1.36B -14.8%	$1.59B -0.7%	$1.60B
Operating Cash Flow	$505.2M +46.1%	$345.9M +58.8%	$217.8M +875.0%	$22.3M -42.9%	$39.1M +7048.1%	$-563.0K
Free Cash Flow	$490.7M +45.1%	$338.2M +68.3%	$201.0M +1641.1%	$-13.0M -145.5%	$28.7M +210.5%	$-25.9M

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Available Research

13F Pro tracks comprehensive data for PEGASYSTEMS INC including:

SEC EDGAR filings (10-K, 10-Q, 8-K)

XBRL financial facts (revenue, EPS, margins)

Insider transactions (Form 4)

Institutional 13F holdings

Quality rankings (32 signals)

AI analyst debates & daily meetings

Historical financial trends

Peer comparison & sector analysis

Top Institutional Holders of PEGA

BlackRock, Inc.
$286.9M9,573,688 sh
VANGUARD PORTFOLIO MANAGEMENT LLC
$193.5M6,455,250 sh
AQR CAPITAL MANAGEMENT LLC
$147.4M4,919,642 sh
VANGUARD CAPITAL MANAGEMENT LLC
$123.7M4,128,720 sh
MASSACHUSETTS FINANCIAL SERVICES CO /MA/
$91.4M3,031,497 sh
FIRST TRUST ADVISORS LP
$88.7M2,958,357 sh
STATE STREET CORP
$87.9M2,933,479 sh
DIMENSIONAL FUND ADVISORS LP
$80.4M2,683,002 sh
GEODE CAPITAL MANAGEMENT, LLC
$77.5M2,585,227 sh
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP
$60.5M2,018,528 sh

Fund	Value	Shares
BlackRock, Inc.	$286.9M	9,573,688
VANGUARD PORTFOLIO MANAGEMENT LLC	$193.5M	6,455,250
AQR CAPITAL MANAGEMENT LLC	$147.4M	4,919,642
VANGUARD CAPITAL MANAGEMENT LLC	$123.7M	4,128,720
MASSACHUSETTS FINANCIAL SERVICES CO /MA/	$91.4M	3,031,497
FIRST TRUST ADVISORS LP	$88.7M	2,958,357
STATE STREET CORP	$87.9M	2,933,479
DIMENSIONAL FUND ADVISORS LP	$80.4M	2,683,002
GEODE CAPITAL MANAGEMENT, LLC	$77.5M	2,585,227
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	$60.5M	2,018,528

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Is PEGA a good stock to buy?

13F Pro's AI-powered analysis of PEGASYSTEMS INC (PEGA) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for PEGA are available on the PEGA stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing. PEGA is classified as a mid company.

Which hedge funds own PEGA?

Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling PEGA. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of PEGASYSTEMS INC's investment landscape.