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Pegasystems Investor Presentation Q4 2025 NASDAQ: PEGA pegainvestorrelations@pega.com February 10, 2026 © Pegasystems Inc.
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Safe Harbor Statement Certain statements in this presentation may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including the size of the current and future market opportunity, growth of the business, and our 2026 guidance. Words such as expects, anticipates,intends, plans, believes, will, could, should, estimates, may, targets, strategies, intends to, projects, positions, forecasts, guidance, likely, and usually or variations of such words and other similar expressions identify forward-looking statements. These statements represent our views only as of the date the statement was madeand are based on current expectations and assumptions. Factors that could cause our results to differ materially from those expressed in forward-looking statements include unanticipated changes in the market for the our products and services, our future financial performance and business plans, the successful execution of investments in artificial intelligence, variation in demand for our products and services, reliance on key personnel, our client retention rate, the timing of revenue recognition, management of our growth, and other factors listed in our press release announcing our Q4 2025 results and in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025 and other recent filings with the SEC. Investors are cautioned not to place undue reliance on such forward-looking statements, and there are no assurances that the results included in such statements will be achieved. Although subsequent events may cause our view to change, except as required by applicable law, we do not undertake and expressly disclaim any obligation to publicly update or revise these forward-looking statements, whether as the result of new information, future events, or otherwise. Any forward-looking statements in this presentation represent our views as of February10, 2026. Non-GAAP Financial Measures Our non-GAAP financial measures should only be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. We believe that these measures help investors understand our core operating results and prospects, which is consistent with how management measures and forecasts our performance without the effect of often one-time charges and other items outside our normal operations. Management uses these measures to assess the performance of the company's operations and establish operational goals and incentives. They are not a substitute for financial measures prepared under U.S. GAAP. Constant currency measures are calculated by applying the December31, 2024 foreign exchange rates to current period shown. Reconciliations of GAAP and non-GAAP measures are in our press release announcing our Q4 2025 results and at the end of this presentation. Additional Notes This presentation may contain industry market data, industry forecasts, and other statistical information. Such information was obtained from publicly available information, industry publications, and other third-party sources, and we make no representations as to the accuracy of such information. We have not independently verified any such information. Certain information in this presentation is based upon management forecasts and reflects prevailing conditions and management’s views as of the date of this presentation, all of which are subject to change. 2
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3 Pega overview © Pegasystems Inc.
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4 The future belongs to the Autonomous Enterprise Our vision To change the way the world builds software to reimagine AI transformation Our software AI-powered platform that accelerates enterprise transformation What we do Accelerate transformation with Pega Blueprint and Predictable AI © Pegasystems Inc.
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Pega Infinity Software built on a Center-out® agent architecture Live Data Agents AgentX & DX API Situational Layer Cake Industry solutions Business solution Pega Cloud® CASE MANAGEMENT WORKFLOW AUTOMATION AI DECISIONING 1:1 Customer Engagement Customer Service Workflow Automation Legacy Transformation Drive more growth and retention with real-time AI to deliver next-best actions, orchestrate customer journeys, and optimize engagement across channels to improve outcomes and maximize enterprise value. Enhance customer satisfaction and reduce costs with AI-powered case management automation and journey orchestration to streamline processes, improve responsive, and drive efficient resolutions. Increase operational efficiency and reduce costs by automating workflows end-to-end with AI-powered orchestration, low-code tools, and unified data to streamline processes, improve agility, and drive fast deployment. Accelerate enterprise modernization and eliminate costs by retiring legacy systems fast with AI-driven analysis and low-code automation to redesign workflows, integrate operations, and deploy cloud solutions. Pega Customer Decision Hub Pega Customer Service Pega Sales Automation Pega Platform Pega RPA Pega Platform Pega Blueprint 5© Pegasystems Inc.
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Insurance • Personalized engagement • High performing sales • Carrier distribution management • Underwriting automation • Service excellence • Claims optimization 6 The world’s leading enterprise-scale organizations They are using Pega to connect workflows and interactions across the customer lifecycle Communications service providers • 1:1 customer engagement • Customer service • Order management • Network operations • Shared services • Sales management Financial services • 1:1 customer engagement • Onboarding & KYC • Lending • Customer service • Operations • Payment exceptions • Financial crime Government • Acquisition & supply chain modernization • Citizen service • Enterprise modernization • Investigative case management • Grants & financial management • Licensing • Customer engagement Healthcare • Customer engagement • Onboarding & enrollment • Customer service • Claims • Operations • Care management services © Pegasystems Inc.
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Driving growth and free cash flow Founded: 1983 HQ: Waltham, MA Employees: 5,000+ $491M FY25 Free Cash Flow (2) 14% ACV Growth (in constant currency)(1) 28% Pega Cloud ACV Growth (in constant currency)(1) 7 Q4 2025 (1) Constant currency change since December 31, 2024. (2) Our non-GAAP free cash flow is defined as cash provided by operating activities less investment in property and equipment. Investment in property and equipment fluctuates in amount and frequency and is significantly affected by the timing and size of investments in our facilities and equipment. We provide information on free cash flow to enable investors to assess our ability to generate cash without incurring additionalexternal financings. This information is not a substitute for financial measures prepared under U.S. GAAP. © Pegasystems Inc.
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• Growing enterprise software company, with a view towards a $150B+ market opportunity • Large enterprise client base in key verticals: Communications service providers, financial services, government, healthcare, and insurance • A proven technology leader in AI decisioning and business orchestration and automation • Mission critical to our clients • Managing the business with a Rule of 40 mindset Key investment highlights 8 © Pegasystems Inc.
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9 Solution overview © Pegasystems Inc.
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TRANSFORM Service & Sales 10 Cut costs, reduce risk, unlock data & innovation Boost efficiency 45%+ Save $10Ms & raise satisfaction Generate $200M incremental revenue yearly Enterprises accelerate their transformation with Pega Blueprint and Predictable AI Reimagine and replace brittle technology on a pragmatic, powerful platform architected for AI, agents, and automation TRANSFORM Operations TRANSFORM Legacy TRANSFORM Personalization GO-LIVE in 40 HOURS FROM 1 DAY to <3 SECS 30%+ NPS GAINS 10x CONVERSION © Pegasystems Inc.
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Agents Employee Customer 11 Center-out® Agent Architecture Orchestrate AI agents, workflows, and decisions to accelerate enterprise transformation Automate with AI Embed anywhere: meet users where they are Virtualize the data model Connect to anything Access & store data anywhere Consistency across channels Knowledge & documents Legacy systems & databases Large language models Cloud services & databases Pega Cloud Managed storage Situational Layer Cake Live Data Agents AgentX & DX API MCP compliant CASE MANAGEMENT WORKFLOW AUTOMATION AI DECISIONING © Pegasystems Inc.
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Your data stays yours Blueprint uses your documents to inform the design • Blueprint never stores, shares, or reuses your documents • Aligns with enterprise-grade privacy & compliance standards • We won’t use Blueprint data to train the models or spam you with marketing offers 12 Reimagine your AI transformation journey with a Blueprint Securely build smarter, more automated workflows – all integrated with best-practices GenAI Analysis Design Automate Optimize Design-time reasoning applies best practices from • Pega enterprise experience • Partner ecosystems • The Internet • Your own documents Rapid discovery Optimize workflows, fast Unlock data to the cloud © Pegasystems Inc.
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Analyst firms recognize Pega as a leader for our AI-powered platform for enterprise transformation 13 The Forrester Wave AI Decisioning Platforms, Q2 2025 The Forrester Wave Real-Time Interaction Management, Q4 2025 The Forrester Wave CRM Software, Q1 2025 2025 Gartner® Magic Quadrant for Business Orchestration and Automation Technologies 2025 Gartner® Magic Quadrant for Process Mining Platforms The Forrester Wave Digital Process Automation Software, Q3 2025 © Pegasystems Inc.
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Business overview 14© Pegasystems Inc.
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15 Why Pega wins Differentiated architecture Depth of platform functionality Strong team Deep Vertical Expertise Robust ROI Ease of integration © Pegasystems Inc.
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16 Reduce maintenance costs, improve resiliency, innovate for better efficiency & experiences with an AI-led approach to legacy transformation that enables clients to retire legacy apps – reimagining business processes as modern, cloud-native workflow applications + moving data to the cloud. Enhance efficiency, improve customer experience & boost employee productivity with intelligent automation that transforms workflows into streamlined, automated processes that are connected and orchestrated end-to-end. Deliver efficient, personalized experiences with end-to-end workflow automation that drives consistency and empowers customers to self-solve – implementing incrementally from one low-code platform. Optimize Customer Lifetime Value (CLV) with an always-on brain for the business that unifies data, analytics, and channels into a single connected experience – to build meaningful customer centricity into how they engage while also driving growth. Selling high-value use cases to the world’s largest enterprises Legacy transformation Workflow automation Customer service Customer engagement CIO / IT Leaders COO / Operations Leaders CXO / Contact Center Leaders CMO / Marketing Leaders Modernization | Integration | Scale Total Cost of Ownership (TCO) Efficiency | Cost reduction Speed | Resilience | Risk Net Promoter Score | AHT Cost reduction | Self-service Personalization | Growth Retention | Acquisition © Pegasystems Inc.
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Financial details 17© Pegasystems Inc.
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• Massive market opportunity • Subscription journey • Recurring model • Margin expansion opportunities Financial outlook 18 © Pegasystems Inc.
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Source: IDC Worldwide Semi-annual Software Tracker (May 2025) 19 Pursuing a massive market opportunity in platform & CRM FY 25 $90B+ FY 29 $150B+ © Pegasystems Inc.
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20 Evolution of our subscription journey From… Perpetual Less Predictable Lagging Growth & Margins To… Recurring More Predictable Rule of 40 Driven SUBSCRIPTION TRANSITION TIMELINE 2017 2023 © Pegasystems Inc.
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Recurring subscription model: Annual Contract Value (ACV) as reported 21 Growth since December 31, 2024 ACV Reported: 17% ACV Constant Currency: 14% 21 ACV represents the annualized value of our active contracts as of the measurement date. The contract's total value is divided by its duration in years to calculate ACV. ACV is a performance measure that we believe provides useful information to our management and investors. © Pegasystems Inc.
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Cash flow growth 2222 Note: For additional information refer to explanatory notes on slide 37 © Pegasystems Inc.
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23 2026 guidance As of February 10, 2026, we are providing the following guidance: Year Ended December 31, 2026 Annual contract value growth 15% Year Ended December 31, 2026 GAAP Non-GAAP Revenue $2.0 Billion $2.0 Billion Diluted earnings per share $1.87 $2.75 Year Ended December 31, 2026 Cash provided by operating activities $595 Million Free cash flow $575 Million Note: See a reconciliation of our GAAP to Non-GAAP guidance on slide 38 © Pegasystems Inc.
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24 What this all means Striving to build a growing, recurring business to drive increased value Sustain growth While expanding margins And increasing cash flow To drive shareholder value With a view towards: • Continuing our technology leadership • Improving sales productivity • Executing our target organization go-to- market strategy • Driving ACV growth • Leveraging Pega Cloud • Balancing growth & margin • Returning capital to shareholders • Rule of 40 driven © Pegasystems Inc.
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© Pegasystems Inc. Corporate Social Responsibility at Pega E S G ENVIRONMENTAL We are committed to reducing the environmental impact of our operations on air, land, and water SOCIAL We strive to be a responsible corporate citizen and active contributor in communities where our employees, partners, and clients' work GOVERNANCE We believe that corporate governance is important to ensure that Pega is managed for the long- term benefit of all our stakeholders https://www.pega.com/corporate-social-responsibility 26© Pegasystems Inc. 26
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Reported ACV: Pega Cloud ACV up 33% as reported 27 Growth since December 31, 2024 27 Client Cloud ACV: 3% (1% constant currency) Total ACV: 17% (14% constant currency) Pega Cloud ACV: 33% (28% constant currency) ACV represents the annualized value of our active contracts as of the measurement date. The contract's total value is divided by its duration in years to calculate ACV. ACV is a performance measure that we believe provides useful information to our management and investors. © Pegasystems Inc.
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Reported ACV: Pega Cloud, maintenance, and subscription license (term) as reported ACV represents the annualized value of our active contracts as of the measurement date. The contract's total value is divided by its duration in years to calculate ACV. ACV is a performance measure that we believe provides useful information to our management and investors. 2828 Total ACV: 17% (14% constant currency) Pega Cloud ACV: 33% (28% constant currency) Client Cloud ACV: 3% (1% constant currency) Growth since December 31, 2024 © Pegasystems Inc.
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2025 net ACV add is $190M, an increase of 37% over 2024 Constant currency ACV using December 31, 2024 rates ACV represents the annualized value of our active contracts as of the measurement date. The contract's total value is divided by its duration in years to calculate ACV. ACV is a performance measure that we believe provides useful information to our management and investors. 2929 Net ACV Add: 37% Growth since December 31, 2024: © Pegasystems Inc.
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Pega Cloud revenue Trailing 12 months 30 Cloud Transition Begins 30© Pegasystems Inc.
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Pega backlog: Pega Cloud backlog up 36% & represents 74% of total backlog as reported 3131 38% Long-term Growth since December 31, 2024 35% Current 28% Total © Pegasystems Inc.
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Pega Cloud gross margin Pega Cloud gross margin has improved over time 32© Pegasystems Inc.
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Operating and free cash flow reconciliation 33 (dollars in thousands) Year Ended December 31, 2025 2024 2023 2022 Cash provided by operating activities $ 505,227 $ 345,926 $ 217,785 $ 22,336 Investment in property and equipment (14,504) (7,712) (16,781) (35,379) Free cash flow (1) $ 490,723 $ 338,214 $ 201,004 $ (13,043) Supplemental information (2) Litigation settlement, net of recoveries $ — $ 32,403 Legal fees 35,484 16,197 Restructuring 2,056 5,252 Interest paid on convertible senior notes 1,754 3,810 Income taxes, net of refunds 21,630 82,317 $ 60,924 $ 139,979 (1) Our non-GAAP free cash flow is defined as cash provided by operating activities less investment in property and equipment. Investment in property and equipment fluctuates in amount and frequency and is significantly affected by the timing and size of investments in our facilities and equipment. We provide information on free cash flow to enable investors to assess our ability to generate cash without incurring additional external financings. This information is not a substitutefor financial measures prepared under U.S. GAAP. (2) The supplemental information discloses items that affect our cash flows and are considered by management not to be representative of our core business operations and ongoing operational performance. • Litigation settlement, net of recoveries: Cost to settle litigation, net of insurance recoveries, arising from proceedings outside the ordinary course of business. See "Note 20. Commitments And Contingencies" in Item 8 of our Annual Report filed on Form 10-K for the year ended December 31, 2025 and prior filings for further information. • Legal fees: Legal and related fees arising from proceedings outside the ordinary course of business. • Restructuring: Restructuring fluctuates in amount and frequency and is significantly affected by the timing and size of our restructuring activities. • Interest on convertible senior notes: In February 2020, we issued convertible senior notes (the “Notes”), due March 1, 2025, in a private placement. The Notes accrued interest at an annual rate of 0.75%, paid semi-annually in arrears on March 1 and September 1. The outstanding Notes were repaid in their entirety at maturity. • Income taxes, net of refunds: Direct income taxes paid net of refunds received. © Pegasystems Inc.
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34 Net income and EPS guidance reconciliation (in millions, except per share amounts) 2026 Net Income - GAAP $ 344 Stock-based compensation 158 Legal fees 30 Incomes taxes (26) Net Income - Non-GAAP $ 506 Diluted earnings per share - GAAP $ 1.87 Non-GAAP adjustments 0.88 Diluted earnings per share - non-GAAP $ 2.75 Diluted weighted-average number of common shares outstanding (GAAP and Non-GAAP) 184 Our non-GAAP financial measures reflect the following adjustments: • Stock-based compensation: We have excluded stock-based compensation from our non-GAAP operating expenses and profitability measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to our revenues recognized during the periods presented and is expected to contribute to our future revenues, we continue to evaluate our business performance, excluding stock-based compensation. • Legal fees: Legal and related fees arising from proceedings outside the ordinary course of business. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance. • Income taxes: Our GAAP effective income tax rate is subject to significant fluctuations due to several factors, including our stock-based compensation plans, and research and development tax credits. We determine our non-GAAP income tax rate using applicable rates in taxing jurisdictions and assessing certain factors, including historical and forecasted earnings by jurisdiction, discrete items, and ability to realize tax assets. We believe it is beneficial for our management to review our non-GAAP results consistent with our annual plan’s effective income tax rate as established at the beginning of each year, given tax rate volatility. © Pegasystems Inc.
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35 Free cash flow guidance reconciliation (in millions) 2026 Cash provided by operating activities $ 595 Investment in property and equipment (20) Free cash flow $ 575 Supplemental information Legal fees $ 30 Restructuring 12 Litigation settlement, net of recoveries 10 Income taxes (1) 63 $ 115(1) Evolving U.S. tax legislation may impact the amount of tax payments. © Pegasystems Inc.