• Salesforce for AI-powered customer engagement and deep operational automation.
• ServiceNow for enterprise-wide intelligent workflow automation, with a strong focus on customer operations.

• Pega Customer Service: A unified desktop for customer service agents, providing intelligent automation and AI guidance to resolve customer issues efficiently.
• Pega Sales Automation: An intelligent sales platform that automates administrative tasks and provides AI-driven insights to help sales teams manage pipelines and close deals faster.
• Pega Marketing: An AI-powered solution that enables real-time, personalized customer engagement across all channels, optimizing marketing campaigns and customer journeys.
• Pega Customer Decision Hub (CDH): An AI brain that orchestrates individualized customer experiences across all touchpoints in real time, determining the next best action for each customer.
• Pega Platform: A low-code platform for building and deploying enterprise applications that automate complex business processes and leverage AI and robotics.
• Pega GenAI: Integrates generative AI capabilities across Pega applications and the Pega Platform to boost productivity, enhance customer interactions, and automate content creation.

Pegasystems (symbol: PEGA) primarily sells its enterprise software solutions to other large companies (B2B model), rather than directly to individuals. Its customers are typically large organizations across various industries seeking to improve customer engagement, automate business processes, and leverage artificial intelligence.

Major customer companies often come from highly regulated or customer-intensive industries. While Pegasystems serves hundreds of global enterprises, some examples of well-known public companies that have utilized Pegasystems' technology and have been publicly acknowledged include:

• HSBC Holdings plc (NYSE: HSBC) - A global banking and financial services organization.
• Vodafone Group Plc (NASDAQ: VOD) - A multinational telecommunications company.
• Aflac Incorporated (NYSE: AFL) - A provider of supplemental insurance in the United States and Japan.
• Koninklijke Philips N.V. (Royal Philips) (NYSE: PHG) - A diversified health technology company.

Pegasystems' client base also includes a significant number of other large enterprises in financial services (including many of the world's top banks and insurers), healthcare, government, automotive, and manufacturing sectors globally, many of which are Fortune 500 or Global 2000 companies.

• Amazon.com, Inc. (AMZN) - for Amazon Web Services (AWS)
• Microsoft Corporation (MSFT) - for Microsoft Azure

Alan Trefler

Founder and Chief Executive Officer

Alan Trefler founded Pegasystems in 1983 and has served as its CEO since its inception. He is also the Chairman of the Board. Prior to founding Pegasystems, he worked as a Senior Project Manager at Casher Associates from 1978 to 1980 and as a Funds Transfer Product Manager at TMI Systems from 1980 to 1983. A chess master, Trefler tied for first place in the 1975 World Open Chess Championship. He took Pegasystems public in 1996 and authored the best-selling book "Build for Change". Trefler holds a degree with distinction in Economics and Computer Science from Dartmouth College.

Ken Stillwell

Chief Operating Officer and Chief Financial Officer

Ken Stillwell joined Pegasystems in 2016 and serves as the Chief Operating Officer and Chief Financial Officer. In this role, he leads Pegasystems' finance, investor relations, legal, facilities, information technology, Pega Cloud, global client support, and business operations. Prior to joining Pega, he was the Chief Financial Officer at Dynatrace, and also held CFO positions at Taxware and Sovos (a financial and compliance software as a service company). Stillwell also brings five years of financial leadership experience from PTC, where he served as divisional CFO, and held executive positions at Cardiac Telecom Corp, Anteon, and Decrane Aerospace Corporation. He holds an undergraduate degree in business/economics from the University of Pittsburgh and a master's in accounting and finance from the University of South Carolina.

Katherine Parente

Chief People Officer

Katherine Parente serves as the Chief People Officer at Pegasystems.

Kerim Akgonul

Chief Product Officer

Kerim Akgonul is the Chief Product Officer at Pegasystems. He also holds the title of Senior Vice President of Products.

Don Schuerman

Chief Technology Officer and Vice President, Marketing and Technology Strategy

Don Schuerman serves as the Chief Technology Officer and Vice President, Marketing and Technology Strategy for Pegasystems.

1. Intense Competition and Rapidly Evolving AI Landscape: Pegasystems operates in a highly competitive enterprise software market, facing numerous established players such as Salesforce, Oracle, and Microsoft, as well as emerging startups. The rapid pace of technological change, particularly in artificial intelligence (AI), necessitates continuous innovation and differentiation of its offerings to maintain a competitive edge. Failure to keep pace with industry developments and new competitors could threaten Pegasystems' market position.
2. Ongoing Legal Challenges: The company is involved in ongoing legal disputes, most notably with Appian. Such litigation is often unpredictable, costly, and time-consuming, potentially diverting significant management attention and financial resources from core business operations. An unfavorable outcome could result in substantial financial penalties or restrictions on certain business practices, thereby impacting Pegasystems' competitive standing and potentially creating uncertainty among customers.
3. Dependence on Key Industries and Economic/Regulatory Changes: Pegasystems primarily serves industries with complex operational needs, including financial services, government, and healthcare. This concentrated focus exposes the company to risks associated with regulatory changes and economic fluctuations within these specific sectors. Changes in regulations, particularly in highly regulated industries, could lead to increased compliance costs, while economic downturns may result in reduced IT spending by clients, ultimately impacting Pegasystems' revenue and profitability.

A clear emerging threat to Pegasystems (PEGA) is the rapid maturation and aggressive integration of low-code/no-code development platforms and generative AI capabilities by major cloud hyperscalers within their comprehensive enterprise ecosystems. Companies such as Microsoft (with its Power Platform, Azure, Dynamics 365, and Copilot Studio), Google Cloud, and AWS are increasingly offering unified platforms that enable customers to build, automate, and manage complex business processes and customer engagement directly within their existing cloud infrastructure. This trend could diminish the unique value proposition of specialized enterprise software vendors like Pegasystems, as enterprises may opt to consolidate their technology stack with a single cloud provider for development, automation, and customer engagement, rather than adopting a separate, specialized platform.

Pegasystems (PEGA) addresses several large and growing markets with its main products and services, primarily focusing on AI-driven solutions, workflow automation, low-code development, customer engagement, and digital process automation.

• Total Addressable Market (TAM) for AI-driven solutions and workflow automation: Pegasystems projects its total addressable market for AI-driven solutions and workflow automation to be approximately $90 billion globally in 2024, with an anticipated growth to $130 billion by 2027. This market includes their Pega Gen AI Blueprint platform for enterprise application development and Pega Agent X for conversational AI automation in customer service workflows.
• Low-Code Development Platform Market: The global low-code development platform market was valued at approximately $28.75 billion in 2024. It is projected to grow to $37.39 billion in 2025 and is forecasted to reach $264.40 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 32.2% from 2025–2032. North America led this market in 2024.
• Digital Process Automation (DPA) Market: The global digital process automation market is estimated at $15.40 billion in 2025 and is projected to reach $26.66 billion by 2030, with a CAGR of 11.60%. Another estimate places the global DPA market size at $15.15 billion in 2024, poised to grow to $38.6 billion by 2032. North America accounted for 36.2% of the DPA market revenue in 2024.
• Intelligent Process Automation (IPA) Market: The global intelligent process automation market size was valued at $16.21 billion in 2024 and is estimated to reach $18.26 billion in 2025, growing to $47.18 billion by 2033. North America held a dominant market position in 2024, capturing more than a 38% share, generating $6.3 billion in revenue.
• Customer Engagement Solutions Market: The global customer engagement solutions market was approximately $26.37 billion in 2024 and is projected to reach $63.91 billion by 2034. North America holds a significant share of this market, accounting for 35% due to enterprise digitization. In 2024, North America held the maximum market share of 39%, with the U.S. market alone estimated at $7.17 billion and projected to reach $21.75 billion by 2034.
• CRM Market: The broader CRM market is estimated at approximately $50 billion globally.

Pegasystems (PEGA) is expected to drive future revenue growth over the next 2-3 years through several key initiatives, primarily centered around its cloud offerings, artificial intelligence innovations, and expanding customer relationships:

1. Accelerated Pega Cloud Adoption and Migration: Pegasystems continues to prioritize the transition of its clients to its Pega Cloud platform, which is a major driver of recurring revenue and annual contract value (ACV) growth. Pega Cloud ACV has shown consistent and strong year-over-year increases, indicating a successful shift to a subscription-based model. The company is focused on making Pega Cloud its primary offering, further boosting this revenue stream.
2. Innovation and Integration of Generative AI (GenAI) Solutions: Pegasystems is making significant investments in artificial intelligence, particularly generative AI, across its entire product portfolio. Key initiatives like Pega GenAI Blueprint are designed to fundamentally change client engagement, accelerate digital transformation, and enable faster, more efficient application development. These AI-powered enhancements aim to increase employee productivity, streamline workflows, and optimize customer experiences.
3. Customer Acquisition and Deeper Client Engagement: The company is focused on expanding its customer base, often referred to as acquiring "new logos," and strengthening existing client relationships. This strategy is supported by efforts to increase investment in sales and marketing. Pegasystems' strong customer retention rates and a client base that includes major financial institutions and government agencies provide a solid foundation for expanding sales and deepening engagement.
4. Leveraging Low-Code Automation: Pegasystems' core low-code automation platform is a critical enabler for its cloud and AI strategies. This technology allows clients to rapidly develop and deploy new applications, enhancing organizational agility and reducing operational costs. The continuous enhancement of its low-code capabilities, particularly in conjunction with AI, empowers customers to respond quickly to market demands and further integrates Pega's offerings into enterprise operations.

Share Repurchases

• Pegasystems expanded its share repurchase program, extending the expiration date from June 30, 2021, to June 30, 2022, and increasing the authorized repurchase amount from approximately $21.7 million to $60 million.
• In April 2023, the Board of Directors extended the share repurchase program's expiration date from June 30, 2023, to June 30, 2024, and increased the authorized amount to $60 million.
• As of September 30, 2025, Pegasystems repurchased 8.7 million shares for $393.2 million year-to-date and had $347.3 million remaining authorized in its program, which was extended to June 30, 2026.

Share Issuance

• On March 6, 2014, the Board of Directors approved a two-for-one stock split of the company's common stock, effected in the form of a stock dividend.
• For the quarter ending September 30, 2025, the issuance of common stock for stock amounted to $378,746 thousand.

Inbound Investments

• No information is available regarding large, strategic inbound investments made in Pegasystems by third-parties, such as a strategic partner or private equity firm, during the last 3-5 years.

Outbound Investments

• In May 2022, Pegasystems acquired Everflow, a Brazilian process mining software company, to enhance its hyper-automation solutions and uncover process inefficiencies. The financial terms of the acquisition were not disclosed.

Capital Expenditures

• In 2020, the change in cash used in investing activities was primarily driven by purchases of financial instruments and property and equipment investments for the company's offices.
• No costs were capitalized for property and equipment in 2021, 2022, or 2023.
• The company reduced its investment in property and equipment in 2023 as it optimized its office space.