Pegasystems Inc.

htm EX-99.1 Document EXHIBIT 99.1 Pega Unlocks AI Potential in Q3 2025 Annual Contract Value (ACV) grows 14% year over year Pega Cloud ACV increases 27% year over year Cash flow from operations and free cash flow grow 38% year over year Repurchased 8.7M shares for $393M year to date WALTHAM, Mass.

SEC original ↗Pegasystems Inc. — Earnings release (8-K exhibit)EX-99Oct 21, 2025

Pega Cloud ACV growth accelerated again, and we ve generated $347M in operating cash flow allowing us to have a significant year of buybacks.

SEC original ↗Pegasystems Inc. — Earnings release (8-K exhibit)EX-99Oct 21, 2025

We believe including the dilutive effect of stock-based compensation in our non-GAAP financial measures in periods of net income is helpful to investors as this provides a useful comparison of our operational performance in different periods (1) Per share amounts have been recast for all prior periods to reflect the effect of the Company s two-for-one forward common stock split effected in the form of a stock dividend distributed on June 20, 2025.

SEC original ↗Pegasystems Inc. — Earnings release (8-K exhibit)EX-99Oct 21, 2025

excise tax payable on net stock repurchase $ 2,671 $ 576 See notes to unaudited condensed consolidated financial statements.

SEC original ↗Pegasystems Inc. — 10-Q Quarterly report10-QOct 20, 2026

DEBT Credit facility In November 2019, and as since amended, the Company entered into a $ 100 million senior secured revolving credit agreement (the Credit Facility ) with PNC Bank, National Association.

SEC original ↗Pegasystems Inc. — 10-Q Quarterly report10-QOct 20, 2026

On October 16, 2026, the Credit Facility was amended to, among other changes, increase the borrowing capacity to $ 200 million and extend the expiration date to October 16, 2031.

SEC original ↗Pegasystems Inc. — 10-Q Quarterly report10-QOct 20, 2026

Our differentiated AI strategy continues to resonate deeply with clients, prospects, and partners, unlocking new levels of speed, predictability, and scale in enterprise applications, said Alan Trefler, founder and CEO.

SEC original ↗Pegasystems Inc. — Earnings release (8-K exhibit)EX-99Oct 21, 2025

The results speak for themselves as clients and partners embrace Pega Blueprint and commit to strategic transformation with Pega.

SEC original ↗Pegasystems Inc. — Earnings release (8-K exhibit)EX-99Oct 21, 2025

Words such as expects, anticipates, intends, plans, believes, will, could, should, estimates, may, targets, strategies, intends to, projects, forecasts, guidance, likely, and usually or variations of such words and other similar expressions identify forward-looking statements.

SEC original ↗Pegasystems Inc. — Earnings release (8-K exhibit)EX-99Oct 21, 2025

ASU 2025-06 introduces a more principles-based framework to the capitalization of software intended for internal use focused on management s authorization and commitment to fund a development project and the probability of whether the project will be completed and used for its intended function.

SEC original ↗Pegasystems Inc. — 10-Q Quarterly report10-QOct 20, 2026

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.

SEC original ↗Pegasystems Inc. — 10-Q Quarterly report10-QOct 20, 2026

and associated legal proceedings our client retention rate and management of our growth.

SEC original ↗Pegasystems Inc. — Earnings release (8-K exhibit)EX-99Oct 21, 2025

Litigation settlement, net of recoveries Cost to settle litigation, net of insurance recoveries, arising from proceedings outside the ordinary course of business.

SEC original ↗Pegasystems Inc. — Earnings release (8-K exhibit)EX-99Oct 21, 2025

Legal Proceedings 30 Item 1A.

SEC original ↗Pegasystems Inc. — 10-Q Quarterly report10-QOct 20, 2026

COMMITMENTS AND CONTINGENCIES Legal proceedings In addition to the matters below, the Company is or may become involved in a variety of claims, demands, suits, investigations, and proceedings that arise from time to time relating to matters incidental to the ordinary course of the Company s business, including actions concerning contracts, intellectual property, employment, benefits, and securities matters.

SEC original ↗Pegasystems Inc. — 10-Q Quarterly report10-QOct 20, 2026

In addition, as the Company is a party to ongoing litigation, it is at least reasonably possible that the Company s estimates will change in the near term, and the effect may be material.

SEC original ↗Pegasystems Inc. — 10-Q Quarterly report10-QOct 20, 2026

As of September 30, 2026, the Company recorded an estimated $ 16 million accrued loss related to litigation settlements.

SEC original ↗Pegasystems Inc. — 10-Q Quarterly report10-QOct 20, 2026