Pegasystems Posts $14.1M Q3 Net Income
PEGA sits 44% above its 52-week low of $25.1 on elevated volume (3.3× avg).
Summary
Pegasystems reported third-quarter net income of $14.1 million, down 68% from a year earlier as a $16 million litigation settlement weighed on results, a modest improvement over the $13.3M net income booked in Q2, when revenue grew 9% to $420.7M but legal costs tied to the Appian litigation ate into the bottom line. Third-quarter revenue came in at $393.4M, and adjusted EPS was USD 0.35 versus an IBES estimate of USD 0.48. Total ACV grew 6% to $1.653B, with Pega Cloud ACV reaching 59% of total ACV. The company is targeting $700M or more of free cash flow in 2028. The $2.33B Appian counterclaim remains the swing factor for the story. Insider selling has been steady but routine through September and October, with no large discretionary sales beyond the CFO's $1.42M in mid-September.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Pega Cloud ACV reached 59% of total ACV, total ACV grew 6% to $1.653B, and Q3 GAAP net income fell 68% to $14.1M on a $16M litigation settlement.
At the time of this announcement, PEGA was trading at $36.11 on NASDAQ in the Technology sector, with a market capitalization of approximately $6B. The 52-week trading range was $25.10 to $68.10. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.