Pegasystems Inc. (PEGA)
Low-Code / No-CodeSaaS Metrics & Investor Data — Q2 2026
analyticsEditorial Financial Analysis
Financial Performance & Trajectory
Pegasystems demonstrates a robust financial trajectory, with trailing revenue expanding from $1.75B in Q4 2025 to $1.67B in Q1 2026, reflecting a sequential contraction typical of quarterly seasonality. Year-over-year growth decelerated from 16.6% to 11.6%, indicating a normalization from a high-growth phase toward a more mature, sustainable pace. Gross margins remain healthy, compressing slightly from 75.9% to 74.6%, suggesting stable pricing and efficient delivery despite a shift toward cloud-based offerings. Cash generation is exceptional; free cash flow margin surged from 28.1% to 38.6%, underscoring strong operational leverage and capital discipline. This margin expansion signals that the company is converting a higher proportion of revenue into free cash flow, a hallmark of a scalable SaaS model.
Operational & Go-to-Market (GTM) Efficiency
The Rule of 40 score improved from 44.7 to 50.2, surpassing the critical 40% threshold and highlighting a balanced combination of growth and profitability. While net revenue retention (NRR) and customer acquisition cost (CAC) payback data are not disclosed, the strong Rule of 40 performance implies efficient GTM execution and high customer lifetime value relative to acquisition costs. The absence of explicit retention metrics is a gap, but the improving free cash flow margin suggests that reinvestments in R&D and sales are yielding positive returns without eroding profitability. The company’s focus on low-code/no-code platforms continues to drive enterprise adoption, likely supporting sticky revenue streams.
Market Valuation & Sentiment
At an enterprise value-to-revenue multiple of 3.4x (up from 3.0x in Q4 2025), PEGA trades at a moderate premium relative to historical levels, reflecting investor confidence in its cash flow generation and market position. Wall Street sentiment is bullish, with a consensus Buy rating (17 Buys, 6 Holds, 0 Sells) and an average price target of $56.60, implying upside from current levels. However, recent insider activity reveals net selling of $4.37M over the last ten filings, with zero insider purchases. This divergence between analyst optimism and insider behavior warrants caution, as insiders may perceive limited near-term upside or prefer liquidity. Overall, PEGA offers a compelling mix of growth, profitability, and cash generation, but investors should monitor insider trends for alignment with long-term value creation.
Disclaimer: The editorial financial analysis above is generated using data sourced from SEC EDGAR filings and Wall Street consensus ratings. This analysis is provided for informational and educational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research or consult with a registered financial advisor before making any investment decisions.
Pegasystems Inc. (PEGA) is a Low-Code / No-Code SaaS company with a market cap of $5.9B as of Q2 2026. The company trades at 3.5x EV/Revenue and has delivered +8.0% revenue growth year-over-year. With a gross margin of 73% and FCF margin of 39.9%, Pegasystems Inc. scores 48 on the Rule of 40 — placing it in the upper half of public SaaS companies tracked by SaaSDB.
compare_arrowsSector Benchmarking
Latest company metrics compared to the Low-Code / No-Code sector medians
EV/Revenue is 3.5x (sector median: 3.9x) — trading at a discount of 0.4x relative to peers.
Rule of 40 is 47.9% (sector median: 41.0%) — outperforming peers by 6.9%.
Revenue Growth is 8.0% (sector median: 15.8%) — underperforming peers by 7.9%.
Gross Margin is 73.4% (sector median: 73.4%) — in-line with peers.
FCF Margin is 39.9% (sector median: 25.2%) — outperforming peers by 14.7%.
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rocket_launchFounder & Operator Metrics
Not publicly disclosed by this company: Net Revenue Retention·Gross Retention·ARR·ARR Growth·CAC Payback
trending_upEfficiency & Investment Trends
biotechR&D Intensity Trend
R&D expense as % of revenue over time
insightsOperating Leverage Trend
Operating leverage ratio (margin expansion vs growth)
Negative leverage. Growth is being achieved at the expense of deteriorating margins (increasing operating loss).
Insider Trading Activity
90-Day Insider Sentiment: Bearish / Net Selling. Insiders executed 3 sell transactions (totaling $107K) with zero buys. Last activity on Aug 25, 2026.
Analyst Ratings
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