Pegasystems (PEGA) Cash Flow: Operating & Free Cash Flow

Pegasystems (PEGA) Cash Flow Statement

In fiscal 2025 (fiscal year ended Dec 31, 2025), Pegasystems generated $505.23M of operating cash flow and spent $14.50M on capital expenditures. That left free cash flow of $490.72M, up 45.1% from $338.21M a year earlier, or 28.1% of revenue. It returned $532.65M to shareholders through $15.42M in dividends and $517.23M in share buybacks.

Pegasystems Cash Flow Statement Analysis

Values in millions USD

Income Statement Balance Sheet Cash Flow Ratios

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Cash flow statement showing operating, investing, and financing activities for Pegasystems Inc. (PEGA) - Annual data in millions USD
Breakdown	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020	FY 2019	FY 2018	FY 2017
Period ending	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019	Dec 2018	Dec 2017
Operating Activities
Net Income	393.44	99.19	67.81	-345.58	-63.04	-61.37	-90.43	10.62	32.93
Depreciation & Amortization	25.91	97.70	34.66	34.72	28.59	21.35	21.40	25.30	39.41
Deferred Income Tax	-170.81	-1.54	0.36	168.89	-75.34	-59.78	-49.32	-30.90	13.80
Stock Based Compensation	155.24	142.72	143.35	122.21	115.95	103.07	80.91	63.86	53.31
Change in Working Capital	39.43	19.16	-78.01	-64.35	-59.53	-32.99	-50.98	20.71	32.58
Change in Accounts Receivable	19.19	79.03	-57.60	-51.16	-11.96	-32.32	1.09	25.78	23.81
Change in Inventory	0.00	0.00	-0.07	0.00	0.00	-5.62	0.00	0.00	0.00
Change in Accounts Payable	0.00	0.00	0.07	0.00	0.00	37.95	0.00	20.80	14.47
Change in Other Working Capital	70.27	-108.24	57.16	-13.20	-47.58	-32.99	-52.07	-5.07	8.77
Other Operating Activities	70.27	-12.83	57.16	106.45	92.49	29.16	46.26	14.77	-13.80
Net Cash from Operating Activities	505.23	345.93	217.79	22.34	39.12	-0.56	-42.17	104.36	158.24
Investing Activities
Capital Expenditures	-14.50	-7.71	-16.78	-35.38	-10.46	-25.37	-10.61	-11.89	-13.74
Acquisitions	0.00	0.00	0.00	-0.92	-4.99	296.31	-10.93	-0.80	-0.30
Purchases of Investments	-348.64	-559.37	-287.29	-41.02	-79.12	-326.55	-11.42	-69.49	-27.72
Sales/Maturities of Investments	560.39	364.50	253.32	90.39	167.07	30.24	103.04	33.99	27.00
Other Investing Activities	0.00	0.00	0.00	0.00	0.00	-296.31	0.00	-35.50	-0.72
Net Cash from Investing Activities	197.25	-202.58	-50.75	13.08	72.50	-321.68	70.07	-48.20	-14.76
Financing Activities
Debt Repayment	-467.86	-33.89	-88.99	0.00	0.00	600.00	0.00	0.00	0.00
Common Stock Issued	165.89	87.36	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Common Stock Repurchased	-517.23	-73.49	-1.92	-46.33	-122.64	-103.54	-66.97	-92.03	-44.95
Dividends Paid	-15.42	-10.20	-9.96	-9.83	-9.76	-9.63	-9.49	-9.43	-9.28
Other Financing Activities	0.01	0.01	0.34	9.17	10.55	-63.39	2.20	0.00	0.00
Net Cash from Financing Activities	-834.63	-30.21	-81.96	-46.99	-121.84	423.45	-74.26	-101.46	-54.23
Summary
Effect of Forex Changes on Cash	6.99	-4.43	2.70	-3.33	-1.71	2.33	0.29	-2.56	2.44
Net Change in Cash	-125.17	108.70	87.77	-14.91	-11.93	103.54	-46.06	-47.86	91.69
Cash at Beginning of Period	341.53	232.83	145.05	159.97	171.90	68.36	114.42	162.28	70.59
Cash at End of Period	216.36	341.53	232.83	145.05	159.97	171.90	68.36	114.42	162.28
Free Cash Flow	490.72	338.21	201.00	-13.04	28.66	-25.93	-52.77	92.46	144.49
Supplemental Disclosures
Interest Paid	1.75	3.81	4.13	4.50	4.50	-	-	-	-
Income Taxes Paid	21.63	82.32	11.66	7.65	-4.55	-	-	-	-

Source: Company financial statements from annual and quarterly filings. Data as of Sep 30, 2026. Data sources and methodology

Frequently Asked Questions About Pegasystems Cash Flow

What is Pegasystems's free cash flow?

Pegasystems generated free cash flow of $490.72M in fiscal 2025 (fiscal year ended Dec 31, 2025), operating cash flow of $505.23M minus $14.50M of capital expenditures. That was up 45.1% from $338.21M a year earlier. Free cash flow equaled 28.1% of revenue.

How much does Pegasystems spend on capital expenditures?

Pegasystems spent $14.50M on capital expenditures in fiscal 2025, compared with $7.71M a year earlier. That equals 2.9% of operating cash flow.

Does Pegasystems pay dividends or buy back shares?

Yes. In fiscal 2025 Pegasystems returned $15.42M in dividends and $517.23M in share buybacks to shareholders, according to its cash flow statement.

What is free cash flow?

Free cash flow is operating cash flow minus capital expenditures. It is the cash a company has left for dividends, buybacks, debt repayment or acquisitions after funding its operations and investment. Full definition