Pegasystems Inc.
PEGA Technology Software Application
Pegasystems Inc.’s revenue for fiscal 2025 (year ended December 2025) was $1.7 billion, up 16.6% from fiscal 2024. In the quarter to June 2026, revenue grew 9.42%, EPS fell 55.6% and free cash flow fell 2.85%, each against the same quarter a year earlier. Revenue growth for ten consecutive years, operating cash flow growth for three.
Follow PEGA
Pegasystems Inc. (PEGA) Beneish M-score
Pegasystems Inc.'s Beneish M-score for fiscal 2025 is −2.78; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
Embed this chart
Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −2.78 | 0.39 |
| FY2024 | −3.18 | (0.43) |
| FY2023 | −2.75 | 0.94 |
| FY2022 | −3.69 | (0.86) |
| FY2021 | −2.83 | (0.12) |
| FY2020 | −2.72 | 0.06 |
| FY2019 | −2.78 | 0.29 |
| FY2018 | −3.06 | (0.74) |
| FY2017 | −2.32 | (0.19) |
| FY2016 | −2.14 | 0.36 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.77 | — | 0.71 | |
| Gross margin index | 0.97 | — | 0.51 | |
| Asset quality index Asset quality not computable — index set to 1 | 1.00 | — | Set to 1 | 0.40 |
| Sales growth index | 1.17 | — | 1.04 | |
| Depreciation index Depreciation not reported — index set to 1 | 1.00 | — | Set to 1 | 0.12 |
| SG&A index | 0.96 | — | −0.17 | |
| Total accruals to total assets | (0.07) | — | −0.32 | |
| Leverage index | 0.74 | — | −0.24 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.78 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| RNG Ringcentral, Inc. compare | −4.4× |
| NAVN Navan, Inc. compare | −3.4× |
| CVLT CommVault Systems, Inc. compare | −3.0× |
| KVYO Klaviyo, Inc. compare | −2.9× |
| NIQ NIQ Global Intelligence plc compare | −2.8× |
| PEGA Pegasystems Inc. | −2.8× |
| NICE Nice compare | −2.2× |
| YOU CLEAR Secure, Inc. compare | −1.1× |
| LYFT Lyft, Inc. compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI