PEGA

Pegasystems makes enterprise low-code automation, decisioning and CRM software, and FY2025 marks a clear profitability inflection as its subscription/cloud transition matures. Revenue grew 16.6% to $1.75B, but the real story is the margin leverage: net income jumped 296.7% to $393M, operating income more than doubled (+112.4%) to $263M, and diluted EPS rose 287.3% to $2.13. This caps a multi-year turnaround from net losses in FY2021-FY2022 to robust profitability, with gross margin at 75.9%, net margin at 22.5%, and an exceptional 50.0% return on equity.

The cash and balance-sheet picture reinforce the quality. Operating cash flow grew 46.1% to $505M on negligible capex of $14.5M — the hallmark of a software business now converting growth into free cash. Management returned capital aggressively, buying back $500M of stock and raising the dividend, while total liabilities fell 28.6% and equity grew 34.5% to $787M, leaving a healthy 1.07x liabilities/equity. (Note: the ~96.8% rise in share count reflects a stock split rather than dilution — EPS still rose 287% and the company was a net repurchaser of $500M, so per-share value was not diluted.)