Pegasystems Inc (PEGA)

Net profit margin

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Net income (ttm)	US$ in thousands	196,735	99,189	122,764	129,875	76,458	67,808	-40,244	-126,485	-365,977	-345,582	-417,441	-380,389	-56,802	-63,040	-21,788	15,413	-42,618	-61,373	-64,461	-75,532
Revenue (ttm)	US$ in thousands	1,642,666	1,497,180	1,480,583	1,490,176	1,437,291	1,432,616	1,354,853	1,290,941	1,267,010	1,317,845	1,237,559	1,223,096	1,274,461	1,211,653	1,194,069	1,163,752	1,065,425	1,017,517	995,459	986,211
Net profit margin		11.98%	6.63%	8.29%	8.72%	5.32%	4.73%	-2.97%	-9.80%	-28.89%	-26.22%	-33.73%	-31.10%	-4.46%	-5.20%	-1.82%	1.32%	-4.00%	-6.03%	-6.48%	-7.66%

March 31, 2025 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $196,735K ÷ $1,642,666K
= 11.98%

The analysis of Pegasystems Inc.'s net profit margin over the specified periods reveals a trajectory marked by significant fluctuations and a transition from consistent losses to operational profitability.

Initially, throughout the fiscal year ending June 30, 2020, to March 31, 2021, the company experienced negative net profit margins, indicating ongoing losses. The margins improved modestly from -7.66% on June 30, 2020, to -4.00% on March 31, 2021, reflecting that although losses persisted, the company was reducing the severity of its net deficits.

Between June 30, 2021, and September 30, 2021, the net profit margin declined again into negative territory, reaching -5.20%, suggesting some deterioration or increased expenses relative to revenue during that period. Subsequently, the margins fluctuated within the negative range, with marginal improvements and setbacks, ending December 31, 2021, at -26.22%. The pattern continued into 2022, with the net profit margin remaining predominantly negative, but with swings such as -4.46% on March 31, 2022.

The most notable development occurred starting in June 2022, when the net profit margin plunged sharply to -31.10%, and continued to deteriorate into late 2022, reaching -33.73% on September 30, 2022, and -26.22% on December 31, 2022. During this period, the company was recording higher percentage losses relative to revenue, indicating operational challenges or increased costs surpassing revenue growth.

From late 2022 through 2023, despite continued losses, the margin showed signs of reversal with notable improvement, transitioning towards positive figures. By March 31, 2023, the net profit margin remained negative at -28.89%, but improvements emerged in subsequent quarters: the margin improved to nearly break-even at -9.80% on June 30, 2023, and further into positive territory with -2.97% on September 30, 2023. This positive shift continued, culminating in a net profit margin of +4.73% as of December 31, 2023, marking the company’s first sustained profitability in the analyzed period.

The upward trend persisted into early 2024, with the margin rising to +5.32% at the end of March 2024, and further improving to +8.72% by June 30, 2024, and remaining elevated through September 2024 at +8.29%. The positive momentum continued into the subsequent quarters, with the margin reaching 6.63% by December 31, 2024, and promising growth to 11.98% as of March 31, 2025.

In summary, Pegasystems Inc. exhibited a prolonged period of net losses, with the margins peaking in negative territory and experiencing substantial volatility. The most recent data demonstrates a clear pivot towards profitability, with the net profit margin turning positive and trending upward, indicating improved operational efficiency, revenue growth, or cost management strategies effective in reversing prior losses.