Pega Q2 revenue +9.4% as net income fell 55.7% on higher taxes; derivative suits settled $9.75M

Filed July 21, 2026 · Period ending June 30, 2026 · Compared to 10-Q Jul 22, 2025 · ~2 min read

Key Changes

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  Net income to common fell 55.7% ($30.1M → $13.3M) while operating income declined only 4% ($17.3M → $16.6M). The $16.8M bottom-line swing came from below-the-line items: income tax expense increased $10.0M and non-operating/other items worsened $6.1M. The net-income decline did not come from operations.

  Notes: Income Tax & Non-Operating Items view on EDGAR →
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  Derivative litigation settled for $9.75M total: $7M special dividend to non-defendant shareholders plus $2.75M in plaintiffs' attorney fees. Final court approval entered June 30, 2026; all derivative cases dismissed with prejudice in early July 2026.

  Legal Proceedings: Derivative Settlement verify on EDGAR →
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  Appian defamation trial set for November 2026. Pega claims $41.9M in damages; Appian counterclaims for $31.8M in lost profits, $109.5M disgorgement on competed contracts, and seeks disgorgement of Pega's entire $2.33B in 2022-2025 profits. Summary judgment briefing completed July 16, 2026.

  Legal Proceedings: Defamation Litigation verify on EDGAR →