PTC ANNOUNCES THIRD FISCAL QUARTER 2025 RESULTS
PTC (NASDAQ: PTC) reported strong Q3 2025 financial results, with constant currency ARR growth of 9.3% at the higher end of guidance. The company achieved 14% growth in both operating and free cash flow, exceeding guidance ranges. Key financial highlights include revenue of $644 million (24% YoY growth), non-GAAP operating margin of 44% (1,260 bps improvement), and non-GAAP EPS of $1.64 (68% growth).
PTC raised its FY'25 guidance across key metrics and announced continued execution of its $2 billion share repurchase program, with plans to repurchase $75 million in Q4'25. The company maintains a strong focus on AI-driven growth and vertical markets, while reducing its debt-to-leverage ratio to approximately 1x.
PTC (NASDAQ: PTC) ha riportato risultati finanziari solidi nel terzo trimestre del 2025, con una crescita dell'ARR a valuta costante del 9,3%, posizionandosi nella fascia alta delle previsioni. L'azienda ha registrato una crescita del 14% sia nel flusso di cassa operativo che in quello libero, superando le aspettative. I principali dati finanziari includono un fatturato di 644 milioni di dollari (crescita del 24% su base annua), un margine operativo non-GAAP del 44% (miglioramento di 1.260 punti base) e un EPS non-GAAP di 1,64 dollari (crescita del 68%).
PTC ha rivisto al rialzo le previsioni per l'intero anno fiscale 2025 su metriche chiave e ha annunciato la prosecuzione del suo programma di riacquisto azionario da 2 miliardi di dollari, con l'intenzione di riacquistare 75 milioni di dollari nel quarto trimestre del 2025. L'azienda mantiene un forte focus sulla crescita guidata dall'intelligenza artificiale e sui mercati verticali, riducendo al contempo il rapporto debito/leva finanziaria a circa 1x.
PTC (NASDAQ: PTC) reportó sólidos resultados financieros en el tercer trimestre de 2025, con un crecimiento del ARR en moneda constante del 9.3%, situándose en el extremo superior de las previsiones. La compañía logró un crecimiento del 14% tanto en flujo de caja operativo como en flujo de caja libre, superando los rangos estimados. Los aspectos financieros clave incluyen ingresos de 644 millones de dólares (crecimiento interanual del 24%), un margen operativo non-GAAP del 44% (mejora de 1,260 puntos básicos) y un EPS non-GAAP de 1.64 dólares (crecimiento del 68%).
PTC elevó sus previsiones para el año fiscal 2025 en métricas clave y anunció la continuación de su programa de recompra de acciones de 2 mil millones de dólares, con planes para recomprar 75 millones de dólares en el cuarto trimestre de 2025. La empresa mantiene un fuerte enfoque en el crecimiento impulsado por IA y en mercados verticales, mientras reduce su ratio deuda-apalancamiento a aproximadamente 1x.
PTC (NASDAQ: PTC)는 2025년 3분기 강력한 재무 실적을 발표했으며, 환율 변동을 제외한 ARR은 9.3% 성장하여 가이던스 상단에 위치했습니다. 회사는 영업 현금 흐름과 자유 현금 흐름 모두에서 14% 성장하여 예상 범위를 넘어섰습니다. 주요 재무 하이라이트로는 6억 4,400만 달러의 매출 (전년 대비 24% 성장), 비-GAAP 영업 마진 44% (1,260 베이시스 포인트 개선), 비-GAAP 주당순이익(EPS) 1.64달러 (68% 성장)이 있습니다.
PTC는 2025 회계연도 전체 가이던스를 주요 지표 전반에 걸쳐 상향 조정했으며, 20억 달러 규모의 자사주 매입 프로그램을 계속 실행할 계획임을 발표했습니다. 2025년 4분기에 7,500만 달러 규모의 자사주를 매입할 예정입니다. 회사는 AI 기반 성장과 수직 시장에 집중하는 한편, 부채 대비 레버리지 비율을 약 1배로 낮추고 있습니다.
PTC (NASDAQ : PTC) a annoncé de solides résultats financiers pour le troisième trimestre 2025, avec une croissance de l'ARR en devise constante de 9,3 %, se situant dans la partie haute des prévisions. L'entreprise a enregistré une croissance de 14 % à la fois du flux de trésorerie opérationnel et du flux de trésorerie libre, dépassant les fourchettes prévues. Les principaux points financiers comprennent un chiffre d'affaires de 644 millions de dollars (croissance annuelle de 24 %), une marge opérationnelle non-GAAP de 44 % (amélioration de 1 260 points de base), et un BPA non-GAAP de 1,64 $ (croissance de 68 %).
PTC a relevé ses prévisions pour l'exercice 2025 sur les principaux indicateurs et a annoncé la poursuite de son programme de rachat d'actions de 2 milliards de dollars, avec l'intention de racheter pour 75 millions de dollars d'actions au quatrième trimestre 2025. L'entreprise maintient un fort accent sur la croissance pilotée par l'IA et les marchés verticaux, tout en réduisant son ratio d'endettement à environ 1x.
PTC (NASDAQ: PTC) meldete starke Finanzergebnisse für das dritte Quartal 2025 mit einem ARR-Wachstum bei konstanten Wechselkursen von 9,3%, was am oberen Ende der Prognosen liegt. Das Unternehmen erzielte ein 14%iges Wachstum sowohl beim operativen als auch beim freien Cashflow und übertraf damit die Prognosebereiche. Zu den wichtigsten finanziellen Highlights gehören Umsätze von 644 Millionen US-Dollar (24% Wachstum gegenüber dem Vorjahr), eine Non-GAAP-Betriebsmarge von 44% (Verbesserung um 1.260 Basispunkte) und ein Non-GAAP-Gewinn je Aktie von 1,64 US-Dollar (68% Wachstum).
PTC hat seine Prognosen für das Geschäftsjahr 2025 in wichtigen Kennzahlen angehoben und die Fortsetzung seines 2-Milliarden-Dollar-Aktienrückkaufprogramms angekündigt, mit Plänen, im vierten Quartal 2025 Aktien im Wert von 75 Millionen US-Dollar zurückzukaufen. Das Unternehmen legt weiterhin großen Wert auf KI-getriebenes Wachstum und vertikale Märkte, während es sein Verschuldungsgrad-Verhältnis auf etwa das 1-fache reduziert.
- Constant currency ARR grew 9.3% YoY, reaching higher end of guidance
- Operating and free cash flow both increased 14% YoY, exceeding guidance
- Revenue grew 24% YoY to $644 million
- Non-GAAP operating margin improved significantly to 44% (1,260 bps increase)
- Debt reduced by 32% YoY to $1.23 billion
- Raised guidance for ARR, Free Cash Flow, Revenue, and EPS metrics
- Continuing $75M share repurchase program in Q4'25
- Total cash and cash equivalents decreased 20% YoY to $199 million
- Selling environment remains challenging with macroeconomic uncertainty
- Operating expenses expected to increase approximately 3% in FY'25
Insights
PTC delivered strong Q3 results with 9.3% ARR growth and 14% cash flow growth, raising full-year guidance across all metrics.
PTC's Q3 fiscal 2025 results demonstrate solid execution in a challenging macroeconomic environment. The company achieved constant currency ARR growth of 9.3%, at the higher end of their guidance range, while operating and free cash flow both increased by 14%, exceeding guidance. Revenue jumped 24% year-over-year to
The substantial margin expansion is particularly impressive, with GAAP operating margin increasing
Management's confidence is evident in the raised full-year guidance across all key metrics. Constant currency ARR growth guidance was narrowed to
PTC's capital allocation strategy remains disciplined, with
While management acknowledges ongoing macroeconomic uncertainty, they noted they're "past the point of maximum disruption" - a cautiously optimistic indicator for future customer engagements. The company's strategic focus on product data foundations across CAD, PLM, ALM, SLM, and SaaS offerings continues to resonate with customers across verticals and geographies, supporting its sustainable growth trajectory.
- Solid execution in Q3'25
- Constant Currency ARR Growth of
9.3% ; at higher end of guidance range - Operating and Free Cash Flow Growth of
14% ; exceeded guidance ranges
- Constant Currency ARR Growth of
- Raising guidance for ARR, Free Cash Flow, Revenue, EPS, and Non-GAAP EPS
- Proceeding with share repurchases under our
$2 billion - Continuing to build a strong foundation for AI-driven and verticalized growth
"Q3 was another solid quarter of execution for PTC. Our strategy of enabling product data foundations and extending the value of that data across the enterprise is resonating with customers across our verticals and geographies," said Neil Barua, President and CEO, PTC.
"In Q3, we continued to advance our go-to-market transformation, and I can say with confidence that we are structurally stronger. We also progressed our five focus areas of CAD, PLM, ALM, SLM, and SaaS with new product offerings and enhancements and key customer wins. While the macroeconomic picture still poses some uncertainty for our customers, we sense that we are past the point of maximum disruption, and look forward to productive customer engagements throughout Q4," concluded Barua.
Third Fiscal Quarter 2025 Key Operating and Financial Metrics1
$ in millions, except per share amounts | Q3'25 | Q3'24 | YoY Change | Q3'25 | |
ARR as reported | 14 % | ||||
Constant currency ARR (FY'25 Plan FX rates2) | 9.3 % |
| |||
Operating cash flow | 14 % | ||||
Free cash flow | 14 % | ||||
Revenue3 | |||||
Operating margin3 | 33 % | 18 % | 1,410 bps | ||
Non-GAAP operating margin3 | 44 % | 32 % | 1,260 bps | ||
Earnings per share3 | 106 % | ||||
Non-GAAP earnings per share3 | 68 % | ||||
Total cash and cash equivalents | (20 %) | ||||
Debt, net of deferred issuance costs | (32 %) |
1 | The definitions of our operating and non-GAAP financial measures and reconciliations of non-GAAP financial measures to comparable GAAP measures are included below and in the reconciliation tables at the end of this press release. |
2 | On a constant currency basis, using our FY'25 Plan foreign exchange rates (rates as of September 30, 2024) for all periods. |
3 | Revenue and, as a result, operating margin and earnings per share are impacted under ASC 606. |
4 | In Q3'25, revenue grew |
5 | In Q3'24, GAAP EPS included a non-cash tax benefit of |
"In Q3'25, the selling environment remained challenging. Against this backdrop, our constant currency ARR was solid, growing
"We have updated our FY'25 guidance ranges to reflect our year-to-date results and our expectations for Q4'25. Supported by our updated guidance of
Full Fiscal Year 2025 and Fourth Fiscal Quarter Guidance
$ in millions except per share amounts % rounded to the nearest half | FY'25 Previous | FY'25 | FY'25 YoY | Q4'25 | |
Constant currency ARR (FY'25 Plan FX rates1) |
|
|
| ||
Operating cash flow | ~ | ||||
Free cash flow | ~ | ||||
Revenue | |||||
Earnings per share | |||||
Non-GAAP earnings per share |
1 On a constant currency basis, using our FY'25 Plan foreign exchange rates (rates as of September 30, 2024) for all periods. |
Reconciliation of Operating Cash Flow Guidance to Free Cash Flow Guidance
$ in millions | FY'25 | Q4'25 | |
Operating cash flow | |||
Capital expenditures | |||
Free cash flow |
Reconciliation of EPS Guidance to Non-GAAP EPS Guidance
FY'25 | Q4'25 | ||
Earnings per share | |||
Stock-based compensation | |||
Amortization of acquired intangibles | |||
Impairment and other charges (credits), net | |||
Acquisition and transaction-related charges | |||
Income tax adjustments | ( | ( | |
Non-GAAP Earnings per share |
FY'25 financial guidance includes the following assumptions:
- We provide ARR guidance on a constant currency basis, using our FY'25 Plan foreign exchange rates (rates as of September 30, 2024) for all periods.
- We expect churn to remain low.
- For cash flow, due to largely similar invoicing seasonality, and consistent with the past 4 years, we expect the majority of our collections to occur in the first half of our fiscal year and for fiscal Q4 to be our lowest cash flow generation quarter.
- Compared to FY'24, given our FY'25 ARR guidance range, FY'25 GAAP operating expenses are expected to increase approximately
3% and FY'25 non-GAAP operating expenses are expected to increase approximately3% , primarily due to investments to drive future growth. - FY'25 cash flow guidance includes approximately
$18 million $17 million $1 million - Capital expenditures are expected to be approximately
$10 million - Cash interest payments are expected to be approximately
$80 million - Cash tax payments are expected to be approximately
$110 million $120 million - GAAP and non-GAAP tax rates are expected to be approximately
20% to25% . - GAAP P&L results are expected to include the items below, totaling approximately
$299 million $309 million - approximately
$210 million $220 million - approximately
$79 million - approximately
$8 million - approximately
$2 million
- approximately
- We intend to repurchase approximately
$300 million $225 million $75 million - We expect our fully diluted share count to be approximately flat in FY'25.
PTC's Third Fiscal Quarter Results Conference Call
The Company will host a conference call to discuss results at 5:00 pm ET on Wednesday, July 30, 2025. To participate in the live conference call, dial (888) 596-4144 or (646) 968-2525, provide the passcode 3475783, and press # or log in to the webcast, available on PTC's Investor Relations website. A replay will also be available.
Important Information About Our Operating and Non-GAAP Financial Measures
Non-GAAP Financial Measures
We provide supplemental non-GAAP financial measures to our financial results. We use these non-GAAP financial measures, and we believe that they assist our investors, to make period-to-period comparisons of our operating performance because they provide a view of our operating results without items that are not, in our view, indicative of our operating results. These non-GAAP financial measures should not be construed as an alternative to GAAP results as the items excluded from the non-GAAP financial measures often have a material impact on our operating results, certain of those items are recurring, and others often recur. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results.
Non-GAAP operating expense, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income and non-GAAP EPS exclude the effect of the following items: stock-based compensation; amortization of acquired intangible assets; acquisition and transaction-related charges included in general and administrative expenses; impairment and other charges (credits), net; non-operating charges (credits), net shown in the reconciliation provided; and income tax adjustments. Additional information about the items we exclude from our non-GAAP financial measures and the reasons we exclude them can be found in "Non-GAAP Financial Measures" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.
In Q2'25, we changed the income statement caption of Restructuring and other charges (credits), net to Impairment and other charges (credits), net to reflect that the amounts presented are mainly impairment charges rather than restructuring charges. We correspondingly revised the caption with respect to the list of items excluded from our non-GAAP financial measures and, as reflected below, the list of items covered under that caption to reflect the primary charges and credits included in the adjustment. All charges and credits under the captioned line item remain the same.
Impairment and other charges (credits), net are charges associated with disposal or exit activities, including lease impairment and abandonment charges, net charges or income related to impaired or exited facilities, restructuring severance charges resulting from substantial employee reduction actions, and other related costs.
Free Cash Flow: We provide information on free cash flow to enable investors to assess our ability to generate cash without incurring additional external financings and to evaluate our performance against our announced long-term goals and intent to return excess cash to shareholders via stock repurchases. Free cash flow is cash provided by (used in) operations net of capital expenditures. Free cash flow is not a measure of cash available for discretionary expenditures.
Constant Currency (CC): We present CC information to provide a framework for assessing how our underlying business performed excluding the effects of foreign currency exchange rate fluctuations. To present CC information, FY'25 and comparative prior period results for entities reporting in currencies other than
Operating Measure
ARR: ARR (Annual Run Rate) represents the annualized value of our portfolio of active subscription software, SaaS, hosting, and support contracts as of the end of the reporting period. We calculate ARR as follows:
- We consider a contract to be active when the product or service contractual term commences (the "start date") until the right to use the product or service ends (the "expiration date"). Even if the contract with the customer is executed before the start date, the contract will not count toward ARR until the customer right to receive the benefit of the products or services has commenced.
- For contracts that include annual values that change over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include any future committed increases in the contract value as of the date of the ARR calculation.
- As ARR includes only contracts that are active at the end of the reporting period, ARR does not reflect assumptions or estimates regarding future customer renewals or non-renewals.
- Active contracts are annualized by dividing the total active contract value by the contract duration in days (expiration date minus start date), then multiplying that by 365 days (or 366 days for leap years).
We believe ARR is a valuable operating measure to assess the health of a subscription business because it is aligned with the amount that we invoice the customer on an annual basis. We generally invoice customers annually for the current year of the contract. A customer with a one-year contract will typically be invoiced for the total value of the contract at the beginning of the contractual term, while a customer with a multi-year contract will be invoiced for each annual period at the beginning of each year of the contract.
ARR increases by the annualized value of active contracts that commence in a reporting period and decreases by the annualized value of contracts that expire in the reporting period.
As ARR is not annualized recurring revenue, it is not calculated based on recognized or unearned revenue and is not affected by variability in the timing of revenue under ASC 606, particularly for on-premises license subscriptions where a substantial portion of the total value of the contract is recognized as revenue at a point in time upon the later of when the software is made available, or the subscription term commences.
ARR should be viewed independently of recognized and unearned revenue and is not intended to be combined with, or to replace, either of those items. Investors should consider our ARR operating measure only in conjunction with our GAAP financial results.
Forward-Looking Statements
Statements in this document that are not historic facts, including statements about our future operating, financial and growth expectations, and potential stock repurchases, are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks include: the macroeconomic and/or global manufacturing climates may not improve or may deteriorate due to, among other factors, the effects of recently imposed import tariffs, threats of additional and reciprocal import tariffs, global trade tensions and uncertainty, volatile foreign exchange rates, high interest rates or increases in interest rates, inflation, tightening of credit standards and availability, geopolitical uncertainty, including the effects of the conflicts between
About PTC (NASDAQ: PTC)
PTC (NASDAQ: PTC) is a global software company that enables industrial and manufacturing companies to digitally transform how they engineer, manufacture, and service the physical products that the world relies on. Headquartered in
PTC Investor Relations Contact
Matt Shimao
SVP, Investor Relations
mshimao@ptc.com
investor@ptc.com
PTC Inc. | |||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Revenue: | |||||||||||||||
Recurring revenue | $ | 613,583 | $ | 481,559 | $ | 1,739,443 | $ | 1,551,600 | |||||||
Perpetual license | 7,763 | 7,050 | 23,004 | 22,243 | |||||||||||
Professional services | 22,591 | 30,030 | 82,984 | 98,082 | |||||||||||
Total revenue (1) | 643,937 | 518,639 | 1,845,431 | 1,671,925 | |||||||||||
Cost of revenue (2) | 110,025 | 111,916 | 328,084 | 331,991 | |||||||||||
Gross margin | 533,912 | 406,723 | 1,517,347 | 1,339,934 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing (2) | 141,756 | 140,318 | 424,319 | 411,763 | |||||||||||
Research and development (2) | 116,647 | 110,253 | 343,186 | 323,034 | |||||||||||
General and administrative (2) | 54,145 | 49,659 | 162,457 | 180,391 | |||||||||||
Amortization of acquired intangible assets | 11,536 | 10,672 | 34,356 | 31,459 | |||||||||||
Impairment and other charges (credits), net (3) | - | - | 4,213 | (802) | |||||||||||
Total operating expenses | 324,084 | 310,902 | 968,531 | 945,845 | |||||||||||
Operating income | 209,828 | 95,821 | 548,816 | 394,089 | |||||||||||
Other expense, net | (16,152) | (28,448) | (56,737) | (95,372) | |||||||||||
Income before income taxes | 193,676 | 67,373 | 492,079 | 298,717 | |||||||||||
Provision (benefit) for income taxes | 52,348 | (1,605) | 105,875 | 48,907 | |||||||||||
Net income | $ | 141,328 | $ | 68,978 | $ | 386,204 | $ | 249,810 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 1.18 | $ | 0.58 | $ | 3.22 | $ | 2.09 | |||||||
Weighted average shares outstanding | 119,913 | 119,893 | 120,106 | 119,533 | |||||||||||
Diluted | $ | 1.17 | $ | 0.57 | $ | 3.20 | $ | 2.07 | |||||||
Weighted average shares outstanding | 120,461 | 120,822 | 120,815 | 120,593 | |||||||||||
(1) See supplemental financial data for revenue by license, support and cloud services, and professional services. |
(2) See supplemental financial data for additional information about stock-based compensation. |
(3) Caption has been changed from "Restructuring and other charges (credits), net" to reflect that impairment is now the primary component of the charge. Additional information about this change can be found in the "Non-GAAP Financial Measures" section of this document. |
PTC Inc. | |||||||||||||||
SUPPLEMENTAL FINANCIAL DATA FOR REVENUE AND STOCK-BASED COMPENSATION | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Revenue by license, support and services is as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
License revenue (1) | $ | 251,479 | $ | 149,104 | $ | 678,628 | $ | 567,423 | |||||||
Support and cloud services revenue | 369,867 | 339,505 | 1,083,819 | 1,006,420 | |||||||||||
Professional services revenue | 22,591 | 30,030 | 82,984 | 98,082 | |||||||||||
Total revenue | $ | 643,937 | $ | 518,639 | $ | 1,845,431 | $ | 1,671,925 | |||||||
(1) License revenue includes the portion of subscription revenue allocated to license. | |||||||||||||||
The amounts in the income statement include stock-based compensation as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Cost of revenue | $ | 5,291 | $ | 5,856 | $ | 16,711 | $ | 15,979 | |||||||
Sales and marketing | 15,059 | 15,167 | 46,672 | 46,023 | |||||||||||
Research and development | 17,788 | 13,101 | 48,334 | 41,275 | |||||||||||
General and administrative | 15,894 | 13,914 | 49,678 | 57,965 | |||||||||||
Total stock-based compensation | $ | 54,032 | $ | 48,038 | $ | 161,395 | $ | 161,242 | |||||||
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NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
GAAP gross margin | $ | 533,912 | $ | 406,723 | $ | 1,517,347 | $ | 1,339,934 | |||||||
Stock-based compensation | 5,291 | 5,856 | 16,711 | 15,979 | |||||||||||
Amortization of acquired intangible assets included in cost of | 8,178 | 9,685 | 24,609 | 28,835 | |||||||||||
Non-GAAP gross margin | $ | 547,381 | $ | 422,264 | $ | 1,558,667 | $ | 1,384,748 | |||||||
GAAP operating income | $ | 209,828 | $ | 95,821 | $ | 548,816 | $ | 394,089 | |||||||
Stock-based compensation | 54,032 | 48,038 | 161,395 | 161,242 | |||||||||||
Amortization of acquired intangible assets | 19,714 | 20,357 | 58,965 | 60,294 | |||||||||||
Acquisition and transaction-related charges | 1,597 | 154 | 2,422 | 2,962 | |||||||||||
Impairment and other charges (credits), net (2) | - | - | 4,213 | (802) | |||||||||||
Non-GAAP operating income (1) | $ | 285,171 | $ | 164,370 | $ | 775,811 | $ | 617,785 | |||||||
GAAP net income | $ | 141,328 | $ | 68,978 | $ | 386,204 | $ | 249,810 | |||||||
Stock-based compensation | 54,032 | 48,038 | 161,395 | 161,242 | |||||||||||
Amortization of acquired intangible assets | 19,714 | 20,357 | 58,965 | 60,294 | |||||||||||
Acquisition and transaction-related charges | 1,597 | 154 | 2,422 | 2,962 | |||||||||||
Impairment and other charges (credits), net (2) | - | - | 4,213 | (802) | |||||||||||
Non-operating charges, net (3) | - | - | - | 2,000 | |||||||||||
Income tax adjustments (4) | (19,260) | (19,538) | (65,650) | (48,162) | |||||||||||
Non-GAAP net income | $ | 197,411 | $ | 117,989 | $ | 547,549 | $ | 427,344 | |||||||
GAAP diluted earnings per share | $ | 1.17 | $ | 0.57 | $ | 3.20 | $ | 2.07 | |||||||
Stock-based compensation | 0.45 | 0.40 | 1.34 | 1.34 | |||||||||||
Amortization of acquired intangibles | 0.16 | 0.17 | 0.49 | 0.50 | |||||||||||
Acquisition and transaction-related charges | 0.01 | 0.00 | 0.02 | 0.02 | |||||||||||
Impairment and other charges (credits), net (2) | - | - | 0.03 | (0.01) | |||||||||||
Non-operating charges, net (3) | - | - | - | 0.02 | |||||||||||
Income tax adjustments (4) | (0.16) | (0.16) | (0.54) | (0.40) | |||||||||||
Non-GAAP diluted earnings per share | $ | 1.64 | $ | 0.98 | $ | 4.53 | $ | 3.54 | |||||||
(1) Operating margin impact of non-GAAP adjustments: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
GAAP operating margin | 32.6 | % | 18.5 | % | 29.7 | % | 23.6 | % | |||||||
Stock-based compensation | 8.4 | % | 9.3 | % | 8.7 | % | 9.6 | % | |||||||
Amortization of acquired intangibles | 3.1 | % | 3.9 | % | 3.2 | % | 3.6 | % | |||||||
Acquisition and transaction-related charges | 0.2 | % | 0.0 | % | 0.1 | % | 0.2 | % | |||||||
Impairment and other charges (credits), net (2) | 0.0 | % | 0.0 | % | 0.2 | % | 0.0 | % | |||||||
Non-GAAP operating margin | 44.3 | % | 31.7 | % | 42.0 | % | 37.0 | % | |||||||
(2) Caption has been changed from "Restructuring and other charges (credits), net" to reflect that impairment is now the primary component of the charge. Additional information about this change can be found in the "Non-GAAP Financial Measures" section of this document. |
(3) In the first nine months of FY'24, we recognized an impairment loss of |
(4) Income tax adjustments reflect the tax effects of non-GAAP adjustments which are calculated by applying the applicable tax rate by jurisdiction to the non-GAAP adjustments listed above. Additionally, in the first nine months of FY'25 and FY'24, adjustments exclude a |
PTC Inc. | |||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands) | |||||||
June 30, | September 30, | ||||||
2025 | 2024 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 199,321 | $ | 265,808 | |||
Accounts receivable, net | 712,710 | 861,953 | |||||
Property and equipment, net | 65,102 | 75,187 | |||||
Goodwill and acquired intangible assets, net | 4,341,831 | 4,359,367 | |||||
Lease assets, net | 128,854 | 133,317 | |||||
Other assets | 781,235 | 687,910 | |||||
Total assets | $ | 6,229,053 | $ | 6,383,542 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Deferred revenue | $ | 777,352 | $ | 775,274 | |||
Debt, net of deferred issuance costs | 1,233,412 | 1,748,572 | |||||
Lease obligations | 178,307 | 181,754 | |||||
Other liabilities | 527,099 | 463,544 | |||||
Stockholders' equity | 3,512,883 | 3,214,398 | |||||
Total liabilities and stockholders' equity | $ | 6,229,053 | $ | 6,383,542 | |||
PTC Inc. | |||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 141,328 | $ | 68,978 | $ | 386,204 | $ | 249,810 | |||||||
Stock-based compensation | 54,032 | 48,038 | 161,395 | 161,242 | |||||||||||
Depreciation and amortization | 25,540 | 27,128 | 76,803 | 81,272 | |||||||||||
Amortization of right-of-use lease assets | 8,294 | 7,684 | 24,459 | 23,143 | |||||||||||
Operating lease liability | (2,273) | (3,145) | (4,869) | (13,438) | |||||||||||
Accounts receivable | 45,585 | 23,915 | 173,557 | 131,422 | |||||||||||
Accounts payable and accruals | 40,377 | 64,831 | (10,329) | 35 | |||||||||||
Deferred revenue | (51,004) | (32,578) | (16,472) | 8,393 | |||||||||||
Income taxes | 16,844 | (19,882) | 22,409 | (1,795) | |||||||||||
Other | (34,795) | 28,830 | (49,491) | 11,786 | |||||||||||
Net cash provided by operating activities | 243,928 | 213,799 | 763,666 | 651,870 | |||||||||||
Capital expenditures | (1,887) | (1,639) | (7,462) | (9,841) | |||||||||||
Acquisition of businesses, net of cash acquired(1) | (6,532) | - | (6,532) | (93,457) | |||||||||||
Borrowings (payments) on debt, net(2) | (156,583) | (195,125) | (516,708) | 109,049 | |||||||||||
Repurchases of common stock | (74,987) | - | (224,987) | - | |||||||||||
Deferred acquisition payment(3) | - | - | - | (620,040) | |||||||||||
Net proceeds associated with issuance of common stock | - | - | 13,307 | 12,709 | |||||||||||
Payments of withholding taxes in connection with vesting of stock- | (18,890) | (21,405) | (71,761) | (92,589) | |||||||||||
Settlement of net investment hedges | (26,820) | 6,050 | (14,560) | 3,826 | |||||||||||
Other financing & investing activities | - | - | (1,410) | - | |||||||||||
Foreign exchange impact on cash | 5,923 | (2,832) | (125) | (2,003) | |||||||||||
Net change in cash, cash equivalents, and restricted cash | (35,848) | (1,152) | (66,572) | (40,476) | |||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 235,742 | 249,474 | 266,466 | 288,798 | |||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 199,894 | $ | 248,322 | $ | 199,894 | $ | 248,322 | |||||||
Supplemental cash flow information: | |||||||||||||||
Cash paid for interest(3) | $ | 13,910 | $ | 18,375 | $ | 59,062 | $ | 112,394 | |||||||
(1) In Q1'24, we acquired pure-systems for |
(2) In the first nine months of FY25, net repayments include borrowings on our credit facility revolver to fund the |
(3) In Q1'24, we made a payment of |
PTC Inc. | |||||||||||||||
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Cash provided by operating activities | $ | 243,928 | $ | 213,799 | $ | 763,666 | $ | 651,870 | |||||||
Capital expenditures | (1,887) | (1,639) | (7,462) | (9,841) | |||||||||||
Free cash flow | $ | 242,041 | $ | 212,160 | $ | 756,204 | $ | 642,029 | |||||||
View original content:https://www.prnewswire.com/news-releases/ptc-announces-third-fiscal-quarter-2025-results-302517745.html
SOURCE PTC Inc.
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