PTC ANNOUNCES THIRD FISCAL QUARTER 2026 RESULTS
Rhea-AI Summary
PTC (NASDAQ: PTC) reported Q3'26 results for the quarter ended June 30, 2026, highlighted by constant currency ARR excluding divested businesses of $2.448 billion, up 9.1% year over year, exceeding its 8–9% guidance range. Operating cash flow rose 7% to $261 million and free cash flow increased 3% to $249 million, both above the high end of guidance.
GAAP revenue was $600 million, down 7% year over year (8% in constant currency), with GAAP EPS of $1.03 and non-GAAP EPS of $1.58, down 12% and 4%, respectively. PTC raised its FY'26 guidance for constant currency ARR, revenue and EPS, maintained cash flow guidance, and repurchased about $525 million of stock in Q3'26, contributing to an expected $1.625 billion of FY'26 repurchases and a projected reduction in fully diluted shares to approximately 116 million.
Positive
- Constant currency ARR excluding divested businesses up 9.1% YoY to $2.448 billion, above guidance
- Operating cash flow $261 million in Q3'26, up 7% YoY and above guidance range
- Free cash flow $249 million in Q3'26, up 3% YoY and above guidance range
- FY'26 constant currency ARR growth guidance raised to 9%–9.5%
- FY'26 revenue guidance narrowed to $2.69–$2.75 billion with higher midpoint
- Share repurchases ~$525 million in Q3'26; expected ~$1.625 billion in FY'26, reducing diluted shares to ~116 million
Negative
- Q3'26 revenue declined 7% YoY to $600 million (8% decline in constant currency)
- GAAP operating margin fell to 28% from 33%, a 480 bps decline year over year
- Non-GAAP operating margin declined to 41% from 44%, a 290 bps decline
- GAAP EPS decreased 12% YoY to $1.03; non-GAAP EPS down 4% to $1.58
- FY'26 revenue guidance implies flat to 2% decline year over year
- Divestiture-related items include about $50 million of costs and $100 million of cash taxes in FY'26
News Explained
Completed Q3 buybacks reduce shares outstanding, with PTC targeting approximately 116 million fully diluted shares for FY'26.
PTC reported that its third fiscal quarter ended
PTC defines free cash flow as cash from operations less capital expenditures, but says it is not cash available for discretionary spending; its ARR measure is the annualized value of active contracts at period-end, not recognized revenue or an estimate of future renewals.
The repurchase program had two disclosed mechanics: an accelerated share repurchase agreement using
The stated FY'26 endpoint is approximately
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 16 | PLM recognition | Positive | +3.0% | Windchill named a Leader and Arena a Visionary in Gartner's PLM software ranking. |
| Jul 15 | Partnership announcement | Positive | +0.9% | PTC, Rambam and EOS announced an in-house digital implant engineering center. |
| Jul 14 | AI product launch | Positive | -2.3% | PTC introduced Onshape Labs with early-access AI-driven product development features. |
| Jul 08 | Earnings scheduling | Neutral | -1.9% | PTC scheduled its fiscal Q3 results release and conference call for July 29. |
| Jul 07 | Partnership announcement | Positive | +0.1% | Whatfix and PTC announced a PLM adoption partnership for modern manufacturers. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
PTC's recent news reactions were mixed, with positive announcements producing both gains and declines.
Key Terms
constant currency financial
arr financial
asc 606 technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strategic focus on Intelligent Product Lifecycle vision
- Strong execution in Q3'26 across all key metrics
- Constant currency ARR growth of
9.1% excluding divested businesses, exceeding the high end of our guidance range - Operating and free cash flow growth of
7% and3% , respectively, both exceeding the high end of our guidance ranges
- Constant currency ARR growth of
- Raising FY'26 guidance for ARR, Revenue and EPS, reaffirming Cash Flow guidance
~ of shares repurchased in Q3'26, bringing FY'26 repurchases above the high-end of our target for the year$525 million
"PTC delivered strong financial execution in Q3'26. Customers increasingly recognize the importance of our Intelligent Product Lifecycle vision. This coincides with the go-to-market and product strategy emphasis the company has undertaken over the past several quarters and results in a more durable business model that positions PTC for long-term success," said Neil Barua, President and CEO, PTC.
"AI has become a key discussion point in customer conversations, and PTC is uniquely positioned to take advantage of this growing customer interest in AI. The need to modernize product data foundations in order to appropriately leverage AI is becoming clear to organizations, all while PTC establishes an intelligence layer to enable AI capabilities over our trusted solutions across CAD, PLM, ALM and SLM," concluded Barua.
Third Fiscal Quarter 2026 Key Operating and Financial Metrics1
$ in millions, except per share amounts | Q3'26 | Q3'25 | YoY Change | Q3'26 | |
As reported ARR excluding divested | 7 % | ||||
Constant currency ARR excluding divested | 9.1 % | ||||
Operating cash flow | 7 % | ||||
Free cash flow | 3 % | | |||
Revenue4 | ( | ||||
Operating margin4 | 28 % | 33 % | (480 bps) | ||
Non-GAAP operating margin4 | 41 % | 44 % | (290 bps) | ||
Earnings per share4 | (12 %) | ||||
Non-GAAP earnings per share4 | (4 %) |
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 | As reported ARR excluding divested businesses excludes Kepware and ThingWorx ARR from Q3'25 to facilitate period-to-period comparisons following the divestiture of those businesses in Q2'26. ARR was flat year over year on an as reported basis in Q3'26. |
3 | On a constant currency basis, using our FY'26 Plan foreign exchange rates (rates as of September 30, 2025) for all periods. Constant currency ARR excluding divested businesses excludes Kepware and ThingWorx ARR from Q3'25. |
4 | Revenue and, as a result, operating margin and earnings per share are impacted under ASC 606. |
5 | In Q3'26, revenue declined |
"Our Q3 results reflect a focused business model, as the company's execution resulted in improved demand capture and customer adoption. Our strong financial performance in Q3 highlights the consistent commitment to excellence we strive for, resulting in our key metrics landing above the high end of our guidance. This performance to date and the visibility we have into our Q4 pipeline gives us confidence in raising the midpoint of our ARR guidance for the full year," said Jen DiRico, CFO.
"Further, we remain committed to our capital allocation priorities, reinvesting in the business while identifying tuck-in acquisitions and opportunities to repurchase PTC stock. Specific to Q3, we identified what we viewed as a compressed valuation of our stock and acted accordingly by repurchasing more than two times what we previously targeted for the quarter," concluded DiRico.
Full Fiscal Year 2026 and Fourth Fiscal Quarter Guidance
$ in millions, except per share amounts % rounded to the nearest half | Previous FY'26 | FY'26 | FY'26 YoY | Q4'26 | |
Constant currency ARR excluding divested |
|
|
| ||
Operating cash flow | ~ | ||||
Free cash flow2 | ~(1)%4 | ||||
Revenue | (2)% to | ||||
Earnings per share | |||||
Non-GAAP earnings per share2 | (1)% to |
1 | Excludes Kepware and ThingWorx ARR from FY'25 given the divestiture of those businesses in Q2'26. On a constant currency basis, using our FY'26 Plan foreign exchange rates (rates as of September 30, 2025) for all periods. |
2 | Refer to the GAAP to non-GAAP reconciliation tables below. |
3 | FY'26 cash flow guidance includes approximately |
4 | FY'26 includes Kepware and ThingWorx only until the divestiture on March 13, 2026; FY'25 includes Kepware and ThingWorx. |
5 | Q4'26 cash flow guidance includes approximately |
Reconciliation of Operating Cash Flow Guidance to Free Cash Flow Guidance
$ in millions | FY'26 | Q4'26 |
Operating cash flow | ||
Capital expenditures | ~( | ~( |
Free cash flow |
Reconciliation of EPS Guidance to Non-GAAP EPS Guidance
FY'26 | Q4'26 | |
Earnings per share | ||
Stock-based compensation | ||
Amortization of acquired intangible assets | ||
Acquisition and transaction-related charges | ||
Impairment and other charges, net | ||
Non-operating credits, net | ~( | |
Income tax adjustments | ( | |
Non-GAAP Earnings per share |
FY'26 financial guidance includes the following assumptions:
- We provide ARR guidance on a constant currency basis, using our FY'26 Plan foreign exchange rates (rates as of September 30, 2025) for all periods.
- We expect churn to remain low.
- Related to free cash flow, we expect three divestiture-related items in FY'26 that are not expected to recur in future years:
- approximately
$50 million $10 million $5 million $9 million $26 million - approximately
$100 million $8 million $92 million - approximately
$70 million $30 million $30 million $10 million
- approximately
- Capital expenditures are expected to be approximately
$30 million $9 million $11 million - FY'26 GAAP operating expenses are expected to increase approximately
4% , primarily due to the divestiture-related expenses. Apart from the divestiture-related expenses, GAAP and non-GAAP operating expenses are expected to be relatively flat, as investments to drive future growth are offset by net proceeds from the divestiture-related Transition Services Agreement and lower operating expenses due to divested costs. - Cash interest payments are expected to be approximately
$60 million $65 million - Cash tax payments are expected to be approximately
$230 million $240 million $100 million - Q4'26 GAAP and non-GAAP tax rates are expected to be approximately
20% to25% . - GAAP P&L results are expected to include the items below, netting to credits of approximately
$80 million $110 million - approximately
$465 million - approximately
$230 million $260 million - approximately
$80 million - approximately
$40 million - approximately
$5 million
- approximately
- On March 17, 2026, we entered into an accelerated share repurchase agreement, under which we used
$375 million - In addition to the accelerated share repurchase agreement, during Q3'26 we repurchased 4.3 million additional shares of PTC stock in the open market for
$525 million - In total, we expect to repurchase approximately
$1.625 billion
PTC's Third Fiscal Quarter Results Conference Call
PTC will host a conference call to discuss results at 5:00 pm ET on Wednesday, July 29, 2026. To participate in the live conference call, dial (888) 596-4144 or (646) 968-2525, provide the passcode 6413921, 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, 2025.
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'26 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 contract 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 import tariffs, threats of additional and reciprocal import tariffs, global trade and geopolitical tensions and uncertainty, including the recent military conflict in
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
Michael Maguire, CFA
VP, Investor Relations
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, | ||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||
Revenue: | |||||||||||||||
Recurring revenue | $ | 576,011 | $ | 613,583 | $ | 1,976,667 | $ | 1,739,443 | |||||||
Perpetual license | 691 | 7,763 | 13,263 | 23,004 | |||||||||||
Professional services | 23,347 | 22,591 | 70,247 | 82,984 | |||||||||||
Total revenue (1) | 600,049 | 643,937 | 2,060,177 | 1,845,431 | |||||||||||
Cost of revenue (2) | 109,584 | 110,025 | 340,948 | 328,084 | |||||||||||
Gross margin | 490,465 | 533,912 | 1,719,229 | 1,517,347 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing (2) | 136,287 | 141,756 | 417,271 | 424,319 | |||||||||||
Research and development (2) | 115,708 | 116,647 | 359,824 | 343,186 | |||||||||||
General and administrative (2) | 59,973 | 54,145 | 222,620 | 162,457 | |||||||||||
Amortization of acquired intangible assets | 11,991 | 11,536 | 36,075 | 34,356 | |||||||||||
Impairment and other charges, net | - | - | - | 4,213 | |||||||||||
Total operating expenses | 323,959 | 324,084 | 1,035,790 | 968,531 | |||||||||||
Operating income | 166,506 | 209,828 | 683,439 | 548,816 | |||||||||||
Other income (expense), net | (14,066) | (16,152) | 418,775 | (56,737) | |||||||||||
Income before income taxes | 152,440 | 193,676 | 1,102,214 | 492,079 | |||||||||||
Provision for income taxes | 33,660 | 52,348 | 226,193 | 105,875 | |||||||||||
Net income | $ | 118,780 | $ | 141,328 | $ | 876,021 | $ | 386,204 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 1.04 | $ | 1.18 | $ | 7.46 | $ | 3.22 | |||||||
Weighted average shares outstanding | 114,677 | 119,913 | 117,401 | 120,106 | |||||||||||
Diluted | $ | 1.03 | $ | 1.17 | $ | 7.43 | $ | 3.20 | |||||||
Weighted average shares outstanding | 114,978 | 120,461 | 117,844 | 120,815 | |||||||||||
(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. | |||||||||||||||
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, | ||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||
License revenue (1) | $ | 205,824 | $ | 251,479 | $ | 838,210 | $ | 678,628 | |||||||
Support and cloud services revenue | 370,878 | 369,867 | 1,151,720 | 1,083,819 | |||||||||||
Professional services revenue | 23,347 | 22,591 | 70,247 | 82,984 | |||||||||||
Total revenue | $ | 600,049 | $ | 643,937 | $ | 2,060,177 | $ | 1,845,431 | |||||||
(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, | ||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||
Cost of revenue | $ | 5,603 | $ | 5,291 | $ | 18,736 | $ | 16,711 | |||||||
Sales and marketing | 16,143 | 15,059 | 51,373 | 46,672 | |||||||||||
Research and development | 15,043 | 17,788 | 49,115 | 48,334 | |||||||||||
General and administrative | 22,593 | 15,894 | 66,624 | 49,678 | |||||||||||
Total stock-based compensation | $ | 59,382 | $ | 54,032 | $ | 185,848 | $ | 161,395 | |||||||
PTC Inc. | |||||||||||||||
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, | ||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||
GAAP gross margin | $ | 490,465 | $ | 533,912 | $ | 1,719,229 | $ | 1,517,347 | |||||||
Stock-based compensation | 5,603 | 5,291 | 18,736 | 16,711 | |||||||||||
Amortization of acquired intangible assets included in cost of | 7,753 | 8,178 | 23,421 | 24,609 | |||||||||||
Non-GAAP gross margin | $ | 503,821 | $ | 547,381 | $ | 1,761,386 | $ | 1,558,667 | |||||||
GAAP operating income | $ | 166,506 | $ | 209,828 | $ | 683,439 | $ | 548,816 | |||||||
Stock-based compensation | 59,382 | 54,032 | 185,848 | 161,395 | |||||||||||
Amortization of acquired intangible assets | 19,744 | 19,714 | 59,496 | 58,965 | |||||||||||
Acquisition and transaction-related charges | 2,887 | 1,597 | 40,022 | 2,422 | |||||||||||
Impairment and other charges, net | - | - | - | 4,213 | |||||||||||
Non-GAAP operating income (1) | $ | 248,519 | $ | 285,171 | $ | 968,805 | $ | 775,811 | |||||||
GAAP net income | $ | 118,780 | $ | 141,328 | $ | 876,021 | $ | 386,204 | |||||||
Stock-based compensation | 59,382 | 54,032 | 185,848 | 161,395 | |||||||||||
Amortization of acquired intangible assets | 19,744 | 19,714 | 59,496 | 58,965 | |||||||||||
Acquisition and transaction-related charges | 2,887 | 1,597 | 40,022 | 2,422 | |||||||||||
Impairment and other charges, net | - | - | - | 4,213 | |||||||||||
Non-operating credits, net (2) | - | - | (463,852) | - | |||||||||||
Income tax adjustments (3) | (19,353) | (19,260) | 33,924 | (65,650) | |||||||||||
Non-GAAP net income | $ | 181,440 | $ | 197,411 | $ | 731,459 | $ | 547,549 | |||||||
GAAP diluted earnings per share | $ | 1.03 | $ | 1.17 | $ | 7.43 | $ | 3.20 | |||||||
Stock-based compensation | 0.52 | 0.45 | 1.58 | 1.34 | |||||||||||
Amortization of acquired intangibles | 0.17 | 0.16 | 0.50 | 0.49 | |||||||||||
Acquisition and transaction-related charges | 0.03 | 0.01 | 0.34 | 0.02 | |||||||||||
Impairment and other charges, net | - | - | - | 0.03 | |||||||||||
Non-operating credits, net (2) | - | - | (3.94) | - | |||||||||||
Income tax adjustments (3) | (0.17) | (0.16) | 0.29 | (0.54) | |||||||||||
Non-GAAP diluted earnings per share | $ | 1.58 | $ | 1.64 | $ | 6.21 | $ | 4.53 | |||||||
(1) Operating margin impact of non-GAAP adjustments: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||
GAAP operating margin | 27.7 | % | 32.6 | % | 33.2 | % | 29.7 | % | |||||||
Stock-based compensation | 9.9 | % | 8.4 | % | 9.0 | % | 8.7 | % | |||||||
Amortization of acquired intangibles | 3.3 | % | 3.1 | % | 2.9 | % | 3.2 | % | |||||||
Acquisition and transaction-related charges | 0.5 | % | 0.2 | % | 1.9 | % | 0.1 | % | |||||||
Impairment and other charges, net | 0.0 | % | 0.0 | % | 0.0 | % | 0.2 | % | |||||||
Non-GAAP operating margin | 41.4 | % | 44.3 | % | 47.0 | % | 42.0 | % | |||||||
(2) In Q2'26, we recognized gains of | |||||||||||||||
(3) Income tax adjustments reflect the tax effects of non-GAAP adjustments which are calculated by applying the applicable | |||||||||||||||
PTC Inc. | |||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands) | |||||||
June 30, | September 30, | ||||||
2026 | 2025 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 351,454 | $ | 184,415 | |||
Accounts receivable, net | 824,107 | 1,001,085 | |||||
Property and equipment, net | 62,839 | 60,843 | |||||
Goodwill and acquired intangible assets, net | 4,164,102 | 4,317,979 | |||||
Lease assets, net | 126,048 | 114,974 | |||||
Other assets | 985,027 | 937,876 | |||||
Total assets | $ | 6,513,577 | $ | 6,617,172 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Deferred revenue | $ | 712,527 | $ | 827,065 | |||
Debt, net of deferred issuance costs | 1,423,315 | 1,197,434 | |||||
Lease obligations | 184,379 | 172,433 | |||||
Other liabilities | 723,613 | 594,011 | |||||
Stockholders' equity | 3,469,743 | 3,826,229 | |||||
Total liabilities and stockholders' equity | $ | 6,513,577 | $ | 6,617,172 | |||
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, | ||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 118,780 | $ | 141,328 | $ | 876,021 | $ | 386,204 | |||||||
Stock-based compensation | 59,382 | 54,032 | 185,848 | 161,395 | |||||||||||
Depreciation and amortization | 24,190 | 25,540 | 74,180 | 76,803 | |||||||||||
Amortization of right-of-use lease assets | 7,995 | 8,294 | 25,723 | 24,459 | |||||||||||
Gain on divestiture of businesses | - | - | (464,602) | - | |||||||||||
Operating lease liability | 1,908 | (2,273) | 14,322 | (4,869) | |||||||||||
Accounts receivable | 22,766 | 45,585 | 158,180 | 173,557 | |||||||||||
Accounts payable and accruals | 160,776 | 40,377 | 204,585 | (10,329) | |||||||||||
Deferred revenue | (56,016) | (51,004) | (104,664) | (16,472) | |||||||||||
Income taxes | 7,196 | 16,844 | 116,084 | 22,409 | |||||||||||
Other | (86,348) | (34,795) | (234,386) | (49,491) | |||||||||||
Net cash provided by operating activities | 260,629 | 243,928 | 851,291 | 763,666 | |||||||||||
Capital expenditures | (11,280) | (1,887) | (16,291) | (7,462) | |||||||||||
Divestiture of businesses(1) | - | - | 523,306 | - | |||||||||||
Borrowings (payments) on debt, net(2) | 225,000 | (156,583) | 225,000 | (516,708) | |||||||||||
Repurchases of common stock | (500,031) | (74,987) | (1,326,190) | (224,987) | |||||||||||
Net proceeds associated with issuance of common stock | - | - | 13,162 | 13,307 | |||||||||||
Payments of withholding taxes in connection with vesting of stock- | (14,527) | (18,890) | (67,343) | (71,761) | |||||||||||
Settlement of net investment hedges | 9,843 | (26,820) | 26,549 | (14,560) | |||||||||||
Contribution to solar energy equity investment | (50,146) | - | (50,146) | - | |||||||||||
Other financing & investing activities | (3,573) | (6,532) | (4,580) | (7,942) | |||||||||||
Foreign exchange impact on cash | (3,573) | 5,923 | (7,719) | (125) | |||||||||||
Net change in cash, cash equivalents, and restricted cash | (87,658) | (35,848) | 167,039 | (66,572) | |||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 439,685 | 235,742 | 184,988 | 266,466 | |||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 352,027 | $ | 199,894 | $ | 352,027 | $ | 199,894 | |||||||
Supplemental cash flow information: | |||||||||||||||
Cash paid for interest | $ | 9,231 | $ | 13,910 | $ | 40,543 | $ | 59,062 | |||||||
(1) In Q2'26, we sold our ThingWorx and Kepware businesses. | |||||||||||||||
(2) In the first nine months of FY25, net repayments include borrowings on our credit facility revolver to fund the | |||||||||||||||
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, | ||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||
Cash provided by operating activities | $ | 260,629 | $ | 243,928 | $ | 851,291 | $ | 763,666 | |||||||
Capital expenditures | (11,280) | (1,887) | (16,291) | (7,462) | |||||||||||
Free cash flow | $ | 249,349 | $ | 242,041 | $ | 835,000 | $ | 756,204 | |||||||
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SOURCE PTC Inc.