PTC Q4 FY2026 earnings: GAAP EPS falls 50% to $1.44

With its acquisition by Schneider Electric pending, PTC is suspending quarterly earnings calls and no longer providing quarterly or annual guidance.

Available on EDGAR 11/04/2026 - 04:04 PM EST Accepted by SEC EDGAR 11/04/2026 - 04:03 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

PTC Inc. reported Q4 FY2026 revenue of $673.254 million, down 25% year over year, and diluted GAAP EPS of $1.44 per share, down 50%. Operating cash flow was $47.318 million, down 55%, and free cash flow was $37.661 million, down 63%. Q4 cash flow included approximately $24 million of divestiture-related costs and approximately $75 million of divestiture-related cash taxes, which PTC said are not expected to recur in future years. As-reported ARR excluding divested businesses was $2.508 billion, up 8%. At FY2026 plan FX rates, constant-currency ARR excluding divested businesses was $2.545 billion, up 9.7%; non-GAAP diluted EPS was $2.03 per share, down 40%.

For FY2026, diluted GAAP EPS was $8.93 per share, up 47%; the year included $463.9 million in gains on the sale of Kepware and ThingWorx. PTC entered into a definitive agreement to be acquired by Schneider Electric. In light of the pending transaction, PTC is suspending quarterly earnings calls and no longer providing quarterly or annual guidance.

1 point · 0 major

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Positive

• Moderate pointFY2026 GAAP diluted EPS: $8.93 per share, up 47%.

Negative

• Moderate pointQ4 revenue and diluted EPS fell 25% and 50%, respectively.
• Moderate pointQ4 operating cash flow was $47.318 million, down 55% year over year.

Filing Explained

PTC reports 8% growth in ARR excluding Kepware and ThingWorx from the prior-year comparison, but says ARR on an as-reported basis rose 1%; the two figures use different portfolio scopes.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Q4 revenue: $673.254 million; down 25% year over year Q4 diluted GAAP EPS: $1.44 per share; down 50% year over year Q4 operating cash flow: $47.318 million; down 55% year over year +3 more

6 metrics

Q4 revenue $673.254 million; down 25% year over year Three months ended September 30, 2026; revenue was $893.795 million in the prior-year quarter

Q4 diluted GAAP EPS $1.44 per share; down 50% year over year Three months ended September 30, 2026; $2.88 per share in the prior-year quarter

Q4 operating cash flow $47.318 million; down 55% year over year Three months ended September 30, 2026; $104.030 million in the prior-year quarter

Q4 free cash flow $37.661 million; down 63% year over year Three months ended September 30, 2026; $100.484 million in the prior-year quarter

As-reported ARR excluding divested businesses $2.508 billion; up 8% year over year Q4 FY2026 compared with $2.320 billion in Q4 FY2025

FY2026 diluted GAAP EPS $8.93 per share; up 47% year over year Twelve months ended September 30, 2026; $6.08 per share in FY2025

Key Terms

Annual Run Rate, Constant Currency, Free Cash Flow, ASC 606

4 terms

Annual Run Rate financial

"ARR (Annual Run Rate) represents the annualized value"

Annual run rate is an estimate of a company's revenue or other financial metric for a full year based on its performance over a shorter period, such as one month or a quarter. Investors use it like projecting a snapshot forward—similar to multiplying a single month’s sales to see what a full year might look like—to gauge growth or scale quickly, but it can be misleading if results are affected by seasonality, one-time events, or recent changes.

Constant Currency financial

"Constant Currency (CC): We present CC information"

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

Free Cash Flow financial

"Free cash flow is cash provided by (used in) operations net of capital expenditures"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

ASC 606 financial

"Revenue and, as a result, operating margin and earnings per share are impacted under ASC 606"

A U.S. accounting standard that sets consistent rules for when and how companies record revenue from contracts with customers, focusing on the transfer of promised goods or services. It matters to investors because it affects the timing and amount of reported sales and profit—like deciding whether a contractor can count payment when a job starts, progresses, or finishes—so it improves comparability and helps assess a company's true economic performance.

Earnings Snapshot

Revenue: $673.254 million · Guidance included

Fourth quarter and fiscal year ended September 30, 2026

Revenue $673.254 million Down 25% year over year

Diluted GAAP EPS $1.44 per share Down 50% year over year

Operating cash flow $47.318 million Down 55% year over year

Free cash flow $37.661 million Down 63% year over year

As-reported ARR excluding divested businesses $2.508 billion Up 8% year over year

FY2026 diluted GAAP EPS $8.93 per share Up 47% year over year

Guidance

PTC is no longer providing quarterly or annual guidance in light of the pending transaction.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were PTC's Q4 FY2026 results (PTC)?

PTC reported Q4 FY2026 revenue of $673.254 million, down 25% year over year, and diluted GAAP EPS of $1.44 per share, down 50%. Operating cash flow was $47.318 million, down 55%, while free cash flow was $37.661 million, down 63%.

What was PTC (PTC)'s diluted EPS for FY2026?

PTC reported diluted GAAP EPS of $8.93 per share for FY2026, up 47% from $6.08. Non-GAAP diluted EPS was $8.24 per share, up 4% from $7.94. FY2026 included $463.9 million in gains on the sale of Kepware and ThingWorx.

Is PTC (PTC) still providing quarterly guidance?

PTC said it is no longer providing quarterly or annual guidance and is suspending quarterly earnings conference calls because of the pending transaction. PTC had entered into a definitive agreement to be acquired by Schneider Electric.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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0000857005false00008570052026-11-042026-11-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 04, 2026

PTC Inc.

(Exact name of Registrant as Specified in Its Charter)

Massachusetts			0-18059	04-2866152
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
121 Seaport Boulevard
Boston, Massachusetts				02210
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s Telephone Number, Including Area Code: (781) 370-5000

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $.01 par value per share		PTC		The Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Section 2 - Financial Information

Item 2.02 Results of Operations and Financial Condition.

On November 4, 2026, PTC Inc. announced results for its fourth quarter and fiscal year ended September 30, 2026. A copy of the press release is furnished herewith as Exhibit 99.1.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 PTC Inc. Press Release dated November 4, 2026

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			PTC Inc.
Date:	04 November 2026	By:	/s/ Jennifer DiRico
			Jennifer DiRico Executive Vice President, Chief Financial Officer

Ex 99.1

PTC Announces Fourth fiscal Quarter and Full Fiscal YEar 2026 Results

Strategic focus on Intelligent Product Lifecycle vision

BOSTON, MA, November 4, 2026 - PTC (NASDAQ: PTC) today reported financial results for its fourth fiscal quarter and full fiscal year ended September 30, 2026.

Fourth Fiscal Quarter and Full Fiscal Year 2026 Key Operating and Financial Metrics1

$ in millions, except per share amounts	Q4’26	Q4'25	YoY Change
As reported ARR excluding divested businesses2	$2,508	$2,320	8%
Constant currency ARR excluding divested businesses (FY'26 Plan FX rates3)	$2,545	$2,320	9.7%
Operating cash flow	$475	$104	(55%)
Free cash flow	$385	$100	(63%)
Revenue4	$673	$894	(25%)6
Operating margin4	32%	49%	(1,690 bps)
Non-GAAP operating margin4	46%	59%	(1,320 bps)
Earnings per share4	$1.44	$2.88	(50%)
Non-GAAP earnings per share4	$2.03	$3.41	(40%)

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 Q4’25 to facilitate period-to-period comparisons following the divestiture of those businesses in Q2’26. ARR increased 1% year over year on an as reported basis in Q4’26.

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 Q4’25.

4 Revenue and, as a result, operating margin and earnings per share are impacted under ASC 606.

5 Q4’26 cash flow included approximately $24 million of divestiture-related costs and approximately $75 million of divestiture-related cash taxes, all of which are not expected to recur in future years. Also, Q4’26 free cash flow included approximately $5 million of capital expenditures, which are not expected to recur in future years, related to moving a major R&D center to a new office.

6 In Q4’26, revenue declined 24% year over year on a constant currency basis.

$ in millions, except per share amounts	FY’26	FY'25	YoY Change
Operating cash flow	$8992	$8683	4%
Free cash flow	$8732	$8573	2%
Revenue1	$2,733	$2,739	(0%)4
Operating margin1	33%	36%	(310 bps)
Non-GAAP operating margin1	47%	48%	(80 bps)
Earnings per share1	$8.93	$6.08	47%
Non-GAAP earnings per share1	$8.24	$7.94	4%

1 Revenue and, as a result, operating margin and earnings per share are impacted under ASC 606.

2 FY’26 cash flow included approximately $48 million of divestiture-related costs and approximately $83 million of divestiture-related cash taxes, partially offset by approximately $70 million of divestiture-related net free cash flow contribution, all of which are not expected to recur in future years. Also, FY’26 free cash flow included approximately $14 million of capital expenditures, which are not expected to recur in future years, related to moving a major R&D center to a new office.

3 FY’25 cash flow absorbed approximately $20 million of outflows related to our go-to-market realignment.

4 In FY’26, revenue declined 2% year over year on a constant currency basis.

As previously announced on October 5th, 2026, PTC entered into a definitive agreement to be acquired by Schneider Electric. In light of the pending transaction, PTC is suspending quarterly earnings conference calls and is no longer providing quarterly or annual guidance.

1

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 United States dollars are converted into United States dollars using the foreign exchange rate as of September 30, 2025, rather than the actual exchange rates in effect during that period.

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, adjusted for leap years), then multiplying that by 365 days.

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

2

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.

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 Boston, Massachusetts, PTC employs over 7,000 people and supports more than 30,000 customers globally. For more information, please visit www.ptc.com.

PTC.com @PTC Blogs

PTC Investor Relations Contact

Michael Maguire, CFA
VP, Investor Relations

investor@ptc.com

3

PTC Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
	Three Months Ended								Twelve Months Ended
	September 30,				September 30,				September 30,				September 30,
	2026				2025				2026				2025
Revenue:
Recurring revenue	$	645,247			$	861,071			$	2,621,914			$	2,600,514
Perpetual license		3,881				8,371				17,144				31,375
Professional services		24,126				24,353				94,373				107,337
Total revenue (1)		673,254				893,795				2,733,431				2,739,226
Cost of revenue (2)		115,860				116,899				456,808				444,983
Gross margin		557,394				776,896				2,276,623				2,294,243
Operating expenses:
Sales and marketing (2)		144,357				142,197				561,628				566,516
Research and development (2)		120,122				114,507				479,946				457,693
General and administrative (2)		62,155				63,601				284,775				226,058
Amortization of acquired intangible assets		11,976				11,592				48,051				45,948
Impairment and other charges, net		6,161				11,430				6,161				15,643
Total operating expenses		344,771				343,327				1,380,561				1,311,858
Operating income		212,623				433,569				896,062				982,385
Other income (expense), net		(17,594	)			(5,471	)			401,181				(62,208	)
Income before income taxes		195,029				428,098				1,297,243				920,177
Provision for income taxes		37,766				80,305				263,959				186,180
Net income	$	157,263			$	347,793			$	1,033,284			$	733,997
Earnings per share:
Basic	$	1.45			$	2.91			$	8.97			$	6.12
Weighted average shares outstanding		108,825				119,714				115,240				120,005
Diluted	$	1.44			$	2.88			$	8.93			$	6.08
Weighted average shares outstanding		109,401				120,674				115,716				120,777
(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.

4

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								Twelve Months Ended
	September 30,				September 30,				September 30,				September 30,
	2026				2025				2026				2025
License revenue (1)	$	267,028			$	484,081			$	1,105,238			$	1,162,709
Support and cloud services revenue		382,100				385,361				1,533,820				1,469,180
Professional services revenue		24,126				24,353				94,373				107,337
Total revenue	$	673,254			$	893,795			$	2,733,431			$	2,739,226
(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								Twelve Months Ended
	September 30,				September 30,				September 30,				September 30,
	2026				2025				2026				2025
Cost of revenue	$	5,932			$	5,979			$	24,668			$	22,690
Sales and marketing		19,276				15,078				70,649				61,750
Research and development		16,556				16,785				65,671				65,119
General and administrative		24,480				16,968				91,104				66,646
Total stock-based compensation	$	66,244			$	54,810			$	252,092			$	216,205

5

PTC Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)
(in thousands, except per share data)
	Three Months Ended								Twelve Months Ended
	September 30,				September 30,				September 30,				September 30,
	2026				2025				2026				2025
GAAP gross margin	$	557,394			$	776,896			$	2,276,623			$	2,294,243
Stock-based compensation		5,932				5,979				24,668				22,690
Amortization of acquired intangible assets included in cost of revenue		7,838				8,219				31,259				32,828
Non-GAAP gross margin	$	571,164			$	791,094			$	2,332,550			$	2,349,761
GAAP operating income	$	212,623			$	433,569			$	896,062			$	982,385
Stock-based compensation		66,244				54,810				252,092				216,205
Amortization of acquired intangible assets		19,814				19,811				79,310				78,776
Acquisition and transaction-related charges		2,497				6,694				42,519				9,116
Impairment and other charges, net		6,161				11,430				6,161				15,643
Non-GAAP operating income (1)	$	307,339			$	526,314			$	1,276,144			$	1,302,125
GAAP net income	$	157,263			$	347,793			$	1,033,284			$	733,997
Stock-based compensation		66,244				54,810				252,092				216,205
Amortization of acquired intangible assets		19,814				19,811				79,310				78,776
Acquisition and transaction-related charges		2,497				6,694				42,519				9,116
Impairment and other charges, net		6,161				11,430				6,161				15,643
Non-operating credits, net (2)		(1,298	)			(13,100	)			(465,150	)			(13,100	)
Income tax adjustments (3)		(28,460	)			(16,183	)			5,464				(81,833	)
Non-GAAP net income	$	222,221			$	411,255			$	953,680			$	958,804
GAAP diluted earnings per share	$	1.44			$	2.88			$	8.93			$	6.08
Stock-based compensation		0.61				0.45				2.18				1.79
Amortization of acquired intangibles		0.18				0.16				0.69				0.65
Acquisition and transaction-related charges		0.02				0.06				0.37				0.08
Impairment and other charges, net		0.06				0.09				0.05				0.13
Non-operating credits, net (2)		(0.01	)			(0.11	)			(4.02	)			(0.11	)
Income tax adjustments (3)		(0.26	)			(0.13	)			0.05				(0.68	)
Non-GAAP diluted earnings per share	$	2.03			$	3.41			$	8.24			$	7.94
(1) Operating margin impact of non-GAAP adjustments:
	Three Months Ended								Twelve Months Ended
	September 30,				September 30,				September 30,				September 30,
	2026				2025				2026				2025
GAAP operating margin		31.6	%			48.5	%			32.8	%			35.9	%
Stock-based compensation		9.8	%			6.1	%			9.2	%			7.9	%
Amortization of acquired intangibles		2.9	%			2.2	%			2.9	%			2.9	%
Acquisition and transaction-related charges		0.4	%			0.7	%			1.6	%			0.3	%
Impairment and other charges, net		0.9	%			1.3	%			0.2	%			0.6	%
Non-GAAP operating margin		45.6	%			58.9	%			46.7	%			47.5	%
(2) In FY'26, we recognized gains of $463.9 million on the sale of our Kepware and ThingWorx businesses and $2.0 million related to the finalization of contingent consideration associated with the FY'22 sale of a portion of our PLM services business, offset by a $0.8 million financing charge related to a debt commitment agreement associated with the divestiture. In FY'25, we recognized a $13.1 million gain related to contingent consideration earned upon the achievement of performance milestones associated with the FY'22 sale of a portion of our PLM services business.
(3) 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 FY'25, adjustments exclude a $10.4 million benefit related to the tax impact of tax reserves related to prior years in foreign jurisdictions.

6

PTC Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
	September 30,				September 30,
	2026				2025
ASSETS
Cash and cash equivalents	$	232,852			$	184,415
Accounts receivable, net		1,107,131				1,001,085
Property and equipment, net		66,580				60,843
Goodwill and acquired intangible assets, net		4,139,199				4,317,979
Lease assets, net		125,555				114,974
Other assets		1,041,239				937,876
Total assets	$	6,712,556			$	6,617,172
LIABILITIES AND STOCKHOLDERS' EQUITY
Deferred revenue	$	821,091			$	827,065
Debt, net of deferred issuance costs		1,609,763				1,197,434
Lease obligations		187,068				172,433
Other liabilities		682,452				594,011
Stockholders' equity		3,412,182				3,826,229
Total liabilities and stockholders' equity	$	6,712,556			$	6,617,172

7

PTC Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
	Three Months Ended								Twelve Months Ended
	September 30,				September 30,				September 30,				September 30,
	2026				2025				2026				2025
Cash flows from operating activities:
Net income	$	157,263			$	347,793			$	1,033,284			$	733,997
Stock-based compensation		66,244				54,810				252,092				216,205
Depreciation and amortization		24,381				25,701				98,561				102,504
Amortization of right-of-use lease assets		8,304				8,453				34,027				32,912
Gain on divestiture of businesses		(1,298	)			(13,100	)			(465,900	)			(13,100	)
Operating lease liability		2,348				(5,476	)			16,670				(10,345	)
Accounts receivable		(285,296	)			(294,609	)			(127,116	)			(121,052	)
Accounts payable and accruals		(7,221	)			30,219				197,364				19,890
Deferred revenue		109,480				54,225				4,816				37,753
Income taxes		(66,017	)			41,164				50,067				63,573
Other		39,130				(145,150	)			(195,256	)			(194,641	)
Net cash provided by operating activities		47,318				104,030				898,609				867,696
Capital expenditures		(9,657	)			(3,546	)			(25,948	)			(11,008	)
Divestiture of businesses(1)		8,176				-				531,482				-
Borrowings (payments) on debt, net(2)		186,250				(36,250	)			411,250				(552,958	)
Repurchases of common stock		(298,720	)			(75,011	)			(1,624,910	)			(299,998	)
Net proceeds associated with issuance of common stock		12,308				12,755				25,470				26,062
Payments of withholding taxes in connection with vesting of stock-based awards		(5,958	)			(8,444	)			(73,301	)			(80,205	)
Settlement of net investment hedges		(8,768	)			(6,193	)			17,781				(20,753	)
Contribution to solar energy equity investment		(50,146	)			-				(100,292	)			-
Other financing & investing activities		-				-				(4,580	)			(7,942	)
Foreign exchange impact on cash		595				(2,247	)			(7,124	)			(2,372	)
Net change in cash, cash equivalents, and restricted cash		(118,602	)			(14,906	)			48,437				(81,478	)
Cash, cash equivalents, and restricted cash, beginning of period		352,027				199,894				184,988				266,466
Cash, cash equivalents, and restricted cash, end of period	$	233,425			$	184,988			$	233,425			$	184,988
Supplemental cash flow information:
Cash paid for interest	$	21,693			$	18,767			$	62,236			$	77,828
(1) In Q2'26, we sold our ThingWorx and Kepware businesses.
(2) In FY'25, net repayments include borrowings on our credit facility revolver to fund the $500 million bond repayment in February.

8

PTC Inc.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)
(in thousands)
	Three Months Ended								Twelve Months Ended
	September 30,				September 30,				September 30,				September 30,
	2026				2025				2026				2025
Cash provided by operating activities	$	47,318			$	104,030			$	898,609			$	867,696
Capital expenditures		(9,657	)			(3,546	)			(25,948	)			(11,008	)
Free cash flow	$	37,661			$	100,484			$	872,661			$	856,688

9

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