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PTC (PTC) FY2025 results: revenue $2.7 billion, up 19.2% on the year

PTC Inc. (PTC) reported revenue of $2.7 billion for fiscal 2025, the year ended 30 September 2025, up 19.2% on the year before. Net income was $734 million, up 95.0%, and diluted earnings per share $6.08. The figures are the company's own, from the 10-K it filed with the SEC on 21 November 2025.

Revenue
$2.7 billion
+19.2% on the year
FY2018FY2025
Operating margin
35.9%
25.6% a year earlier
FY2018FY2025
Net income
$734 million
+95.0% on the year
FY2018FY2025
Diluted EPS
$6.08
+94.9% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 25 new.

  • Constant currency ARR grew 8.5%: Full-year constant currency ARR growth was 8.5% on FY’25 plan exchange rates. Reported ARR growth in the fourth quarter was 10%.
  • Q4 revenue rose 43%: Fourth-quarter revenue was $894 million, up 43% from $627 million, and up 39% on a constant currency basis.
  • Q4 operating margin reached 49%: Fourth-quarter GAAP operating margin was 49%, against 31%; non-GAAP operating margin was 59%, against 44%.
  • FY25 operating cash flow rose 16%: Full-year operating cash flow was $868 million and free cash flow was $857 million, each up 16% year over year.
  • Buybacks increased, about $200 million in Q1: Management said it is increasing repurchases under the $2 billion authorization, with about $200 million expected in Q1’26.
Read the Q4 FY2025 earnings call summary

From this 10-K

PTC is a software company headquartered in Boston, Massachusetts. It employs over 7,000 people and supports more than 30,000 customers globally, primarily in industrials, federal, aerospace and defense, electronics and high tech, automotive, and medical technology and life sciences. The business runs on a subscription model, and 95% of 2025 revenue was recurring in nature. The company describes what it sells as the Intelligent Product Lifecycle: establishing a product data foundation in the engineering department and then opening access to that data across the enterprise.

PTC Inc., the 10-K for 2025

PTC is a software company headquartered in Boston, Massachusetts. It employs over 7,000 people and supports more than 30,000 customers globally, primarily in industrials, federal, aerospace and defense, electronics and high tech, automotive, and medical technology and life sciences. The business runs on a subscription model, and 95% of 2025 revenue was recurring in nature. The company describes what it sells as the Intelligent Product Lifecycle: establishing a product data foundation in the engineering department and then opening access to that data across the enterprise.

Product lifecycle management

Windchill is the product lifecycle management suite, managing the product development lifecycle from concept through service and end-of-life, with real-time information sharing, data visualisation and collaboration across geographically distributed teams, covering product development, manufacturing, field service and end-of-life processes.

Codebeamer and pure::variants are the application lifecycle management products, aimed at developing products that contain software, including software-defined products needing multiple software variants created and updated over the product's life.

Arena is the software-as-a-service lifecycle management product, letting product teams collaborate at any time and share product and quality information with internal teams and supply chain partners, and the Arena quality management system connects quality and product designs into one system to simplify regulatory compliance.

Service lifecycle

ServiceMax is the service lifecycle management product, aimed at improving asset uptime through in-person and remote service, with mobile tools for technicians and metrics for decision making. Servigistics is the service parts management product, for managing service parts inventory to keep equipment available and running.

Computer-aided design

Creo is the 3D computer-aided design technology for digital design, testing and modification of product models, carrying design simulation, additive manufacturing and generative design, from initial concept through design, simulation and analysis.

Onshape is the software-as-a-service product development platform, combining computer-aided design with data management, collaboration tools and real-time analytics. It is cloud-native and multi-tenant, deployable on almost any computer or mobile device, with real-time design reviews, commenting and simultaneous editing, so multiple design iterations can run in parallel and be merged into a final design.

How it sells

Approximately 75% of sales are products and services sold directly by PTC's own sales force to end-user customers, and the rest go through third-party resellers. The direct sales force focuses on large accounts while the reseller channel covers the small and medium-size business markets. Strategic reseller and software partners extend market reach and add technology to the offerings, and strategic services partners help customers implement the products and move to software as a service. The filing states that growth is driven primarily by existing customers upgrading and expanding their PTC footprint, by customers taking more than one product, by commercial optimisation initiatives, and by new customers.

Who it competes with

The filing names its competitors by product line. For enterprise computer-aided design and product lifecycle management it lists Autodesk, Dassault Systèmes and Siemens. For application lifecycle management it lists IBM, Jama Software and Siemens. For service lifecycle management it lists Oracle, SAP, IFS, Microsoft and Salesforce, alongside companies offering point solutions.

From PTC's annual report on Form 10-K for the year ended 30 September 2025. The filing

Written from the 10-K filed 21 November 2025: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue2,7392,2982,097+19.2%
Cost of revenue445445441+0.0%
Gross profit2,2941,8541,656+23.8%
Gross margin83.8%80.6%79.0%
Research and development458433394+5.7%
Operating income982588458+67.1%
Operating margin35.9%25.6%21.9%
Interest expense77.0120129-35.6%
Pre-tax income920469333+96.2%
Income tax18692.687.0+101.0%
Effective tax rate20.2%19.8%26.2%
Net income734376246+95.0%
Net margin26.8%16.4%11.7%
Diluted EPS$6.08$3.12$2.06+94.9%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow868750611+15.7%
Capital expenditure11.014.423.8-23.4%
Free cash flow857736587+16.5%
Free cash flow margin31.3%32.0%28.0%
Cash from investing-38.3-125-866
Cash from financing-909-651268
Depreciation and amortisation103108105-5.2%
Share-based compensation216223206-3.2%
Buybacks3000.00.0
Diluted shares, weighted121m121m119m+0.0%
Shares outstanding at period end120m120m119m-0.5%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity3,8263,2142,677+19.0%
Debt1,1971,7491,696-31.5%
Operating lease liabilities148158168-5.9%
Other liabilities1,4451,2631,747+14.4%
Total liabilities and equity6,6176,3846,289+3.7%
Fixed assets60.875.288.4-19.1%
Goodwill3,4933,4623,359+0.9%
Intangible assets825897941-8.1%
Securities held for sale or to maturityn/an/a2.0
Cash and equivalents184266288-30.6%
Receivables1,001862811+16.1%
Other assets1,053821799+28.2%
Total assets6,6176,3846,289+3.7%

10-K for the year ended 30 September 2025, filed 21 November 2025: the filing.