PTC Inc. has recently released its 10-K report, providing a detailed insight into its financial performance and operations. PTC Inc. operates as a software company, offering a suite of products that manage various aspects of the product development lifecycle, industrial internet of things software, service lifecycle management solutions, and more. The company's offerings include Windchill, ThingWorx, ServiceMax, Arena, Codebeamer, Servigistics, FlexPLM, Kepware, Creo, Onshape, Vuforia, Arbortext, and others. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.
In the 10-K report, PTC Inc. highlighted its financial performance for the year ended September 30, 2025. The company reported that its Annual Run Rate (ARR) grew by 10% to $2.48 billion, with cash provided by operating activities increasing by 16% to $868 million. Free cash flow also saw a 16% growth to $857 million. Revenue surged by 19% to $2.74 billion in FY'25 compared to FY'24, with operating margin growing by approximately 1030 basis points and diluted earnings per share increasing by 95% to $6.08.
PTC Inc. also announced a definitive agreement with an affiliate of TPG to sell its Kepware and ThingWorx businesses for total consideration of up to $725 million. The transaction is expected to close in the first half of calendar 2026. The company plans to utilize the net after-tax proceeds to return excess cash to shareholders via share repurchases and potential tuck-in acquisitions.
The 10-K report also provided a breakdown of the company's revenue by line of business and product group. Software revenue grew by 21% in FY'25, driven by the growth in license revenue and support and cloud services revenue. The report also highlighted the growth in PLM and CAD software revenue, driven by the higher total value and longer average duration of contracts commencing in the period.
Additionally, the report detailed the company's gross margin, operating expenses, interest expense, and other income. PTC Inc. reported a 24% growth in total gross margin, with non-GAAP gross margin reaching 86%. The company also witnessed a 4% increase in total operating expenses, primarily due to factors such as severance costs, impairment charges, and acquisition-related costs.
PTC Inc.'s 10-K report provides a comprehensive overview of the company's financial and operational performance, showcasing its growth and strategic initiatives in the software industry. Following these announcements, the company's shares moved 0.99%, and are now trading at a price of $172.12. If you want to know more, read the company's complete 10-K report here.
