PTC Inc. 10-K Report Reveals 10% ARR Growth

By Philip Seaworth • Monday, November 24 10:13 • Permanent Link

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 in the Americas, Europe, and the Asia Pacific, offering a suite of products and solutions such as Windchill, ThingWorx, ServiceMax, Arena, Codebeamer, Servigistics, FlexPLM, Kepware, Creo, Onshape, Vuforia, and Arbortext. The company was incorporated in 1985 and is headquartered in Boston, Massachusetts.

In the 10-K report, PTC Inc. discussed its management's discussion and analysis of financial condition and results of operations, highlighting its operating and non-GAAP financial measures. The company reported that its Annual Run Rate (ARR) grew by 10% (8.5% constant currency) to $2.48 billion in FY'25 compared to FY’24. Cash provided by operating activities grew by 16% to $868 million, and free cash flow grew by 16% to $857 million in FY'25 compared to FY'24. PTC Inc. attributed its cash flow growth to resilient top-line growth due to its subscription business model and operational discipline.

Furthermore, the company reported a 19% revenue growth (18% constant currency) in FY'25 compared to FY'24. Operating margin grew by approximately 1030 basis points, and diluted earnings per share grew by 95% to $6.08 in FY'25 compared to FY'24, driven by revenue growth. PTC Inc. also entered into a definitive agreement with an affiliate of TPG to sell its Kepware and ThingWorx businesses for total consideration of up to $725 million.

The 10-K report also provided a breakdown of revenue by line of business and product group. It revealed that software revenue grew by 21% in FY'25, driven by license revenue growth and support and cloud services revenue growth. The report also detailed the gross margin, operating expenses, interest expense, and other income, showcasing the company's financial performance in various areas.

As a result of these announcements, the company's shares have moved 0.99% on the market, and are now trading at a price of $172.12. Check out the company's full 10-K submission here.

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