#USA #Boston #financial results #PTC #ARR Growth

PTC's Financial Performance in FY2025

On November 5, 2025, PTC Inc. (NASDAQ: PTC) announced its impressive financial results for the fourth fiscal quarter and the entirety of fiscal year 2025, marking a significant milestone with record cash flow. The company exhibited solid execution throughout the year, particularly in its consistent growth strategy. As reported, PTC achieved a constant currency Annual Recurring Revenue (ARR) growth of 8.5%, year-over-year.

Key Highlights of FY2025

1. Record Cash Flow: PTC achieved record operating cash flow, amounting to approximately $868 million, reflecting an increase of 16% compared to the previous fiscal year. Furthermore, free cash flow stood at around $857 million, showcasing remarkable financial health.
2. Strategic Business Focus: The company has strategically oriented its operations by divesting its Kepware industrial connectivity and ThingWorx Internet of Things (IoT) businesses. This focused approach aims to enhance their portfolio centering on Computer-Aided Design (CAD), Product Lifecycle Management (PLM), Application Lifecycle Management (ALM), and Service Lifecycle Management (SLM).
3. Future Guidance: For FY2026, PTC has projected a constant currency ARR growth ranging from 7% to 9%. They anticipate an operating cash flow of about $1.03 billion and a free cash flow close to $1 billion for the fiscal year, including contributions from Kepware and ThingWorx prior to the completion of their divestiture.
4. Share Repurchases: Additionally, PTC plans to increase share repurchases under its $2 billion authorization, with approximately $200 million earmarked for the first quarter of FY2026.

Significant Financial Metrics (Q4 FY2025 vs Q4 FY2024)

• - ARR: Reported at $2.478 billion, a 10% increase.
• - Operating Cash Flow: $104 million, up 6%.
• - Free Cash Flow: $100 million, an increase of 7%.
• - Revenue Growth: Revenue climbed sharply to $894 million, reflecting a remarkable 43% increase YoY, indicative of robust demand and market expansion.
• - Earnings Per Share: Demonstrated a striking 182% growth, reaching $2.94. Inclusion of non-GAAP earnings further highlighted an increase to $3.47 per share, reflecting strong overall performance.

Leadership Insights

Neil Barua, President and CEO of PTC, stated, "Q4 capped a year of solid execution and focus. The divestiture of Kepware and ThingWorx will sharpen our portfolio, fostering growth aligned with our Intelligent Product Lifecycle vision." Chief Financial Officer Kristian Talvitie noted the significance of PTC's operating model, balancing growth ambitions with fiscal discipline as they navigate into FY2026.

Conclusion

PTC’s record achievements in FY2025 reflect a strategic alignment towards a streamlined and sharper product offering aimed at sustaining growth alongside innovation. As they transition into the next fiscal year, the company's emphasis on responsive execution and shareholder value indicates a promising outlook in the evolving tech landscape. Stakeholders and market participants can look forward to updates during PTC's upcoming financial discussions and conferences to further elaborate on these initiatives.