Financial Performance - ARR as reported increased by 14% year-over-year, reaching $2,416 million in Q3'25 compared to $2,126 million in Q3'24 [14] - On a constant currency basis, ARR grew by 8% to 9%, reaching $2,372 million in Q3'25 compared to $2,170 million in Q3'24 [14] - Operating cash flow increased by 14% year-over-year, reaching $244 million in Q3'25 compared to $214 million in Q3'24 [15] - Free cash flow increased by 14% year-over-year, reaching $242 million in Q3'25 compared to $212 million in Q3'24 [15] Product and Geographic Performance - PLM ARR increased by 14% as reported, reaching $1,481 million in Q3'25 compared to $1,302 million in Q3'24 [21] - CAD ARR increased by 13% as reported, reaching $934 million in Q3'25 compared to $824 million in Q3'24 [18] - Americas ARR increased by 8% as reported, reaching $1,141 million in Q3'25 compared to $1,058 million in Q3'24 [22] - Europe ARR increased by 20% as reported, reaching $921 million in Q3'25 compared to $765 million in Q3'24 [23] - APAC ARR increased by 11% as reported, reaching $354 million in Q3'25 compared to $303 million in Q3'24 [24] Capital Allocation and Guidance - The company intends to repurchase approximately $300 million of its common stock in FY'25, with $225 million already repurchased in the first three quarters [28, 38] - FY'25 free cash flow is guided to be approximately $850 million, representing approximately 16% year-over-year growth [29, 68] - FY'25 revenue is guided to be between $2,570 million and $2,630 million, representing 12% to 14% growth [29]

Financial Performance - Q3'25 reported ARR was $2,416 million, a 14% increase from $2,126 million in Q3'24[3] - Constant currency ARR growth was 9.3%, at the higher end of the guidance range[7] - Revenue for Q3'25 was $644 million, representing a 24% year-over-year increase[3] - Non-GAAP earnings per share rose 68% to $1.64, compared to $0.98 in Q3'24[3] - PTC's total revenue for the three months ended June 30, 2025, was $643.9 million, a 24.1% increase from $518.6 million in the same period of 2024[31] - Recurring revenue reached $613.6 million for the three months ended June 30, 2025, compared to $481.6 million in the prior year, reflecting a growth of 27.4%[31] - The company's net income for the three months ended June 30, 2025, was $141.3 million, up 104.5% from $69.0 million in the same quarter of 2024[31] - Earnings per share (EPS) for the three months ended June 30, 2025, were $1.17, compared to $0.57 for the same period in 2024, representing a 105.3% increase[35] - PTC's gross margin for the three months ended June 30, 2025, was $533.9 million, yielding a gross margin percentage of 82.9%, up from 78.3% in the same quarter of 2024[35] - The company reported a non-GAAP operating income of $285.2 million for the three months ended June 30, 2025, compared to $164.4 million in the same period of 2024, indicating a growth of 73.3%[35] Cash Flow and Guidance - Operating cash flow increased by 14% to $244 million, exceeding guidance of $234 to $239 million[3] - Free cash flow also grew by 14% to $242 million, surpassing the guidance range of $230 to $235 million[3] - The updated guidance for FY'25 includes approximately $850 million in free cash flow, supported by disciplined budgeting and cash collection predictability[9] - The company raised guidance for FY'25, expecting revenue between $2,570 million and $2,630 million, reflecting 12% to 14% year-over-year growth[10] - Free cash flow for the nine months ended June 30, 2025, was $756,204 thousand, compared to $642,029 thousand in 2024, indicating an increase of 17.8%[42] Stock and Equity - The company plans to repurchase approximately $300 million of its common stock in FY'25, with $225 million already repurchased[15] - The company repurchased common stock amounting to $74,987 thousand during the three months ended June 30, 2025[40] - Stockholders' equity increased from $3,214,398 thousand as of September 30, 2024, to $3,512,883 thousand as of June 30, 2025, reflecting a growth of 9.3%[39] Expenses and Liabilities - PTC's total operating expenses for the three months ended June 30, 2025, were $324.1 million, an increase from $310.9 million in the same quarter of 2024[31] - Total liabilities decreased from $3,169,144 thousand as of September 30, 2024, to $2,716,170 thousand as of June 30, 2025, a reduction of approximately 14.3%[39] - Total assets decreased from $6,383,542 thousand as of September 30, 2024, to $6,229,053 thousand as of June 30, 2025, representing a decline of approximately 2.4%[39] Revenue Breakdown - License revenue for the three months ended June 30, 2025, was $251.5 million, a significant increase of 68.5% from $149.1 million in the same period of 2024[33] - Support and cloud services revenue for the three months ended June 30, 2025, was $369.9 million, up from $339.5 million in the same quarter of 2024, reflecting an 8.9% increase[33] Capital Expenditures - Capital expenditures for the three months ended June 30, 2025, were $1,887 thousand, slightly higher than $1,639 thousand in 2024[42] Other Financial Activities - The company made a payment of $650 million to settle the ServiceMax deferred acquisition payment liability in Q1'24, which included $620 million as a financing outflow[41] - Cash provided by operating activities increased to $243,928 thousand for the three months ended June 30, 2025, up from $213,799 thousand in 2024, reflecting a growth of 14.1%[42] - The cash, cash equivalents, and restricted cash at the end of the period on June 30, 2025, was $199,894 thousand, down from $248,322 thousand in 2024[40]

BOSTON, July 30, 2025 /PRNewswire/ -- PTC (NASDAQ: PTC) today reported financial results for its third fiscal quarter ended June 30, 2025. "Q3 was another solid quarter of execution for PTC. Our strategy of enabling product data foundations and extending the value of that data across the enterprise is resonating with customers across our verticals and geographies," said Neil Barua, President and CEO, PTC. "In Q3, we continued to advance our go-to-market transformation, and I can say with confidence that we ...

Core Insights - PTC is expanding its collaboration with NVIDIA to integrate Omniverse technologies into its Creo and Windchill solutions, enhancing design, simulation, and collaboration for complex products [1][4] - The integration aims to improve product development processes by providing real-time, immersive simulation environments, allowing teams to visualize and interact with design data [3][4] - PTC has joined the Alliance for OpenUSD, emphasizing its commitment to open standards and interoperability in 3D data for AI infrastructure [1][7] Company Developments - The integration of NVIDIA Omniverse technologies into PTC's offerings will enable faster and more precise movement from concept to production for designers and manufacturers [5][7] - PTC's collaboration with NVIDIA builds on its history of supporting NVIDIA in delivering advanced hardware for AI, including high-performance PCBs and data center systems [4][5] - The integration is expected to serve as a model for extending capabilities to other AI hardware partners, enhancing joint innovation speed and quality [4][5] Industry Impact - The partnership addresses the increasing complexity of modern products, which require integrated and engineering-intensive design processes [4] - By leveraging real-time simulation and immersive visualization, companies can accelerate development cycles and improve product quality across the entire lifecycle [3][4] - PTC's commitment to OpenUSD and open standards is anticipated to unify the global AI infrastructure industry from design to manufacturing [5][7]

Core Viewpoint - The U.S. FDA has approved PTC Therapeutics' PTCT SEPHIENCE (sepiapterin) for treating phenylketonuria (PKU), a rare genetic disorder, which is expected to significantly impact the company's future revenue and position in the market [1][4][7]. Group 1: Product Approval and Market Potential - The approval includes broad labeling for hyperphenylalaninemia (HPA) in patients aged one month and older with sepiapterin-responsive PKU [2]. - The FDA's decision is based on significant efficacy and safety data from the Phase 3 APHENITY trial and its long-term extension study [4]. - PTC Therapeutics anticipates a potential revenue opportunity exceeding $1 billion for Sephience [6]. Group 2: Commercial Strategy - The initial commercial launch strategy will target 1,200 prescribers across 104 centers, covering over 80% of PKU claims data in the U.S. [4]. - The wholesale acquisition cost (WAC) for Sephience is approximately $40,000 per month or $480,000 per year [5]. - The company will prioritize patients who have not responded well to existing oral therapies, estimated to include 40% of the PKU population [5][6]. Group 3: Analyst Insights and Stock Performance - Analysts view the approval as a significant achievement for PTC, with expectations that Sephience could become the new standard of care for PKU patients [7]. - William Blair projects peak global sales for Sephience to reach $2.2 billion by 2031 and total revenue of $1.71 billion in 2025 [7]. - PTC stock has seen a price increase of 12.44%, reaching $49.86 at the time of publication [9].

Core Insights - PTC Therapeutics has received FDA approval for SEPHIENCE, a significant milestone for patients with PKU [1] - The CEO emphasized the potential of SEPHIENCE to address unmet needs in PKU treatment and the company's readiness to launch the therapy [1] - Following the announcement, PTC Therapeutics shares increased by 11.7%, reaching $49.53 [1] Analyst Reactions - UBS analyst Colin Bristow maintained a Buy rating and raised the price target from $71 to $80 [7] - Cantor Fitzgerald analyst Kristen Kluska maintained an Overweight rating and increased the price target from $112 to $120 [7] - Wells Fargo analyst Tiago Fauth also maintained an Overweight rating, raising the price target from $74 to $78 [7] - Barclays analyst Gena Wang maintained an Equal-Weight rating and raised the price target from $42 to $46 [7]

Core Insights - Wall Street analysts expect PTC Inc. to report quarterly earnings of $1.22 per share, reflecting a year-over-year increase of 24.5% [1] - Revenues are projected to be $582.4 million, which is a 12.3% increase from the same quarter last year [1] - The consensus EPS estimate has been revised upward by 0.1% over the past 30 days, indicating a reappraisal of projections by analysts [1] Revenue Projections - Analysts estimate 'Revenue- Recurring Revenue' to reach $549.76 million, representing a year-over-year change of +14.2% [4] - 'Revenue- Professional Services' is expected to be $28.18 million, indicating a decline of -6.2% from the prior-year quarter [4] - The average prediction for 'Revenue- Total Software (License+Support & cloud services)' is $556.02 million, showing a year-over-year change of +13.8% [5] - 'Revenue- Perpetual License' is estimated at $6.27 million, reflecting a decrease of -11.1% from the year-ago quarter [5] Annual Recurring Revenue (ARR) - The collective assessment suggests 'ARR as reported' will reach $2.36 billion, up from $2.13 billion in the previous year [6] Stock Performance - Over the past month, PTC Inc. shares have increased by +18.4%, outperforming the Zacks S&P 500 composite, which saw a +3.6% change [6] - PTC holds a Zacks Rank 2 (Buy), indicating a likelihood of outperforming the overall market in the upcoming period [6]

Core Viewpoint - PTC Therapeutics, Inc. has received FDA approval for SEPHIENCE™ (sepiapterin) to treat phenylketonuria (PKU), marking a significant advancement for patients with this rare metabolic disorder [1][2][3] Group 1: FDA Approval and Product Details - SEPHIENCE is approved for treating hyperphenylalaninemia (HPA) in patients aged 1 month and older with sepiapterin-responsive PKU [1][6] - The approval is based on positive results from the Phase 3 APHENITY trial, demonstrating significant efficacy and safety [2][3] - SEPHIENCE acts as a natural precursor of the enzymatic co-factor BH4, effectively reducing blood phenylalanine levels [5] Group 2: Market Potential and Community Impact - The broad labeling of SEPHIENCE reflects its potential to address the unmet needs of PKU patients, with expectations to become the future standard of care [2] - The approval is seen as a milestone for the PKU community, providing renewed hope for improved quality of life for affected individuals [3] - SEPHIENCE has also received marketing authorization from the European Commission, with ongoing reviews in countries like Japan and Brazil [3] Group 3: Company Strategy and Future Plans - PTC Therapeutics is prepared to launch SEPHIENCE in the U.S. swiftly, leveraging its expertise in rare disease therapies [2] - The company plans to hold a conference call to discuss the approval and its implications for the market [4][9] - PTC aims to optimize value for patients through its diversified pipeline of transformative medicines for rare disorders [14]

Core Insights - PTC Inc. is set to report its third-quarter fiscal 2025 results on July 30, with anticipated revenues between $560 million and $600 million and non-GAAP EPS projected between $1.05 and $1.30 [1][8] - The Zacks Consensus Estimate for revenues stands at $582.4 million, reflecting a 12.3% increase year-over-year, while the earnings consensus is $1.22 per share, indicating a 24.5% rise from the previous year [1][2] Revenue and Earnings Performance - PTC has consistently exceeded the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 15.4% [2] - Over the past year, PTC's shares have increased by 15.4%, compared to a 23% growth in the Zacks Computer – Software industry [2] Business Drivers - The core business segments, including product lifecycle management (PLM) and computer-aided design (CAD) solutions, are expected to be significant revenue contributors for the upcoming quarter [3] - Generative AI initiatives and enhancements to the product portfolio are anticipated to positively influence performance, with advancements across PLM, ALM, SLM, and CAD [4] Financial Expectations - For the fiscal third quarter, PTC expects cash from operations to be between $234 million and $239 million, and free cash flow to range from $230 million to $235 million, factoring in approximately $4 million in cash outflows related to restructuring efforts [5][8] - The company anticipates a sequential net annualized recurring revenues (ARR) growth of $30 million to $50 million for the fiscal third quarter [5] Market Challenges - PTC has narrowed its ARR outlook for fiscal 2025 to 7-9% from a previous estimate of 9-10%, citing global trade volatility and customer caution as contributing factors [6] - Adverse foreign currency exchange rates and intense competition in the CAD market are also expected to pose challenges [9] Recent Developments - PTC announced a partnership with Nimble to upgrade its design and operations systems to PTC's cloud-based solutions [10] - The introduction of the Arena Supply Chain Intelligence offering enhances PTC's PLM and QMS solutions with AI-driven component risk monitoring [11] - PTC launched model-based definition capabilities within its Onshape platform, marking a significant advancement in cloud-native CAD solutions [12] - The release of Creo 12, the latest version of PTC's CAD software, includes numerous enhancements aimed at improving design and collaboration [13]

Group 1 - Autodesk has reportedly backed off from a potential acquisition of PTC, focusing instead on organic investments and smaller acquisitions [2][3] - Following the speculation of the acquisition, Autodesk's stock initially fell, while PTC's stock experienced a significant rise, typical of merger arbitrage activities [2][3] - Despite the acquisition talks being off the table, PTC remains an attractive investment due to its consistent double-digit growth in software subscriptions and the increasing adoption of digital technologies [12][13] Group 2 - PTC is seen as a highly attractive asset in the context of ongoing consolidation in the industrial software sector, with notable acquisitions by companies like Siemens and Synopsys [5][6] - A potential combination of Autodesk and PTC would create a stronger competitor against European leaders in the CAD/PLM/CAE space, enhancing their market position [8][9] - PTC's solutions are integral to modern manufacturing, with expectations of continued growth in annual recurring revenue (ARR) and free cash flow, making it a solid option for diversified growth portfolios [12][13]