PTC(US:PTC)2025-07-30 20:01Financial 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]