PTC(US:PTC)2025-11-05 21:03Financial Performance - Q4'25 reported ARR of $2,478 million, a 10% increase year-over-year, with constant currency ARR growth of 8.5%[5] - FY'25 total revenue reached $2,739 million, representing a 19% year-over-year growth, with Q4'25 revenue at $894 million, a 43% increase year-over-year[10] - Non-GAAP earnings per share for Q4'25 was $3.47, a 126% increase compared to $1.54 in Q4'24, with FY'25 non-GAAP EPS at $8.00, up 57% year-over-year[10] - Recurring revenue for the three months ended September 30, 2025, was $861,071,000, a 47.8% increase from $582,430,000 for the same period in 2024[38] - Total revenue for the twelve months ended September 30, 2025, reached $2,739,226,000, up 19.2% from $2,298,472,000 in 2024[38] - Net income for the three months ended September 30, 2025, was $354,828,000, compared to $126,523,000 for the same period in 2024, representing a 180.5% increase[38] - Earnings per share for the twelve months ended September 30, 2025, was $6.18, up from $3.14 in 2024, reflecting a 96.2% increase[38] - Non-GAAP net income for the twelve months ended September 30, 2025, was $965.8 million, compared to $613.4 million for the same period in 2024, reflecting a 57.5% growth[42] Cash Flow and Expenses - Operating cash flow for Q4'25 was $104 million, up 6% from $98 million in Q4'24, while free cash flow increased by 7% to $100 million[5] - The company expects FY'26 constant currency ARR growth of 7% to 9%, with operating cash flow projected at approximately $1.03 billion[9] - Total operating expenses for the twelve months ended September 30, 2025, were $1,311,858,000, an increase from $1,265,594,000 in 2024[38] - Free cash flow for the twelve months ended September 30, 2025, was $856.7 million, compared to $735.6 million in 2024, reflecting a 16.5% increase[48] Stock and Shareholder Actions - PTC plans to repurchase approximately $200 million of its common stock in Q1'26 as part of a $2 billion share repurchase authorization[9] - The company anticipates a decrease in Q1'26 fully diluted share count to approximately 120 million shares from 121 million shares in Q1'25[21] Profitability and Margins - The company reported a gross margin of $776,896,000 for the three months ended September 30, 2025, compared to $513,722,000 in 2024, indicating a significant improvement in profitability[38] - GAAP gross margin for Q3 2025 was $776.9 million, up from $513.7 million in Q3 2024, representing a 51.3% increase[42] - GAAP operating income for Q3 2025 was $433.6 million, significantly higher than $194.0 million in Q3 2024, representing a 123.8% increase[42] Revenue Streams - License revenue for the three months ended September 30, 2025, was $484,081,000, a substantial increase from $239,448,000 in 2024[40] - Support and cloud services revenue for the twelve months ended September 30, 2025, was $1,469,180,000, compared to $1,359,355,000 in 2024, marking a growth of 8.1%[40] Company Strategy and Market Position - The divestiture of Kepware and ThingWorx is expected to enhance the company's focus on CAD, PLM, ALM, and SLM solutions[3] - PTC employs over 7,000 people and supports more than 30,000 customers globally, indicating a strong market presence[35] Future Outlook and Risks - The company anticipates potential risks affecting future performance, including macroeconomic conditions and customer adoption of new software solutions[34] - FY'26 guidance includes an expected increase in GAAP and non-GAAP operating expenses by approximately 4% due to growth investments[21] Assets and Equity - Total assets as of September 30, 2025, were $6.62 billion, compared to $6.38 billion a year earlier, showing a 3.8% increase[45] - Stockholders' equity increased to $3.83 billion as of September 30, 2025, from $3.21 billion in 2024, a growth of 19.2%[45]