PTC ANNOUNCES FOURTH FISCAL QUARTER AND FULL FISCAL YEAR 2025 RESULTS

Core Insights - PTC reported strong financial results for Q4 and FY'25, highlighting a strategic focus on its core offerings and a simplified portfolio following the divestiture of Kepware and ThingWorx [2][4][7] - The company achieved record annual cash flow and significant growth in revenue and earnings per share, indicating robust operational execution [2][4][8] Financial Performance - Q4'25 revenue reached $894 million, a 43% increase year-over-year, with constant currency revenue growth of 39% [2][3] - Annual recurring revenue (ARR) was reported at $2.478 billion, reflecting a 10% increase from the previous year, with constant currency ARR growth of 8.5% [2][4] - Operating cash flow for FY'25 was $868 million, a 16% increase year-over-year, while free cash flow also grew by 16% to $857 million [4][8] Earnings Metrics - Earnings per share (EPS) for Q4'25 was $2.94, up 182% from $1.04 in Q4'24, with non-GAAP EPS at $3.47, a 126% increase [2][4] - For FY'25, GAAP EPS was $6.14, compared to $3.12 in FY'24, indicating a 97% increase, while non-GAAP EPS rose to $8.00 from $5.08 [5][6] Strategic Focus - The divestiture of non-core businesses is expected to enhance PTC's focus on its Intelligent Product Lifecycle vision, which includes CAD, PLM, ALM, and SLM [2][4][7] - The company plans to increase share repurchases under a $2 billion authorization, with approximately $200 million expected in Q1'26 [4][8] Future Guidance - For FY'26, PTC anticipates constant currency ARR growth of 7% to 9%, operating cash flow of approximately $1.03 billion, and free cash flow of around $1 billion [4][8] - Revenue guidance for FY'26 is set between $2.650 billion and $2.915 billion, reflecting a potential year-over-year change of -3% to 6% [8][9]