PTC Inc. (PTC) FY2025 10-K Annual Report

Filed: Nov 21, 2025
Information Technology
Services-Prepackaged SoftwareSEC EDGAR

PTC Inc. (PTC) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Nov 21, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

PTC Inc. FY2025 10-K Analysis

Business Overview

  • Core business: global software company enabling Intelligent Product Lifecycle and AI-driven digital transformation across manufacturing and product development
  • New emphasis on AI-driven transformation integrating cross-functional product data for improved collaboration and decision-making
  • Strategic shift to subscription model with 95% recurring revenue in 2025, enhancing customer retention and predictable cash flow
  • Workforce growth to over 7,000 employees supporting more than 30,000 global customers across multiple industry verticals
  • Expansion of SaaS offerings with Onshape and Arena platforms supporting cloud-native, real-time collaboration and virtual product team workflows

Management Discussion & Analysis

  • Revenue $2.74B, up 19% YoY (18% constant currency), driven by 44% license growth to $1.16B and 8% support/cloud to $1.47B
  • Operating margin 36% vs 26%, non-GAAP operating margin 48% vs 39%, gross margin 84% vs 81% YoY
  • Best segment: License revenue +44% to $1.16B; worst segment: Professional services down 19% to $107M
  • Operating cash flow $868M (+16%), free cash flow $857M (+16%), $300M share repurchases, $553M net debt repayments, capex $11M
  • Sold Kepware/ThingWorx for up to $725M expected H1 2026; proceeds to fund share repurchases per long-term capital allocation strategy

Risk Factors

  • Regulatory risk: Compliance with Federal Risk and Authorization Management Program (FedRAMP) certifications for certain products and services
  • Geopolitical risk: Dependency on third-party vendors requiring stringent cybersecurity risk management prior to access to PTC’s IT systems or data
  • Operational risk: Potential cybersecurity incident impacts mitigated by the Enterprise Cybersecurity Incident Response Policy tested through periodic tabletop exercises
  • Competitive risk: Risk from evolving cybersecurity threat landscape requiring alignment with NIST cybersecurity framework and OWASP Software Assurance Maturity Model
  • Financial risk: Key-person dependency on Chief Digital and Information Officer (since 2022) and Chief Information Security Officer (since 2022) for cybersecurity risk management

PTC Inc. FY2025 Key Financial Metrics
XBRL

Revenue

$2.7B

+19.2% YoY

Net Income

$734M

+95.0% YoY

Gross Margin

83.8%

+311bp YoY

Operating Margin

35.9%

+1028bp YoY

Net Margin

26.8%

+1042bp YoY

ROE

19.2%

+748bp YoY

Total Assets

$6.6B

+3.7% YoY

EPS (Diluted)

$6.08

+94.9% YoY

Operating Cash Flow

$868M

+15.7% YoY

Source: XBRL data from PTC Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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