NASDAQ: PTC
PTC INC.CIK 0000857005 · SIC 7372 · Prepackaged Software
PTC is a global software company headquartered in Boston, Massachusetts. We employ over 7,000 people and support more than 30,000 customers globally. About this business →
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PTC: revenue $600.0M, net income $118.8M. PTC divests Kepware/ThingWorx for, deploys into buybacks as revenue falls 7%
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Latest financial statements
From 10-Q filed Jul 31, 2026 (period ending Jun 30, 2026). As printed on the EDGAR/iXBRL face — not generated by the model.
Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
| Description | Three months ended June 30, 2026 | Three months ended June 30, 2025 | Nine months ended June 30, 2026 | Nine months ended June 30, 2025 |
|---|---|---|---|---|
| Revenue: | ||||
| License | 205,824 | 251,479 | 838,210 | 678,628 |
| Support and cloud services | 370,878 | 369,867 | 1,151,720 | 1,083,819 |
| Total software revenue | 576,702 | 621,346 | 1,989,930 | 1,762,447 |
| Professional services | 23,347 | 22,591 | 70,247 | 82,984 |
| Total revenue | 600,049 | 643,937 | 2,060,177 | 1,845,431 |
| Cost of revenue: | ||||
| Cost of license revenue | 11,016 | 12,060 | 36,379 | 33,222 |
| Cost of support and cloud services revenue | 74,817 | 73,446 | 230,953 | 215,101 |
| Total cost of software revenue | 85,833 | 85,506 | 267,332 | 248,323 |
| Cost of professional services revenue | 23,751 | 24,519 | 73,616 | 79,761 |
| Total cost of revenue | 109,584 | 110,025 | 340,948 | 328,084 |
| Gross margin | 490,465 | 533,912 | 1,719,229 | 1,517,347 |
| Operating expenses: | ||||
| Sales and marketing | 136,287 | 141,756 | 417,271 | 424,319 |
| Research and development | 115,708 | 116,647 | 359,824 | 343,186 |
| General and administrative | 59,973 | 54,145 | 222,620 | 162,457 |
| Amortization of acquired intangible assets | 11,991 | 11,536 | 36,075 | 34,356 |
| Impairment and other charges, net | — | — | — | 4,213 |
| Total operating expenses | 323,959 | 324,084 | 1,035,790 | 968,531 |
| Operating income | 166,506 | 209,828 | 683,439 | 548,816 |
| Interest expense | (15,771) | (18,404) | (48,359) | (60,058) |
| Other income, net | 1,705 | 2,252 | 467,134 | 3,321 |
| Income before income taxes | 152,440 | 193,676 | 1,102,214 | 492,079 |
| Provision for income taxes | 33,660 | 52,348 | 226,193 | 105,875 |
| Net income | 118,780 | 141,328 | 876,021 | 386,204 |
| Earnings per share—Basic | 1.04 | 1.18 | 7.46 | 3.22 |
| Earnings per share—Diluted | 1.03 | 1.17 | 7.43 | 3.20 |
| Weighted-average shares outstanding—Basic | 114,677 | 119,913 | 117,401 | 120,106 |
| Weighted-average shares outstanding—Diluted | 114,978 | 120,461 | 117,844 | 120,815 |
Consolidated Balance Sheets (Unaudited)
(in thousands, except per share data)
| Description | June 30, 2026 | September 30, 2025 |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | 351,454 | 184,415 |
| Accounts receivable, net of allowance for doubtful accounts of $2,400 and $1,487 at June 30, 2026 and September 30, 2025, respectively | 824,107 | 1,001,085 |
| Prepaid expenses | 114,722 | 119,107 |
| Other current assets | 81,583 | 78,760 |
| Total current assets | 1,371,866 | 1,383,367 |
| Property and equipment, net | 62,839 | 60,843 |
| Goodwill | 3,398,303 | 3,493,316 |
| Acquired intangible assets, net | 765,799 | 824,663 |
| Deferred tax assets | 100,544 | 194,070 |
| Operating right-of-use lease assets | 126,048 | 114,974 |
| Other assets | 688,178 | 545,939 |
| Total assets | 6,513,577 | 6,617,172 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | 34,909 | 11,504 |
| Accrued expenses and other current liabilities | 300,576 | 136,140 |
| Accrued compensation and benefits | 167,955 | 199,561 |
| Accrued income taxes | 85,227 | 28,749 |
| Current portion of long-term debt | 25,074 | 25,000 |
| Deferred revenue | 700,298 | 812,271 |
| Short-term lease obligations | 24,070 | 24,179 |
| Total current liabilities | 1,338,109 | 1,237,404 |
| Long-term debt | 1,398,241 | 1,172,434 |
| Deferred tax liabilities | 30,241 | 30,151 |
| Long-term deferred revenue | 12,229 | 14,794 |
| Long-term lease obligations | 160,309 | 148,254 |
| Other liabilities | 104,705 | 187,906 |
| Total liabilities | 3,043,834 | 2,790,943 |
| Commitments and contingencies (Note 11) | ||
| Stockholders’ equity: | ||
| Preferred stock, $0.01 par value; 5,000 shares authorized; none issued | — | — |
| Common stock, $0.01 par value; 500,000 shares authorized; 110,717 and 119,536 shares issued and outstanding at June 30, 2026 and September 30, 2025, respectively | 1,107 | 1,195 |
| Additional paid-in capital | 610,985 | 1,822,590 |
| Retained earnings | 2,959,628 | 2,083,607 |
| Accumulated other comprehensive loss | (101,977) | (81,163) |
| Total stockholders’ equity | 3,469,743 | 3,826,229 |
| Total liabilities and stockholders’ equity | 6,513,577 | 6,617,172 |
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
| Description | Nine months ended June 30, 2026 | Nine months ended June 30, 2025 |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income | 876,021 | 386,204 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 74,180 | 76,803 |
| Amortization of right-of-use lease assets | 25,723 | 24,459 |
| Stock-based compensation | 185,848 | 161,395 |
| Gain on divestiture of businesses | (464,602) | — |
| Other non-cash items, net | (3,010) | 159 |
| Changes in operating assets and liabilities, excluding the effects of acquisitions: | ||
| Accounts receivable | 158,180 | 173,557 |
| Accounts payable and accrued expenses | 214,882 | (21,373) |
| Accrued compensation and benefits | (10,297) | 11,044 |
| Deferred revenue | (104,664) | (16,472) |
| Accrued income taxes | 116,084 | 22,409 |
| Other current assets and prepaid expenses | (133,193) | 5,525 |
| Operating lease liabilities | 14,322 | (4,869) |
| Other noncurrent assets and liabilities | (98,183) | (55,175) |
| Net cash provided by operating activities | 851,291 | 763,666 |
| Cash flows from investing activities: | ||
| Additions to property and equipment | (16,291) | (7,462) |
| Acquisitions of businesses, net of cash acquired | (3,573) | (6,532) |
| Contribution to solar energy equity investment | (50,146) | — |
| Settlement of net investment hedges | 26,549 | (14,560) |
| Divestiture of businesses | 523,306 | — |
| Net cash provided by (used in) investing activities | 479,845 | (28,554) |
| Cash flows from financing activities: | ||
| Borrowings under credit facility | 313,750 | 860,000 |
| Repayments of senior notes | — | (500,000) |
| Repayments of borrowings under credit facility | (88,750) | (876,708) |
| Repurchases of common stock | (1,326,190) | (224,987) |
| Proceeds from issuance of common stock | 13,162 | 13,307 |
| Payments of withholding taxes in connection with stock-based awards | (67,343) | (71,761) |
| Other financing activity | (1,007) | (1,410) |
| Net cash used in financing activities | (1,156,378) | (801,559) |
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (7,719) | (125) |
| Net change in cash, cash equivalents, and restricted cash | 167,039 | (66,572) |
| Cash, cash equivalents, and restricted cash, beginning of period | 184,988 | 266,466 |
| Cash, cash equivalents, and restricted cash, end of period | 352,027 | 199,894 |
| Supplemental disclosure of non-cash financing and investing activities: | ||
| Withholding taxes in connection with stock-based awards, accrued | 4,320 | 6,061 |
| Operating right-of-use assets obtained in exchange for operating lease liabilities | 32,486 | 15,700 |
| Investment in solar energy project not yet paid | 134,602 | — |
| Repurchase of common stock executed but not settled | 25,000 | — |
Amounts as printed on the EDGAR/iXBRL face — (in thousands, except per share data); (in thousands). Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗
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About PTC INC.
Source: Item 1 (Business) from the 10-K filed November 21, 2025. Description as filed by the company with the SEC.
ITEM 1. Business
Our Business
PTC is a global software company headquartered in Boston, Massachusetts. We employ over 7,000 people and support more than 30,000 customers globally.
We primarily serve customers in the following industry verticals:
•
Industrials
•
Federal, Aerospace and Defense
•
Electronics and High Tech
•
Automotive
•
Medical Technology and Life Sciences
Our customers are focused on improving their competitiveness in the face of global competition and increasing product complexity, and our suite of software offerings is a strategic enabler of this and their digital transformation initiatives. Given the breadth and openness of our portfolio, we enable the Intelligent Product Lifecycle: establishing a strong product data foundation in the engineering department and democratizing the access and use of that data across the enterprise to drive cross-functional collaboration, accelerate new product introduction timelines, and deliver higher product quality. By embracing the Intelligent Product Lifecycle, our customers establish the quality, consistency, and traceability of product data, ensuring the data is up-to-date, accessible, reliable, and actionable. Our customers can then go on to use this data to break down silos, streamline workflows, and achieve interoperability across departments, functions, and systems. This includes the growing emphasis on AI-driven transformation across our customers’ teams, operations, and processes. A product data foundation is the backbone of AI-driven transformation.
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Our business is based on a subscription model and 95% of our 2025 revenue is recurring in nature. Compared to a perpetual license model, our subscription model naturally drives higher customer engagement and retention and provides better business predictability. This, in turn, enables us to make steady and sustained investments to support our customers and pursue mid-to-long-term growth opportunities.
Our Principal Products and Services
PLM software products for product data management and process orchestration
Our Windchill® PLM application suite manages all aspects of the product development lifecycle—from concept through service and end-of-life. Windchill provides real-time information sharing, dynamic data visualization, and the ability to collaborate across geographically distributed teams, enabling manufacturers to elevate their product development, manufacturing, field service, and end-of-life processes.
Our Codebeamer® and pure::variantsTM application lifecycle management (ALM) solutions enable companies to accelerate the development of products that contain software, including software-defined products that require multiple software variants to be created and updated over the life of the product.
Our ServiceMax® service lifecycle management (SLM) solution enables companies to improve asset uptime with optimized in-person and remote service, boost technician productivity with the latest mobile tools, and deliver metrics for confident decision making.
Our Servigistics® service parts management solution enables companies to effectively manage their service parts inventory, enabling them to optimize equipment availability and uptime, and increase customer satisfaction.
Our Arena® Software as a Service (SaaS) PLM solution enables product teams to collaborate virtually anytime and anywhere, making it easier to share the latest product and quality information with internal teams and supply chain partners and deliver innovative products to customers faster. Our Arena quality management system software connects quality and product designs into a single system to simplify regulatory compliance.
CAD software products for product data authoring
Our Creo® 3D CAD technology enables the digital design, testing, and modification of product models. With its design simulation, additive manufacturing, and generative design innovations, we enable our customers to be first to market with differentiated products. From initial concept to design, simulation, and analysis, Creo provides designers with innovative tools to efficiently create better products, faster.
Our Onshape® SaaS product development platform unites computer-aided design with data management, collaboration tools, and real-time analytics. A cloud-native multi-tenant solution that can be instantly deployed on virtually any computer or mobile device, Onshape enables teams to work together from just about anywhere. Real-time design reviews, commenting, and simultaneous editing enable a collaborative workflow where multiple design iterations can be completed in parallel and merged into the final design.
Our Markets and How We Address Them
We aim to create value for our customers, increase our Annual Run Rate (ARR) and cash flow, and deliver long-term value for shareholders. We focus our resources and attention on the solutions described above, where we believe we can create the greatest customer value.
Our growth is primarily driven by existing customers that continue to upgrade and expand their PTC footprint, multi-product adoption by customers, our commercial optimization initiatives, and new customers.
Approximately 75% of our sales are from products and services sold directly by our sales force to end-user customers. The rest of our sales of products and services are through third-party resellers. In general, our sales force focuses on large accounts, while our reseller channel provides a cost-effective means of covering the small- and medium-size business markets. Our strategic reseller and software partners enable us to increase our market reach, offer broader solutions, and add compelling technology to our offerings. Our strategic services partners provide service offerings to help customers implement our product offerings and transition to SaaS.
Additional financial information about our international and domestic operations may be found in Note 3. Revenue from Contracts with Customers of Notes to Consolidated Financial Statements in this Annual Report, which information is incorporated herein by reference.
Competition
We compete with a number of companies whose offerings address one or more specific functional areas covered by our solutions. For enterprise CAD and PLM solutions, we compete with large established companies including Autodesk, Dassault Systèmes SA, and Siemens AG. For our ALM products, we compete with IBM, Jama Software, Inc. and Siemens AG. For our SLM products, we compete with enterprise software companies such as Oracle, SAP, IFS AB, Microsoft, and Salesforce, and with companies that offer point solutions.
Proprietary Rights
Our software products and related technical know-how, along with our trademarks, including our company names, product names and logos, are proprietary. We protect our intellectual property rights in these items by relying on copyrights, trademarks, patents and common law safeguards, including trade secret protection. The nature and extent of such legal protection depends in part on the type of intellectual property right and the relevant jurisdiction. In the U.S., we are generally able to maintain our trademark registrations for as long as the trademarks are in use and to maintain our patents for up to 20 years from the earliest effective filing date. We also use license management and other anti-piracy technology measures, as well as contractual restrictions, to curtail the unauthorized use and distribution of our products.
Our proprietary rights are subject to the risks and uncertainties described under