PTC divests Kepware/ThingWorx for $531M, deploys $1.3B into buybacks as revenue falls 7%

Filed July 31, 2026 · Period ending June 30, 2026 · Compared to 10-Q Jul 31, 2025 · ~2 min read

Key Changes

• high

  Divested Kepware and ThingWorx businesses for $531M cash (plus potential up to $125M earnout), recognizing a $463M gain and $96M tax expense. Deployed proceeds into $1.3B share repurchases (9-month total), funded partly by $225M net credit-facility borrowing.

  Notes: Kepware/ThingWorx divestiture & ASR view on EDGAR →
• high

  Revenue fell 7% to $600M (vs $644M prior year) driven by the divestiture ($46M Q3'25 revenue removed) and lower license revenue from a single large contract with shortened duration. ARR flat at $2.41B reported, up 7% excluding divested businesses (9% constant currency).

  MD&A: Revenue & ARR verify on EDGAR →
• high

  Operating margin compressed 480 basis points to 27.7% and diluted EPS fell 12% to $1.03, both driven by lower revenue. Free cash flow grew 3% to $249M, slowed by higher capex for an R&D office move.

  MD&A: Operating margin & cash flow verify on EDGAR →