Company: PTC
Filing Date: 2025-11-21
Form Type: 10-K
Source: 0001193125-25-291326
Chunk: 21

Company: PTC INC.
Filing Date: 2025-11-21
Form: 10-K
Item: Item 6
Chunk 21
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 reduced by $35 million if certain growth targets are not achieved for a period between signing and closing, and further adjusted as set forth in the purchase agreement. We may receive up to $125 million of contingent consideration upon the sale of the business by TPG. The transaction is expected to close in the first half of calendar 2026. Our expected use of the net after-tax proceeds will follow our overall capital allocation strategy of returning excess cash to shareholders via share repurchases, while allowing for potential tuck-in acquisitions.Results of OperationsThe following table shows the measures that we consider the most significant indicators of our business performance. In addition to providing operating income, operating margin, diluted earnings per share and cash from operations as calculated under GAAP, we provide our ARR operating measure and non-GAAP operating income, non-GAAP operating margin, non-GAAP diluted earnings per share, and free cash flow for the reported periods. We also provide a view of our actual results on a constant currency basis. Our non-GAAP financial measures exclude the items described in Non-GAAP Financial Measures below. Investors should use our non-GAAP financial measures only in conjunction with our GAAP results.

21

Table of Contents

For discussion of our FY'24 results and comparison to our FY'23 results, refer to Management's Discussion and Analysis of Financial Conditions and Results of Operations in our Annual Report on Form 10-K for the year ended September 30, 2024. 

     (Dollar amounts in millions, except per share data)
      
     Year ended September 30,

     Percent Change

     2025

     2024

     Actual

     Constant Currency(1)

     ARR
      
     $
     2,478.5

     $
     2,254.7

     10
     %

     8
     %

     Total recurring revenue(2)
      
     $
     2,600.5

     $
     2,134.0

     22
     %

     21
     %

     Perpetual license

     31.4

     32.2

     (3
     )%

     (3
     )%

     Professional services

     107.3

     132.2

     (19
     )%

     (19
     )%

     Total revenue

     2,739.2

     2,298.5

     19
     %

     18
     %