Company: PTC
Filing Date: 2025-11-21
Form Type: 10-K
Source: 0001193125-25-291326
Chunk: 58

Company: PTC INC.
Filing Date: 2025-11-21
Form: 10-K
Item: Item 6
Chunk 58
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 million. The Company’s contracts with customers for subscriptions typically include commitments to transfer term-based, on-premises software licenses bundled with support and/or cloud services. On-premises software is determined to be a distinct performance obligation from support. As disclosed by management, significant judgment is used in determining the performance obligations related to these bundled products and services. The corresponding revenues are recognized as the related performance obligations are satisfied. The principal considerations for our determination that performing procedures relating to revenue recognition - identification of distinct performance obligations, is a critical audit matter are the (i) significant judgment by management when identifying the distinct performance obligations, and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to management’s identification of distinct performance obligations within contracts with customers. 

F-2

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the identification of distinct performance obligations. These procedures also included, among others (i) evaluating the Company’s revenue recognition accounting policy and (ii) testing management’s identification of distinct performance obligations in its contracts with customers by examining revenue contracts on a sample basis and evaluating whether these performance obligations are satisfied at a point in time or satisfied over time. /s/ PricewaterhouseCoopers LLPBoston, MassachusettsNovember 21, 2025We have served as the Company’s auditor since 1992.   

F-3

PTC Inc.CONSOLIDATED BALANCE SHEETS(in thousands, except per share data) 

     September 30,

     2025

     2024

     ASSETS

     Current assets:

     Cash and cash equivalents
      
     $
     184,415

     $
     265,808

     Accounts receivable, net of allowance for doubtful accounts of $1,487 and $1,180 at September 30, 2025 and September 30, 2024, respectively

     1,001,085

     861,953

     Prepaid expenses

     119,107

     102,931

     Other current assets

     78,760

     68,013

     Total current assets

     1,383,367

     1,298,705

     Property and equipment, net

     60,843

     75,187