Company: PTC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015530
Chunk: 53

Company: PTC INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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    —

    (0.01
    )

    Income tax adjustments(1)

    (0.20
    )

    (0.12
    )

    Non-GAAP diluted earnings per share
     
    $
    1.10

    $
    1.11

    Cash provided by operating activities
     
    $
    238.4

    $
    187.3

    Capital expenditures

    (2.8
    )

    (4.6
    )

    Free cash flow
     
    $
    235.7

    $
    182.8

(1)Income tax adjustments reflect the tax effects of non-GAAP adjustments which are calculated by applying the applicable tax rate by jurisdiction to the non-GAAP adjustments listed above. Additionally, adjustments exclude a $5.4 million benefit in Q1’25 and $3.6 million charge in Q1’24 related to the non-cash tax impact of tax reserves related to prior years in foreign jurisdictions.

Operating margin impact of non-GAAP adjustments:

    Three months ended

    December 31, 2024

    December 31, 2023

    GAAP operating margin

    20.4
    %

    21.6
    %

    Stock-based compensation

    9.9
    %

    10.7
    %

    Amortization of acquired intangible assets

    3.5
    %

    3.6
    %

    Acquisition and transaction-related charges

    0.0
    %

    0.5
    %

    Restructuring and other credits, net

    0.0
    %

    (0.1
    )%

    Non-GAAP operating margin

    33.9
    %

    36.2
    %

25

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no significant changes in our market risk exposure as described in Item 7A. Quantitative and Qualitative Disclosures about Market Risk of our 2024 Annual Report on Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Effectiveness of Disclosure Controls and Procedures

Our management maintains disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “