Company: PTC
Filing Date: 2025-12-23
Form Type: DEF 14A
Source: 0001104659-25-124170
Chunk: 28

Company: PTC INC.
Filing Date: 2025-12-23
Form: DEF 14A
Chunk 28
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 to vest in three substantially equal installments over a three-year period, contingent on the achievement of performance measures. The performance measures are established on the grant date and apply to each of the three performance periods. Vesting occurs only after the performance threshold is achieved and the number of PRSUs earned depends on the level of performance achieved, up to a maximum of 200%. Operating PRSUs not earned for the applicable year are forfeited. We use three annual performance measurement periods and vesting as we believe it more effectively focuses our executives on delivering consistent performance over the three-year period, with forfeiture of PRSUs not earned for a performance period reinforcing this. How Our Relative TSR PRSUs Work Our relative TSR PRSUs are eligible to vest at the end of a single, three-year performance period, contingent on the achievement of the performance measures. The performance measures are established on the grant date. Vesting occurs only after the performance threshold is achieved, and the number PRSUs earned depends on the level of relative TSR performance achieved, up to a maximum of 200%. However, if the weighted average stock price as of the last day of three-year performance period is lower than the weighted average stock price as of the beginning of the period, then the maximum number of relative TSR PRSUs that can be earned is capped at 100%, even if performance exceeds the level at which 100% of the relative TSR PRSUs are earned. TSR PRSUs not earned are forfeited. How Our Time-Based RSUs Work Our time-based RSUs are designed to retain our NEOs, reward them for absolute long-term stock price appreciation, facilitate stock ownership and alignment with shareholders, and provide stability. The RSUs vest in three substantially equal annual installments. 2025 PERFORMANCE-BASED RSU GRANT GOALS 2025 Operating Performance PRSUs Goals For 2025 , consistent with prior years, the Committee selected Annual Run Rate (“ARR”) Growth as the performance measure for our operating performance PRSUs. ARR is one of the most important indicators of our business performance, representing the value of our portfolio of recurring revenue contracts at the end of the applicable period. We use ARR Growth as a performance measure as it provides clear line-of-sight into the recurring revenue potential of our portfolio and supports our long-term strategy to drive recurring revenue growth.

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