Company: PTC
Filing Date: 2025-11-21
Form Type: 10-K
Source: 0001193125-25-291326
Chunk: 26

Company: PTC INC.
Filing Date: 2025-11-21
Form: 10-K
Item: Item 6
Chunk 26
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     $
     1,913.6

     23
     %

     Non-GAAP gross margin percentage(1)

     86
     %

     83
     %

    (1)Non-GAAP financial measures are reconciled to GAAP results under Non-GAAP Financial Measures below.License gross margin grew at a higher rate than license revenue in FY'25 due mainly to license revenue growth. Total cost of license revenue in FY'25 remained consistent with FY'24, with lower intangible amortization expense offsetting growth in other areas.Support and cloud services gross margin growth in FY'25 was in line with support and cloud services revenue growth. Cost of support and cloud services grew 6% in FY'25, primarily due to increasing compensation-related costs and cloud and software subscription-related costs as the business grows.Professional services gross margin decreased in FY’25 compared to FY’24, primarily driven by a sharper decrease in professional services revenue than in professional services expense. The decreases in professional services revenue and costs are due to our continued execution on our strategy of leveraging partners to deliver services rather than contracting to deliver services ourselves.

24

Operating Expenses 

     (Dollar amounts in millions)
      
     Year ended September 30,

     2025

     2024

     Percent Change

     Sales and marketing
      
     $
     566.5

     $
     559.0

     1
     %

     % of total revenue

     21
     %

     24
     %

     Research and development

     457.7

     433.0

     6
     %

     % of total revenue

     17
     %

     19
     %

     General and administrative

     226.1

     232.4

     (3
     )%

     % of total revenue

     8
     %

     10
     %

     Amortization of acquired intangible assets

     45.9

     42.0

     9
     %

     % of total revenue

     2
     %

     2
     %

     Impairment and other charges (credits), net

     15.6

     (0.8
     )

     2,050
     %

     % of total revenue

     1
     %

     0
     %

     Total operating expenses
      
     $
     1,