PTC Inc.
Financial Performance
PTC Revenue & Financials
Revenue
$2.7B (FY2025)
Market Cap
$15.1B
Net Income
$734M
Employees
7,400
What is PTC's revenue?
PTC had $2.7B in revenue for fiscal year 2025, up 19.2% from 2024. Net income was $734M.
- Latest revenue
- $2.7B (FY2025)
- Year-over-year
- +19.2%
- Growth rate (CAGR)
- 10.2% over 9 years
- Peak revenue
- $2.7B (FY2025)
- Years of data
- 10
- Employees
- 7,400
Financial Analysis
PTC spent the 2010s moving from perpetual licenses to subscriptions under CEO Jim Heppelmann, which depressed reported revenue for several years before lifting recurring revenue and cash flow. Revenue grew from $1.14B in FY2016 to $2.739B in FY2025, while net income rose from a $54M loss to $734M. FY2026 is a reset year on paper: revenue guidance of $2.69B-$2.75B is roughly flat to down 2% because Kepware and ThingWorx left in March 2026, but GAAP EPS guidance of $8.46-$9.18 includes a $463M gain on that sale. Q3 FY2026 revenue was $600M (down 7%) with free cash flow of $249M. PTC Inc. is a major American computer software and services company specializing in 2D & 3D design software, PLM, and IoT, commanding a market valuation generally exceeding $20 billion.
Revenue Trend Analysis
YoY Change
+19.2%
9-Year CAGR
+10.2%
Peak Year
2025
Trend
Consistent Growth
PTC Inc. has 10 full fiscal year figures on this page, compounding at +10.2% annually over 9 years. The most recent year saw a 19.2% increase versus the prior year. Annual revenue peaked in fiscal year 2025 at $2.7B. Of 9 comparable year-over-year steps, 9 showed growth and 0 showed a decline.
Annual revenue history
| Fiscal Year | Revenue | Operating Income | Net Income | YoY Change | Source |
|---|---|---|---|---|---|
| FY2025 | $2.7B | $982.4M | $734M | +19.2% | PTC Inc. annual report (Form 10-K, SEC EDGAR, filed 2025-11-21) Fiscal year ended 2025-09-30. |
| FY2024 | $2.3B | $588.1M | $376.3M | +9.6% | PTC Inc. annual report (Form 10-K, SEC EDGAR, filed 2025-11-21) Fiscal year ended 2024-09-30. |
| FY2023 | $2.1B | $458.5M | $245.5M | +8.5% | PTC Inc. annual report (Form 10-K, SEC EDGAR, filed 2025-11-21) Fiscal year ended 2023-09-30. |
| FY2022 | $1.9B | $447.4M | $313.1M | +7.0% | PTC Inc. annual report (Form 10-K, SEC EDGAR, filed 2024-11-14) Fiscal year ended 2022-09-30. |
| FY2021 | $1.8B | $380.7M | $476.9M | +23.9% | PTC Inc. annual report (Form 10-K, SEC EDGAR, filed 2023-11-20) Fiscal year ended 2021-09-30. |
| FY2020 | $1.5B | $210.9M | $130.7M | +16.1% | PTC Inc. annual report (Form 10-K, SEC EDGAR, filed 2022-11-15) Fiscal year ended 2020-09-30. |
| FY2019 | $1.3B | $63M | -$27.5M | +1.1% | PTC Inc. annual report (Form 10-K, SEC EDGAR, filed 2021-11-22) Fiscal year ended 2019-09-30. |
| FY2018 | $1.2B | $72.6M | $52M | +6.7% | PTC Inc. annual report (Form 10-K, SEC EDGAR, filed 2020-11-20) Fiscal year ended 2018-09-30. |
| FY2017 | $1.2B | $41.8M | $6.2M | +2.1% | PTC Inc. annual report (Form 10-K, SEC EDGAR, filed 2019-11-18) Fiscal year ended 2017-09-30. |
| FY2016 | $1.1B | -$37M | -$54.5M | — | PTC Inc. annual report (Form 10-K, SEC EDGAR, filed 2018-11-16) Fiscal year ended 2016-09-30. |
Click any row to see year details.
PTC Inc. balance sheet and cash flow
Balance-sheet figures are as of each fiscal year end; cash-flow figures cover the fiscal year. Taken from the company's annual report on Form 10-K, linked on each row. Free cash flow here is operating cash flow less capital expenditures, calculated by CorpDigest.
| Fiscal Year | Operating cash flow | Capital expenditures | Total assets | Total liabilities | Shareholders' equity | Free cash flow | Source |
|---|---|---|---|---|---|---|---|
| FY2025ended Sep 30, 2025 | $867.7M | $11M | $6.6B | $2.8B | $3.8B | $856.7M | Form 10-K |
| FY2024ended Sep 30, 2024 | $750M | $14.4M | $6.4B | $3.2B | $3.2B | $735.6M | Form 10-K |
| FY2023ended Sep 30, 2023 | $610.9M | $23.8M | $6.3B | $3.6B | $2.7B | $587M | Form 10-K |
| FY2022ended Sep 30, 2022 | $435.3M | $19.5M | $4.7B | $2.4B | $2.3B | $415.8M | Form 10-K |
| FY2021ended Sep 30, 2021 | $368.8M | $24.7M | $4.5B | $2.5B | $2B | $344.1M | Form 10-K |
| FY2020ended Sep 30, 2020 | $233.8M | $20.2M | $3.4B | $1.9B | $1.4B | $213.6M | Form 10-K |
| FY2019ended Sep 30, 2019 | $285.1M | $64.4M | $2.7B | $1.5B | $1.2B | $220.7M | Form 10-K |
| FY2018ended Sep 30, 2018 | $247.8M | $36M | $2.3B | $1.5B | $874.6M | $211.7M | Form 10-K |
| FY2017ended Sep 30, 2017 | $135.2M | $25.4M | $2.4B | $1.5B | $885.4M | $109.8M | Form 10-K |
| FY2016ended Sep 30, 2016 | $183.3M | $26.2M | $2.3B | $1.5B | $842.7M | $157.1M | Form 10-K |
Keep researching PTC
PTC Revenue and Financial FAQ
What was PTC's total revenue and net income for FY2025?
For FY2025, PTC reported total revenues of $2.74 billion and net income of $734 million, supported by double-digit Annual Recurring Revenue (ARR) growth and gross profit margins exceeding 80%.
What is Annual Recurring Revenue (ARR) and why is it PTC's primary financial KPI?
Annual Recurring Revenue (ARR) measures the annualized value of all active recurring software subscriptions and cloud contracts. PTC's ARR exceeds $2.2 billion, providing Wall Street with highly visible, predictable cash flows and recurring revenue quality.
What is PTC's market capitalization and valuation profile?
PTC carries a market capitalization typically ranging between $22 billion and $26 billion on NASDAQ, trading at strong enterprise-value-to-free-cash-flow multiples reflective of a top industrial enterprise software leader.
What is PTC's Free Cash Flow (FCF) generation capability?
PTC generates strong free cash flow, consistently producing between $700 million and $850 million in annual free cash flow, which is utilized to pay down acquisition debt and execute programmatic share repurchases.
Which geographic regions generate the largest share of PTC's software revenue?
The Americas region generates approximately 45% to 50% of PTC's revenue, followed by Europe (around 35% to 40%) and the Asia-Pacific region (accounting for 15% to 20%), reflecting widespread global adoption across leading industrial manufacturing hubs.
How does PTC allocate capital between R&D and strategic M&A?
PTC reinvests approximately 16% to 18% of its annual revenues directly into software R&D engineering, while utilizing disciplined debt financing and operating cash flow to acquire strategic software platforms like ServiceMax, Codebeamer, Onshape, and Arena.
What is PTC's debt profile and leverage ratio?
Following major acquisitions like ServiceMax ($1.46B in 2023), PTC maintains an aggressive debt paydown strategy, rapidly reducing its net debt-to-operating-EBITDA ratio below 2.5x to preserve financial flexibility.
How does currency fluctuation impact PTC's reported financial results?
With substantial revenues derived from European (Euro) and Japanese (Yen) manufacturing clients, PTC reports both reported and constant-currency ARR to transparently reflect organic software demand insulated from foreign exchange volatility.
What is PTC’s annual revenue and ARR scale?
PTC generates over $2.1 billion to $2.3+ billion in annual software revenues, with ARR exceeding $2.2 billion growing at double-digit rates driven by CAD, PLM, and SLM expansions.
What are PTC’s operating and gross profit margins?
PTC generates non-GAAP gross margins above 80% on recurring software subscriptions and non-GAAP operating margins between 38% and 42%, reflecting strong operating leverage in its subscription model.
What is PTC’s Free Cash Flow (FCF) conversion profile?
PTC produces exceptional cash conversion, generating over $700 million to $800+ million in annual free cash flow, converting approximately 35% to 40% of ARR directly into cash.
How does PTC allocate its substantial free cash flow?
PTC prioritizes paying down debt incurred from strategic acquisitions (such as ServiceMax) to maintain a net debt-to-EBITDA ratio below 2.0x–2.5x, while returning over 50% of free cash flow to shareholders via ongoing share repurchases.
What percentage of PTC’s revenue is recurring?
Over 92% to 95% of PTC’s total revenues are recurring software subscriptions and cloud SaaS fees, providing high earnings visibility and insulation against short-term manufacturing CapEx cycles.
Which product line contributes the largest share of PTC’s ARR?
Windchill PLM and Creo CAD represent the largest foundational components of PTC’s ARR, with rapid acceleration from Codebeamer ALM and ServiceMax SLM expanding customer contract values.
How do foreign currency movements impact PTC’s reported financials?
With over 50% of software sales originating outside North America (primarily Europe and Japan), fluctuations in the Euro and Japanese Yen impact reported USD revenue, which PTC hedges through currency management.
What are PTC’s medium-term financial targets under CEO Neil Barua?
PTC targets sustained double-digit organic constant-currency ARR growth, expanding non-GAAP operating margins toward 45%, and generating over $1 billion in annual free cash flow.
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Using these figures? Please credit CorpDigest with a link.
CorpDigest. "PTC Revenue & Financials." CorpDigest, https://corpdigest.com/company/ptc/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>PTC reported $2.7B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/ptc/financials" target="_blank" rel="noopener">CorpDigest — PTC financials</a></div>Related Financial Audits
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