PTC Inc. Revenue & Financials

PTC generated $2.74 billion in revenue for fiscal year 2025, representing 19.2% year-over-year growth from $2.30 billion in FY2024 and a 41.7% increase from $1.93 billion in FY2022. This three-year revenue compound annual growth rate of 12.3% exceeds the industrial software market average of 5.9%, demonstrating PTC's ability to gain share through competitive displacement and platform expansion. Net income surged to $734 million in FY2025, up 95.0% from $376.3 million in FY2024 and 134.3% from $313.1 million in FY2022. This profit acceleration reflects operating leverage from the recurring revenue model, cost discipline, and the maturation of high-margin subscription revenue. Operating income reached $1.007 billion in FY2025, yielding a 36.8% operating margin — up from 25.6% in FY2024 and 23.2% in FY2023. This 1,360 basis point margin expansion over two years is among the most aggressive in large-cap software and demonstrates the scalability of PTC's business model. Non-GAAP operating income, which excludes stock-based compensation and amortization of acquired intangibles, was $894.3 million in FY2024 at a 38.9% margin, up from $758.9 million (36.2% margin) in FY2023. The gap between GAAP and non-GAAP operating income is primarily stock-based compensation ($223.5 million in FY2024) and amortization ($42.0 million), both non-cash expenses that understate the company's cash generation capacity. Annual Recurring Revenue (ARR), PTC's preferred operating metric, reached $2.49 billion as of Q4 FY2025, growing 13.1% year-over-year. In FY2024, ARR was $2.255 billion, up 14% (12% constant currency) from $1.979 billion in FY2023. The ARR growth rate has moderated from the 15% exit rate of FY2023, reflecting macroeconomic headwinds in manufacturing capital expenditure, but remains well above the industrial software market growth rate. The recurring revenue mix — 92.8% of total revenue in FY2024 — provides visibility into approximately $2.1 billion of essentially committed annual revenue before any new sales activity. Free cash flow is a critical strength. Levered free cash flow totaled $986.1 million on a trailing twelve-month basis as of June 2026, representing a 36.0% free cash flow margin. In FY2024, cash flow from operating activities benefited from $81.4 million in deferred revenue growth and disciplined working capital management. The company maintains $439.1 million in cash and cash equivalents against total debt of approximately $1.4 billion, with a debt-to-equity ratio of 35.8% — a conservative capital structure that preserves acquisition capacity. PTC has not paid a dividend since its 1989 IPO, instead reinvesting cash flow into R&D, acquisitions, and share repurchases. Revenue by product group shows PLM dominance. In FY2024, PLM revenue was $1.459 billion (63.5% of total), up 9.7% from $1.330 billion in FY2023. CAD revenue was $839.4 million (36.5%), up 9.5% from $766.7 million. The balanced growth across both segments indicates that PTC is not over-reliant on a single product category and that cross-sell between CAD and PLM is functioning. The ServiceMax acquisition, while classified within PLM, added field service management revenue that diversifies the PLM segment beyond traditional engineering data management. Geographic revenue distribution remained stable. The Americas contributed $1.088 billion (47.3%), Europe $859.4 million (37.4%), and Asia Pacific $351.2 million (15.3%) in FY2024. The European concentration reflects PTC's strength in German automotive and industrial machinery, while the Asia Pacific share is lower than the region's global manufacturing output would suggest, representing a growth opportunity as Chinese and Southeast Asian manufacturers digitize. Valuation metrics as of June 2026 show PTC trading at a trailing P/E of 13.16, forward P/E of 16.78, and price-to-sales of 5.48 on a trailing basis. The market capitalization of $15.82 billion and enterprise value of $16.76 billion imply an EV/revenue multiple of 5.59x and EV/EBITDA of 9.44x. These multiples are below the SaaS median of 8-10x revenue, reflecting investor concerns about manufacturing cyclicality and the pace of cloud migration, but above traditional industrial software valuations, acknowledging PTC's subscription transition and growth profile.