PTC Inc. Reports 24% Revenue Growth to $643.9 Million in Latest Quarter

PTC Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $643.9 million for the three months ended June 30, 2025, a 24% increase from $518.6 million in the same period last year. The company's software revenue, which includes license and support services, grew by 27% to $621.3 million, driven primarily by a 69% increase in license revenue. For the nine months ending June 30, 2025, total revenue was $1.845 billion, up 10% from $1.672 billion in the prior year. The company also reported a net income of $141.3 million, a substantial increase from $69 million in the previous year, resulting in diluted earnings per share of $1.17, compared to $0.57.

In terms of operational metrics, PTC's Annual Run Rate (ARR) grew by 14% year-over-year to $2.42 billion, reflecting the strength of its subscription model, which accounted for 93% of total revenue in 2024. The company reported a total customer count exceeding 30,000, with a notable increase in engagement metrics attributed to its digital transformation offerings. PTC's gross margin improved to 83% for the quarter, up from 78% a year earlier, indicating enhanced operational efficiency alongside revenue growth.

Strategically, PTC has made significant acquisitions, including the purchase of pure-systems GmbH for $93.5 million and ServiceMax, Inc. for $1.448 billion, which have expanded its product capabilities and market reach. The company also acquired IncQuery Group GmbH for $7.9 million in the latest quarter. These acquisitions are expected to bolster PTC's position in the product lifecycle management (PLM) and computer-aided design (CAD) markets, which saw revenue growth of 27% in the latest quarter.

The company’s balance sheet reflects a decrease in total assets to $6.229 billion from $6.384 billion in the previous fiscal period, primarily due to a reduction in cash and cash equivalents and accounts receivable. Total liabilities also decreased significantly to $2.716 billion from $3.169 billion, largely due to the repayment of long-term debt, including the redemption of $500 million in senior notes. PTC's employee headcount increased by 3% year-over-year, supporting its growth initiatives.

Looking ahead, PTC remains optimistic about its growth trajectory, with expectations for continued revenue expansion driven by its subscription model and strategic investments in product development. The company anticipates that its ongoing initiatives, including the integration of artificial intelligence capabilities into its software solutions, will further enhance customer engagement and retention. However, PTC acknowledges potential risks related to macroeconomic conditions and global trade tensions that could impact customer purchasing behavior.