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Mar 31
PTC Q2 2025 Earnings Report
PTC delivered strong results in Q2 2025, surpassing guidance across all key financial metrics.
Key Takeaways
PTC posted solid Q2 2025 performance with revenue, EPS, and ARR all exceeding expectations, alongside robust free cash flow and ongoing share repurchases.
Revenue grew to $636 million, above the top end of guidance.
EPS rose 42% year over year to $1.35.
ARR reached $2.29 billion, up 10% year over year.
PTC repurchased $75 million in stock during the quarter.
PTC
PTC
PTC Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.comPerpetual License Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
PTC adjusted its FY25 guidance to account for macroeconomic uncertainties, while maintaining strong growth outlook across ARR and cash flow metrics.
Positive Outlook
- FY25 constant currency ARR growth expected between 7% to 9%.
- Free cash flow guidance raised to $840–$850 million.
- EPS guidance lifted to $3.78–$4.73.
- Strong Q2 execution boosts confidence for Q3 and FY targets.
- Planned share repurchases of $75 million in Q3.
Challenges Ahead
- Macroeconomic uncertainty cited as a risk factor for H2 FY25.
- Q3 revenue guidance ($560–$600M) implies sequential decline.
- Free cash flow expected to be seasonally lower in Q4.
- Foreign exchange fluctuations remain a potential headwind.
- Challenging selling environment impacting predictability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income