Loading...
•
Jun 30, 2025
PTC Q3 2025 Earnings Report
PTC reported solid execution in Q3 2025 with strong constant currency ARR growth and exceeded guidance for operating and free cash flow.
Key Takeaways
PTC delivered a solid third fiscal quarter in 2025, demonstrating strong execution with constant currency ARR growth of 9.3%, which was at the higher end of their guidance range. The company also exceeded guidance ranges for operating and free cash flow, both growing by 14% year-over-year. PTC is raising its full-year guidance for ARR, Free Cash Flow, Revenue, EPS, and Non-GAAP EPS, and is continuing with its share repurchase program.
Constant Currency ARR grew by 9.3%, reaching the higher end of the guidance range.
Operating and Free Cash Flow both increased by 14%, surpassing guidance ranges.
PTC is raising its full fiscal year 2025 guidance for key financial metrics including ARR, Free Cash Flow, Revenue, EPS, and Non-GAAP EPS.
The company continued its share repurchase program, buying back $75 million worth of stock in Q3'25, and plans further repurchases in Q4'25.
Revenue by Segment
Forward Guidance
PTC has updated its full fiscal year 2025 guidance, reflecting strong year-to-date results and positive expectations for Q4'25, with anticipated constant currency ARR growth of 8% to 9% and approximately $850 million in free cash flow.
Positive Outlook
- Raised guidance for Constant Currency ARR growth to 8% to 9% for FY'25.
- Increased Free Cash Flow guidance to approximately $850 million for FY'25, representing about 16% growth.
- Revised Revenue guidance upwards to $2,570 million to $2,630 million for FY'25.
- Raised GAAP EPS guidance to $4.77 to $5.23 and Non-GAAP EPS guidance to $6.63 to $7.03 for FY'25.
- Plans to complete the $300 million share repurchase authorization in FY'25, with approximately $75 million expected in Q4'25.
Challenges Ahead
- The selling environment is expected to remain challenging.
- Macroeconomic picture still poses some uncertainty for customers.
- Q4 is expected to be the lowest cash flow generation quarter due to invoicing seasonality.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...