Thu, May 1, 8:04 PM (16 days ago)
**PTC Inc. (PTC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $636.4 million, up 6% year-over-year (YoY) and 8% in constant currency. Six-month revenue was $1.20 billion, up 4% YoY and 5% in constant currency. - **Profit Margins:** Gross margin was 83% in Q1 2025, up from 82% in Q1 2024. Operating margin was 35.1% in Q1 2025, up from 29.8% in Q1 2024. - **Earnings:** Net income was $162.6 million in Q1 2025, up 42% YoY. Diluted earnings per share (EPS) was $1.35, up 42% YoY. - **Cash Flow:** Operating cash flow was $281.3 million in Q1 2025, up 12% YoY. Free cash flow was $278.5 million, up 13% YoY. **Key Metrics and Trends:** - **ARR (Annual Run Rate):** ARR grew 10% YoY to $2.29 billion. - **Recurring Revenue:** Total recurring revenue was $601.5 million in Q1 2025, up 7% YoY and 10% in constant currency. - **Subscription Model:** 93% of 2024 revenue was recurring, driving higher customer engagement and retention. - **Operating Expenses:** Operating expenses decreased by 2% YoY in Q1 2025, primarily due to cost reductions from go-to-market realignment. **Uncertainties and Future Operations:** - **Macroeconomic Factors:** Global trade tensions, tariffs, and geopolitical uncertainty may impact customer purchases and payments. - **Foreign Exchange Rates:** Approximately 50% of revenue and 35% of expenses are transacted in currencies other than the U.S. Dollar, affecting reported results. - **Debt and Liquidity:** PTC redeemed $500 million in senior notes in Q1 2025 and has $823.3 million available under its credit facility. The company aims to return excess cash to shareholders via share repurchases. **Stock Repurchases:** - PTC repurchased $75 million of its common stock in Q1 2025 and plans to repurchase approximately $300 million in FY 2025. **Risk Factors:** - Macroeconomic uncertainty, global trade tensions, and foreign exchange rate fluctuations may impact financial results. - Strategic initiatives and operational efficiency improvements may not yield expected benefits. - Changes in tax laws and regulations could affect future tax payments and operating cash flow.