Slide 1: Q4'25 and FY'25 Financial Results
Q4’25 AND FY’25 FINANCIAL RESULTS Neil Barua CEO Kristian Talvitie CFO November 5, 2025
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation includes forward looking statements regarding PTC’s future financial performance, strategic outlook and expectations, anticipated future operations, expected effects of strategic investments and initiatives, expected divestiture of the Kepware and ThingWo
Slide 3: Neil Barua, CEO
NEIL BARUA, CEO
Slide 4: Transforming the Enterprise with the Intelligent Product Lifecycle
TRANSFORMING THE ENTERPRISE WITH THE INTELLIGENT PRODUCT LIFECYCLE SERVICE Powered by Product Data Connected Accelerated through Openness by SaaS Fueled by AI DESIGN 4
Slide 5: Kristian Talvitie, CFO
KRISTIAN TALVITIE, CFO
Slide 6: Kepware and ThingWorx Transaction Overview
KEPWARE AND THINGWORX TRANSACTION OVERVIEW Divestiture reinforces focus on PTC’s Intelligent Product Lifecycle Transaction perimeter: Estimated Net Transaction Proceeds Kepware industrial connectivity and ThingWorx Internet of Things (IoT) businesses Maximum purchase price $725 million Potential fut
Slide 7: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Simplified portfolio driving higher growth ARR FY’25 FY’26 Approximately $160 million of ARR and PTC FY’26 constant currency ARR growth rate approximately $200 million of revenue guidance increases by 50 basis points when attributable to Kepware and ThingWorx excluding K
Slide 8: FY'26 Free Cash Flow Model Assuming Transaction Close on April 1, 2026
FY’26 FREE CASH FLOW MODEL1 ASSUMING TRANSACTION CLOSE ON APRIL 1, 2026 Bridging from FY’26 free cash flow guidance2 PTC FY’26 free cash flow guidance without divestiture ~$1,000 million Estimated FCF impact related to absence of Kepware and ThingWorx in 2H’26, largely offset by estimated net procee
Slide 9: Solid ARR and Cash Flow Results
SOLID ARR AND CASH FLOW RESULTS ARR $ in millions Q4'25 Q4'24 YoY Change Q4'25 Guidance ARR as reported $2,478 $2,255 10% 1 Constant currency ARR at FY'25 Plan FX rates $2,446 $2,255 8.5% 8% to 9% growth CASH FLOW: Driven by ARR increase and operating efficiency %2 expansion $ in millions Q4'25 Q4'2
Slide 10: FY'26 ARR Guidance and Reporting
FY’26 ARR GUIDANCE AND REPORTING For comparative purposes, we provide ARR guidance and report ARR on a constant currency basis To help investors understand and assess our business performance excluding FX volatility, we provide constant currency ARR guidance and report constant currency ARR For FY’2
Slide 11: FY'26 and Q1'26 Guidance
FY’26 AND Q1’26 GUIDANCE $ in millions except per share amounts FY’25 FY’26 FY’26 YoY Growth Q1’26 % rounded to the nearest half Actual Guidance Guidance Guidance Constant currency ARR, excluding Kepware $2,319 7.5% to 9.5% growth 7.5% to 9.5% 8.5% to 9% growth and ThingWorx, at FY'26 Plan FX rates1
Slide 12: FY'26 Illustrative Constant Currency ARR Model
FY’26 ILLUSTRATIVE CONSTANT CURRENCY ARR MODEL What does PTC need to deliver to achieve our constant currency ARR guidance? PTC excluding Kepware and ThingWorx What you need to Using FX rates as of September 30, 2025 Actual believe $ in millions FY'25 FY'26 Beginning ARR $ 2,123 $ 2,319 Using FX rat
Slide 13: Q1'26 Illustrative Constant Currency ARR Model
Q1’26 ILLUSTRATIVE CONSTANT CURRENCY ARR MODEL What does PTC need to deliver to achieve our constant currency ARR guidance? PTC excluding Kepware and ThingWorx What you Using FX rates as of need to September 30, 2025 for all Using FX rates as of September 30, 2025 periods Actual Actual Actual Actual
Slide 14: Q&A
Slide 15: Thank You
© ptc.com iD pinfe OTC’ THANK YOU
Slide 16: Appendix
APPENDIX
Slide 17: FY'26 Guidance Includes the Following Assumptions
APPENDIX: FY’26 GUIDANCE INCLUDES THE FOLLOWING ASSUMPTIONS We provide ARR guidance on a constant currency basis, using our FY’26 Plan foreign exchange rates (rates as of September 30, 2025) for all periods. We expect churn to remain low. For cash flow, due to largely similar invoicing seasonality a
Slide 18: Windchill PLM Competitive Displacement and ServiceMax Expansion at a Med Tech Company
APPENDIX: WINDCHILL PLM COMPETITIVE DISPLACEMENT AND SERVICEMAX EXPANSION AT A MED TECH COMPANY Goal This customer is a global leader in the medical technology industry, with multi-billion-dollar equipment and services revenue streams. They are focused on driving innovation, ensuring better patient
Slide 19: Expansion and Competitive Displacement at an Industrial/Automotive Company
APPENDIX: EXPANSION AND COMPETITIVE DISPLACEMENT AT AN INDUSTRIAL/AUTOMOTIVE COMPANY Goal This global leader in technology and services is an industrial conglomerate and tier-1 automotive supplier. They are focused on optimizing their engineering IT landscape to accelerate innovation and time to mar
Slide 20: Significant Onshape Win and Competitive Displacement at a Medical Technology Company
APPENDIX: SIGNIFICANT ONSHAPE WIN AND COMPETITIVE DISPLACEMENT AT A MEDICAL TECHNOLOGY COMPANY Goal This global engineering leader in biopharmaceutical and laboratory equipment is focused on driving speed, efficiency, and collaboration across their business by moving from multiple legacy CAD tools a
Slide 21: ARR by Product Group and Geographic Region
APPENDIX: ARR BY PRODUCT GROUP AND GEOGRAPHIC REGION CAD: Product data authoring software PLM: Product data management and process orchestration software $956 $1,522 $943 $1,503 +10% $ in millions +10% +9% +8% $868 $868 $1,387 $1,387 As Constant Reported Currency1 Q4'24 Q4'25 Q4'24 Q4'25 Americas Eu
Slide 22: ARR by Product Group and Geographic Region Excluding Kepware and ThingWorx
APPENDIX: ARR BY PRODUCT GROUP AND GEOGRAPHIC REGION EXCLUDING KEPWARE AND THINGWORX CAD: Product data authoring software PLM: Product data management and process orchestration software $956 $943 $1,362 $1,345 +10% $ in millions +11% +9% +10% $868 $868 $1,226 $1,226 As Constant Reported Currency1 Q4
Slide 23: FY'26 Illustrative Free Cash Flow Model
APPENDIX: FY’26 ILLUSTRATIVE FREE CASH FLOW MODEL1 At our ARR guidance midpoint, what does PTC need to deliver to achieve our FY’26 FCF guidance? $ in millions FY'25 Actual FY'26 Illustrative Comments Annual Run Rate (ARR) $ 2,478 $ 2,478 $ 2,673 $ 2,673 For FY'26: using 8% growth, the midpoint of o
Slide 24: Delivering FCF and Reinvesting in Growth
APPENDIX: DELIVERING FCF AND REINVESTING IN GROWTH Track record supported by subscription license model with low churn and disciplined capital allocation Free Cash Flow1 Non-GAAP R&D1 in millions in millions $900 $450 4 Year (FY’21 to FY’25) $800 $400 Compound Annual Growth Rate $700 Transitioned fr
Slide 25: Balance Sheet and Share Repurchases
APPENDIX: BALANCE SHEET AND SHARE REPURCHASES Balance sheet $ in millions Q4'25 Q3'25 QoQ Change Q4'24 YoY Change Cash and cash equivalents $ 184 $ 199 $ (15) $ 266 $ (82) Senior notes with a fixed interest rate of 4.0% as of Q4'25 500 500 - $ 1,000 $ (500) Term loan with a variable interest rate of
Slide 26: ARR Impact of the Kepware and ThingWorx Transaction
APPENDIX: ARR IMPACT OF THE KEPWARE AND THINGWORX TRANSACTION PTC including Kepware and ThingWorx1 Using rates as of September 30, 2025 (FY'26 Plan FX rates) Q1'25 Q2'25 Q3'25 Q4'25 $ in millions Constant Currency ARR by Product Group PTC including Kepware and ThingWorx CAD (product data authoring)
Slide 27: FX Impact on ARR Using FY'25 Plan FX Rates
APPENDIX: FX IMPACT ON ARR USING FY’25 PLAN FX RATES Using FX rates as of September 30, 2024 (FY'25 Plan FX rates) Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 $ in millions Constant Currency ARR by Product Group CAD (product data authoring) $ 806 $ 829 $ 846 $ 868 $ 881 $ 897 $ 915 $ 943 PLM (pr
Slide 28: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements in this document that are not historic facts, including statements about our future operating, financial and growth expectations, potential stock repurchases, the expected timing of closing the sale of the Kepware and ThingWorx businesses (the “divestiture”), an
Slide 29: Operating Measure
OPERATING MEASURE ARR: ARR (Annual Run Rate) represents the annualized value of our portfolio of active subscription software, SaaS, hosting, and support contracts as of the end of the reporting period. We calculate ARR as follows: We consider a contract to be active when the product or service cont
Slide 30: Operating Measure (Continued)
OPERATING MEASURE (CONTINUED) As ARR is not annualized recurring revenue, it is not calculated based on recognized or unearned revenue and is not affected by variability in the timing of revenue under ASC 606, particularly for on-premises license subscriptions where a substantial portion of the tota
Slide 31: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES PTC provides supplemental non-GAAP financial measures to its financial results. We use these non-GAAP financial measures, and we believe that they assist our investors, to make period-to-period comparisons of our operating performance because they provide a view of our op
Slide 32: Reconciliation of Non-GAAP Financial Measures to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP Diluted Earnings per share: GAAP vs. Non-GAAP FY'26 Q1'26 FY'24 FY'25 1 Guidance Guidance1 GAAP diluted earnings per share $3.12 $6.14 $4.37 to $6.87 $0.73 to $1.31 Stock-based compensation 1.85 1.79 2.18 to 1.93 0.54 to 0.46 Amortization of acqu
Slide 33: Reconciliation of Non-GAAP Financial Measures to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP Cost of Revenue: GAAP vs. Non-GAAP FY'25 GAAP cost of revenue $445 License stock-based compensation expense (0) Support stock-based compensation expense (16) Professional services stock-based compensation expense (6) Software amortization of acqu
Slide 34: Reconciliation of Non-GAAP Financial Measures to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP R&D Expense: GAAP vs. Non-GAAP In millions FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 GAAP research and dev elopment expense $182 $189 $202 $211 $215 $222 $226 $228 $229 Stock-based compensation expense (9) (8) (9) (9) (9) (9) (10) (12
Slide 35: Reconciliation of Non-GAAP Financial Measures to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP Free Cash Flow In millions FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 Net cash prov ided by (used in) operating activ ities $222 $70 $157 $79 $218 $225 $305 $180 $183 $135 Capital expenditures (25) (30) (27) (28) (31) (29) (25) (