Slide 1: Q3'25 Financial Results
Q3’25 FINANCIAL RESULTS Neil Barua CEO Kristian Talvitie CFO July 30, 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, and share repurchase expectations. Because such
Slide 3: Neil Barua, CEO
NEIL BARUA, CEO
Slide 4: Our unique portfolio helps customers accelerate time to market and manage increasing complexity
OUR UNIQUE PORTFOLIO HELPS CUSTOMERS ACCELERATE TIME TO MARKET AND MANAGE INCREASING COMPLEXITY PLM ALM SLM CAD SaaS Product Lifecycle Application Lifecycle Service Lifecycle Computer Aided Software as a Management Management Management Design Service LEVERAGING AI 4
Slide 5: Kristian Talvitie, CFO
KRISTIAN TALVITIE, CFO
Slide 6: Solid ARR and cash flow results
SOLID ARR AND CASH FLOW RESULTS ARR $ in millions Q3'25 Q3'24 YoY Change Q3'25 Guidance ARR as reported $2,416 $2,126 14% 1 Constant currency ARR at FY'25 Plan FX rates $2,372 $2,170 9.3% 8.5% to 9.5% growth CASH FLOW 2 $ in millions Q3'25 Q3'24 YoY Change Q3'25 Guidance Operating cash flow $244 $21
Slide 7: ARR by product group and geographic region
ARR BY PRODUCT GROUP AND GEOGRAPHIC REGION CAD: Product data authoring software PLM: Product data management and process orchestration software $934 $1,481 $915 $1,458 +13% +14% +8% $ in millions +10% $846 $824 $1,325 $1,302 As Constant Reported Currency Q3'24 Q3'25 Q3'24 Q3'25 Americas1 Europe1 APA
Slide 8: Balance Sheet and Share Repurchase Program
BALANCE SHEET AND SHARE REPURCHASE PROGRAM Balance sheet $ in millions Q3'25 Q2'25 Change Cash and cash equivalents $ 199 $ 235 $ (36) Senior notes with a fixed interest rate of 4.0% as of Q3'25 500 500 - Term loan with a variable interest rate of 5.5% as of Q3'25 475 481 (6) $1,250 revolving credit
Slide 9: FY'25 and Q4'25 Guidance
FY’25 AND Q4’25 GUIDANCE $ in millions except per share amounts FY’25 FY’25 FY’25 YoY Growth Q4’25 % rounded to the nearest half Previous Guidance Guidance Guidance Guidance Constant currency ARR at FY'25 Plan FX rates1 7% to 9% growth 8% to 9% growth 8% to 9% 8% to 9% growth Operating cash flow $85
Slide 10: Q4'25 Illustrative Constant Currency ARR Model
Q4’25 ILLUSTRATIVE CONSTANT CURRENCY ARR MODEL What does PTC need to deliver to achieve our constant currency ARR guidance? Using FX rates as of What you September 30, 2024 need to Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual believe $ in millions Q1'23 Q2'23 Q3'23 Q4
Slide 11: FY'25 Illustrative Constant Currency ARR Model
FY’25 ILLUSTRATIVE CONSTANT CURRENCY ARR MODEL What does PTC need to deliver to achieve our constant currency ARR guidance? Using FX rates as of September 30, 2024 What you need to Actual Actual Actual believe $ in millions FY'22 FY'23 FY'24 FY'25 Beginning ARR $ 1,411 $ 1,641 $ 2,021 $ 2,255 Ending
Slide 12: Q&A
iM Q&A
Slide 13: Thank You
THANK YOU ptc.com p t c . com A white x on a black background Description automatically generated
Slide 14: Appendix
APPENDIX
Slide 15: Appendix: FY'25 Guidance Includes the Following Assumptions
APPENDIX: FY’25 GUIDANCE INCLUDES THE FOLLOWING ASSUMPTIONS We provide ARR guidance on a constant currency basis, using our FY’25 Plan foreign exchange rates (rates as of September 30, 2024) for all periods. We expect churn to remain low. For cash flow, due to largely similar invoicing seasonality,
Slide 16: Appendix: Codebeamer ALM Cross-Sell and Windchill PLM Expansion at an Automotive Company
APPENDIX: CODEBEAMER ALM CROSS-SELL AND WINDCHILL PLM EXPANSION AT AN AUTOMOTIVE COMPANY Goal This European automotive company is one of the largest automotive suppliers in the world, with over 90,000 employees. They have been a PTC customer for more than 20 years, and they are leveraging Windchill
Slide 17: Appendix: ServiceMax SLM Expansion at a Medical Technology Company
APPENDIX: SERVICEMAX SLM EXPANSION AT A MEDICAL TECHNOLOGY COMPANY Goal This medical technology company is a global leader that focuses on innovative medical solutions and has over 50,000 employees. They have been a PTC customer for more than 20 years, and they continue to prioritize digital transfo
Slide 18: Appendix: Windchill+ SaaS PLM at an Aerospace Company
APPENDIX: WINDCHILL+ SaaS PLM AT AN AEROSPACE COMPANY Goal This global aerospace leader is accelerating its digital transformation by prioritizing innovation, sustainability, and industrial performance. With a strong footprint in both civil and defense sectors, this customer is focused on improving
Slide 19: Appendix: Windchill+ SaaS PLM and Competitive Displacement at a Medical Technology Company
APPENDIX: WINDCHILL+ SaaS PLM AND COMPETITIVE DISPLACEMENT AT A MEDICAL TECHNOLOGY COMPANY Goal This global leader in the diagnostics and life sciences industry is known for developing and manufacturing innovative products for biomedical testing and research. They see the potential to improve both t
Slide 20: Appendix: FX Impact on ARR
APPENDIX: FX IMPACT ON ARR 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 Guidance $ in millions Constant Currency ARR by Product Group CAD (product data authoring) $ 806 $ 829 $ 846 $ 868 $ 881 $ 897 $ 915 PLM (product data management a
Slide 21: 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, and potential stock repurchases, are forward-looking statements that involve risks and uncertainties that could cause actual results
Slide 22: 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 23: 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 24: 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 25: Reconciliation of Non-GAAP Financial Measures to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP Free Cash Flow In millions Q3'24 Q3'25 Q4'25 Guidance FY'25 Guidance Operating Cash Flow $214 $244 $93 to $98 ~$860 Capital expenditures ($2) ($2) ~($3) ~($10) Free cash flow $212 $242 $90 to $95 ~$850 Diluted Earnings per Share: GAAP vs. Non-GAA