Executive Summary

Strong print: revenue $303.6M and non‑GAAP EPS $2.06 beat consensus ($294.5M revenue, $1.85 EPS) and topped prior intra‑quarter revenue guide ($290–$300M). License & Solutions grew 23.5% YoY; bookings rose to $307.5M; ACV up 9.2% YoY and 2.5% QoQ .
No call/guidance: Due to Emerson’s $265/share tender offer, AZPN did not host an earnings call or provide updated guidance this quarter; watch deal process as the near‑term stock driver .
Operating leverage improved: GAAP swung to income from operations ($9.0M) vs. loss prior year; non‑GAAP operating income up to $149.0M; free cash flow improved to $36.4M (vs. $29.2M) .
Merger dynamics/activism: Post‑results, Elliott publicly opposed the tender as unfair to minorities, adding process uncertainty and potential price/disclosure pressure .

What Went Well and What Went Wrong

What Went Well
- Beat on revenue and EPS: $303.6M revenue and $2.06 non‑GAAP EPS vs. ~$294.5M/$1.85 consensus; exceeded the earlier Q2 revenue guide high end ($290–$300M) .
- Mix and bookings strength: License & Solutions revenue grew 23.5% YoY to $188.2M; bookings rose to $307.5M (from $233.4M) .
- Profitability/FCF: GAAP operating income turned positive ($9.0M vs. $(49.2)M); non‑GAAP operating income to $149.0M; FCF improved to $36.4M (from $29.2M) .
What Went Wrong
- No updated guidance/call: Management withheld guidance and skipped the earnings call due to the Emerson tender, limiting fundamental transparency this quarter .
- Cash declined sequentially: Cash and cash equivalents fell to $181.8M (from $237.0M at FY24 end) reflecting buybacks and the Open Grid Systems acquisition outflow .
- Collections cadence remains a watch item: Management previously flagged collection timing issues in certain geographies and heavier H2 cash seasonality; investors lack a Q2 call update on remediation progress .

Revenue, earnings and cash flow vs prior periods and estimates

Metric	Q2 FY2024	Q1 FY2025	Q2 FY2025
Total Revenue ($M)	257.2	215.9	303.6
GAAP Diluted EPS ($)	(0.34)	(0.96)	0.32
Non‑GAAP Diluted EPS ($)	1.37	0.85	2.06
GAAP Operating Income ($M)	(49.2)	(96.0)	9.0
Non‑GAAP Operating Income ($M)	88.7	48.6	149.0
GAAP Net Income ($M)	(21.5)	(60.5)	20.3
Non‑GAAP Net Income ($M)	87.8	53.9	131.1
Cash From Operations ($M)	29.8	(4.4)	38.1
Free Cash Flow ($M)	29.2	(6.4)	36.4

Segment revenue breakdown

Segment Revenue ($M)	Q2 FY2024	Q1 FY2025	Q2 FY2025
License & Solutions	152.5	101.7	188.2
Maintenance	85.1	90.7	90.6
Services & Other	19.6	23.5	24.7
Total Revenue	257.2	215.9	303.6

KPIs and bookings

KPI	Q2 FY2024	Q1 FY2025	Q2 FY2025
Annual Contract Value (ACV, $M)	—	941.4	964.9
Bookings ($M)	233.4	151.4	307.5

Estimates vs. actuals

Metric	Consensus	Actual
Q2 FY2025 Revenue ($M)	294.5	303.6
Q2 FY2025 Non‑GAAP EPS ($)	1.85	2.06

Note: S&P Global consensus was unavailable via tool mapping this quarter; consensus figures above reference public Zacks/Nasdaq reporting.

Metric	Period	Previous Guidance (Q1 FY25, 11/4/24)	Current (Q2 FY25)	Change
Total Revenue	FY2025	~$1.19B	Not provided (no guidance)	Withdrawn
Non‑GAAP EPS	FY2025	~$7.52	Not provided	Withdrawn
GAAP EPS	FY2025	~$0.82	Not provided	Withdrawn
Free Cash Flow	FY2025	~$340M	Not provided	Withdrawn
Operating Cash Flow	FY2025	~$357M	Not provided	Withdrawn
Bookings	FY2025	~$1.17B	Not provided	Withdrawn
ACV Growth	FY2025	~9% YoY (from $932.9M base)	Not provided	Withdrawn
Q2 Revenue (quarterly)	Q2 FY2025	$290–$300M (set on Q1 call)	Actual $303.6M	Above range

(There was no Q2 FY25 call; themes below reference prior two quarters)

Topic	Q4 FY2024 (Q‑2)	Q1 FY2025 (Q‑1)	Current Period (Q2 FY2025)	Trend
AI/technology initiatives	Industrial AI emphasized; microgrid solution planned in v14.4	v14.5 shipped with gen‑AI features; microgrid launched	No call; product cadence intact in PR backdrop	Continued innovation cadence
Digital Grid (DGM) momentum	~40% FY24 ACV growth; large EU/LatAm wins	Robust pipeline; Open Grid Systems tuck‑in announced	Open Grid Systems closed; cash outflow noted	Regulatory/data model tailwinds
Macro/supply chain	Chemicals downcycle; cautious spend	Collections timing in some geos; H2‑weighted FCF	No call update; FCF improved YoY	Mixed; watch chemicals/collections
Product performance (MSC/SSE)	MSC wins despite chemicals; SSE tokenization traction	SSE displacements; MSC ROI examples (GDOT)	License & Solutions up 23.5% YoY	Positive mix to L&S
Regulatory/legal	—	EU push for network model mgmt drives OGS rationale	Merger process dominates; no guidance/call	Deal process supersedes ops narrative

“We integrated more industrial AI and sustainability capabilities into our portfolio and launched our new microgrid solution…” – Antonio Pietri, Q1 FY25 .
“We remain confident in our year 2025 guidance… ACV growth of approximately 9% and free cash flow generation of approximately $340 million.” – Antonio Pietri, Q1 FY25 .
“We expect Q2 revenue to be between $290 million and $300 million…” – David Baker, Q1 FY25 .
“As a result of… the Merger Agreement… AspenTech will not host an earnings conference call for its second quarter fiscal 2025 results nor provide future guidance.” – Q2 PR .

(From Q1 FY25 call; no Q2 call held)

ACV cadence and seasonality: Expect historical pattern; potential variability from large deals; growth largely mid‑term contracts rather than renewals .
Microgrid and DGM opportunity: Microgrid opens non‑utility TAM (chemicals/refining, mining, transport); EU regulation accelerates network model management demand (OGS) .
Collections timing: Administrative delays in certain geos drove softer Q1 cash; processes strengthened; FCF still H2‑weighted .
Emerson channel: Joint go‑to‑market producing faster deals in APM; expect increasing contribution .

Consensus beat: Q2 FY25 non‑GAAP EPS $2.06 vs. $1.85; revenue $303.6M vs. $294.5M consensus, per public Zacks/Nasdaq reporting .
S&P Global consensus was unavailable via tool mapping this quarter; thus, third‑party public consensus sources are cited instead.

Fundamental beat with quality mix: License & Solutions growth (+23.5% YoY) and bookings strength ($307.5M) underpinned revenue/EPS upside; ACV rose 9.2% YoY/2.5% QoQ, sustaining mid‑to‑high single‑digit ACV trajectory .
Execution leverage: GAAP operating income turned positive; non‑GAAP operating income expanded sharply; FCF improved YoY despite no call to elaborate on drivers .
Guidance vacuum: With guidance withheld and no call, the near‑term narrative is deal‑driven (tender process, potential competing views from activists), not new fundamentals—monitor tender milestones and any supplemental disclosures .
DGM structural tailwinds intact: EU regulatory requirements for network model management and broader electrification/microgrid adoption support medium‑term growth, with OGS now integrated (cash outlay recognized) .
Watchlists: Chemicals downcycle and collection timing risks remain watch items; cash generation expected to skew to H2 based on prior commentary; absence of Q2 call leaves less color on near‑term resolution .
Tactical: Results topped prior intra‑quarter revenue guide high end ($303.6M vs. $290–$300M), a positive data point if deal timing elongates and fundamentals re‑assert as a secondary driver .