PTC (PTC) Company Report

PTC reached a definitive agreement for TPG to acquire its Kepware and ThingWorx businesses, expected to close in H1 2026 with upfront proceeds of $565 million–$600 million (net ~$365 million assuming an April 1 close) and potential total consideration of up to $725 million
In Q4 FY25, PTC delivered 8.5% constant currency ARR growth and 16% free cash flow growth year-over-year, ending the year with record deferred ARR under contract
For FY26, PTC guides to 7%–9% constant currency ARR growth including and 7.5%–9.5% excluding Kepware and ThingWorx, and expects $1 billion of free cash flow
With leverage below 1×, PTC plans to return excess cash to shareholders by buying back $150 million–$250 million of shares per quarter in FY26, starting with $200 million in Q1

Nov 5, 2025, 10:00 PM

Transcript

PTC reports Q4 2025 results

PTC

Earnings

Guidance Update

M&A

ARR reached $2,478 million in Q4 with 10% YoY growth (8.5% constant currency).
Operating cash flow was $104 million and free cash flow was $100 million in Q4, up 6% and 7% YoY, respectively, beating guidance.
Announced divestiture of Kepware and ThingWorx, expecting net proceeds of ~$365 million, closing in H1 2026.
FY 2026 guidance: constant currency ARR growth of 7–9%, operating cash flow ~ $1,030 million, free cash flow ~ $1,000 million, and revenue of $2,650–2,915 million.

Nov 5, 2025, 10:00 PM

Presentation

PTC announces Q4 FY25 results and TPG divestiture

PTC

M&A

Guidance Update

Share Buyback

PTC agreed to sell Kepware and ThingWorx to TPG, transaction expected to close in H1 2026 to concentrate on core CAD, PLM, ALM, SLM and AI-driven SaaS offerings.
Q4 FY25 delivered 8.5% constant currency ARR growth and 16% free cash flow growth year-over-year.
Record deferred ARR under contract at year-end provides strong visibility into FY26 performance.
FY26 guidance set to 7–9% ARR growth including divested units (7.5–9.5% ex-divestiture) and $1 billion free cash flow, with $150–250 million quarterly share buybacks starting at $200 million in Q1.
John Stevenson appointed Chief Product Officer to enhance product–R&D linkage and accelerate roadmap execution.

Nov 5, 2025, 10:00 PM

Transcript

PTC reports Q4 Fiscal 2025 results and IoT divestiture

PTC

Earnings

Guidance Update

M&A

PTC agreed to divest its Kepware and ThingWorx businesses to TPG for up to $725 million total consideration, with expected upfront proceeds of $565–$600 million and net proceeds around $365 million (assuming an April 1, 2026 close).
In Q4 Fiscal 2025, PTC delivered 8.5% constant currency ARR growth, generated $100 million in free cash flow, and achieved 16% free cash flow growth for the full year to $857 million.
PTC ended Q4 with $2.446 billion in constant currency ARR, up 8.5% year-over-year, and record deferred ARR under contract, providing strong visibility into Fiscal 2026 and beyond.
For Fiscal 2026, PTC guides ARR growth of 7%–9% including Kepware and ThingWorx (and 7.5%–9.5% excluding) and targets $1 billion of free cash flow, with planned share buybacks of $150–$250 million per quarter.

Nov 5, 2025, 10:00 PM

Transcript

PTC announces sale of ThingWorx and Kepware businesses

PTC

M&A

On November 5, 2025, PTC Inc. entered into an Asset Purchase Agreement with Parrot US Buyer, L.P., controlled by TPG Global, to divest its ThingWorx and Kepware businesses.
The base purchase price is $600 million in cash at closing, subject to working capital, indebtedness and performance adjustments, plus up to $125 million of contingent consideration upon a future sale by the buyer.
The closing is scheduled for the later of February 1, 2026 or the second business day after satisfaction of closing conditions, without any financing condition or PTC shareholder approval.
Key closing conditions include clearance under the Hart-Scott-Rodino Act, other foreign regulatory approvals and customary representations, warranties and covenants; either party may terminate if not closed by August 5, 2026 (extendable).

Nov 5, 2025, 9:44 PM

8-K

PTC announces Q4 and FY 2025 results

PTC

Earnings

Guidance Update

Share Buyback

In FY 2025, PTC achieved 8.5% constant-currency ARR growth and 16% growth in operating and free cash flow, reaching record annual cash flows.
The company announced the divestiture of Kepware and ThingWorx to focus on its CAD, PLM, ALM, and SLM offerings under its Intelligent Product Lifecycle strategy.
For FY 2026, PTC guides 7%–9% constant-currency ARR growth, with operating cash flow of ~$1.03 billion and free cash flow of ~$1 billion, pending divestiture close.
PTC plans to repurchase ~$200 million of shares in Q1 2026 under its $2 billion buyback authorization.

Nov 5, 2025, 9:03 PM

8-K

PTC reports Q4 and FY 2025 results

PTC

Earnings

Guidance Update

Share Buyback

PTC delivered 8.5% constant currency ARR growth in FY 2025, with Q4 ARR of $2.478 B (+10% YoY on a reported basis).
Achieved record cash generation in FY 2025 with operating cash flow of $868 M (+16%) and free cash flow of $857 M (+16%), including Q4 operating cash flow of $104 M (+6%) and free cash flow of $100 M (+7%).
FY 2025 revenue reached $2.739 B (+19%), driven by Q4 revenue of $894 M (+43% YoY).
Completed divestiture of Kepware and ThingWorx to sharpen focus on its Intelligent Product Lifecycle portfolio.
Provided FY 2026 guidance for 7–9% constant currency ARR growth, operating cash flow of ~$1.03 B, free cash flow of ~$1 B, and $200 M of share repurchases planned in Q1 2026.

Nov 5, 2025, 9:01 PM

Press Release

PTC to sell industrial connectivity and IoT businesses to TPG

PTC

M&A

PTC and TPG signed a definitive agreement for TPG to acquire PTC’s Kepware and ThingWorx businesses, providing additional capital and expertise to drive their growth in industrial connectivity and IoT.
PTC will refocus its resources on its Intelligent Product Lifecycle vision, concentrating on CAD, PLM, ALM, SLM and the adoption of AI-driven SaaS offerings.
The transaction is expected to close in the first half of calendar year 2026, subject to regulatory approvals and other closing conditions.
TPG will invest in the businesses through TPG Capital, its U.S. and European private equity platform.

Nov 5, 2025, 9:01 PM

Press Release

PTC acquired by Kreate in Lima, Ohio

PTC

M&A

Kreate has acquired Precision Thermoplastic Components (PTC) in Lima, Ohio, adding 115,000 square feet of manufacturing space to its domestic footprint.
The Lima facility features heavy industrial infrastructure—overhead cranes, material silos, high-capacity water systems—and can accommodate up to 24 new high-speed production lines.
The acquisition broadens Kreate’s customer base, diversifies revenue streams, and secures exclusive rights to proprietary products, advancing its U.S.-based manufacturing strategy.
Following the deal, Kreate operates over 2.1 million square feet of manufacturing, distribution, and engineering space across the United States.

Aug 25, 2025, 9:48 PM

Press Release

PTC updates Q1 outlook, go-to-market and AI initiatives

PTC

Guidance Update

Share Buyback

PTC delivered net new ARR near the high end of its Q1 guidance and has raised the low end of its Q4 net new ARR range, removing the prior downside scenario as macro risks stabilized.
The company has completed its core-vertical go-to-market realignment, including account reshuffling and territory optimization, with ongoing enhancements in messaging and pipeline hygiene being rolled out.
PTC’s first Agentic AI product—ServiceMax AI—went GA last quarter, and Windchill and CodeBeamer AI agents are expected to reach GA around the turn of the calendar year.
In capital allocation, PTC aims to operate at net debt, maintain minimal cash balances, and return excess cash to shareholders primarily through share repurchases.

Aug 13, 2025, 3:55 PM

Earnings Transcripts

Quarterly earnings call transcripts for PTC.

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