PTC Inc (NASDAQ: PTC) is an industrial software company that sells product lifecycle management, computer-aided design, and related software to manufacturers and industrial enterprises. Revenue comes almost entirely from subscriptions, with 95% of FY2025 revenue recurring in nature. PTC is headquartered in Boston, Massachusetts, operates 61 office locations in the U.S. and internationally, and competes against large established software vendors as well as emerging start-ups. Approximately 75% of sales are made directly by PTC's own sales force, with the remainder through third-party resellers who serve small- and medium-size businesses. Revenue grew 19% in FY2025 compared to FY2024, and diluted earnings per share grew 95% to $6.08 in FY2025. In November 2025, PTC entered a definitive agreement to sell its Kepware and ThingWorx businesses to a TPG affiliate for up to $725 million in total consideration, with the transaction expected to close in the first half of calendar 2026.

Revenue model

Subscription software licensing, with 95% of FY2025 revenue recurring. Customers pay for ongoing access to on-premises and cloud-based software under term contracts. Approximately 75% of sales are direct; 25% flow through third-party resellers.

Products and services

PTC's portfolio includes product lifecycle management software, computer-aided design tools, and the Onshape cloud-native SaaS product development platform, which combines CAD with data management, collaboration tools, and real-time analytics. The company also operated industrial IoT products Kepware and ThingWorx, which were agreed to be sold to TPG in November 2025 for up to $725 million.

Customers and end markets

Customers are manufacturers and industrial enterprises seeking to manage product data, improve cross-functional collaboration, accelerate new product introduction, and support AI-driven transformation. Growth is primarily driven by existing customers expanding their PTC software footprint and adopting multiple products.

Value-chain role

PTC is an independent software vendor sitting between industrial hardware manufacturers and the enterprise systems their engineers use. It provides the software layer for product data creation, management, and distribution across engineering and broader enterprise functions. Implementation and go-to-market rely partly on system integrator and technology partners.

Geographic exposure

Approximately 50% of revenue and 35% of expenses are transacted in currencies other than the U.S. Dollar as of FY2025, indicating significant international operations. Key currency exposures include the Euro, Yen, Shekel, and Rupee. A significant portion of research and development is conducted in India, where PTC occupies approximately 267,000 square feet of leased space. U.S. facilities total approximately 281,000 square feet, including approximately 169,000 square feet at Boston headquarters.

Source: SEC 10-K, filed 2025-11-21

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