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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

     ☐

     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_ to_

Commission File Number: 0-18059

PTC Inc.

(Exact name of registrant as specified in its charter)


Massachusetts		04-2866152
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

121 Seaport Boulevard, Boston, MA 02210

(Address of principal executive offices, including zip code)

(781) 370-5000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value per share	PTC	NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act:


Large accelerated filer	☑	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐
						Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

There were 119,792,704 shares of our common stock outstanding on July 29, 2025.

Table of Contents

PTC Inc.

INDEX TO FORM 10-Q

For the Quarter Ended June 30, 2025


		Page Number
Part I—FINANCIAL INFORMATION
Item 1.	Unaudited Condensed Consolidated Financial Statements:	1
	Consolidated Balance Sheets as of June 30, 2025 and September 30, 2024	1
	Consolidated Statements of Operations for the three and nine months ended June 30, 2025 and June 30, 2024	2
	Consolidated Statements of Comprehensive Income for the three and nine months ended June 30, 2025 and June 30, 2024	3
	Consolidated Statements of Cash Flows for the nine months ended June 30, 2025 and June 30, 2024	4
	Consolidated Statements of Stockholders' Equity for the three and nine months ended June 30, 2025 and June 30, 2024	5
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30
Item 4.	Controls and Procedures	30


Part II—OTHER INFORMATION
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 5.	Other Information	31
Item 6.	Exhibits	32
Signature		33

Table of Contents

PART I—FINANCIAL INFORMATION

ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

PTC Inc.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(unaudited)



	June 30, 2025			September 30, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	199,321		$	265,808
Accounts receivable, net of allowance for doubtful accounts of $1,404 and $1,180 at June 30, 2025 and September 30, 2024, respectively		712,710			861,953
Prepaid expenses		109,756			102,931
Other current assets		67,938			68,013
Total current assets		1,089,725			1,298,705
Property and equipment, net		65,102			75,187
Goodwill		3,497,012			3,461,891
Acquired intangible assets, net		844,819			897,476
Deferred tax assets		209,417			159,404
Operating right-of-use lease assets		128,854			133,317
Other assets		394,124			357,562
Total assets	$	6,229,053		$	6,383,542
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,700		$	24,198
Accrued expenses and other current liabilities		126,421			129,528
Accrued compensation and benefits		182,580			173,797
Accrued income taxes		101,056			39,978
Current portion of long-term debt		25,000			521,467
Deferred revenue		757,881			754,039
Short-term lease obligations		25,112			24,186
Total current liabilities		1,226,750			1,667,193
Long-term debt		1,208,412			1,227,105
Deferred tax liabilities		35,653			32,216
Long-term deferred revenue		19,471			21,235
Long-term lease obligations		153,195			157,568
Other liabilities		72,689			63,827
Total liabilities		2,716,170			3,169,144
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued		—			—
Common stock, $0.01 par value; 500,000 shares authorized; 119,790 and 120,155 shares issued and outstanding at June 30, 2025 and September 30, 2024, respectively		1,198			1,202
Additional paid-in capital		1,847,441			1,965,307
Retained earnings		1,735,814			1,349,610
Accumulated other comprehensive loss		(71,570	)		(101,721	)
Total stockholders’ equity		3,512,883			3,214,398
Total liabilities and stockholders’ equity	$	6,229,053		$	6,383,542

The accompanying notes are an integral part of the condensed consolidated financial statements.

Table of Contents

PTC Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)


	Three months ended						Nine months ended
	June 30, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Revenue:
License	$	251,479		$	149,104		$	678,628		$	567,423
Support and cloud services		369,867			339,505			1,083,819			1,006,420
Total software revenue		621,346			488,609			1,762,447			1,573,843
Professional services		22,591			30,030			82,984			98,082
Total revenue		643,937			518,639			1,845,431			1,671,925
Cost of revenue:
Cost of license revenue		12,060			12,072			33,222			33,003
Cost of support and cloud services revenue		73,446			69,968			215,101			204,405
Total cost of software revenue		85,506			82,040			248,323			237,408
Cost of professional services revenue		24,519			29,876			79,761			94,583
Total cost of revenue		110,025			111,916			328,084			331,991
Gross margin		533,912			406,723			1,517,347			1,339,934
Operating expenses:
Sales and marketing		141,756			140,318			424,319			411,763
Research and development		116,647			110,253			343,186			323,034
General and administrative		54,145			49,659			162,457			180,391
Amortization of acquired intangible assets		11,536			10,672			34,356			31,459
Impairment and other charges (credits), net		—			—			4,213			(802	)
Total operating expenses		324,084			310,902			968,531			945,845
Operating income		209,828			95,821			548,816			394,089
Interest expense		(18,404	)		(27,785	)		(60,058	)		(94,705	)
Other income (expense), net		2,252			(663	)		3,321			(667	)
Income before income taxes		193,676			67,373			492,079			298,717
Provision (benefit) for income taxes		52,348			(1,605	)		105,875			48,907
Net income	$	141,328		$	68,978		$	386,204		$	249,810
Earnings per share—Basic	$	1.18		$	0.58		$	3.22		$	2.09
Earnings per share—Diluted	$	1.17		$	0.57		$	3.20		$	2.07
Weighted-average shares outstanding—Basic		119,913			119,893			120,106			119,533
Weighted-average shares outstanding—Diluted		120,461			120,822			120,815			120,593

The accompanying notes are an integral part of the condensed consolidated financial statements.

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PTC Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)


	Three months ended						Nine months ended
	June 30, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net income	$	141,328		$	68,978		$	386,204		$	249,810
Other comprehensive income (loss), net of tax:
Hedge gain (loss) arising during the period, net of tax of $9.7 million and $(0.8) million in the third quarter of 2025 and 2024, respectively, and $6.4 million and $0.9 million in the first nine months of 2025 and 2024, respectively		(29,904	)		2,292			(19,678	)		(2,787	)
Foreign currency translation adjustment, net of tax of $0 for each period		77,862			(9,344	)		50,067			538
Change in pension benefit, net of tax of $(0.1) million and $0.0 million in the third quarter of 2025 and 2024, respectively, and $(0.2) million and $(0.1) million in the first nine months of 2025 and 2024, respectively		(769	)		112			(238	)		106
Other comprehensive income (loss)		47,189			(6,940	)		30,151			(2,143	)
Comprehensive income	$	188,517		$	62,038		$	416,355		$	247,667

The accompanying notes are an integral part of the condensed consolidated financial statements.

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PTC Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	Nine months ended
	June 30, 2025			June 30, 2024
Cash flows from operating activities:
Net income	$	386,204		$	249,810
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		76,803			81,272
Amortization of right-of-use lease assets		24,459			23,143
Stock-based compensation		161,395			161,242
Other non-cash items, net		159			(297	)
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Accounts receivable		173,557			131,422
Accounts payable and accrued expenses		(21,373	)		(8,631	)
Accrued compensation and benefits		11,044			8,666
Deferred revenue		(16,472	)		8,393
Accrued income taxes		22,409			(1,795	)
Other current assets and prepaid expenses		5,525			(9,962	)
Operating lease liabilities		(4,869	)		(13,438	)
Other noncurrent assets and liabilities		(55,175	)		22,045
Net cash provided by operating activities		763,666			651,870
Cash flows from investing activities:
Additions to property and equipment		(7,462	)		(9,841	)
Acquisitions of businesses, net of cash acquired		(6,532	)		(93,457	)
Settlement of net investment hedges		(14,560	)		3,826
Net cash used in investing activities		(28,554	)		(99,472	)
Cash flows from financing activities:
Borrowings under credit facility		860,000			944,845
Repayments of Senior Notes		(500,000	)		—
Repayments of borrowings under credit facility and acquired debt		(876,708	)		(835,796	)
Repurchases of common stock		(224,987	)		—
Proceeds from issuance of common stock		13,307			12,709
Payments of withholding taxes in connection with stock-based awards		(71,761	)		(92,589	)
Payment of deferred acquisition consideration		—			(620,040	)
Other financing activity		(1,410	)		—
Net cash used in financing activities		(801,559	)		(590,871	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(125	)		(2,003	)
Net change in cash, cash equivalents, and restricted cash		(66,572	)		(40,476	)
Cash, cash equivalents, and restricted cash, beginning of period		266,466			288,798
Cash, cash equivalents, and restricted cash, end of period	$	199,894		$	248,322
Supplemental disclosure of non-cash financing and investing activities:
Withholding taxes in connection with stock-based awards, accrued	$	6,061		$	7,674
Operating right-of-use assets obtained in exchange for operating lease liabilities	$	15,700		$	4,941

The accompanying notes are an integral part of the condensed consolidated financial statements.

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PTC Inc.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)


	Three months ended June 30, 2025
	Common Stock											Accumulated
	Shares			Amount			Additional Paid-In Capital			Retained Earnings		Other Comprehensive Loss			Total Stockholders’ Equity
Balance as of March 31, 2025		119,926		$	1,199		$	1,909,537		$	1,594,486	$	(118,759	)	$	3,386,463
Common stock issued for employee stock-based awards		451			4			(4	)		—		—			—
Shares surrendered by employees to pay taxes related to stock-based awards		(143	)		(1	)		(24,256	)		—		—			(24,257	)
Compensation expense from stock-based awards		—			—			37,373			—		—			37,373
Repurchases of common stock, including excise tax		(444	)		(4	)		(75,209	)		—		—			(75,213	)
Net income		—			—			—			141,328		—			141,328
Loss on net investment hedges, net of tax		—			—			—			—		(29,904	)		(29,904	)
Foreign currency translation adjustment		—			—			—			—		77,862			77,862
Change in defined benefit pension items, net of tax		—			—			—			—		(769	)		(769	)
Balance as of June 30, 2025		119,790		$	1,198		$	1,847,441		$	1,735,814	$	(71,570	)	$	3,512,883


	Nine months ended June 30, 2025
	Common Stock											Accumulated
	Shares			Amount			Additional Paid-In Capital			Retained Earnings		Other Comprehensive Loss			Total Stockholders’ Equity
Balance as of September 30, 2024		120,155		$	1,202		$	1,965,307		$	1,349,610	$	(101,721	)	$	3,214,398
Common stock issued for employee stock-based awards		1,261			12			(12	)		—		—			—
Shares surrendered by employees to pay taxes related to stock-based awards		(425	)		(4	)		(77,574	)		—		—			(77,578	)
Common stock issued for employee stock purchase plan		89			1			13,306			—		—			13,307
Compensation expense from stock-based awards		—			—			171,948			—		—			171,948
Repurchases of common stock, including excise tax		(1,290	)		(13	)		(225,534	)		—		—			(225,547	)
Net income		—			—			—			386,204		—			386,204
Loss on net investment hedges, net of tax		—			—			—			—		(19,678	)		(19,678	)
Foreign currency translation adjustment		—			—			—			—		50,067			50,067
Change in defined benefit pension items, net of tax		—			—			—			—		(238	)		(238	)
Balance as of June 30, 2025		119,790		$	1,198		$	1,847,441		$	1,735,814	$	(71,570	)	$	3,512,883

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	Three months ended June 30, 2024
	Common Stock											Accumulated
	Shares			Amount			Additional Paid-In Capital			Retained Earnings		Other Comprehensive Loss			Total Stockholders’ Equity
Balance as of March 31, 2024		119,717		$	1,197		$	1,901,109		$	1,154,109	$	(113,283	)	$	2,943,132
Common stock issued for employee stock-based awards		486			5			(5	)		—		—			—
Shares surrendered by employees to pay taxes related to stock-based awards		(154	)		(2	)		(28,069	)		—		—			(28,071	)
Compensation expense from stock-based awards		—			—			37,580			—		—			37,580
Net income		—			—			—			68,978		—			68,978
Gain on net investment hedges, net of tax		—			—			—			—		2,292			2,292
Foreign currency translation adjustment		—			—			—			—		(9,344	)		(9,344	)
Change in defined benefit pension items, net of tax		—			—			—			—		112			112
Balance as of June 30, 2024		120,049		$	1,200		$	1,910,615		$	1,223,087	$	(120,223	)	$	3,014,679


	Nine months ended June 30, 2024
	Common Stock											Accumulated
	Shares			Amount			Additional Paid-In Capital			Retained Earnings		Other Comprehensive Loss			Total Stockholders’ Equity
Balance as of September 30, 2023		118,846		$	1,188		$	1,820,905		$	973,277	$	(118,080	)	$	2,677,290
Common stock issued for employee stock-based awards		1,702			18			(18	)		—		—			—
Shares surrendered by employees to pay taxes related to stock-based awards		(601	)		(7	)		(99,938	)		—		—			(99,945	)
Common stock issued for employee stock purchase plan		102			1			12,708			—		—			12,709
Compensation expense from stock-based awards		—			—			176,958			—		—			176,958
Net income		—			—			—			249,810		—			249,810
Loss on net investment hedges, net of tax		—			—			—			—		(2,787	)		(2,787	)
Foreign currency translation adjustment		—			—			—			—		538			538
Change in defined benefit pension items, net of tax		—			—			—			—		106			106
Balance as of June 30, 2024		120,049		$	1,200		$	1,910,615		$	1,223,087	$	(120,223	)	$	3,014,679

The accompanying notes are an integral part of the condensed consolidated financial statements.

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PTC Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Basis of Presentation

General

The accompanying unaudited condensed consolidated financial statements include the accounts of PTC Inc. and its wholly owned subsidiaries and have been prepared by management in accordance with accounting principles generally accepted in the United States of America (GAAP) and in accordance with the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. While we believe that the disclosures presented are adequate in order to make the information not misleading, these unaudited quarterly financial statements should be read in conjunction with our annual consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of those of a normal recurring nature, necessary for a fair statement of our financial position, results of operations and cash flows as of the dates and for the periods indicated. The September 30, 2024 Consolidated Balance Sheet included herein is derived from our audited consolidated financial statements.

Unless otherwise indicated, all references to a year mean our fiscal year, which ends on September 30.

In the second quarter of 2025, we changed the income statement caption of Restructuring and other charges (credits), net to Impairment and other charges (credits), net to reflect that the amounts presented are mainly impairment charges rather than restructuring charges. All charges and credits under the captioned line item remain the same.

Pending Accounting Pronouncements

Measurements of Credit Losses for Accounts Receivable and Contract Assets

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient to measure credit losses on accounts receivable and contract assets. The ASU will be effective for us in the first quarter of 2027, with early adoption permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements and related disclosures.

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Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and in January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. As clarified by ASU 2025-01, ASU 2024-03 will be effective for us in the fourth quarter of 2028. We expect the adoption to result in disclosure changes only.

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU will be effective for us in the fourth quarter of 2026. We expect the adoption to result in disclosure changes only.

Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU will be effective for us in the fourth quarter of 2025. The ASU does not change the definition of a reportable segment or the method for determining reportable segments. We expect the adoption to result in additional disclosures only.

2. Revenue from Contracts with Customers

Receivables, Contract Assets and Contract Liabilities


(in thousands)	June 30, 2025		September 30, 2024
Short-term and long-term receivables	$	962,810	$	1,062,052
Contract asset	$	8,405	$	14,410
Deferred revenue	$	777,352	$	775,274

During the nine months ended June 30, 2025, we recognized $681.9 million of revenue that was included in Deferred revenue as of September 30, 2024. The remainder of the change in the Deferred revenue balance was driven by additional deferrals, primarily from new billings, as well as an increase in the balance resulting from changes in foreign currency exchange rates.

Our multi-year, non-cancellable on-premises subscription contracts provide customers with an annual right to exchange software within the subscription with other software. As of June 30, 2025 and September 30, 2024, our total revenue liability was $33.4 million and $26.0 million, respectively, primarily associated with the annual right to exchange on-premises subscription software.

Remaining Performance Obligations (RPO)

Our contracts with customers include amounts allocated to performance obligations that will be satisfied and recognized as revenue at a later date. The value of RPO and timing of recognition may be impacted by several factors, including the performance obligation type, duration and timing of commencement, as well as foreign currency exchange rate fluctuations. As of June 30, 2025, RPO totaled $2,309.2 million, of which $777.4 million is recorded in Deferred revenue and $1,531.8 million is not yet recorded in the Consolidated Balance Sheets. Of the total, we expect to recognize approximately 58% over the next 12 months, 25% over the next 13 to 24 months, and the remaining amount thereafter.

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Disaggregation of Revenue


(in thousands)	Three months ended				Nine months ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Recurring revenue(1)	$	613,583	$	481,559	$	1,739,443	$	1,551,600
Perpetual license		7,763		7,050		23,004		22,243
Professional services		22,591		30,030		82,984		98,082
Total revenue	$	643,937	$	518,639	$	1,845,431	$	1,671,925

(1)

Recurring revenue is comprised of on-premises subscription, perpetual support, SaaS, and hosting services revenue.

We report revenue by the following two product groups:


(in thousands)	Three months ended				Nine months ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Product lifecycle management (PLM)	$	403,722	$	329,529	$	1,153,331	$	1,051,671
Computer-aided design (CAD)		240,215		189,110		692,100		620,254
Total revenue	$	643,937	$	518,639	$	1,845,431	$	1,671,925

Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below.


(in thousands)	Three months ended				Nine months ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Americas	$	282,560	$	253,592	$	853,352	$	781,480
Europe		239,286		170,617		686,458		624,884
Asia Pacific		122,091		94,430		305,621		265,561
Total revenue	$	643,937	$	518,639	$	1,845,431	$	1,671,925

3. Stock-based Compensation

Compensation expense recorded for our stock-based awards is classified in our Consolidated Statements of Operations as follows:


(in thousands)	Three months ended				Nine months ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Cost of license revenue	$	176	$	49	$	282	$	116
Cost of support and cloud services revenue		4,122		4,035		12,092		10,762
Cost of professional services revenue		993		1,772		4,337		5,101
Sales and marketing		15,059		15,167		46,672		46,023
Research and development		17,788		13,101		48,334		41,275
General and administrative		15,894		13,914		49,678		57,965
Total stock-based compensation expense	$	54,032	$	48,038	$	161,395	$	161,242

As of June 30, 2025 and September 30, 2024, we had liability-classified awards related to stock-based compensation based on a fixed monetary amount of $37.4 million and $47.7 million, respectively. The liability as of September 30, 2024 was settled via the issuance of shares in the first quarter of 2025.

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4. Earnings per Share (EPS) and Common Stock

EPS

The following table presents the calculation for both basic and diluted EPS:


(in thousands, except per share data)	Three months ended				Nine months ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Net income	$	141,328	$	68,978	$	386,204	$	249,810
Weighted-average shares outstanding—Basic		119,913		119,893		120,106		119,533
Dilutive effect of restricted stock units		548		929		709		1,060
Weighted-average shares outstanding—Diluted		120,461		120,822		120,815		120,593
Earnings per share—Basic	$	1.18	$	0.58	$	3.22	$	2.09
Earnings per share—Diluted	$	1.17	$	0.57	$	3.20	$	2.07

There were 0.4 million and 0.0 million anti-dilutive shares for the three and nine months ended June 30, 2025, respectively. There were 0.2 million and 0.1 million anti-dilutive shares for the three and nine months ended June 30, 2024, respectively.

Common Stock Repurchases

Our Articles of Organization authorize us to issue up to 500 million shares of our common stock. Our Board of Directors has authorized us to repurchase up to $2 billion of our common stock in the period October 1, 2024 through September 30, 2027. In the third quarter and first nine months of 2025, we repurchased 0.4 million shares for $75 million and 1.3 million shares for $225 million, respectively. We did not repurchase any shares in the third quarter and first nine months of 2024. All shares of our common stock repurchased are automatically restored to the status of authorized and unissued.

5. Acquisitions

Acquisition and transaction-related costs in the third quarter and first nine months of 2025 totaled $1.6 million and $2.4 million, respectively, compared to $0.2 million and $3.0 million in the third quarter and first nine months of 2024, respectively. These costs are classified in General and administrative expense in the accompanying Consolidated Statements of Operations.

pure-systems

On October 4, 2023, we acquired pure-systems GmbH pursuant to a Share Purchase Agreement. The purchase price was $93.5 million, net of cash acquired, which we financed primarily with a draw on the revolving line of our credit facility. The purchase price allocation resulted in $77.1 million of goodwill, $28.2 million of intangible assets, $8.8 million of net tax liabilities, and $3.0 million of other net liabilities.

ServiceMax

On January 3, 2023, we acquired ServiceMax, Inc. pursuant to a Share Purchase Agreement dated November 17, 2022 for $1,448.2 million, net of cash acquired. PTC paid the first installment of $828.2 million on the acquisition date. The remaining installment of $650.0 million, of which $620.0 million represented the fair value as of the acquisition date and $30.0 million was imputed interest, was paid in October 2023.

Other Acquisitions

In the third quarter of 2025, we acquired IncQuery Group GmbH pursuant to a Share Purchase Agreement. The purchase price was $7.9 million, net of cash acquired, of which $6.5 million was paid in the period and $1.4 million is contingent consideration that may be paid in 2027 to the extent earned.

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6. Goodwill and Intangible Assets

During the third quarter of 2025, we completed our annual impairment test of goodwill, which was based on a qualitative assessment, and concluded that there was no impairment. A qualitative assessment is designed to determine whether we believe it is more likely than not that the fair values of our reporting units exceed their carrying values. A qualitative assessment includes a review of qualitative factors, including company-specific (financial performance and long-range plans), industry, and macroeconomic factors, and a consideration of the fair value of each reporting unit at the last valuation date.

Goodwill and acquired intangible assets consisted of the following:


(in thousands)	June 30, 2025						September 30, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Goodwill					$	3,497,012					$	3,461,891
Intangible assets with finite lives:
Purchased software	$	639,597	$	464,507	$	175,090	$	634,439	$	436,471	$	197,968
Capitalized software		22,877		22,877		—		22,877		22,877		—
Customer lists and relationships		1,150,597		495,329		655,268		1,141,086		457,718		683,368
Trademarks and trade names		38,233		23,772		14,461		37,961		21,821		16,140
Other		4,026		4,026		—		3,941		3,941		—
Total intangible assets with finite lives	$	1,855,330	$	1,010,511	$	844,819	$	1,840,304	$	942,828	$	897,476
Total goodwill and acquired intangible assets					$	4,341,831					$	4,359,367

Changes in Goodwill were as follows:


(in thousands)
Balance, October 1, 2024	$	3,461,891
Acquisitions		5,977
Foreign currency translation adjustment		29,144
Balance, June 30, 2025	$	3,497,012

The aggregate amortization expense for intangible assets with finite lives is classified in our Consolidated Statements of Operations as follows:


(in thousands)	Three months ended				Nine months ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Amortization of acquired intangible assets	$	11,536	$	10,672	$	34,356	$	31,459
Cost of revenue		8,178		9,685		24,609		28,835
Total amortization expense	$	19,714	$	20,357	$	58,965	$	60,294

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7. Fair Value Measurements

The valuation hierarchy for disclosure of assets and liabilities reported at fair value prioritizes the inputs for such valuations into three broad levels:

•

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

•

Level 2: quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; or

•

Level 3: unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value.

PTC INC. 10-Q