PTC reported its fiscal first quarter results ended December 31, 2024, on February 5, 2025, delivering solid Annual Run Rate (ARR) and cash flow growth. Constant currency ARR grew 11% year-over-year, and operating cash flow increased by 27% to $238 million. Free cash flow rose 29% to $236 million compared to the prior year.
Total revenue for Q1 2025 was $565 million, a 3% increase year-over-year, or 2% on a constant currency basis. GAAP earnings per share (EPS) for the quarter was $0.68, up 23% from the prior year, while non-GAAP EPS remained flat at $1.10.
Despite the solid Q1 performance, PTC adjusted its full fiscal year 2025 guidance. The company maintained its constant currency ARR growth projection of 9% to 10% and free cash flow guidance of $835 million to $850 million. However, full-year revenue guidance was lowered to $2,430 million to $2,530 million, down from the previous range of $2,505 million to $2,605 million.
The full-year GAAP EPS guidance was also reduced to $3.36 to $4.24, from $3.68 to $4.57, and non-GAAP EPS guidance was lowered to $5.30 to $6.00, from $5.60 to $6.30. This adjustment reflects a continued challenging selling environment and the anticipated time for the go-to-market realignment to take full effect.
For the second fiscal quarter of 2025, PTC expects constant currency ARR growth of approximately 9.5% and free cash flow of around $270 million. The company also continued its share repurchase program, buying back $75 million worth of its stock in Q1 2025, with plans for approximately $75 million more in Q2 2025.
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