PTC Inc. stock research
FY2025 Q2
PTC (PTC) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit increased from the prior quarter and the same quarter last year. Gross margin improved compared to both periods as cost of revenue declined relative to revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q2
Revenue and gross profit increased from the prior quarter and the same quarter last year. Gross margin improved compared to both periods as cost of revenue declined relative to revenue.
- The gross margin improvement was driven by higher revenue combined with lower cost of revenue, resulting in a larger gross profit.
- Sequentially, revenue and gross profit were higher, while cost of revenue was lower. Compared to the same quarter a year ago, revenue and gross profit were higher, and cost of revenue was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
83.3%
Gross profit
$530.1M
Revenue
$636.4M
Cost of revenue
$106.3M
Quarter-over-quarter change
+3.1 pts
Year-over-year change
+1.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $518.6M | $406.7M | $111.9M | 78.4% |
| Sep 30, 2024 | $626.5M | $513.7M | $112.8M | 82.0% |
| Dec 31, 2024 | $565.1M | $453.3M | $111.8M | 80.2% |
| Mar 31, 2025 | $636.4M | $530.1M | $106.3M | 83.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+3.1 pts
Year-over-year change
Mar 31, 2024
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by higher revenue combined with lower cost of revenue, resulting in a larger gross profit.
Sequentially, revenue and gross profit were higher, while cost of revenue was lower. Compared to the same quarter a year ago, revenue and gross profit were higher, and cost of revenue was slightly lower.
Monitor whether cost of revenue remains at or below the current level relative to revenue.