PTC Inc. stock research
FY2025 Q3
PTC (PTC) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Gross margin improved from a year ago but edged lower from the prior quarter, and the filing notes the stability of the subscription model and consistent annual up-front billing.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q3
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Gross margin improved from a year ago but edged lower from the prior quarter, and the filing notes the stability of the subscription model and consistent annual up-front billing.
- The strongest observable driver is the year-over-year improvement in gross margin, which is associated with higher revenue and lower cost of revenue compared to the same quarter last year.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.9%
Gross profit
$533.9M
Revenue
$643.9M
Cost of revenue
$110.0M
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+4.5 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $643.9M | $533.9M | $110.0M | 82.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.4 pts
Year-over-year change
Jun 30, 2024
+4.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the year-over-year improvement in gross margin, which is associated with higher revenue and lower cost of revenue compared to the same quarter last year.
Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower.
Monitor the sequential decline in gross margin despite revenue growth, as it may indicate a shift in cost structure.