PTC Inc at RBC Capital Markets Global Technology, Internet, Media & Telecommunications Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : <_ALACRA_META_ABSTRACT>Generally, we start with an overview of what you guys just reported a couple of weeks ago. But top of mind that I just keep getting asked is some of the divestitures that you just announced. We'll get into some of the overall underlying performance of the business. But maybe just starting with Kepware and ThingWorx, could you talk about the rationale? Strategically, there was a lot of effort, as you know, put into those deals back in the day. But I think the direction of those businesses has gone a little different than the core. Talk about some of the rationale behind these. And then, we'll talk about some of the financial impacts.

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : On the website.

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : That's great. Yeah. I think you just gave fiscal '26 guidance, both with and without. When we think, even longer term, about how -- specifically on both ARR and cash flow, what are the longer-term implications of this? Do you think we -- is it ultimately, like, slightly higher growth, better profitability, longer term? Like, what's the longer-term ramifications of this?

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Okay. Building that bridge -- and you did a good job in the deck but just to reiterate, you're talking about including those businesses, still $1 billion-ish of free cash flow. In '26, obviously, that comes -- steps down a little bit. But how should we think about, like, getting back to those levels, as we, like, anniversary this and move forward?

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Yeah. Okay. Helpful. Now, on the ARR side, you've always given a lot of thought to how you think about guidance, the high end, low end of the range. It feels like that low end is completely de-risked. Taking the glass half-full side of it, what gets you to the higher end of that range? Macro is obviously a bit of a wildcard. But what are these things that you look for, where you're like, well, this could actually -- let's think positivity here -- Matt and I were just talking about the volatility of this market. But, like, what gets you to that higher end of the range in '26?

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Yeah. The go-to-market changes, it strikes us that that verticalization approach should start paying dividends. Maybe you're already seeing it manifest itself. How should we think about the benefit of that, as we anniversary these changes and start to think about how that salesforce can be better aligned to target the opportunity? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 18, 2025 / 7:40PM, PTC.OQ - PTC Inc at RBC Capital Markets Global Technology, Internet, Media & Telecommunications Conference

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : We talked about this when you reported but are there -- the significant changes really were made last year. As you're sitting in this Q1, there's always tweaks, as the salesforce is wont to do. But is there anything that you'd highlight that you're, like, we should be aware of, in terms of anything incremental that could cause either some potential volatility or even, opportunity?

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Yeah. Yeah. Okay. I want to drill on a couple of the businesses but AI has obviously been a huge focus for the industry and for PTC for quite some time. You guys, like most organizations, have been talking about AI before it was really given a name by the market. How are you helping customers think through leveraging this technology across the various businesses? How do you think -- from a CFO seat, what does that mean from a monetization standpoint? Do you see there's an incremental opportunity with value that you were able to think about monetization differently or charge more or seeing higher commits? How do we think about AI layering into the model?

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : And then, from a monetization standpoint, how do you -- because that's the question that's like, it's great that we're providing AI features. But, like, is it table stakes? Is it incremental to the growth opportunity? How do you think about that element?

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Does that imply, as you learn and as you continue to develop, that there could be more of a consumption element to some of these.? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 18, 2025 / 7:40PM, PTC.OQ - PTC Inc at RBC Capital Markets Global Technology, Internet, Media & Telecommunications Conference

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Yeah. Yeah. Is there much of a network effect? Because I think, a lot of times, there's a real concern about customer data and privacy and training models on customers' data. But is there a broader network effect where the sum of the parts of the platform provides an overall, like, higher buyer functionality for every customer? Or is it still very siloed in how you think about leveraging data?

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Yeah. Yeah. And then, in terms of SaaS, we've been talking about that for a while and you guys have made quite a bit of advancements, not only just in Onshape and things like that but also the core, Windchill+ and Creo+. Talk about just -- and I think with AI, SaaS gets, like, left behind in a lot of the conversations. But talk about how -- where we are in that progression? You guys have never talked about like a forced transition. You're very open to customers, how they want to consume the product. But is -- do you feel like you still have that lead, from a SaaS perspective? Because it really felt like you guys were far in front of most of your primary competitors, from a SaaS perspective. Where are we in that arms race, from a SaaS perspective?

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Okay. Okay. And then, ultimately, where I want to go is how to think about a layer cake of growth with your various businesses. But ServiceMax -- I think, Matt, we've had a number of conversations on this, too. It just it feels like such -- like, if you're not using your guys' ServiceMax or SLM, I don't know what your customers are doing. And so maybe that's the question. Like, it feels like the cross-sell opportunity is so ripe in there. Obviously, you guys have a lot of initiatives across the entire business. But what's the unlock for ServiceMax? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 18, 2025 / 7:40PM, PTC.OQ - PTC Inc at RBC Capital Markets Global Technology, Internet, Media & Telecommunications Conference

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : From a customer perspective?

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : That's great.

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : You guys have so many businesses. We don't have time to go through all of them. But you've always been such great at these, like, mental models of thinking about, okay, here's how I think about cash flow build. You've been very, very accurate in some of those builds over the years. Do you -- when you think about like that ARR build, is there a mental model that you're like, well, I think about a couple -- 3 points from PLM, a couple of points from [CAT]. Like, is there some way that we should think about, like, a build or a layer cake to get to,

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Maybe said differently then, if you were to say, when we think about the growth element of the business, what are some of the -- what are you most -- and, obviously, you come with a conservative lens as a CMO. But, like, what are some of these big blocks that can move that can start to drive -- again, it gets back to that question about, like, the higher end of the growth algorithm this year.

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : That's great. The other thing that --capital allocation is always a subject near and dear to your heart, in terms of thinking about deploying this cash. You made a pretty significant change in how you think about maintaining cash balances. I forget when that was actually put in place but it felt like you've certainly amped up the commitment to buyback. How do you think about, with these cash flow levels, that balance between buyback, M&A, investing back in the business? How should we think about that, specifically, on the buyback element? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 18, 2025 / 7:40PM, PTC.OQ - PTC Inc at RBC Capital Markets Global Technology, Internet, Media & Telecommunications Conference It feels like with some of the proceeds here, there's going to be some significant activity on that front.

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Does that -- with the divestitures, that also -- it implies that there's no big gaps that you're looking for, right now. It feels more that you're signaling more of these strategic tuck-ins, as opposed to another ServiceMax or something of that nature.

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Yes. When we -- as we close here, it feels like, ultimately, the algorithm is -- the top-line growth is -- it's a fairly tight range, depending on the economic circumstances. The margin expansion is there. The buybacks are there. It feels like cash flow growth per share should continue to outpace the ARR growth element. Is that the right way to think about how you are calibrating the business? Like, thinking about free cash flow per share growth?

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Yeah. Ultimately, I think that's -- we've covered PTC for a long time. We've always felt that there's a bit of a valuation gap with some of your peers. It feels like as you continue to grow that cash flow per share at an accelerated rate. It feels like the market should reward that. But that -- it feels like that's the balance of growth and profitability that we should think about. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 18, 2025 / 7:40PM, PTC.OQ - PTC Inc at RBC Capital Markets Global Technology, Internet, Media & Telecommunications Conference

Question: Matthew Hedberg - RBC Capital Markets Inc - Analyst : Excellent. Well, we are out of time. Just hoping to get a question in from the audience but we didn't even talk about a handful of items. But thanks, again, Kristian; thanks, Matt, for being here. As always, best of luck.