PTC faces significant competition, cybersecurity threats, and risks associated with its large global operations and reliance on third-party providers. Substantial debt obligations, including Senior Notes and credit facility loans, pose liquidity risks and limit operational flexibility. Fluctuations in foreign currency exchange rates and interest rates also expose PTC to market risk. Acquisition integration challenges and potential underperformance of acquired businesses are also noted risks. Uncertain tax positions and potential tax audits further complicate the financial picture.

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PTC's subscription model (93% recurring revenue) provides higher customer engagement and retention, and better business predictability. ARR grew 14% (12% constant currency) to $2.25 billion in FY24. Cash provided by operating activities and free cash flow also saw substantial growth. Growth is primarily driven by existing customer expansion and, to a lesser extent, new customers and price increases. The company has repurchase authorization for up to $2 billion of its common stock.

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