Equity Incentive Plans (Tables)

12 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement, Recognized Amount [Abstract]

Schedule of Classification of Compensation Expense

The following table shows total stock-based compensation expense recorded in our Consolidated Statements of Operations:

(in thousands)	Year ended September 30,
	2024		2023		2022
Cost of license revenue	$	133	$	145	$	272
Cost of support and cloud services revenue		14,479		12,801		11,022
Cost of professional services revenue		6,827		7,928		11,481
Sales and marketing		68,541		56,394		49,467
Research and development		60,266		58,931		41,944
General and administrative		73,215		70,260		60,677
Total stock-based compensation expense	$	223,461	$	206,459	$	174,863

Schedule of Restricted Stock Unit Activity

The following table sets forth the restricted stock unit activity for the year ended September 30, 2024.

(in thousands, except grant date fair value data)	Shares			Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Balance of outstanding RSUs at October 1, 2023		2,581		$	122.82
Granted(1)		1,332		$	164.73
Vested		(1,731	)	$	124.29
Forfeited or not earned		(118	)	$	133.15
Balance of outstanding RSUs at September 30, 2024		2,064		$	147.92	$	372,884

(1)RSUs granted include 11 shares from prior period rTSR awards that were earned upon achievement of the performance criteria and vested in November 2023 and 42 shares from prior period performance-based awards that were earned upon achievement of the performance criteria and vested in November 2023.

Schedule of Number of RSU Awards Granted by Award Type

The following table presents the number of RSU awards granted by award type:

(in thousands)	Year ended September 30, 2024
Performance-based RSUs(1)		97
Service-based RSUs(2)		1,103
Relative Total Shareholder Return RSUs(3)		79

(1)The performance-based RSUs are primarily made up of RSUs granted to our executives and are eligible to vest based upon annual performance measures over a three-year period. To the extent earned, those performance-based RSUs will vest in three substantially equal installments on November 15, 2024, November 15, 2025, and November 15, 2026, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period. Up to a maximum of two times the number of RSUs can be earned.

(2)The service-based RSUs were granted to employees, including our executive officers. Substantially all service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant.

(3)The rTSR RSUs were granted to our executives and are eligible to vest based on the performance of PTC stock relative to the stock performance of an index of PTC peer companies established as of the grant date, as determined at the end of the measurement period ending on September 30, 2026. The RSUs earned will vest on November 15, 2026. Up to a maximum of two times the number of rTSR RSUs eligible to be earned for the period may vest. If the stock price as of the beginning of the period is below the stock price at the end of the period, a maximum of 100% of the rTSR RSUs may vest.

Schedule of Valuation Assumptions

The significant assumptions used in the Monte Carlo simulation model were as follows:

	2024			2023			2022
Average volatility of peer group		49.30	%		41.54	%		34.67	%
Risk-free interest rate		4.65	%		4.12	%		0.81	%
Dividend yield		—	%		—	%		—	%
Expected term (in years)		2.87			2.87			2.87

Schedule of Value of Stock Issued for Vested RSUs

The value of stock issued for vested RSUs is as follows:

(in thousands)	Year ended September 30,
	2024		2023		2022
Stock issued for vested RSUs	$	289,333	$	240,066	$	199,738