ANSYS (ANSS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 8.2% year-over-year to $504.9 million, with strong maintenance and service growth and 10% growth in constant currency.

• Net income rose 49% to $51.9 million; GAAP diluted EPS was $0.59, non-GAAP EPS $1.64, both up from Q1 2024.

• Synopsys acquisition is pending, expected to close in H1 2025, with regulatory approvals progressing.

• Annual Contract Value (ACV) was $410.1 million, up 0.7% year-over-year, with recurring ACV up 13.5%.

• Deferred revenue and backlog totaled $1,627.7 million as of March 31, 2025.

Financial highlights

• Maintenance revenue grew 12.1% to $324.4 million; service revenue up 21.2% to $20.5 million.

• Operating income increased 36% to $58.9 million; operating margin improved to 11.7%.

• Non-GAAP operating income rose 47.5% to $169.1 million; non-GAAP operating margin was 33.5%.

• Cash flow from operations was $398.9 million, up 41% year-over-year; unlevered operating cash flows at $407.1 million.

• Cash, cash equivalents, and short-term investments totaled $1.83 billion at quarter-end.

Outlook and guidance

• Management expects double-digit ACV growth for fiscal year 2025.

• No quarterly or annual guidance is being provided due to the pending Synopsys transaction.

• Market demand remains strong in high-tech, aerospace & defense, and automotive sectors.

• Cautions on quarterly volatility due to license mix and renewal cycles; focus remains on annual performance.