ANSYS, Inc. (ANSS): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of ANSYS, Inc. after that big Synopsys deal closed mid-2025, trying to see where the real money is made in this high-fidelity simulation world. Honestly, the core engine is a sticky, recurring revenue machine, built on proprietary IP like Fluent and Mechanical, which drove about 64.2% of its $324.4 million maintenance revenue in Q1 2025 alone. We're talking about a company that spent $528.01 million on R&D in 2024 to keep that edge, so understanding how they partner with Microsoft Azure and NVIDIA, and how their direct sales force still accounts for nearly 69.1% of sales, is defintely key to valuing them now. Dive into the full Business Model Canvas below to see exactly how they translate that deep engineering into a $2.58 Billion USD TTM revenue run rate.

ANSYS, Inc. (ANSS) - Canvas Business Model: Key Partnerships

You're looking at how ANSYS, Inc. extends its reach and capability, which is heavily reliant on its external network. Honestly, the simulation business today isn't a solo act; it's all about integration and cloud muscle.

The collaboration with Synopsys, Inc. and NVIDIA is a big one for the high-performance computing (HPC) and AI space. For instance, a jointly developed framework, first adopted by Krones AG, integrates NVIDIA Omniverse and CUDA-X libraries with Microsoft Azure cloud computing and GPU-native ANSYS Fluent fluid simulation software. This setup showed the ability to slash simulation workloads for manufacturing optimization from 3-4 hours down to less than 5 minutes in a demonstration environment. Furthermore, ANSYS, Inc. signed an agreement in August 2025 to license, sell, and support NVIDIA Omniverse technology directly within its simulation solutions, starting with computational fluid dynamics (CFD) and autonomous offerings.

The cloud providers are critical infrastructure partners. Microsoft Azure serves as the high-performance cloud foundation for these joint solutions, enabling scalable deployment. This ecosystem approach is key, especially as the company reported a trailing twelve months (TTM) revenue of $2.58 Billion USD as of November 2025, supported by these deep integrations.

For the Computer-Aided Design (CAD) and Product Lifecycle Management (PLM) side, the partnership with PTC is very visible. They have built integrated products like Creo Simulation Live, which offers instantaneous feedback on structural, thermal, modal, and fluid flow design guidance. The second product, Creo ANSYS Simulation, uses ANSYS's advanced capabilities for high-fidelity thermal, structural, and modal analysis directly inside PTC's Creo software. This integration also extends to sustainability data, using ANSYS Granta MI for material selection based on carbon footprint considerations within PTC's Windchill PLM system.

The global sales and support structure leans heavily on its channel partners. This network is essential for localized sales and support, especially in markets where the direct presence is smaller. The company manages a global partner network spanning over 40 countries, which in 2025 was serving more than 14,587 companies.

Here's a quick snapshot of the scale of these external relationships:

Partner Category	Specific Example/Focus	Quantifiable Metric (as of late 2025)
Cloud/HPC/AI	Microsoft Azure, NVIDIA Omniverse Integration	Simulation workload reduction from 3-4 hours to under 5 minutes demonstrated
CAD/PLM Integration	PTC (Creo Simulation Live, Creo Ansys Simulation)	Integration includes ANSYS Granta MI for material sustainability data
Channel Partners	Resellers for localized sales and support	Network covers over 40 countries serving over 14,587 companies in 2025
Academic Institutions	Curriculum, research, and student team support	Over 2,600 university customers across 91 countries using ANSYS software

The academic side is about future user development and research. ANSYS, Inc. supports this by bundling its commercial software for use in teaching and research. Currently, there are over 2,600 university customers across 91 countries utilizing ANSYS software.

The financial underpinning of the core business supports these investments, with Q1 2025 revenue reported at $504.9 million and Operating Cash Flows for that quarter reaching $398.9 million. The company continues to expect double-digit FY 2025 Annual Contract Value (ACV) growth.

You can see the structure of the partner ecosystem through these types of engagements:

• ANSYS Channel Partners: Resellers offering value-added service in over 40 countries.
• ANSYS Technology Partners: Cooperate to host, extend, and integrate technology with ANSYS products.
• ANSYS Strategic Partners: Global partnerships expanding technology for emerging solutions.
• ANSYS Academic Partners: Support for research, curricula, and STEM programs.

ANSYS, Inc. (ANSS) - Canvas Business Model: Key Activities

High-fidelity R&D in multiphysics simulation and AI integration

You see the commitment to innovation in the numbers. ANSYS, Inc. dedicated 20.77% of its total revenue to Research and Development in fiscal year 2024 to keep its simulation tools ahead. For the twelve months ending March 31, 2025, R&D expenses were reported at $495.9 million.

This investment fuels the integration of artificial intelligence (AI) into the core platform. The latest releases, like ANSYS 2025 R2, showcase this, featuring tools like the Ansys Engineering Copilot, which is a virtual AI assistant designed to simplify complex engineering workflows.

Continuous development of the core simulation software portfolio

The development cycle is relentless, supporting a business model heavily reliant on recurring revenue. Maintenance Revenue, which is tied to the installed base and continuous updates, was a major driver, growing 12.1% year-over-year in Q1 2025 and accounting for 64.2% of total revenue for that quarter. The company's non-GAAP Gross Margin for Q1 2025 stood at 91.2%, reflecting the high value captured from the software itself.

Managing and scaling the global direct and indirect sales channels

The sales execution is split between direct engagement and channel partnerships. You need to watch how this mix performs, especially as the company integrates with Synopsys, Inc. Here's the breakdown from the end of fiscal year 2024:

Channel Type	Percentage of Total Revenue (FY 2024)	FY 2024 Revenue (Millions USD)
Direct revenue	75.2%	$1,913.6
Indirect revenue	24.8%	$631.2

The Annual Contract Value (ACV) hit $2,563.0 million for the full year 2024. For Q1 2025, the ACV was $410.1 million, but management maintained expectations for double-digit ACV growth for the full fiscal year 2025, suggesting an expected acceleration in sales execution.

Providing advanced technical support and customer training

This activity is embedded within the recurring revenue structure. The high percentage of revenue from Maintenance-64.2% in Q1 2025-directly funds the necessary advanced technical support and customer training required to keep complex simulation software deployed and effective. The non-GAAP Operating Profit Margin for Q1 2025 was 33.5%, which shows the operational efficiency in delivering these ongoing services.

Executing the strategic integration following the Synopsys acquisition

The most significant activity in late 2025 is the post-close integration following the acquisition by Synopsys, Inc., which closed on or about July 17, 2025. This combination aims to create a leader in engineering solutions from silicon to systems.

• The combined entity is positioned to target an expanded Total Addressable Market (TAM) of $31 billion.
• Synopsys, including the ANSYS operations, updated its fiscal year 2025 revenue guidance to a range of $7.03 billion to $7.06 billion.
• The integration is still in its early days as of late 2025, with the first set of fused capabilities planned for the first half of 2026.
• Management announced a restructuring plan, which includes reducing the global workforce by 10%, expecting a charge of $300 million to $350 million following the acquisition.

Finance: draft 13-week cash view by Friday.

ANSYS, Inc. (ANSS) - Canvas Business Model: Key Resources

You're looking at the core assets ANSYS, Inc. relies on to drive its simulation business. These aren't just line items on a balance sheet; they are the engines of their value creation, especially as they navigate the final stages of the Synopsys acquisition in mid-2025.

The most tangible asset is the intellectual property (IP) locked within the software itself. This includes the core, confidential, and proprietary products like Fluent for fluid dynamics, Mechanical for structural analysis, and HFSS for electromagnetics. These tools are furnished under strict software license agreements that govern use, copying, and disclosure, which is the legal bedrock protecting this core resource.

Next, consider the people. The highly skilled R&D and engineering talent pool is critical for maintaining that IP edge. As of the end of 2024, ANSYS, Inc. employed over 6,500 employees. To give you a sense of the technical depth, Engineering was the largest department, accounting for 954 employees in late 2024.

The customer base is exceptionally sticky, largely due to the revenue model built around it. This is where the recurring revenue component shines. For the first quarter of 2025, maintenance revenue-which is the recurring component-hit $324.4 million, making up 64.2% of the total Q1 2025 revenue of $504.9 million. Furthermore, the total deferred revenue and backlog stood at $1,627.7 million as of March 31, 2025, showing significant contracted future revenue.

Here's a quick look at the financial anchor supporting these operations as of Q1 2025:

Financial Metric	Amount (Q1 2025 / As of Date)
Cash & Short-Term Investments	$1.83 billion (As of March 31, 2025)
Total Revenue	$504.9 million (Q1 2025)
Maintenance Revenue (Recurring)	$324.4 million (Q1 2025)
Total Deferred Revenue & Backlog	$1,627.7 million (As of March 31, 2025)

The global sales infrastructure is amplified by an extensive partner ecosystem. This isn't just direct sales; ANSYS, Inc. uses a global network of independent Channel Partners, which are resellers in more than 40 countries, providing value-added service and support. They also maintain strategic partnerships with major technology players like Microsoft, Amazon Web Services (AWS), and Synopsys to extend technology reach and enable cloud-based simulation.

What this estimate hides is the impact of the pending Synopsys acquisition; management suspended forward guidance for the rest of 2025, so we're relying on historical and Q1 data. Still, the strong cash position and the high percentage of recurring revenue provide a solid foundation for any transition.

Finance: draft 13-week cash view by Friday.

ANSYS, Inc. (ANSS) - Canvas Business Model: Value Propositions

You're looking at the core value ANSYS, Inc. (ANSS) delivers to its customers, which ultimately underpins its financial stability-the trailing twelve months (TTM) revenue as of November 2025 stands at $2.58 Billion USD. This value is anchored by a highly reliable installed base, evidenced by the fact that over 83% of total revenue in Q1 2025 was recurring. Plus, the future commitment is solid, with deferred revenue and backlog hitting $1,627.7 million as of March 31, 2025. Management is confident in achieving double-digit Annual Contract Value (ACV) growth for the full fiscal year 2025.

Accelerating product development and reducing physical prototyping costs

The primary value is shrinking the design cycle, which directly cuts down on expensive physical builds. The entire digital engineering suite, supercharged by the 2025 R1 release, is designed to help teams work from a single source of truth, which significantly cuts costs and accelerates time-to-market. This is a critical differentiator when you consider the analyst consensus projects full-year 2025 revenue around $3.024 billion.

Providing a comprehensive, open ecosystem for multiphysics simulation

ANSYS, Inc. offers a broad platform that integrates across different physics domains, which is key for complex product design. The Q1 2025 revenue of $504.9 million shows the scale of the installed base using these integrated tools. The ecosystem is designed to connect parallel workstreams, minimizing disruption as new technologies are integrated.

Enabling AI-powered simulation (e.g., Ansys SimAI™) for faster design exploration

The integration of AI is a massive value driver right now. Ansys SimAI™, for example, is built to accelerate simulation workflows. With SimAI, users can reliably predict the performance of complex simulation scenarios in minutes instead of hours or days. In some contexts, this capability can reduce the time to predict a model's performance from 15 days to just minutes. The 2025 R2 release further amplified this, with AI-driven tools designed to boost productivity across teams.

Delivering system-level insights through digital twin and Model-Based Systems Engineering (MBSE)

You see the market demand for this, as the global digital twin market is projected to grow significantly. ANSYS, Inc. strengthens this by enhancing its MBSE capabilities. The Ansys System Architecture Modeler (SAM) now delivers upgraded support for SysML v2, which enables more optimized product designs and provides significant time savings by creating tighter connections across engineering teams.

Offering high-fidelity virtual validation for mission-critical products

The value here is speed and accuracy in the most demanding simulations. The performance gains from GPU acceleration are defintely worth noting for high-fidelity validation.

Here's a quick look at the performance improvements you can expect from the latest releases:

Technology/Solver	Performance Metric	Factor/Amount
Ansys Mechanical GPU-accelerated direct structural FEA solver	Faster than alternative solutions	Up to 6x
Ansys Mechanical GPU-accelerated iterative solver	Faster than CPU-only versions	6x
Parametric studies in Discovery (leveraging NVIDIA GPUs)	Acceleration	100x or more
Ansys Cloud Burst Compute	Design variations solved in 10 minutes	1,000 variations
Ansys Lumerical FDTD (GPU)	Reduction in meshing time	20% reduction

Also, the Fluent multi-GPU fluid simulation solver now supports applications with very high total mesh cell counts, letting designers add more parameters for accuracy without slowing down the overall simulation speed.

ANSYS, Inc. (ANSS) - Canvas Business Model: Customer Relationships

You're looking at how ANSYS, Inc. (ANSS) keeps its high-value engineering simulation customers locked in and happy, which is key since recurring revenue is the bedrock of their financial stability right now. The relationship strategy is clearly tiered, moving from white-glove service for the biggest players to instant digital help for everyone else.

Dedicated enterprise-level direct sales support for strategic accounts

For the largest, most complex engineering firms, ANSYS, Inc. relies on its direct sales force. This team is organized by key industry verticals, like Aerospace and Automotive, to handle those big, strategic enterprise agreements. To give you a sense of scale, this direct sales team was responsible for approximately $1.58 billion, or 65%, of the company's 2024 revenue, focusing on those deep, multi-year engagements. Also, the company maintains a vast global network of over 80 channel partners, which complements the direct sales effort by expanding market reach and providing localized expertise, especially for mid-market penetration.

Long-term contracts and maintenance agreements fostering retention

The stickiness of the ANSYS, Inc. customer base is evident in the revenue composition. You should definitely note the heavy reliance on the installed base for stability. For the first quarter of 2025, Maintenance Revenue alone contributed 64.2% of total revenue, growing 12.1% year-over-year. Subscription Lease Revenue added another 19.2%. So, in Q1 2025, recurring revenue-Maintenance plus Subscription Leases-accounted for 83.4% of the total revenue. This recurring stream is supported by a robust future pipeline, with deferred revenue and backlog standing at $1.63 billion as of March 31, 2025. Management continues to anticipate double-digit fiscal year 2025 Annual Contract Value (ACV) growth, which is the metric they use to track the annual value of committed contracts.

Here's the quick math on the Q1 2025 revenue composition:

Revenue Component	Q1 2025 Revenue (in thousands)	Percentage of Total Q1 2025 Revenue
Maintenance	$324,392	64.2%
Subscription Lease	$96,919	19.2%
Perpetual License	$63,036	12.5%
Service	$20,544	4.1%

What this estimate hides is that the company explicitly notes its reliance on high renewal rates for these contracts to maintain financial health.

Self-service and in-product support via tools like Ansys Engineering Copilot™

To help engineers work faster without leaving their simulation environment, ANSYS, Inc. has deeply embedded self-service support. The Ansys Engineering Copilot™ acts as a multifunctional virtual assistant, leveraging 50 years of technical support expertise. This tool is built into core products; for instance, it was available in Ansys Discovery and Ansys Mechanical 25R1 SP2, with plans to expand to more products in the 2025 R2 release. Accessing the AI support assistant, AnsysGPT, requires an AnsysGPT AI+ license. This integrated platform centralizes learning and support resources, including the Forum and Knowledge articles, and gives users direct access to over 600 Ansys Innovation Courses.

The self-service support ecosystem includes:

• Direct access to the multilingual, AI-enabled AnsysGPT agent 24/7.
• Ability to search every Ansys website and scan thousands of knowledge articles.
• Centralized access to the Ansys Learning Forum for peer-to-peer engagement.
• Integration within the GUI to create and track Ansys Customer Support cases.

High-touch technical consulting and specialized training services

Beyond the self-service Copilot, high-touch support remains critical, especially for complex deployments. Technical support is provided either directly by ANSYS, Inc. or through certified channel partners, who often provide the first line of technical support, consulting services, and training. The channel partner certification process ensures these partners maintain the capability to adequately represent the expanding product lines and provide an appropriate level of consultation and customer support. For context, the indirect sales channel, which includes these partners, accounted for 24.8% of total revenue for the year ended December 31, 2024. If an engineer still needs help after using the Copilot, they can open a formal Ansys Customer Support case for one-on-one assistance.

Finance: draft 13-week cash view by Friday.

ANSYS, Inc. (ANSS) - Canvas Business Model: Channels

You're looking at how ANSYS, Inc. gets its sophisticated simulation software into the hands of engineers and designers across the globe. The channel strategy is a blend of direct, high-touch enterprise sales and a broad partner ecosystem, all increasingly supported by cloud infrastructure.

The company's sales structure leans heavily on its internal team for major accounts. The direct sales force is responsible for approximately 69.1% of total sales, reflecting the complexity and high-value nature of the core engineering simulation portfolio that requires deep, consultative engagement. This direct approach helps secure large, multi-year lease agreements, which formed the bedrock of the business, with recurring revenue representing over 83% of total revenue in Q1 2025. For context, ANSYS, Inc. reported Q1 2025 revenue of $504.9 million, and the trailing twelve months (TTM) revenue as of November 2025 stood at approximately $2.58 billion.

The remaining portion of the business flows through the global channel partner network. This network, comprising resellers, distributors, and integrators, is crucial for market penetration in regions or segments where a direct presence is less efficient. While the direct channel dominates, the indirect channel still accounts for a significant portion of revenue, as seen in the FY 2024 split where indirect revenue was 24.8% of the total.

Here's a look at the reported revenue split from the end of fiscal year 2024, which gives you a sense of the historical balance:

Channel Metric	FY 2024 Percentage of Total Revenue	Q4 2024 Percentage of Total Revenue
Direct Revenue	75.2%	79.7%
Indirect Revenue	24.8%	20.3%

The Ansys Cloud platform is a major focus for scaling access and computing power. This channel is designed to remove on-premises hardware barriers, which previously constrained simulation effectiveness for almost 75% of end-users, according to internal data. The platform offers flexible, on-demand High-Performance Computing (HPC) capacity. For instance, the Ansys Cloud Burst Compute capability allows users to run over 1,000 design variations in minutes using Ansys Discovery, and parametric studies are accelerated by 100x or more by leveraging NVIDIA GPUs. Furthermore, 64% of companies are actively exploring or transitioning to cloud-based engineering applications, showing the market pull for this delivery method.

Engagement through the corporate website and physical events remains a key touchpoint for lead generation and demonstrating technology leadership. ANSYS, Inc. maintained a strong presence at CES 2025 in the West Hall, Booth #6400, focusing on next-generation mobility solutions. This event serves as a direct channel to key decision-makers; for instance, ANSYS simulation solutions help 94% of the top 100 automotive suppliers. The company also uses these events to showcase specific product integrations, such as the collaboration with Cognata and Microsoft for sensor design validation on a web-based platform.

Key digital and event-driven activities supporting the channel include:

• Showcasing Ansys Perceive EM™ simulation software integrated with an NVIDIA-accelerated solver for rapid electromagnetics computation.
• Hosting networking receptions, such as the Women in Technology event at CES 2025, to connect with industry leaders.
• Using the corporate website to release major product updates, like Ansys 2025 R1, which supercharges collaboration via AI and cloud computing.
• Providing direct access to technical experts and demonstrations at major industry venues.

Finance: review the Q3 2025 channel mix against the required 69.1% direct sales figure by next Tuesday.

ANSYS, Inc. (ANSS) - Canvas Business Model: Customer Segments

You're looking at the core user base for ANSYS, Inc. (ANSS) as of late 2025, right after the Synopsys, Inc. acquisition closed in July 2025. The customer base is broad, but the financial weight is concentrated in a few key areas.

The segment of Large enterprise R&D departments in Aerospace & Defense and Automotive remains foundational. These large customers drive significant recurring revenue, evidenced by the fact that Maintenance and Service revenue was $344.94 million in the first quarter of 2025 alone. The Automotive sector, in particular, is a key growth vector, with two multi-year contracts in the Americas, one in Automotive, worth a portion of the combined $210 million total from two large contracts in Q2 2025.

Following the acquisition, the focus on High-tech and Semiconductor companies is amplified, creating a unified design environment from silicon to systems. This strategic move positions the combined entity to win in an expanded $31 billion total addressable market (TAM). This segment is critical for developing AI-powered products, merging electronic design automation (EDA) with multiphysics simulation.

The Industrial Equipment and Energy sectors continue to rely on ANSYS, Inc. for complex structural and fluid simulations. Customers like INNIO use multiphysics solutions for engine development, and Andritz leverages High-Performance Computing (HPC) for turbine efficiency. These industries require the predictive power of simulation to enhance efficiency and reduce physical testing costs.

For Small and mid-sized businesses (SMBs) accessing via channel partners, the installed base shows a clear preference for smaller organizations. The majority of the over 14,173 companies using the software globally in 2025 fall into these smaller brackets. The company also supports early-stage innovation through its Startup Program, which celebrated enrolling its 2,000th company.

Finally, Academic and student users form a vital pipeline for future adoption. These users are characterized by high levels of education in engineering and research fields. The overall customer base is geographically concentrated, with the United States accounting for the largest share.

Here's a quick look at the customer distribution data we have for 2025:

Customer Grouping	Metric	Count/Percentage
Total Companies Using Software (2025)	Total Customers	14,173
Geography (Top 3)	United States	4,241 customers (40.61%)
Geography (Top 3)	India	1,845 customers (17.67%)
Geography (Top 3)	Germany	834 customers (7.99%)
Employee Size (Top 3)	100 - 249 Employees	2,648 companies
Employee Size (Top 3)	20 - 49 Employees	2,318 companies
Employee Size (Top 3)	1,000 - 4,999 Employees	2,290 companies

The financial health supporting these segments is strong; the trailing twelve months (TTM) revenue as of November 2025 stood at approximately $2.58 billion.

The customer base breakdown by size in 2025 shows the following distribution:

• 100 - 249 Employees: 2,648 companies
• 20 - 49 Employees: 2,318 companies
• 1,000 - 4,999 Employees: 2,290 companies
• Startup Program Enrollment: 2,000th company enrolled

Finance: draft 13-week cash view by Friday.

ANSYS, Inc. (ANSS) - Canvas Business Model: Cost Structure

You're looking at the core expenditures that fuel ANSYS, Inc.'s engineering simulation dominance. The investment in future product capability is substantial, as seen with Research and Development expenses for the full fiscal year 2024 hitting $528.01 million.

The commercial engine requires significant spending too. Selling, general and administrative expenses, which capture a large part of the sales force and marketing efforts, were $230,415 thousand in the first quarter of 2025 alone. To be fair, this is a software business, so the Cost of Sales is relatively low, coming in at $72,569 thousand for Q1 2025, which resulted in a very high non-GAAP Gross Margin of 91.2% for that quarter.

Maintaining that global technical expertise is a major fixed cost. As of late 2025, ANSYS, Inc. employs approximately 2,756 people across 26 locations. The distribution clearly shows where the money goes to keep the innovation pipeline full:

• Engineering accounts for 954 employees.
• Sales and Support totals 557 employees.
• Business Management is 464 employees.

Here's a quick look at the operating expense profile for the start of 2025 compared to the end of 2024 (all figures in thousands):

Expense Category	Q1 2025	FY 2024
Total Cost of Sales	$72,569	$279,819
Selling, General and Administrative	$230,415	$995,340
Research and Development	(Not specified for Q1)	$528,014

The transaction costs associated with the Synopsys acquisition definitely put a temporary squeeze on reported profitability. You saw the GAAP operating profit margin compress to just 11.7% in Q1 2025 because of those integration and deal-related expenses. Honestly, you have to look past that GAAP number to see the core operational strength, which showed a non-GAAP operating profit margin of 33.5% in the same period.

Finance: draft 13-week cash view by Friday.

ANSYS, Inc. (ANSS) - Canvas Business Model: Revenue Streams

You're looking at the core of ANSYS, Inc.'s financial engine right now, especially as the market digests the pending acquisition. Honestly, the revenue stream is heavily weighted toward recurring income, which is what gives the company its stability, even with the shift in licensing models.

The Trailing Twelve Months (TTM) revenue as of November 2025 stands at approximately $2.58 Billion USD. That top-line number is built on a foundation of predictable, recurring revenue, which is definitely the key strategic focus for the leadership team, even if the growth rates vary across the segments.

Let's break down the first quarter of 2025, because it shows the current mix clearly. Total revenue for Q1 2025 was $504.9 million. Here's how that broke down by source:

Revenue Stream	Q1 2025 Amount (Millions USD)	% of Total Revenue (Q1 2025)	Q1 2025 YoY % Change (Reported)
Maintenance Revenue	$324.4 million	64.2%	12.1%
Subscription Lease Revenue	$96.9 million	19.2%	2.2%
Perpetual License Revenue	$63.0 million	12.5%	(3.8)%
Service Revenue (consulting, training)	$20.5 million	4.1%	21.2%

Maintenance Revenue is the bedrock here. That $324.4 million represents the income from supporting the installed base of perpetual licenses and the maintenance component tied to the subscription leases. It grew by 12.1% year-over-year in Q1 2025, which is why it commands such a huge chunk-64.2%-of the total revenue. That's your annuity stream, plain and simple.

Subscription Lease Revenue, at $96.9 million, is the primary driver of the future recurring model, making up 19.2% of the total. You should note, though, that its growth was quite soft in Q1 2025, only increasing by 2.2% year-over-year. If onboarding takes 14+ days, churn risk rises, and that slow growth is something to watch closely in the coming quarters, especially given the pending acquisition.

Perpetual License Revenue is clearly the segment management is moving away from, which is a defintely industry-wide trend. This is the upfront cash source from one-time software sales, and it declined by 3.8% in Q1 2025, falling to $63.0 million. Still, it provides an upfront cash injection when a customer chooses that path over leasing.

Service Revenue, which includes consulting and training, is the smallest piece at $20.5 million, but it showed the strongest growth rate at 21.2% year-over-year in Q1 2025. This revenue stream helps with customer success and implementation, which supports the stickiness of the larger subscription and maintenance contracts. You can see the recurring base is over 83% of total Q1 2025 revenue when you combine Maintenance and Subscription Lease revenue.

To summarize the recurring nature, you are looking at a business model that prioritizes long-term contracts over large upfront sales. Here are the key components driving that recurring value:

• Maintenance Revenue: $324.4 million in Q1 2025.
• Subscription Lease Revenue: $96.9 million in Q1 2025.
• Total Recurring Revenue (Maintenance + Subscription Lease): Approximately $421.3 million in Q1 2025.
• TTM Revenue: Approximately $2.58 Billion USD as of November 2025.

Finance: draft 13-week cash view by Friday.