Altair Engineering Inc. (ALTR): History, Ownership, Mission, How It Works & Makes Money

Why does Altair Engineering Inc. (ALTR), a global leader in computational intelligence, matter right now when its market capitalization sits near $9.63 Billion? The answer lies in its strategic position at the critical intersection of simulation, high-performance computing (HPC), and AI, which analysts project will drive its fiscal year 2025 revenue to approximately $783.27 Million. However, with the highly-anticipated merger with Siemens Industry expected to close in the first half of 2025, understanding its core software and client engineering services business-before it becomes a wholly owned subsidiary-is defintely an urgent priority for any investor.

Altair Engineering Inc. (ALTR) History

You need to understand the DNA of a company like Altair Engineering Inc. to properly assess its future, especially following its massive acquisition in 2025. This wasn't a quick-flip startup; it was a decades-long evolution from an engineering consultancy into a computational science powerhouse.

The company's trajectory shows a defintely calculated pivot from service-based revenue to high-margin software licensing, a critical move that made it an attractive target for a global industrial giant.

Given Company's Founding Timeline

Year established

The company was founded in 1985.

Original location

Altair began operations in Troy, Michigan, USA.

Founding team members

The founding team consisted of James R. Scapa (who has served as CEO and Chairman since the outset), George Christ, and Mark Kistner.

Initial capital/funding

Altair initially grew through bootstrapping and early engineering services contracts, primarily focused on the automotive industry. The first major external funding came much later, in October 2004, when General Atlantic invested $30 million.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The story of Altair is one of strategic patience and timely shifts in business model, moving from a regional consulting firm to a global computational intelligence leader. The biggest change was the commitment to software over services.

• The HyperWorks Licensing Model: Altair introduced a patented, units-based licensing system that was revolutionary. This model allowed clients to access the entire software portfolio with a single pool of units, driving adoption across multiple engineering disciplines.
• The Software-First Pivot: By 2004, the company completed its transition, with software revenue surpassing client engineering services. This shift created a scalable, high-margin business that fueled subsequent growth and acquisitions.
• Diversification into Data Analytics and AI: Starting around 2018, the company made a concerted effort to move beyond traditional Computer-Aided Engineering (CAE) into data analytics, high-performance computing (HPC), and artificial intelligence (AI). This included key acquisitions like Cambridge Semantics in 2024, enhancing capabilities in data analytics.
• The 2025 Siemens Acquisition: This was the ultimate transformative event. The acquisition, valued at $10.6 billion, fundamentally changed Altair's ownership status from a publicly traded company (ALTR) to a subsidiary of a massive industrial conglomerate, Siemens. This move provides a massive new distribution channel and capital base for its technology.

For fiscal year 2024, reported in early 2025, the company's total revenue reached $665.8 million, with a net income of $14.2 million, demonstrating the financial strength that led to the acquisition. You can see more about the market reaction and new ownership structure by Exploring Altair Engineering Inc. (ALTR) Investor Profile: Who's Buying and Why?

Altair Engineering Inc. (ALTR) Ownership Structure

The ownership and governance of Altair Engineering Inc. underwent a fundamental shift in the 2025 fiscal year, moving from a publicly traded entity to a privately held subsidiary.

As of November 2025, Altair is a wholly owned subsidiary of Siemens Industry Software Inc., which is itself a subsidiary of the German technology conglomerate Siemens AG. This transition, finalized in March 2025, means that all decision-making and strategic control now rests with the parent company's management structure.

Altair Engineering Inc.'s Current Status

Altair Engineering Inc. is no longer a public company. The acquisition by Siemens Industry Software Inc. was completed on March 26, 2025, and its stock, formerly traded on the NASDAQ Global Select Market under the ticker ALTR, ceased trading that day. The transaction was valued at an equity value of approximately $10.6 billion, with common stockholders receiving $113.00 in cash per share.

This move was a strategic one for Siemens, aiming to integrate Altair's computational intelligence, simulation, and high-performance computing (HPC) software into the Siemens Xcelerator open digital business platform. The entire governance structure has changed, so you're now dealing with a private entity whose strategy is dictated by its new parent, not public shareholders.

To understand the company's long-term direction, you need to look at the new parent's strategy. You can review the company's foundational principles here: Mission Statement, Vision, & Core Values of Altair Engineering Inc. (ALTR).

Altair Engineering Inc.'s Ownership Breakdown

The table below reflects the ownership structure following the completion of the acquisition in the 2025 fiscal year. The former public float (shares available to the general investing public) and institutional holdings were fully converted to cash as part of the merger consideration.

Here's the quick math: the acquisition was a clean sweep, buying out every outstanding share. For context, prior to the acquisition's close in March 2025, institutional investors held roughly 62.82% of the common stock, and insiders held about 1.49%, which highlights the massive shift in control.

Altair Engineering Inc.'s Leadership

The acquisition triggered a complete corporate reshuffle, replacing the former public company's board and executive team with appointees from Siemens Industry Software Inc. This is a typical post-merger integration step.

The former leadership, including founder and CEO James R. Scapa, departed upon the transaction's closing. The new leadership team is now composed of executives designated by the acquiring subsidiary, ensuring direct alignment with Siemens' strategic goals for its industrial software portfolio.

• Governance Change: The directors of the acquiring entity, Siemens Industry Software Inc., became the directors of the surviving Altair Engineering Inc. corporation.
• Executive Appointments: Siemens Industry Software appointed new executives to the roles of CEO, CFO, and COO, among others, to steer the company as an integrated part of the Siemens Xcelerator platform.
• Reporting Structure: Altair's operations and financial performance now roll up into the larger Siemens AG organizational structure, specifically within the Digital Industries division, meaning its strategic focus is now tightly coupled with Siemens' vision for the industrial digital twin (a virtual representation of a physical product or system).

What this estimate hides is the specific names of the new leadership, which are often not immediately publicized for a newly integrated subsidiary, but the key takeaway is that the strategic decision-makers are now Siemens veterans.

Altair Engineering Inc. (ALTR) Mission and Values

Altair Engineering Inc. defines its purpose beyond profits by focusing on computational intelligence to accelerate innovation, aiming to build a better, smarter, and more sustainable world.

This commitment is the cultural DNA that drove its growth to a 2024 total revenue of $665.8 million, and it underpins the strategic move to be acquired by Siemens in a $10.6 billion deal in March 2025.

Altair Engineering Inc.'s Core Purpose

You can't understand a technology company like Altair just by looking at its balance sheet. Its core purpose is to be the indispensable partner at the convergence of simulation, high-performance computing (HPC), and artificial intelligence (AI), which is defintely a complex space.

This focus means their solutions are designed to not just analyze products, but to fundamentally transform the entire product development lifecycle, reducing waste and energy usage for customers.

Official mission statement

Altair's mission is to explore and unleash the limitless potential of the curious and creative mind by transforming product and business decision-making.

Here's the quick math: when you transform decision-making, you move from physical prototyping to virtual simulation, which saves time, money, and materials. This mission is realized by providing solutions in three core areas:

• Transforming decision-making with simulation, data analytics, and optimization.
• Empowering clients to make informed choices and optimize designs.
• Accelerating development cycles through virtual testing, not physical prototypes.

Vision statement

The company envisions a future where computational intelligence fosters innovation for a more connected, safe, and sustainable world.

This isn't just a feel-good statement; it's a strategic roadmap. For example, their optimization technologies are directly linked to helping customers reduce millions of tons of CO2 emissions. The vision is supported by clear internal principles:

• Envision the Future: Focusing on a long-term vision that transforms markets.
• Seeking Technology and Business Firsts: Continuously pursuing technological and business breakthroughs.
• Embracing Diversity and Taking Risks: Fostering a global culture of development and innovation.

The vision is what drives their continued investment in research and development, a critical factor for any software company, even if it impacts near-term profitability. You can see how this plays out in the numbers by Breaking Down Altair Engineering Inc. (ALTR) Financial Health: Key Insights for Investors.

Altair Engineering Inc. slogan/tagline

Altair's rallying cry is simple and powerful: Only Forward.

This phrase encapsulates their relentless focus on progress and future-oriented solutions. It's a mindset that says, we're never content to stay in the present, so we're always committed to forging a better, smarter world.

Altair Engineering Inc. (ALTR) How It Works

Altair Engineering Inc. operates by delivering a unified, cloud-based platform for computational intelligence, merging simulation, high-performance computing (HPC), data analytics, and artificial intelligence (AI) to help clients design better products and make smarter decisions. As of November 2025, the company is a wholly owned subsidiary of Siemens Industry Software Inc., which is integrating Altair's capabilities to create a comprehensive AI-powered industrial software portfolio.

Altair Engineering Inc.'s Product/Service Portfolio

Altair Engineering Inc.'s Operational Framework

Altair generates revenue primarily through a recurring software license model, which drives predictable income streams. In fiscal year 2024, software revenue accounted for $611.9 million of the total revenue of $665.8 million, showing the core focus of the business. They defintely make money by selling intellectual property, not just services.

• Units-Based Licensing: The company uses a unique, flexible units-based subscription licensing model, where customers purchase a pool of 'Altair Units' to access any product in the entire portfolio, promoting cross-platform adoption and expansion within existing accounts.
• Convergence Strategy: Value creation is driven by the convergence of its three technology pillars-simulation, HPC, and data analytics/AI-which enables customers to solve complex, multidisciplinary engineering problems in a single environment.
• One Source of Truth: The operational approach centralizes all valuable data, which boosts collaboration, ensures traceability, and accelerates the digital twin initiatives for clients.
• Post-Acquisition Integration: Following the acquisition by Siemens, Altair's operations are now focused on integrating its computational intelligence tools into the larger Siemens Xcelerator platform, enhancing the combined industrial software offering.

Altair Engineering Inc.'s Strategic Advantages

The company's ability to maintain a strong market position, even amidst the acquisition, stems from its technical superiority and unique business model. The high-margin software business is a clear indicator of this strength.

• High Gross Profit Margin: Altair's software-centric model results in an impressive gross profit margin, which was 81.25% on its revenue of $665.79 million in fiscal year 2024, demonstrating strong cost control and pricing power.
• AI-Powered Portfolio: The integration of AI into its core simulation and data analytics platforms, like being named a Leader in the 2025 Gartner Magic Quadrant for Data Science and Machine Learning Platforms, provides a critical edge over traditional engineering software vendors.
• Unified Platform and Licensing: The flexible units-based licensing model lowers the barrier to entry for customers to try new tools, leading to approximately 60% of new software revenue coming from expansion within existing accounts.
• Strategic Siemens Alignment: Operating as part of Siemens AG, a leading technology company, provides Altair with massive resources, a broader industrial customer base, and the ability to accelerate its technology roadmap, securing its long-term relevance.

For more on the foundational principles guiding its operations, you can read the Mission Statement, Vision, & Core Values of Altair Engineering Inc. (ALTR).

Altair Engineering Inc. (ALTR) How It Makes Money

Altair Engineering Inc. primarily makes money by selling its enterprise-class engineering software, which includes simulation, high-performance computing (HPC), and artificial intelligence (AI) tools, through a unique, recurring subscription model.

This model, which is based on a pool of 'units' that customers draw from to access various products, is the engine that drives its high-margin revenue stream, plus they earn revenue from specialized client engineering services.

Altair Engineering Inc.'s Revenue Breakdown

When you look at the last full-year public financial data before the acquisition by Siemens Industry Software Inc., it's clear this is a software company first and foremost. Software revenue is the dominant stream, making up nearly 92% of the top line, which is why the gross margin is so high.

Here's the quick math based on the fiscal year 2024 results, reported in early 2025, which showed a total revenue of $665.8 million.

Business Economics

The core of Altair Engineering Inc.'s business is its proprietary units-based subscription licensing model. This is a critical factor for investors to understand, as it creates a powerful economic moat (a sustainable competitive advantage).

Instead of buying individual licenses, customers purchase a pool of units, which they can then use to access any of the company's 17 distinct software platforms or 9 specialized optimization tools. This flexibility encourages customers to use more of the product portfolio, which defintely drives expansion revenue.

• High Retention: Approximately 60% of new software revenue comes from existing customers expanding their unit pool.
• Sticky Customers: The software is deeply embedded in the product design and optimization workflows of major industries like automotive and aerospace.
• High Margin: The gross profit margin is an impressive 81.25%, reflecting the low marginal cost of delivering additional software units.
• Strategic Focus: The company is heavily focused on computational science and artificial intelligence (AI), positioning itself for growth in areas like digital twin technology.

The Client Engineering Services segment, while smaller, is important because it provides the high-touch consulting and expertise needed to help clients implement and fully utilize the complex simulation software, making the software even stickier. If you want to dive deeper into the ownership structure post-acquisition, you should be Exploring Altair Engineering Inc. (ALTR) Investor Profile: Who's Buying and Why?

Altair Engineering Inc.'s Financial Performance

The last publicly reported financials for the full fiscal year 2024, released in early 2025, showed a strong financial turnaround and health, which is what made the company an attractive acquisition target for Siemens Industry Software Inc. on March 26, 2025.

• Total Revenue: Reached $665.8 million for the full year 2024, driven by an 11.3% increase in software revenue.
• Net Income: The company achieved a Net Income of $14.2 million, a significant improvement from the prior year's net loss of $8.9 million.
• Earnings Per Share (EPS): Basic EPS stood at $0.17, showing a positive shift in profitability.
• Free Cash Flow (FCF): FCF was robust at $140.0 million for the full year 2024, indicating strong operational efficiency and cash generation.

The fact that the company was able to generate such a high level of free cash flow while simultaneously transitioning from a net loss to a net income shows a business model that is maturing and scaling efficiently. This is a classic sign of a healthy subscription-based software business.

Altair Engineering Inc. (ALTR) Market Position & Future Outlook

Altair Engineering Inc.'s future trajectory is fundamentally altered by its acquisition by Siemens Industry Software Inc. in March 2025 for approximately $9.7 billion, positioning it as a core component of the Siemens Xcelerator platform. This move transforms Altair from a strong independent niche leader into the primary AI and simulation engine for one of the world's largest industrial technology companies, giving it immediate, massive distribution.

You need to view Altair not as a standalone software vendor anymore, but as a strategic asset whose success is now tied to the broader digital transformation strategy of Siemens. Honestly, that's the single biggest change for investors and competitors alike.

Competitive Landscape

The competitive landscape in simulation and data analytics is dominated by a few giants. While Altair's standalone revenue for the full year 2024 was $665.8 million, it was one of the smaller, yet highly innovative, players in a market where rivals generate billions.

The table below reflects the competitive positioning in the high-end Computer-Aided Engineering (CAE) and simulation market as of late 2025, with Altair's advantage now being its new ownership structure.

Opportunities & Challenges

The market for simulation software is projected to grow significantly, with one estimate placing the global market size at $10.029 billion by 2025, driven by the need for virtual prototyping and digital twins. Altair is defintely poised to capture a larger portion of this growth, but not without facing significant integration and market risks.

Industry Position

Altair's industry position has shifted from a leading independent computational intelligence firm to a critical, specialized unit within a larger industrial software powerhouse. The company's core strength remains its unique, unit-based subscription licensing model and its convergence strategy, which brings together simulation, HPC, and AI.

• AI & HPC Leadership: Altair is a recognized leader in High-Performance Computing (HPC) and is rapidly integrating Generative AI and machine learning into its core simulation tools, which is a key differentiator against rivals.
• Financial Health (2024 Context): The company entered 2025 with robust financial health, reporting a Gross Profit of $541.0 million in 2024, reflecting a strong gross profit margin of 81.25%.
• Strategic Focus: Post-acquisition, the focus is on accelerating the 'digital thread' vision, which connects design, manufacturing, and in-service operations using physics-based digital twins.

The acquisition by Siemens is a strategic shield, giving Altair the resources and market access to compete on a scale previously impossible. Your next step should be to analyze how this integration will specifically impact the Siemens Xcelerator platform's offerings in your industry.