tdc-20250930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-33458

TERADATA CORPORATION

(Exact name of registrant as specified in its charter)


Delaware						75-3236470
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification No.)

17095 Via Del Campo

San Diego, California 92127

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (866) 548-8348

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

Trading Symbol

Name of Each Exchange on which Registered:

Common Stock, $0.01 par value

TDC

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

At October 24, 2025, the registrant had approximately 93.2 million shares of common stock outstanding.

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION




	Description	Page

Item 1.	Financial Statements

	Condensed Consolidated Statements of Income (Unaudited) Three and Nine Months Ended September 30, 2025 and 2024	4

	Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three and Nine Months Ended September 30, 2025 and 2024	5

	Condensed Consolidated Balance Sheets (Unaudited) September 30, 2025 and December 31, 2024	6

	Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 30, 2025 and 2024	7

	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) Three and Nine Months Ended September 30, 2025 and 2024	8

	Notes to Condensed Consolidated Financial Statements (Unaudited)	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32

Item 4.	Controls and Procedures	33

PART II—OTHER INFORMATION

	Description	Page

Item 1.	Legal Proceedings	33

Item 1A.	Risk Factors	33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	34

Item 3.	Defaults Upon Senior Securities	34

Item 4.	Mine Safety Disclosures	34

Item 5.	Other Information	34

Item 6.	Exhibits	35

	Signatures	36

Table of Contents

Part 1—FINANCIAL INFORMATION


Item 1.			Financial Statements.

Teradata Corporation

Condensed Consolidated Statements of Income (Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions, except per share amounts	2025		2024		2025		2024
Revenue
Subscription software licenses	$	60	$	72	$	208	$	235
Services and other	306		300		870		893
Total recurring	366		372		1,078		1,128
Perpetual software licenses, hardware and other	3		7		16		20
Consulting services	47		61		148		193
Total revenue	416		440		1,242		1,341
Cost of revenue
Subscription software licenses	5		4		15		14
Services and other	111		107		328		319
Total recurring	116		111		343		333
Perpetual software licenses, hardware and other	—		5		12		18
Consulting services	47		58		156		175
Total cost of revenue	163		174		511		526
Gross profit	253		266		731		815
Operating expenses
Selling, general and administrative expenses	122		137		373		429
Research and development expenses	70		73		207		216
Total operating expenses	192		210		580		645
Income from operations	61		56		151		170
Other expense, net
Interest expense	(7)		(7)		(20)		(22)
Interest income	2		3		7		9
Other expense	(2)		(5)		(13)		(23)
Total other expense, net	(7)		(9)		(26)		(36)
Income before income taxes	54		47		125		134
Income tax expense	14		15		32		45
Net income	$	40	$	32	$	93	$	89
Net income per common share
Basic	$	0.42	$	0.33	$	0.98	$	0.92
Diluted	$	0.42	$	0.33	$	0.96	$	0.91
Weighted average common shares outstanding
Basic	94.2		96.1		94.9		96.7
Diluted	95.5		97.0		96.5		98.3

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Teradata Corporation

Condensed Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2025		2024		2025		2024
Net income	$	40	$	32	$	93	$	89
Other comprehensive income (loss):
Foreign currency translation adjustments	(2)		9		24		(6)
Unrealized (loss) gain on cross-currency net investment hedge, before tax	—		(4)		(18)		1
Unrealized (loss) gain on cross-currency net investment hedge, tax portion	—		1		4		—
Total currency translation adjustments	(2)		6		10		(5)
Derivatives:
Unrealized (loss) gain on derivatives, before tax	(1)		(12)		(7)		(6)
Unrealized (loss) gain on derivatives, tax portion	1		3		2		1
Unrealized (loss) gain on derivatives, net of tax	—		(9)		(5)		(5)
Defined benefit plans:
Defined benefit plan adjustment, before tax	2		3		6		7
Defined benefit plan adjustment, tax portion	(1)		(1)		(2)		(2)
Defined benefit plan adjustment, net of tax	1		2		4		5
Other comprehensive (loss) income	(1)		(1)		9		(5)
Comprehensive income	$	39	$	31	$	102	$	84

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Table of Contents

Teradata Corporation

Condensed Consolidated Balance Sheets (Unaudited)


In millions, except per share amounts	September 30, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	406	$	420
Accounts receivable, net	309		234
Inventories	5		18
Other current assets	91		77
Total current assets	811		749
Property and equipment, net	203		185
Right of use assets - operating lease, net	7		8
Goodwill	399		394
Capitalized contract costs, net	35		46
Deferred income taxes	212		226
Other assets	94		96
Total assets	$	1,761	$	1,704
Liabilities and stockholders’ equity
Current liabilities
Current portion of long-term debt	$	25	$	25
Current portion of finance lease liability	56		57
Current portion of operating lease liability	3		4

Accounts payable	100		106
Payroll and benefits liabilities	96		111
Deferred revenue	527		512
Other current liabilities	99		115
Total current liabilities	906		930
Long-term debt	437		455
Finance lease liability	47		30
Operating lease liability	5		5
Pension and other postemployment plan liabilities	104		104
Long-term deferred revenue	12		10
Deferred tax liabilities	10		9
Other liabilities	21		28
Total liabilities	1,542		1,571
Commitments and contingencies (Note 8)
Stockholders’ equity
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively	—		—
Common stock: par value $0.01 per share, 500.0 shares authorized, 93.7 and 95.1 shares issued at September 30, 2025 and December 31, 2024, respectively	1		1
Paid-in capital	2,279		2,192

Accumulated deficit	(1,923)		(1,913)
Accumulated other comprehensive loss	(138)		(147)
Total stockholders’ equity	219		133
Total liabilities and stockholders’ equity	$	1,761	$	1,704

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Table of Contents

Teradata Corporation

Condensed Consolidated Statements of Cash Flows (Unaudited)


	Nine Months Ended September 30,
In millions	2025		2024
Operating activities
Net income	$	93	$	89
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	67		78
Stock-based compensation expense	82		92
Deferred income taxes	24		5
Loss on Blue Chip Swap	1		3
Changes in assets and liabilities:
Receivables	(75)		39
Inventories	13		(3)
Current payables and accrued expenses	(66)		(37)
Deferred revenue	17		(97)
Other assets and liabilities	(11)		(22)
Net cash provided by operating activities	145		147
Investing activities
Expenditures for property and equipment	(10)		(17)

Additions to capitalized software	(1)		(1)

Other investing activities, net	(1)		(5)
Net cash used in investing activities	(12)		(23)
Financing activities
Repurchases of common stock	(102)		(186)

Repayments of long-term borrowings	(19)		(13)


Payments of finance leases	(51)		(54)
Other financing activities, net	3		(1)
Net cash used in financing activities	(169)		(254)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	22		(8)
Decrease in cash, cash equivalents and restricted cash	(14)		(138)
Cash, cash equivalents and restricted cash at beginning of period	421		486
Cash, cash equivalents and restricted cash at end of period	$	407	$