tdc-20250630

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 June 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 July 25, 2025, the registrant had approximately 94.5 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 Six Months Ended June 30 , 2025 and 2024	4

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

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

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

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

	Notes to Condensed Consolidated Financial Statements (Unaudited)	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30

Item 4.	Controls and Procedures	31

PART II—OTHER INFORMATION

	Description	Page

Item 1.	Legal Proceedings	31

Item 1A.	Risk Factors	31

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	32

Item 3.	Defaults Upon Senior Securities	32

Item 4.	Mine Safety Disclosures	32

Item 5.	Other Information	32

Item 6.	Exhibits	33

	Signatures	34

Table of Contents

Part 1—FINANCIAL INFORMATION


Item 1.			Financial Statements.

Teradata Corporation

Condensed Consolidated Statements of Income (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
In millions, except per share amounts	2025		2024		2025		2024
Revenue
Subscription software licenses	$	65	$	73	$	148	$	163
Services and other	289		295		564		593
Total recurring	354		368		712		756
Perpetual software licenses, hardware and other	3		5		13		13
Consulting services	51		63		101		132
Total revenue	408		436		826		901
Cost of revenue
Subscription software licenses	5		5		10		10
Services and other	114		105		217		212
Total recurring	119		110		227		222
Perpetual software licenses, hardware and other	3		5		12		13
Consulting services	56		56		109		117
Total cost of revenue	178		171		348		352
Gross profit	230		265		478		549
Operating expenses
Selling, general and administrative expenses	135		131		251		292
Research and development expenses	71		68		137		143
Total operating expenses	206		199		388		435
Income from operations	24		66		90		114
Other expense, net
Interest expense	(6)		(7)		(13)		(15)
Interest income	2		2		5		6
Other expense	(7)		(6)		(11)		(18)
Total other expense, net	(11)		(11)		(19)		(27)
Income before income taxes	13		55		71		87
Income tax expense	4		18		18		30
Net income	$	9	$	37	$	53	$	57
Net income per common share
Basic	$	0.09	$	0.38	$	0.56	$	0.59
Diluted	$	0.09	$	0.38	$	0.55	$	0.58
Weighted average common shares outstanding
Basic	95.3		96.5		95.2		97.0
Diluted	96.0		97.4		97.0		98.9

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Teradata Corporation

Condensed Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2025		2024		2025		2024
Net income	$	9	$	37	$	53	$	57
Other comprehensive income (loss):
Foreign currency translation adjustments	18		(5)		26		(15)
Unrealized (loss) gain on cross-currency net investment hedge, before tax	(13)		2		(18)		5
Unrealized (loss) gain on cross-currency net investment hedge, tax portion	3		—		4		(1)
Total currency translation adjustments	8		(3)		12		(11)
Derivatives:
Unrealized (loss) gain on derivatives, before tax	(2)		1		(6)		6
Unrealized (loss) gain on derivatives, tax portion	—		(1)		1		(2)
Unrealized (loss) gain on derivatives, net of tax	(2)		—		(5)		4
Defined benefit plans:
Defined benefit plan adjustment, before tax	2		2		4		4
Defined benefit plan adjustment, tax portion	(1)		—		(1)		(1)
Defined benefit plan adjustment, net of tax	1		2		3		3
Other comprehensive income (loss)	7		(1)		10		(4)
Comprehensive income	$	16	$	36	$	63	$	53

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Table of Contents

Teradata Corporation

Condensed Consolidated Balance Sheets (Unaudited)


In millions, except per share amounts	June 30, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	369	$	420
Accounts receivable, net	293		234
Inventories	5		18
Other current assets	90		77
Total current assets	757		749
Property and equipment, net	205		185
Right of use assets - operating lease, net	9		8
Goodwill	400		394
Capitalized contract costs, net	37		46
Deferred income taxes	231		226
Other assets	98		96
Total assets	$	1,737	$	1,704
Liabilities and stockholders’ equity
Current liabilities
Current portion of long-term debt	$	25	$	25
Current portion of finance lease liability	60		57
Current portion of operating lease liability	4		4

Accounts payable	115		106
Payroll and benefits liabilities	84		111
Deferred revenue	521		512
Other current liabilities	89		115
Total current liabilities	898		930
Long-term debt	443		455
Finance lease liability	46		30
Operating lease liability	5		5
Pension and other postemployment plan liabilities	108		104
Long-term deferred revenue	12		10
Deferred tax liabilities	10		9
Other liabilities	39		28
Total liabilities	1,561		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 June 30, 2025 and December 31, 2024, respectively	—		—
Common stock: par value $0.01 per share, 500.0 shares authorized, 94.7 and 95.1 shares issued at June 30, 2025 and December 31, 2024, respectively	1		1
Paid-in capital	2,244		2,192

Accumulated deficit	(1,932)		(1,913)
Accumulated other comprehensive loss	(137)		(147)
Total stockholders’ equity	176		133
Total liabilities and stockholders’ equity	$	1,737	$	1,704

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Table of Contents

Teradata Corporation

Condensed Consolidated Statements of Cash Flows (Unaudited)


	Six Months Ended June 30,
In millions	2025		2024
Operating activities
Net income	$	53	$	57
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	43		53
Stock-based compensation expense	53		63
Deferred income taxes	4		8
Loss on Blue Chip Swap	—		3
Changes in assets and liabilities:
Receivables	(59)		38
Inventories	13		(9)
Current payables and accrued expenses	(54)		(64)
Deferred revenue	11		(53)
Other assets and liabilities	(13)		(26)
Net cash provided by operating activities	51		70
Investing activities
Expenditures for property and equipment	(5)		(9)

Additions to capitalized software	—		(1)

Other investing activities, net	(1)		(3)
Net cash used in investing activities	(6)		(13)
Financing activities
Repurchases of common stock	(72)		(171)

Repayments of long-term borrowings	(12)		(6)


Payments of finance leases	(33)		(37)
Other financing activities, net	(2)		(6)
Net cash used in financing activities	(119)		(220)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	23		(22)
Decrease in cash, cash equivalents and restricted cash	(51)		(185)
Cash, cash equivalents and restricted cash at beginning of period	421		486
Cash, cash equivalents and restricted cash at end of period	$	370	$	301

Supplemental cash flow disclosure:
Assets acquired under operating lease	$	2	$	1
Assets acquired under finance lease	$	52	$	18

Reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets:


	June 30, 2025		December 31, 2024
Cash and cash equivalents	$	369	$	420
Restricted cash	1		1
Total cash, cash equivalents and restricted cash	$	370	$	421

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Table of Contents

Teradata Corporation

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)


	Common Stock			Paid-in		Accumulated		Accumulated Other Comprehensive
In millions	Shares	Amount		Capital		Deficit		Loss		Total
December 31, 2024	95	$	1	$	2,192	$	(1,913)	$	(147)	$	133
Net income	—	—		—		44		—		44
Employee stock compensation, employee stock purchase programs and option exercises, net of tax	2	—		22		—		—		22

Repurchases of common stock, retired	(1)	—		—		(44)		—		(44)
Pension and postemployment benefit plans, net of tax	—	—		—		—		2		2
Unrealized loss on derivatives, net of tax	—	—		—		—		(3)		(3)
Currency translation adjustment	—	—		—