Free cash flow generation remains volatile, swinging from a 1.7% margin in 2025Q1 to 90.3% in 2026Q1, largely driven by unpredictable working capital movements.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Cash from Operations | 698M | 305M | 303M | 375M | 419M | 463M | 267M | 148M | 364M | 324M | 446M | 401M | 680M | 510M | 575M | 513M | 413M | 455M | 440M | 387M | 219M | 192M |
| Operating CF Margin % | - | 18.34% | 17.31% | 20.46% | 23.34% | 24.15% | 14.54% | 7.79% | 16.82% | 15.03% | 19.21% | 15.85% | 24.89% | 18.95% | 21.58% | 21.72% | 21.33% | 26.62% | 24.97% | 22.74% | 14.16% | 13.09% |
| Operating CF Growth % | 4937.14% | 0.66% | -19.2% | -10.5% | -9.5% | 73.41% | 80.41% | -59.34% | 12.35% | -27.35% | 11.22% | -41.03% | 33.33% | -11.3% | 12.09% | 24.21% | -9.23% | 3.41% | 13.7% | 76.71% | 14.06% | - |
| Net Income | 421M | 130M | 114M | 62M | 33M | 147M | 129M | -20M | 30M | -67M | 125M | -124M | 367M | 377M | 419M | 353M | 301M | 254M | 250M | 200M | 192M | 206M |
| Depreciation & Amortization | 95M | 90M | 100M | 116M | 134M | 149M | 172M | 150M | 130M | 138M | 128M | 170M | 169M | 147M | 126M | 102M | 60M | 63M | 60M | 68M | 55M | 55M |
| Stock-Based Compensation | 119M | 112M | 119M | 126M | 126M | 112M | 101M | 83M | 65M | 68M | 62M | 56M | 50M | 49M | 43M | 35M | 26M | 23M | 21M | 0 | 0 | 0 |
| Deferred Taxes | 57M | 31M | -11M | -11M | -26M | 14M | -118M | -3M | -18M | -34M | -3M | -24M | -2M | 18M | 77M | 71M | 41M | 41M | 38M | 80M | -14M | -18M |
| Other Non-Cash Items | -116M | 1M | 4M | 13M | 0 | 0 | 0 | 0 | 0 | 0 | 78M | 322M | 7M | 18M | -37M | -42M | -10M | 0 | 2M | 17M | 9M | -32M |
| Working Capital Changes | 29M | -59M | -23M | 69M | 152M | 41M | -17M | -62M | 157M | 219M | 56M | 1M | 89M | -99M | -53M | -6M | -5M | 74M | 69M | 22M | -23M | -19M |
| Change in Receivables | -15M | -17M | 52M | 78M | -28M | -5M | 67M | 190M | -34M | -6M | 40M | 1M | 101M | -46M | -165M | -65M | -15M | 60M | 73M | 0 | 0 | 0 |
| Change in Inventory | 13M | 5M | -5M | -5M | 18M | 3M | 2M | -3M | 2M | 3M | 14M | -11M | 18M | -9M | 14M | 3M | -18M | -2M | 7M | -12M | -10M | -5M |
| Change in Payables | 6M | -48M | -1M | 7M | 35M | 17M | 0 | -153M | 108M | 12M | 11M | -8M | -23M | -63M | 105M | 28M | 19M | 11M | 6M | 0 | 1M | -2M |
| Cash from Investing | -31M | -21M | -32M | -49M | -18M | -31M | -51M | -59M | -163M | -108M | -35M | -52M | -198M | -174M | -422M | -832M | -145M | -57M | -136M | -104M | -89M | -63M |
| Capital Expenditures | -19M | -20M | -26M | -20M | -16M | -31M | -44M | -59M | -160M | -87M | -113M | -120M | -129M | -138M | -148M | -110M | -83M | -88M | -73M | -100M | -68M | -55M |
| CapEx % of Revenue | 1.12% | 1.2% | 1.49% | 1.09% | 0.89% | 1.62% | 2.4% | 3.11% | 7.39% | 4.04% | 4.87% | 4.74% | 4.72% | 5.13% | 5.55% | 4.66% | 4.29% | 5.15% | 4.14% | 5.88% | 4.4% | 3.75% |
| Acquisitions | 0 | 0 | -6M | -29M | -2M | 0 | 0 | 0 | -3M | -21M | 76M | -17M | -69M | -36M | -274M | -722M | 0 | -9M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -12M | -1M | 0 | 0 | 0 | 0 | -7M | 0 | 0 | 0 | 123M | -69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4M | -21M | -8M |
| Cash from Financing | -227M | -233M | -306M | -383M | -381M | -356M | -186M | -308M | -554M | -109M | -262M | -324M | -326M | -362M | -196M | 212M | -47M | -144M | -167M | -14M | -130M | -129M |
| Debt Issued (Net) | -72M | -94M | -90M | -82M | 1M | -136M | -95M | -52M | -285M | -30M | -210M | 313M | -26M | -15M | -11M | 300M | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -96M | -140M | -215M | -308M | -387M | -244M | -100M | -300M | -300M | -351M | -82M | -657M | -551M | -382M | -277M | -127M | -88M | -174M | -176M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -130M | -140M | -215M | -308M | -387M | -244M | -100M | -300M | -300M | -351M | -82M | -657M | -551M | -382M | -277M | -127M | -88M | -174M | -176M | 0 | 0 | 0 |
| Other Financing | -59M | 1M | -1M | 7M | 5M | 24M | 9M | 44M | 31M | 272M | 30M | 20M | 251M | 35M | 92M | 39M | 41M | 30M | 9M | -14M | -130M | -129M |
| Net Change in Cash | 447M | 73M | -65M | -85M | -24M | 62M | 37M | -220M | -373M | 115M | 135M | 5M | 139M | -34M | -43M | -111M | 222M | 259M | 132M | 270M | 0 | 0 |
| Free Cash Flow | 690M | 286M | 277M | 355M | 403M | 432M | 216M | 89M | 204M | 237M | 333M | 281M | 551M | 372M | 427M | 403M | 330M | 367M | 367M | 287M | 151M | 137M |
| FCF Margin % | 40.85% | 17.2% | 15.83% | 19.37% | 22.45% | 22.54% | 11.76% | 4.69% | 9.43% | 10.99% | 14.34% | 11.11% | 20.17% | 13.82% | 16.02% | 17.06% | 17.05% | 21.47% | 20.83% | 16.86% | 9.76% | 9.34% |
| FCF Growth % | 145.55% | 3.25% | -21.97% | -11.91% | -6.71% | 100% | 142.7% | -56.37% | -13.92% | -28.83% | 18.51% | -49% | 48.12% | -12.88% | 5.96% | 22.12% | -10.08% | 0% | 27.87% | 90.07% | 10.22% | - |
| FCF per Share | 7.14 | 2.96 | 2.82 | 3.47 | 3.81 | 3.83 | 1.94 | 0.78 | 1.68 | 1.88 | 2.53 | 2.01 | 3.49 | 2.24 | 2.49 | 2.34 | 1.94 | 2.11 | 2.04 | 1.58 | 0.84 | 0.76 |
| FCF Conversion (FCF/Net Income) | 1.64x | 2.35x | 2.66x | 6.05x | 12.70x | 3.15x | 2.07x | -6.17x | 12.13x | -4.84x | 3.57x | -3.23x | 1.85x | 1.35x | 1.37x | 1.45x | 1.37x | 1.79x | 1.76x | 1.94x | 1.14x | 0.93x |
| Interest Paid | 0 | 0 | 29M | 30M | 23M | 26M | 27M | 26M | 23M | 14M | 12M | 8M | 3M | 4M | 4M | 3M | 0 | 0 | 1M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 75M | 65M | 0 | 44M | 39M | 33M | 33M | 25M | 105M | 98M | 133M | 124M | 54M | 56M | 89M | 44M | 33M | 1M | 0 | 0 |
Cloud transition revenue cannibalization
According to recent financial disclosures, Teradata's operating cash flow frequently decouples from net income, with OCF/NI ratios swinging from 0.18 in 2025Q1 to over 6.0 in 2024Q4, suggesting that headline earnings are heavily influenced by non-cash items and timing differences in revenue recognition.
The extreme volatility in the OCF/NI ratio indicates that net income is a poor proxy for the company's actual cash-generating capacity during this cloud transition. Investors should monitor whether this divergence persists as the business model shifts toward ratable subscription revenue, which may eventually stabilize these cash flow fluctuations.
As reported in quarterly filings, free cash flow margins have demonstrated significant instability, ranging from a low of 1.7% in 2025Q1 to a peak of 90.3% in 2026Q1, highlighting the difficulty in maintaining consistent cash generation while navigating the sunsetting of legacy on-premise revenue streams.
The erratic FCF trajectory suggests that the company's cash generation is highly sensitive to the timing of large enterprise contract renewals and the associated working capital swings. This inconsistency warrants caution, as it implies that the underlying business has not yet achieved the predictable cash flow profile typical of a mature cloud-native software provider.
Based on reported figures, working capital changes have been a primary driver of cash flow variance, with a $122 million inflow in 2023Q4 contrasting sharply with an $88 million outflow in 2025Q1, indicating that customer payment cycles and deferred revenue movements are significantly impacting liquidity.
These large, periodic swings in working capital suggest that Teradata's cash flow is heavily dependent on the timing of billings and collections rather than purely operational efficiency. Analysts should investigate whether these fluctuations are structural artifacts of the transition to subscription-based billing or indicative of underlying challenges in managing customer receivables.
As detailed in recent statements, Teradata has consistently utilized cash for share repurchases, including $44 million in 2025Q1, despite the ongoing revenue contraction and the need for significant R&D investment to remain competitive in the evolving cloud-native data analytics market.
The prioritization of share repurchases over potential strategic acquisitions or debt reduction may suggest that management is attempting to support the stock price during a period of top-line pressure. Investors should consider whether this capital allocation strategy is sustainable if the cloud transition continues to cannibalize legacy revenue at current rates.
Quick answers to the most common questions about buying TDC stock.
Teradata Corporation (TDC) generated $305.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Teradata Corporation (TDC) generated $286.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Teradata Corporation (TDC) spent $20.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Teradata Corporation (TDC) spent $140.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.