Teradata(US:TDC)2025-11-04 21:11Revenue Performance - Total Annual Recurring Revenue (ARR) for Q3 2025 was $1.490 billion, a 1% increase year-over-year, remaining flat in constant currency[3] - Total revenue for Q3 2025 was $416 million, a decrease of 5% as reported and 6% in constant currency compared to Q3 2024[4] - Recurring revenue was $366 million, down 2% as reported and 3% in constant currency from the previous year[4] - Recurring revenue for the nine months ended September 30, 2025, was $1,078 million, down 4% from $1,128 million in the same period of 2024[18] - Total segment revenue decreased by 5% to $416 million for the three months ended September 30, 2025, down from $440 million in 2024[24] - Product sales revenue declined by 3% to $369 million in Q3 2025, compared to $379 million in Q3 2024[24] - Consulting services revenue saw a significant drop of 23%, falling to $47 million from $61 million year-over-year[24] Earnings and Margins - GAAP diluted EPS for Q3 2025 was $0.42, compared to $0.33 per share in Q3 2024, marking a 27% increase[7] - Non-GAAP diluted EPS for Q3 2025 was $0.72, up from $0.69 per share in the same quarter last year[7] - GAAP Earnings Per Share for Q3 2025 was $0.42, up from $0.33 in Q3 2024, representing a 27.3% increase[13] - Non-GAAP Diluted Earnings Per Share for Q3 2025 was $0.72, compared to $0.69 in Q3 2024, indicating a 4.3% increase[13] - GAAP gross margin improved to 60.8% from 60.5% year-over-year[4] - Non-GAAP operating margin increased to 23.6% from 22.5% in the prior year[7] Cash Flow and Capital Expenditures - Free cash flow for Q3 2025 was $88 million, compared to $69 million in Q3 2024, reflecting a 28% increase[7] - Free Cash Flow for Q3 2025 was $88 million, compared to $69 million in Q3 2024, reflecting a 27.5% increase[14] - The company anticipates free cash flow for 2025 to be between $260 million and $280 million[14] - Total capital expenditures for the nine months ended September 30, 2025, were $20 million, compared to $18 million in the same period of 2024[14] Net Income and Assets - The company reported a net income of $40 million for Q3 2025, an increase from $32 million in Q3 2024, representing a 25% increase[18] - Net income for the three months ended September 30, 2025, was $40 million, compared to $32 million for the same period in 2024, reflecting a year-over-year increase of 25%[22] - Total assets increased to $1,761 million as of September 30, 2025, up from $1,704 million at December 31, 2024, representing a growth of 3.35%[20] - Total current liabilities decreased slightly to $906 million as of September 30, 2025, from $930 million at December 31, 2024[20] - Total stockholders' equity rose to $219 million as of September 30, 2025, compared to $133 million at December 31, 2024[20] Guidance and Outlook - The company reaffirms its full-year 2025 outlook for Total ARR, Cloud ARR, and Free Cash Flow[5] - The company expects 2025 full-year GAAP EPS guidance to be between $1.22 and $1.26[13] - The non-GAAP effective tax rate for Q3 2025 was 23.3%, down from 25.6% in Q3 2024[13] Stock Repurchase - The company repurchased $30 million of common stock during the three months ended September 30, 2025, compared to $15 million in the same period of 2024[22]