Teradata Corporation · NYSE:TDC

Teradata — Q3 2025 Earnings Presentation

37 slides from Teradata's earnings presentation, November 2025

1. Slide 1: Q3'25 Earnings Results

   November 2025 Q3’25 Earnings Results Teradata Investor Relations © 2025 Teradata. All rights reserved.

2. Slide 2: Forward-looking statements and Non-GAAP Financial Measures

   Forward-looking statements Non-GAAP Financial Measures This release contains forward-looking statements within business transformation program or restructuring, sales This presentation and the accompanying discussion the meaning of Section 21E of the Securities and and operational execution initiati

3. Slide 3: Teradata – at a glance

   Teradata – at a glance Corporate purpose What we do How we do it We believe people thrive when We are the hybrid cloud platform We deliver harmonized data, empowered with trusted for Trusted AI. We drive value and Trusted AI, and faster innovation information. innovation at scale, making it faster f

4. Slide 4: Q3'25 Financials

   Q3’25 Financials © 2025 Teradata. All rights reserved. 4

5. Slide 5: Teradata – by the numbers Q3'25

   Teradata – by the numbers Q3’25 Public Cloud ARR Total ARR Recurring Revenue Total Revenue $633M $1.490B $366M $416M + 11% YoY + 1% YoY - 2% YoY - 5% YoY + 11% YoY in CC + 0% YoY in CC - 3% YoY in CC - 6% YoY in CC GAAP Diluted EPS Non-GAAP Diluted EPS Cash Flow from Operations Free Cash Flow $0.42

6. Slide 6: ARR by product

   ARR by product 1,570 1,480 1,482 1,474 1,489 1,490 1,465 1,442 173 92 139 121 119 99 99 95 $1.490B 869 816 802 793 766 741 756 765 + 1% YoY + 0% YoY in CC 570 609 606 634 633 528 525 542 42% Cloud ARR as a % of Total ARR Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Cloud Subscription Maint & SW U

7. Slide 7: Cloud ARR & TTM Net Expansion Rate

   Cloud ARR & TTM Net Expansion Rate 640 630 620 $633M 610 600 590 580 570 + 11% YoY 560 550 540 + 11% YoY in CC 530 520 510 109% Cloud Net Expansion Rate 500 490 480 470 460 528 525 542 570 609 606 634 633 450 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Cloud ARR Notes: 1) Amounts in U.S. Dollars

8. Slide 8: Revenue by type

   Revenue by type $416M 457 465 436 440 409 418 408 416 73 69 8 63 61 50 47 12 5 7 55 51 3 3 10 3 - 5% YoY - 6% CC 372 388 368 372 351 358 354 366 88% Recurring Revenue as a % of Total Revenue Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Recurring Perpetual Consulting Q4’23 Q1’24 Q2’24 Q3’24 Q4’24

9. Slide 9: Gross Margin

   $300 75% Gross Margin ($M) Non-GAAP gross margin 72% 72% $275 71% 71% 70% 70% $250 69% Recurring 70% 68% $225 $200 65% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Total Gross Margin % of Revenue 100% $300 70% $5 100% Gross Margin ($M) 80% $3 33% 29% 60% Perpetual 10% 40% 0% 0% 0% 20% 65% $1 0% $

10. Slide 10: Non-GAAP operating expenses

    Non-GAAP operating expenses SG&A R&D 150 40% 70 20% 68 66 64 62 125 29% 29% 29% 60 30% 58 16% 26% 26% 56 25% 54 15% 24% 24% 52 100 50 14% 14% 14% 14% 14% 14% 48 46 20% 44 42 75 40 38 36 131 134 114 109 117 101 107 101 34 63 66 61 63 60 60 64 60 32 50 10% 30 10% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2

11. Slide 11: Non-GAAP operating margin & earnings per share

    Non-GAAP operating margin & earnings per share Non-GAAP Operating Margin Earnings per Share $125 24% 2.46 2.38 22% 23% 22% 25% $2.50 $100 19% 19% 18% 20% $2.00 16% $75 $1.50 1.22 15% $50 10% $1.00 0.84 0.69 0.72 $25 0.42 5% $0.50 0.33 $0 0% $0.00 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 LTM24

12. Slide 12: Free cash flow & capital allocation

    Free cash flow & capital allocation 323 Q3'25 Capital Allocation YTD'25 Capital Allocation 297 301 282 Stock repurchase Stock repurchase $30M $102M 94 88 Approximately 1.4 million shares Approximately 4.3 million shares 77 69 Return of Q3'25 FCF = 34% Return of YTD'25 FCF = 76% Target = at least 50%

13. Slide 13: Select cash and debt balances

    Select cash and debt balances Net Cash (Debt) $600 $ Millions Q3’24 Q4’24 Q1'25 Q2'25 Q3'25 $400 Cash and cash $ 348 $ 420 $ 368 $ 369 $ 406 equivalents $200 $ Millions Total debt $ (486) $ (480) $ (474) $ (468) $ (462) $- Finance lease $ (100) $ (87) $ (105) $ (106) $ (103) $(200) liabilities $(400

14. Slide 14: 2025 Financial Outlook

    2025 Financial Outlook © 2025 Teradata. All rights reserved. 14

15. Slide 15: FY25 financial outlook

    FY25 financial outlook Public cloud ARR Recurring revenue Non-GAAP diluted EPS growth of 14% to 18% YoY in CC in the range of -3% to -5% YoY in CC in the range of $2.38 to $2.42 Total ARR Total revenue Free cash flow growth of flat to 2% YoY in CC in the range of -5% to -7% YoY in CC of $260 to $280

16. Slide 16: Q4'25 financial outlook

    Q4’25 financial outlook Recurring revenue Total revenue Non-GAAP diluted EPS in the range of -1% to -3% YoY in CC in the range of -2% to -4% YoY in CC in the range of $0.53 to $0.57 Notes: Non-GAAP diluted earnings per share (EPS) is a non-GAAP measures. Please see the Appendix for reconciliation of

17. Slide 17: FY25 key modeling assumptions

    FY25 key modeling assumptions Non-GAAP Tax Rate WASO 23.1% 96.1 million Return of FCF Other Expense Target at least 50% Approximately $39 million © 2025 Teradata. All rights reserved. 17

18. Slide 18: Industry Recognition

    Industry Recognition © 2025 Teradata. All rights reserved. 18

19. Slide 19: Industry recognition

    Industry recognition Leader in The Forrester Teradata recognized Wave : Data for our vision and Management for execution in the Analytics Platforms, 2024 Gartner® Magic Q2 2025 Quadrant for Cloud Database Strong Performer in Management Systems The Forrester Wave: Data Lakehouse Q2 2024 Leader in The

20. Slide 20: Teradata recognized in the Gartner Magic Quadrant for Cloud DBMS

    Figure 1. Magic Quadrant to Cloud Database Management Systems Teradata recognized for our Ability to Execute and Completeness of Vision in the Gartner® Magic Quadrant for Cloud Database Management Systems We offer a bold vision for how trusted AI will impact business and transform enterprises amid t

21. Slide 21: Strong performance across all Gartner Critical Capabilities Use Cases

    Strong performance across all evaluated Use Cases in Gartner® Critical Capabilities for Cloud Database Management Systems for Analytical Use Cases • Tied for second in the Enterprise Data Warehouse Use Case • Placed among the highest ranked five vendors across every evaluated Use Case—highlighting t

22. Slide 22: Teradata is a Customers' Choice

    Teradata is a Customers’ Choice Teradata receives a 2024 Customers’ Choice for Cloud Database Management Systems in the Gartner® Peer Insights ‘Voice of the Customer’ report! Recognition is based on reviews and ratings from verified end- users, reflecting genuine satisfaction and positive experience

23. Slide 23: Teradata named a Leader in The Forrester Wave Q2 2025

    The Forrester Wave Data Management for Analytics Platforms, Q2 2025 Teradata named a Leader in the The Forrester Wave Data Management for Analytics Platforms, Q2 2025 Teradata earned the highest scores possible (5/5) in the criteria of Vision, In-Platform Analytics, Data Transformation, Data Modelin

24. Slide 24: Appendix

    Appendix © 2025 Teradata. All rights reserved. 24

25. Slide 25: GAAP to Non-GAAP Reconciliations and Additional Information

    GAAP to Non-GAAP Reconciliations and Additional Information Use of Non-GAAP Measures Teradata reports its results in accordance with GAAP. However, as described below, the Company believes that certain non- GAAP measures such as free cash flow, non-GAAP gross profit, non-GAAP gross margin, non-GAAP

26. Slide 26: Three months ended September 30, 2025 and 2024

    GAAP to Non-GAAP Reconciliation Three months ended September 30, 2025 and 2024 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financ

27. Slide 27: Nine months ended September 30, 2025 and 2024

    GAAP to Non-GAAP Reconciliation Nine months ended September 30, 2025 and 2024 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financi

28. Slide 28: Three months ended June 30, 2025 and 2024

    GAAP to Non-GAAP Reconciliation Three months ended June 30, 2025 and 2024 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial m

29. Slide 29: Three months ended March 31, 2025 and 2024

    GAAP to Non-GAAP Reconciliation Three months ended March 31, 2025 and 2024 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial

30. Slide 30: Three months ended December 31, 2024 and 2023

    GAAP to Non-GAAP Reconciliation Three months ended December 31, 2024 and 2023 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financi

31. Slide 31: Three months ended September 30, 2024 and 2023

    GAAP to Non-GAAP Reconciliation Three months ended September 30, 2024 and 2023 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financ

32. Slide 32: Three months ended June 30, 2024 and 2023

    GAAP to Non-GAAP Reconciliation Three months ended June 30, 2024 and 2023 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial m

33. Slide 33: Last twelve months ended September 30, 2025 and 2024

    GAAP to Non-GAAP Reconciliation Last twelve months ended September 30, 2025 and 2024 Amounts in U.S. Dollars in Millions, except per share amounts. NOTES: Amounts are unaudited. 1. The Company believes that free cash flow is a useful non-GAAP measure for investors. Free cash flow does not have a uni

34. Slide 34: Earnings per share

    GAAP to Non-GAAP Reconciliation Earnings per share NOTES: i. Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item. Including the income tax effect assists investors in underst

35. Slide 35: Free cash flow reconciliation – September 30, 2025 and 2024

    GAAP to Non-GAAP Reconciliation Free cash flow reconciliation – September 30, 2025 and 2024 NOTES: The Company believes that free cash flow is a useful non-GAAP measure for investors. Free cash flow does not have a uniform definition under GAAP in the United States and therefore, Teradata's definiti

36. Slide 36: Thank you

    Thank you © 2025 Teradata. All rights reserved.

37. Slide 37: Teradata

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