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© 2025 Teradata. All rights reserved. November 2025Q3’25Earnings ResultsTeradata Investor Relations
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© 2025 Teradata. All rights reserved. 2 Forward-looking statementsThis release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “anticipate,” “continue,” “plan,” “estimate,” “believe,” “focus,” “see,” “commit,” “should,” “project,” “will,” “would,” “likely,” “intend,” “potential,” or similar expressions. Forward-looking statements in this release include our 2025 fourth quarter and 2025 full year financial outlook and product innovation and demand. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including those relating to: the global economic environment and business conditions in general, including inflation, tariffs, and/or recessionary conditions; the ability of our suppliers to meet their commitments to us; the timing of purchases, migrations, or expansions by our current and potential customers, including our ability to retain customers; the rapidly changing and intensely competitive nature of the information technology industry, the data analytics business, and artificial intelligence capabilities; fluctuations in our operating, capital allocation, and cash flow results; our ability to execute and realize the anticipated benefits of our refreshed brand,business transformation program or restructuring, sales and operational execution initiatives, and cost saving initiatives, including restructuring actions; risks inherent in operating in foreign countries, including sanctions, tariffs, foreign currency fluctuations, and/or acts of war; risks associated with data privacy, cyberattacks and maintaining secure and effective products for our customers, as well as, internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services, including for artificial intelligence; tax rates; turnover of our workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful execution of new alliance and acquisition opportunities; subscription arrangements that may be cancelled or fail to be renewed; the impact on our business and financial reporting from the implementation of a new ERP system and changes in accounting rules; and other factors described from time to time in Teradata’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as Teradata’s annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.Non-GAAP Financial MeasuresThis presentation and the accompanying discussion include certain non-GAAP financial measures, which exclude such items as stock-based compensation expense and other special items, as well as other non-GAAP financial measures, such as free cash flow (FCF) and constant currency revenue comparisons. Please refer to the Appendix for a reconciliation of non-GAAP to GAAP measures as well as additional useful information regarding Teradata’s use of non-GAAP financial measures.
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© 2025 Teradata. All rights reserved. 3Teradata – at a glanceCorporate purposeWe believe people thrive when empowered with trusted information.Notes:(1) Total annual recurring revenue (ARR) is defined as the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance. Total ARR does not include managed services. Public cloud ARR is defined as the annual value at a point in time of all contracts related to public cloud implementations of Teradata VantageCloud and does not include ARR related to private or managed cloud implementations. The Company believes these are useful metrics to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q. The impact of currency on ARR is determined by calculating the prior period ending ARR using the current period end currency rates. The impact of currency on revenue is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com.(2) Non-GAAP diluted earnings per share and free cash flow (“FCF”) are non-GAAP financial measures. Please refer to the Appendix for additional information on these non-GAAP financial measures, including reconciliations to the nearest GAAP measures. $633M Public Cloud ARR; an increase of 11% YoY and now comprises 42% of Total ARR(1) $1.490B Total ARR; an increase of 1% YoY(1) Financial OverviewWhat we doWe are the hybrid cloud platform for Trusted AI. We drive value and innovation at scale, making it faster and easier to grow your business.How we do itWe deliver harmonized data, Trusted AI, and faster innovation for better decision-making.LTM25 GAAP Diluted EPS of $1.22 and Non-GAAP Diluted EPS of $2.38(2)LTM25 Cash Flow from Operations of $301M and Free Cash Flow of $282M(2)
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© 2025 Teradata. All rights reserved. © 2025 Teradata. All rights reserved.4Q3’25 Financials
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© 2025 Teradata. All rights reserved.Teradata – by the numbers Q3’25+ 11% YoY+ 11% YoY in CC+ 1% YoY+ 0% YoY in CC- 5% YoY- 6% YoY in CC$633M $1.490B $366M $416MPublic Cloud ARR Total ARR Recurring Revenue Total Revenue5Notes: Total annual recurring revenue (ARR) is defined as the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance. Total ARR does not include managed services. Public cloud ARR is defined as the annual value at a point in time of all contracts related to public cloud implementations of Teradata VantageCloud and does not include ARR related to private or managed cloud implementations. The Company believes these are useful metrics to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q. The impact of currency on ARR is determined by calculating the prior period ending ARR using the current period end currency rates. The impact of currency on revenue is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com. Non-GAAP diluted earnings per share and free cash flow are non-GAAP financial measures. Please refer to the Appendix for additional information on these non-GAAP financial measures, including reconciliations to the nearest GAAP measures.- 2% YoY- 3% YoY in CC+ from $0.33 in Q3'24 + from $0.69 in Q3'24 + from $77M in Q3'24 + from $69M in Q3'24$0.42 $0.72 $94M $88MGAAP Diluted EPS Non-GAAP Diluted EPS Cash Flow from Operations Free Cash Flow
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© 2025 Teradata. All rights reserved. 6ARR by product528 525 542 570 609 606 634 633 869 816 802 793 766 741 756 765 173 139 121 119 99 95 99 92 1,570 1,480 1,465 1,482 1,474 1,442 1,489 1,490 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25CloudSubscriptionMaint & SW Upgrade RightsNotes: Amounts in U.S. Dollars in Millions. Please see Teradata’s Form 10-K for the period ended December 31, 2024, for additional information. Subscription ARR (included within total ARR) - annual contract value for all active and contractually binding term-based contracts at the end of a period. Subscription ARR includes on-premises subscription-based transactions and private cloud. Maintenance and Software Upgrade Rights ARR (included within total ARR) - annual contract value for all active and contractually binding term-based contracts at the end of a period. Maintenance and Software Upgrade Rights ARR includes maintenance and software upgrade rights on perpetual products. The Company believes these are useful metrics to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q. The impact of currency is determined by calculating the prior-period results using the current-year monthly currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com.Q3'25Q2'25Q1'25Q4’24Q3’24Q2’24Q1’24Q4’2342%43%42%41%38%37%35%34%Cloud ARR as a % of Total ARR+ 1% YoY+ 0% YoY in CC$1.490BCloud ARR as a %of Total ARR42%
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© 2025 Teradata. All rights reserved.+ 11% YoY+ 11% YoY in CC528 525 542 570 609 606 634 633450460470480490500510520530540550560570580590600610620630640Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25Cloud ARR7Cloud ARR & TTM Net Expansion RateNotes: 1) Amounts in U.S. Dollars in Millions. Public cloud ARR is defined as the annual value at a point in time of all contracts related to public cloud implementations of Teradata VantageCloud and does not include ARR related to private or managed cloud implementations. 2) The impact of currency is determined by calculating the prior-period results using the current-year monthly currency rates.3) Teradata calculates its last-twelve months dollar-based cloud net expansion rate as of a fiscal quarter end as follows: a) We identify the ARR for active cloud customers in the fiscal quarter ending one year prior to the given fiscal quarter (the "base period"); b) We then identify the Public Cloud ARR in the given fiscal quarter (the "current period") from the same set of active cloud customers as the base period, including increases in usage, as well as reductions and cancellations, and additional conversions of on-premises revenues to the cloud for customers active in the base period, all in constant currency; c) The quarterly dollar-based, Cloud Net Expansion Rate is calculated by taking the ARR from the current period and dividing by the ARR from the base period, and d) The last twelve-month dollar-based cloud net expansion rate is calculated by taking the average of the quarterly dollar-based cloud net expansion rate from the last fiscal quarter and the prior three fiscal quarters.$633MCloud Net Expansion Rate109%
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© 2025 Teradata. All rights reserved. 8Revenue by type372 388 368 372 351 358 354 366 12 8 5 7 3 10 3 3 73 69 63 61 55 50 51 47 457 465 436 440 409 418 408 416 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Recurring Perpetual ConsultingNotes: The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com.Q3'25Q2'25Q1'25Q4’24Q3’24Q2’24Q1’24Q4’2388%87%86%86%85%84%83%81%Recurring Revenue as a% of Total Revenue- 5% YoY- 6% CC$416M88% Recurring Revenue as a % of Total Revenue
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© 2025 Teradata. All rights reserved. 9Non-GAAP gross marginTotalNotes: Non-GAAP gross margin percentage is a non-GAAP measure. Please see the Appendix for reconciliations of GAAP to non-GAAP measures and additional informationRecurringPerpetual and OtherConsulting33%0% 0%29%-67%10%0%100%-80%-60%-40%-20%0%20%40%60%80%100%-$3-$1$1$3$5Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25Gross Margin ($M)Gross Margin% of Revenue16% 16%14%10%9%-2% -2%9%-10%-5%0%5%10%15%20%-$5$0$5$10$15$20Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25Gross Margin ($M)Gross Margin% of Revenue72% 72%71% 71%70% 70%68%69%65%70%75%$200$225$250$275$300Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25Gross Margin ($M)Gross Margin% of Revenue62% 62% 62% 62%61%60%58%62%50%55%60%65%70%$0$100$200$300Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25Gross Margin ($M)Gross Margin% of Revenue
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© 2025 Teradata. All rights reserved. 10Non-GAAP operating expensesSG&A R&D131 134 114 109 117 101 107 10129% 29%26%25%29%24%26%24%10%20%30%40%5075100125150Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25SG&A Expense% of RevenueNotes: Amounts in U.S. Dollars in Millions, except for earnings per share. Non-GAAP SG&A and R&D expenses are non-GAAP measures. Please see the Appendix for reconciliations of GAAP to non-GAAP measures and additional information.63 66 61 63 60 60 64 6014% 14% 14% 14%15%14%16%14%10%20%303234363840424446485052545658606264666870Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25R&D Expense% of Revenue
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© 2025 Teradata. All rights reserved.2.462.380.690.720.841.220.330.42$0.00$0.50$1.00$1.50$2.00$2.50LTM24 LTM25 Q3'24 Q3'25Non-GAAP EPS (Diluted)GAAP EPS (Diluted)11Non-GAAP operating margin & earnings per shareNon-GAAP Operating Margin Earnings per ShareNotes: Amounts in U.S. Dollars in Millions, except for earnings per share. Non-GAAP operating margins and earnings per share are non-GAAP measures. Please see the Appendix for reconciliations of GAAP to non-GAAP measures and additional information.19% 19%22%23%18%22%16%24%0%5%10%15%20%25%$0$25$50$75$100$125Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25Operating Income% of Revenue
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© 2025 Teradata. All rights reserved. 12Free cash flow & capital allocation323 301 77 94 297 282 69 88 LTM24 LTM25 Q3'24 Q3'25Cash from OperationsFree Cash FlowQ3'25 Capital AllocationApproximately 1.4 million sharesReturn of Q3'25 FCF = 34%$30MStock repurchaseNotes: Amounts in U.S. Dollars in Millions. Free cash flow (FCF) is a non-GAAP measure. Teradata defines FCF as cash provided by / used in operating activities, less total capital expenditures. Please see Appendix for additional information.YTD'25 Capital AllocationApproximately 4.3 million sharesReturn of YTD'25 FCF = 76%Target = at least 50% return of FY25 FCF$102MStock repurchase
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© 2025 Teradata. All rights reserved. 13Select cash and debt balancesNet Cash (Debt)Q3'25Q2'25Q1'25Q4’24Q3’24$ Millions$ 406$ 369$ 368$ 420$ 348Cash and cash equivalents$ (462)$ (468)$ (474)$ (480)$ (486)Total debt$ (103)$ (106)$ (105)$ (87)$ (100)Finance lease liabilities$ (159)$ (205)$ (211)$ (147)$ (238)Net cash (debt)$ 30$ 28$ 44$ 29$ 15Share Repurchases $(600) $(400) $(200) $- $200 $400 $600Q3'24 Q4'24 Q1'25 Q2'25 Q3'25$ MillionsCash and cash equivalentsTotal debt & finance lease liabilites
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© 2025 Teradata. All rights reserved. © 2025 Teradata. All rights reserved.142025 Financial Outlook
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© 2025 Teradata. All rights reserved. 15FY25 financial outlookNon-GAAP diluted EPSin the range of $2.38 to $2.42 Free cash flowof $260 to $280 million Notes: Public Cloud ARR (included within Total ARR) - annual value at a point in time of all contracts related to public cloud implementations of Teradata VantageCloud and does not include Annual Recurring Revenue ("ARR") related to private or managed cloud implementations. Total Annual Recurring Revenue ("Total ARR") - annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance. Total ARR does not include managed services. Non-GAAP diluted earnings per share (EPS) and free cash flow (FCF) are non-GAAP measures. Please see the Appendix for reconciliation of GAAP to non-GAAP measures and additional information.We are providing an outlook for the 2025 growth rates for public cloud ARR, total ARR, recurring revenue, and total revenue in constant currency to provide better visibility into the underlying growth of the business. Teradata calculates public cloud ARR and total ARR in constant currency by calculating the prior period ending public cloud ARR or total ARR, as applicable, using the current period end currency rates. It is impractical to provide a schedule on currency period end rates at a future point in time. Teradata calculates recurring revenue and total revenue in constant currency by using the prior-period results with the current-year monthly average currency rates. See the foreign currency fluctuation schedule on the Investor Relations page of the Company’s website at investor.teradata.com to calculate the anticipated impact of currency on the revenue outlook. Total revenuein the range of -5% to -7% YoY in CC Recurring revenuein the range of -3% to -5% YoY in CC Public cloud ARRgrowth of 14% to 18% YoY in CC Total ARRgrowth of flat to 2% YoY in CC
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© 2025 Teradata. All rights reserved. 16Q4’25 financial outlookNon-GAAP diluted EPSin 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 GAAP to non-GAAP measures and additional information.We are providing an outlook for the fourth quarter 2025 growth rates for recurring revenue and total revenue in constant currency to provide better visibility into the underlying growth of the business. Teradata calculates recurring revenue and total revenue in constant currency by using the prior-period results with the current-year monthly average currency rates. See the foreign currency fluctuation schedule on the Investor Relations page of the Company’s website at investor.teradata.com to calculate the anticipated impact of currency on the revenue outlook. Total revenuein the range of -2%to -4%YoY in CC Recurring revenuein the range of -1%to -3%YoY in CC
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© 2025 Teradata. All rights reserved. 17FY25 key modeling assumptionsNon-GAAP Tax Rate23.1%Return of FCFTarget at least 50%WASO96.1 millionOther ExpenseApproximately $39 million
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© 2025 Teradata. All rights reserved. © 2025 Teradata. All rights reserved.18Industry Recognition
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© 2025 Teradata. All rights reserved. Teradata recognized for our vision and execution in the 2024 Gartner® Magic Quadrant for Cloud Database Management Systems Industry recognitionLeader in The Forrester Wave :Data Management for Analytics Platforms, Q2 2025Strong Performer in The Forrester Wave: Data Lakehouse Q2 2024Leader in TheForrester Wave : Enterprise Data Fabric, Q1 2024599+ ratings
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© 2025 Teradata. All rights reserved.We offer a bold vision for how trusted AI will impact business and transform enterprises amid the rapid evolution of AI and cloud technology.Teradata recognized for our Ability to Execute and Completeness of Vision in the Gartner® Magic Quadrant for Cloud Database Management Systems Gartner does not endorse any vendor, product, or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.Gartner, Magic Quadrant for Cloud Database Management Systems, By Henry Cook, Ramke Ramakrishnan, Xingyu Gu, Aaron Rosenbaum, Masud Miraz, 19 December 2024.GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates and is used herein with permission. All rights reserved. Figure 1. Magic Quadrant to Cloud Database Management Systems Source: Gartner
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© 2025 Teradata. All rights reserved.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 the breadth and strength of our product capabilities.Gartner, Critical Capabilities for Cloud Database Management Systems for Analytical Use Cases, Aaron Rosenbaum, Henry Cook, Ramke Ramakrishnan, Xingyu Gu, Masud Miraz, 20 January, 2025.Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
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© 2025 Teradata. All rights reserved.7 Teradata is a Customers’ ChoiceTeradata 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 experiences with Teradata.
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© 2025 Teradata. All rights reserved. Internal use onlyInternal use only 23 Teradata named a Leader in the The Forrester Wave ր 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 Modeling, and Data Integration—which we believe reflects our strong performance across all platform capabilities and underscores the strength of our strategic vision. “Teradata is a good choice for organizations seeking to support hybrid cloud DMA deployments, especially where reliability, scalability, and high availability are essential.” – As written in the report authored by Noel Yuhanna Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester’s objectivity hereௗ. The Forrester Wave ր Data Management for Analytics Platforms, Q2 2025
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© 2025 Teradata. All rights reserved. © 2025 Teradata. All rights reserved.24Appendix
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© 2025 Teradata. All rights reserved. 25GAAP to Non-GAAP Reconciliations and Additional InformationUse of Non-GAAP MeasuresTeradata 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 operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted earnings per share, all of which exclude certain items, and which may be reported on a constant currency basis, are useful for investors. Our non-GAAP measures are not meant to be considered in isolation to, as substitutes for, or superior to, results determined in accordancewith GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Each of our non-GAAP measures do not have a uniform definition under GAAP and therefore, Teradata’s definition may differ from other companies’ definitions of these measures.The following tables reconcile Teradata’s actual and projected results and EPS under GAAP to the Company’s actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, net income, and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. The Company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Company’s ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the Company’s operating results excluding stock-based compensation expense and special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results.
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© 2025 Teradata. All rights reserved. 26 GAAP to Non-GAAP ReconciliationThree months ended September 30, 2025 and 2024Amounts 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 measures may be used to reflect operational performance and to determine the effectiveness of its business management. Certain special items may be segregated from our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Non-GAAP measures should not be used as a substitute for, or superior to, the Company's reported GAAP results.2. Special items for the three months ended September 30, 2025 include $7 million ($5 million after-tax) for reorganization, transformation and other activities.3. Special items for the three months ended September 30, 2024 include $14 million ($10 million after-tax) for reorganization, transformation and other activities.
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© 2025 Teradata. All rights reserved. 27 GAAP to Non-GAAP ReconciliationAmounts 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 measures may be used to reflect operational performance and to determine the effectiveness of its business management. Certain special items may be segregated from our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Non-GAAP measures should not be used as a substitute for, or superior to, the Company's reported GAAP results. 2. Special items for the nine months ended September 30, 2025 include $22 million ($10 million after-tax) for reorganization, transformation and other activities.3. Special items for the nine months ended September 30, 2024 include $2 million ($2 million after-tax) for losses on sale of Blue Chip Swap, and $22 million ($16 million after-tax) for reorganization, transformation and other activities.Nine months ended September 30,2025 and 2024
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© 2025 Teradata. All rights reserved. 28 GAAP to Non-GAAP ReconciliationThree months ended June 30, 2025 and 2024Amounts 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 measures may be used to reflect operational performance and to determine the effectiveness of its business management. Certain special items may be segregated from our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Non-GAAP measures should not be used as a substitute for, or superior to, the Company's reported GAAP results.2. Special items for the three months ended June 30, 2025 include $12 million ($4 million after-tax) for reorganization, transformation and other activities.3. Special items for the three months ended June 30, 2024 include $1 million ($1 million after-tax) for reorganization, transformation and other activities.
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© 2025 Teradata. All rights reserved. 29 GAAP to Non-GAAP ReconciliationThree months ended March 31, 2025 and 2024Amounts 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 measures may be used to reflect operational performance and to determine the effectiveness of its business management. Certain special items may be segregated from our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Non-GAAP measures should not be used as a substitute for, or superior to, the Company's reported GAAP results.2. Special items for the three months ended March 31, 2025 include $3 million ($1 million after-tax) for reorganization, transformation and other activities.3. Special items for the three months ended March 31, 2024 include $2 million ($2 million after-tax) for losses on sale of Blue Chip Swap, and $7 million ($5 million after-tax) for reorganization, transformation and other activities.
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© 2025 Teradata. All rights reserved. 30 GAAP to Non-GAAP ReconciliationThree months ended December 31, 2024 and 2023Amounts 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 measures may be used to reflect operational performance and to determine the effectiveness of its business management. Certain special items may be segregated from our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Non-GAAP measures should not be used as a substitute for, or superior to, the Company's reported GAAP results.2. Special items for the three months ended December 31, 2024 include $6 million ($4 million after-tax) for reorganization, transformation and other activities.3. Special items for the three months ended December 31, 2023 include $13 million ($21 million after-tax) for losses on sale of Blue Chip Swap, a $12 million tax impact from a tax valuation allowance in Argentina, and $13 million ($8 million after-tax) for reorganization and transformation activities.
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© 2025 Teradata. All rights reserved. 31 GAAP to Non-GAAP ReconciliationThree months ended September 30, 2024 and 2023Amounts 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 measures may be used to reflect operational performance and to determine the effectiveness of its business management. Certain special items may be segregated from our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Non-GAAP measures should not be used as a substitute for, or superior to, the Company's reported GAAP results.2. Special items for the three months ended September 30, 2024 include $14 million ($10 million after-tax) for reorganization, transformation and other activities.3. Special items for the three months ended September 30, 2023 include $3 million ($3 million after-tax) for reorganization and transformation activities.
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© 2025 Teradata. All rights reserved. 32 GAAP to Non-GAAP ReconciliationAmounts 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 measures may be used to reflect operational performance and to determine the effectiveness of its business management. Certain special items may be segregated from our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Non-GAAP measures should not be used as a substitute for, or superior to, the Company's reported GAAP results.2. Special items for the three months ended June 30, 2024 include $1 million ($1 million after-tax) for reorganization, transformation and other activities.3. Special items for the three months ended June 30, 2023 include $4 million ($2 million after-tax) for reorganization and transformation activities.Three months ended June 30, 2024 and 2023
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© 2025 Teradata. All rights reserved. 33 GAAP to Non-GAAP ReconciliationLast twelve months ended September 30, 2025 and 2024NOTES:1. 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 definition may differ from other companies' definitions of this measure. Teradata defines free cash flow as cash provided by/used in operating activities, less investing activities related to capital expenditures for property and equipment and additions to capitalized software ("total capital expenditures"). Teradata’s management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for among other things, investments in the Company's existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of Company stock and repay the Company’s debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other non-discretionary expenditures that are not deducted from the measure. This non-GAAP measure should not be considered as a substitute for, or superior to, cash flows from operating activities under GAAP.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 understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Company’s ongoing operations. ii. Represents the impact to earnings per share as a result of moving from basic to diluted shares.Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited.
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© 2025 Teradata. All rights reserved. 34Earnings per shareNOTES: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 understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Company’s ongoing operations. As a result of these adjustments, the Company’s non-GAAP effective tax rate for the three months ended September 30, 2025, was 23.3% and September 30, 2024, was 25.6%. In addition, for the first quarter and full year 2025, we included a discrete tax adjustment of ($0.06) for the expected reversal of tax reserves due to the final settlement of an IRS audit in the first quarter of 2025. For the nine months ended September 30, 2025, the Company’s non-GAAP effective tax rate was 22.3% and September 30, 2024, was 25.6%.GAAP to Non-GAAP Reconciliation
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© 2025 Teradata. All rights reserved. 35Free cash flow reconciliation – September 30, 2025 and 2024NOTES: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 definition may differ from other companies' definitions of this measure. Teradata defines free cash flow as cash provided by/used in operating activities, less investing activities related to capital expenditures for property and equipment and additions to capitalized software (“total capital expenditures”). Teradata’s management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for among other things, investments in the Company's existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of Company stock and repay the Company’s debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other non-discretionary expenditures that are not deducted from the measure. This non-GAAP measure should not be considered as a substitute for, or superior to, cash flows from operating activities under GAAP.GAAP to Non-GAAP Reconciliation
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© 2025 Teradata. All rights reserved. © 2025 Teradata. All rights reserved.Thank you