TE
TER
Jun 29, 2025
Quarter ended Jun 29, 2025 · FY2025 Q2

Teradyne, Inc. stock research

Teradyne (TER) Free Cash Flow — Quarter Ended Jun 29, 2025

Free cash flow improved from the prior quarter but weakened compared to the same quarter last year. The cash conversion rate strengthened sequentially as operating cash flow rose while revenue declined.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Free cash flow improved from the prior quarter but weakened compared to the same quarter last year. The cash conversion rate strengthened sequentially as operating cash flow rose while revenue declined.

  • Revenue decreased from both the prior quarter and the year-ago quarter, yet operating cash flow increased sequentially, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
  • Compared to the prior quarter, free cash flow and free cash flow margin improved as operating cash flow increased and capital expenditure decreased. Compared to the same quarter last year, free cash flow and free cash flow margin weakened due to lower operating cash flow and higher capital expenditure.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$568.9M

Trailing twelve-month free cash flow.

Quarter free cash flow

$131.7M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$182.1M

Cash generated by operations before capital spending.

CapEx

$50.4M

Capital spending and related asset purchases.

FCF margin

20.2%

The share of revenue converted into free cash flow.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2024-09-29$737.3M$166.3M$51.8M$114.4M15.5%
2024-12-31$752.9M$282.6M$57.4M$225.2M29.9%
2025-03-30$685.7M$161.6M$64.0M$97.6M14.2%
2025-06-29$651.8M$182.1M$50.4M$131.7M20.2%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income168.0%Shows whether accounting earnings convert into cash.
CapEx / revenue7.7%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Supportive

Sequential Operating Cash Flow Improvement

Operating cash flow increased from the prior quarter despite lower revenue, driving the improvement in free cash flow and margin. The filing notes that changes in operating assets and liabilities provided cash, including decreases in accounts receivable and prepayments.

This was the strongest observable driver of the quarter's free cash flow improvement.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Revenue decreased from both the prior quarter and the year-ago quarter, yet operating cash flow increased sequentially, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.

Compared to the prior quarter, free cash flow and free cash flow margin improved as operating cash flow increased and capital expenditure decreased. Compared to the same quarter last year, free cash flow and free cash flow margin weakened due to lower operating cash flow and higher capital expenditure.

Monitor the trend in capital expenditure, which was higher than a year ago and may affect future free cash flow.

TER Free Cash Flow — Quarter Ended Jun 29, 2025