TE
TER
Dec 31, 2025
Quarter ended Dec 31, 2025 · FY2025 Q4

Teradyne, Inc. stock research

Teradyne (TER) Free Cash Flow — Quarter Ended Dec 31, 2025

Revenue and operating cash flow both improved sharply from the prior quarter, lifting free cash flow and margin. Compared to the same quarter last year, revenue was higher but free cash flow was slightly lower.

Free cash flow takeaway

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

Revenue and operating cash flow both improved sharply from the prior quarter, lifting free cash flow and margin. Compared to the same quarter last year, revenue was higher but free cash flow was slightly lower.

  • Operating cash flow as a share of revenue was substantially higher than the prior quarter, reflecting stronger cash conversion. Capital expenditure increased in absolute terms, yet free cash flow margin expanded significantly due to the rise in operating cash flow.
  • Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved markedly. Versus the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were slightly lower, and free cash flow margin weakened.

FCF snapshot

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

TTM free cash flow

$450.4M

Trailing twelve-month free cash flow.

Quarter free cash flow

$218.8M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$281.6M

Cash generated by operations before capital spending.

CapEx

$62.9M

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
2025-03-30$685.7M$161.6M$64.0M$97.6M14.2%
2025-06-29$651.8M$182.1M$50.4M$131.7M20.2%
2025-09-28$769.2M$49.0M$46.7M$2.4M0.3%
2025-12-31$1.1B$281.6M$62.9M$218.8M20.2%

Cash conversion quality

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

FCF / net income85.0%Shows whether accounting earnings convert into cash.
CapEx / revenue5.8%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

Operating cash flow surge

Operating cash flow increased substantially from the prior quarter, far outpacing the rise in capital expenditure. This was the strongest observable driver of the improvement in free cash flow and margin.

The surge in operating cash flow directly lifted free cash flow and margin to levels well above the prior quarter.

What the cash flow says

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

Operating cash flow as a share of revenue was substantially higher than the prior quarter, reflecting stronger cash conversion. Capital expenditure increased in absolute terms, yet free cash flow margin expanded significantly due to the rise in operating cash flow.

Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved markedly. Versus the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were slightly lower, and free cash flow margin weakened.

Monitor whether capital expenditure remains at the elevated level seen this quarter, as it was higher than both the prior quarter and the year-ago quarter.

TER Free Cash Flow — Quarter Ended Dec 31, 2025