TERTERADYNE, INC

Instruments For Meas & Testing Of Electricity & Elec Signals

Revenue: $3.2B; 13% YoY
Operating margin: 20.4%; 3.2% YoY
EBITDA: $778M; 9.0% YoY
Market cap: $42.8B
Employees: 6,600; $483K revenue each
Net debt / EBITDA: -0.4×; −$274M net debt
AI in 10-K: 5.1; mentions per 10K words

Takeover score 3 of 13

Fixable underperformance 1 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
122% of net income
Cash flow under 80% of net income
Dilutive SBCNo
2% of revenue
Over 10% of revenue
Payouts exceed cash flowYes
115% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
12% of assets
Over 40% of assets
Shareholder dissentNo
96% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$483K · 66th pct
Bottom quartile of its SIC industry
Quiet on AINo
5.1 per 10K words · 83rd pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 0.4× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedNo
$42.8B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$16M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$3.7B	$3.2B	$2.7B	$2.8B	$3.2B	13%
Operating income	$1.2B	$832M	$501M	$594M	$650M	9.5%
Net income	$1.0B	$716M	$449M	$542M	$554M	2.2%
Operating cash flow	$1.1B	$578M	$585M	$672M	$674M	0.3%
Capex	$132M	$163M	$160M	$198M	$224M	13%
Stock-based comp	$46M	$48M	$58M	$60M	$64M	6.4%
Buybacks	$600M	$752M	$397M	$199M	$702M	254%
Dividends	$66M	$70M	$68M	$76M	$76M	0.1%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $16M · 34
Net: −$16M

Pay vs performance

No pay-versus-performance disclosure yet.