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OTEX

Open Text Corporation

OTEX

Open Text Corporation • NASDAQ
$33.63 ▼ -0.36% (-0.12)
Market Cap $8.48 B
52w High $39.90
52w Low $22.79
Dividend Yield 0.80%
P/E 17.61
Volume 485.10K
Outstanding Shares 252.01M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $1.274B ▼ $526.2M ▼ $144.991M ▲ 11.382% ▲ $0.57 ▲ $425.755M ▲
Q4-2025 $1.332B ▲ $582.366M ▲ $29.308M ▼ 2.2% ▼ $0.11 ▼ $289.995M ▼
Q3-2025 $1.251B ▼ $569.562M ▲ $92.525M ▼ 7.399% ▼ $0.35 ▼ $348.345M ▼
Q2-2025 $1.297B ▲ $537.042M ▼ $223.375M ▲ 17.225% ▲ $0.87 ▲ $518.41M ▲
Q1-2025 $1.279B $547.317M $85.047M 6.648% $0.32 $345.069M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $1.087B ▼ $13.475B ▼ $9.523B ▼ $3.951B ▲
Q4-2025 $1.156B ▼ $13.774B ▲ $9.843B ▲ $3.929B ▼
Q3-2025 $1.278B ▲ $13.755B ▲ $9.624B ▲ $4.129B ▼
Q2-2025 $1.122B ▲ $13.732B ▼ $9.5B ▼ $4.23B ▲
Q1-2025 $1B $13.779B $9.642B $4.135B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $146.66M ▲ $147.763M ▼ $-45.032M ▼ $-176.432M ▲ $-69.395M ▲ $101.229M ▼
Q4-2025 $29.308M ▼ $160.459M ▼ $-34.829M ▲ $-279.107M ▼ $-119.273M ▼ $125.479M ▼
Q3-2025 $92.525M ▼ $392.958M ▲ $-35.363M ▲ $-222.343M ▼ $158.432M ▲ $364.565M ▲
Q2-2025 $229.906M ▲ $347.992M ▲ $-47.42M ▼ $-149.844M ▲ $121.798M ▲ $306.723M ▲
Q1-2025 $84.422M $-77.806M $-36.44M $-185.273M $-280.383M $-117.122M

Revenue by Products

Product Q2-2025Q3-2025Q4-2025Q1-2026
Cloud Revenues And Customer Support Revenues
Cloud Revenues And Customer Support Revenues
 $0 ▲$0 ▲$0 ▲$1.07Bn ▲
Cloud Services And Subscriptions
Cloud Services And Subscriptions
 $460.00M ▲$460.00M ▲$470.00M ▲$480.00M ▲
Customer Support
Customer Support
 $590.00M ▲$570.00M ▼$580.00M ▲$590.00M ▲
License
License
 $190.00M ▲$140.00M ▼$170.00M ▲$130.00M ▼
Product
Product
 $0 ▲$0 ▲$0 ▲$1.29Bn ▲
Professional Service And Other
Professional Service And Other
 $90.00M ▲$90.00M ▲$80.00M ▼$80.00M ▲
Service
Service
 $0 ▲$0 ▲$0 ▲$480.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Open Text looks like a mature, mostly steady software business with solid profitability. Revenue has grown meaningfully over the last several years, helped by acquisitions, though the most recent year shows a small step down from the prior peak. Gross profitability remains strong, showing that the core software and cloud offerings still carry attractive margins. Operating profit has been fairly stable, even as the company absorbed large deals like Micro Focus. Net income has been more up‑and‑down, suggesting acquisition, restructuring, and integration costs have periodically weighed on the bottom line. Overall, this is a company that earns healthy operating margins but occasionally sees reported earnings move around due to one‑off items and deal activity rather than day‑to‑day business weakness.

Balance Sheet

Balance Sheet The balance sheet reflects an acquisition‑driven strategy: sizable assets, meaningful debt, and a solid but not overly large equity base. Debt increased sharply around the big acquisition period and has since begun to edge down as borrowings are paid back. Cash levels are comfortable but not excessive, indicating some financial flexibility but also a reliance on ongoing cash generation to manage obligations. Equity has stayed relatively steady, which suggests the company has not been heavily diluted in recent years, but it also highlights that leverage is an important feature of the capital structure. In short, Open Text is a scaled software platform with a leveraged but manageable balance sheet that depends on consistent cash flow and disciplined integration of acquired assets.

Cash Flow

Cash Flow Cash flow is a clear strength. Open Text has produced steady, positive operating cash flow year after year, even during acquisition and integration periods. Free cash flow has also remained solidly positive, with only modest capital spending needs thanks to the asset‑light nature of software and cloud services. This pattern indicates that, despite accounting noise in earnings, the underlying business reliably converts revenue into cash. That cash can support debt service, ongoing product investment, and shareholder returns. The key watch point is whether cash generation remains stable as the company continues shifting more of its portfolio to cloud and AI‑enabled offerings.

Competitive Edge

Competitive Edge Open Text operates in enterprise information management, where it is one of the more established players. Its software is often deeply embedded in customers’ critical workflows and compliance processes, which makes switching costly, disruptive, and time‑consuming. This creates a meaningful moat, particularly with large global enterprises that value stability and long‑term support. The company’s broad portfolio—spanning content management, B2B networks, cybersecurity, and customer communications—allows it to offer end‑to‑end solutions rather than point products. Acquisitions have expanded both its customer base and capabilities, reinforcing its ecosystem. At the same time, it faces strong competition from major platforms like Microsoft and SAP, as well as focused specialists. A key risk is managing a complex, sometimes legacy‑heavy product set while staying modern and integrated enough to remain the preferred backbone for large organizations.

Innovation and R&D

Innovation and R&D Innovation is centered on AI and cloud. Open Text is leaning heavily into its Aviator AI platform, which aims to weave generative AI into content management, IT operations, security, and customer experience. The goal is to turn large volumes of enterprise data into practical insights and automation within existing workflows, rather than just offering standalone AI tools. Its Cloud Editions and the Titanium X roadmap show a push toward a unified, cloud‑first platform that reduces complexity for customers and enables more frequent, low‑disruption updates. Integrations with major cloud and application providers add to this strategy. The big question is not whether Open Text is investing—clearly it is—but how quickly customers adopt these newer AI‑ and cloud‑driven capabilities, and whether that adoption offsets pressures from newer, more nimble competitors and the hyperscale cloud providers.

Summary

Overall, Open Text presents as a mature, cash‑generative software company built largely through acquisitions and deeply embedded enterprise relationships. Its income statement shows solid margins with some earnings volatility tied more to deal activity and restructuring than to core operations. The balance sheet is clearly leveraged, but supported by consistent free cash flow. Competitively, the company benefits from high switching costs and a broad, integrated product suite, which together create a durable—though not unassailable—position. The strategic pivot toward cloud and generative AI, anchored by Aviator and Titanium X, is central to its next phase. Key areas to monitor include: the pace of organic growth after the acquisition surge, sustained debt reduction, the simplification and modernization of its product stack, and tangible customer adoption of its AI and cloud innovations.

NEWS

November 19, 2025 · 9:00 AM UTC

OpenText Deepens Partnership with Google to Accelerate AI Innovation, Data Security, and Sovereign Cloud Solutions

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November 18, 2025 · 9:38 AM UTC

OpenText World 2025: OpenText Unveils Next-Generation AI Data Platform for Secure Information Management

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November 13, 2025 · 11:45 AM UTC

World Quality Report 2025: AI adoption surges in Quality Engineering, but enterprise-level scaling remains elusive

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November 10, 2025 · 9:00 AM UTC

OpenText™ Expands Collaboration with SAP to Deliver AI-Ready Cloud Content Management at Scale

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November 5, 2025 · 4:01 PM UTC

OpenText Reports First Quarter Fiscal Year 2026 Financial Results

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