Open Text Corporation announced its financial results for the first quarter ended September 30, 2025.
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Fiscal 2026 First Quarter Highlights (in millions)(1) |
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Total |
Cloud |
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Profitability |
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EPS |
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Cash Flows |
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Net Income |
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A-EBITDA |
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GAAP |
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Non-GAAP |
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Operating |
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Free Cash |
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$1,288 |
$485 |
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$147 |
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$467 |
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$0.58 |
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$1.05 |
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$148 |
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$101 |
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+1.5% Y/Y |
+6.0% Y/Y |
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11.4% margin |
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36.3% margin |
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+81.3% Y/Y |
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+12.9% Y/Y |
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+289.9% Y/Y |
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+186.4% Y/Y |
"OpenText performed well in the quarter, driven by growth in our Content Management cloud business. The strength of the OpenText operating model continues to drive the business towards meeting our margin targets for Fiscal 2026," said James McGourlay, Interim CEO. "We are strengthening our position at the forefront of Information Management for AI, and we look forward to showcasing our exciting innovation roadmap at our upcoming OpenText World User Conference in Nashville."
James McGourlay, OpenText Interim Chief Executive Officer
"OpenText delivered strong margin and free cash flow performance in the quarter. The Company's Business Optimization Plan is well underway, and will drive operational efficiencies across the organization," said Steve Rai, Executive Vice President, Chief Financial Officer. "We have tremendous scale and the capital flexibility to continue investing for growth to ensure OpenText is well positioned to lead the Information Management for AI market."
Steve Rai, OpenText Executive Vice President, Chief Financial Officer
"OpenText continues to advance its strategy to enhance shareholder value by growing revenue in its core Information Management for AI business, and with the announcement of our definitive agreement to divest an on-premise solution (eDOCS), a part of its Analytics portfolio, we have started the process of portfolio-shaping and divesting non-core assets," said P. Thomas Jenkins, Executive Chair of the Board and Chief Strategy Officer. "As you can see from our results, the company remains in good operational hands as we continue to make excellent progress in our search of a permanent CEO."
P. Thomas Jenkins, OpenText Executive Chair & Chief Strategy Officer
First Quarter Financial Highlights Y/Y
- Total revenues: $1.288 billion, +1.5% Y/Y
- Annual recurring revenues (ARR): $1.071 billion
- Cloud revenues: $485 million, +6.0% Y/Y, 19 consecutive quarters of cloud organic growth
- Quarterly enterprise cloud bookings(2): $160 million, +20.2% Y/Y
- Cash flows: Operating $148 million and free cash flows(3) $101 million
- Net income: GAAP $147 million, +73.8% Y/Y, Non-GAAP(3) $266 million, +7.0% Y/Y
- Adjusted EBITDA(3) of $467 million, margin of 36.3%
- Diluted earnings per share (EPS): GAAP $0.58, Non-GAAP(3) $1.05
- Repurchased $100 million of common shares for cancellation
(1) Numbers presented are in millions of US dollars, except for per share or percentage metrics.
(2) Enterprise cloud bookings is defined as the total value from cloud services and subscription contracts, entered into in the period that are new, committed and incremental to our existing contracts, entered into with our enterprise based customers.
(3) Please see Note 2 "Use of Non-GAAP Financial Measures" to the condensed consolidated financial statements below.
Dividend
As part of the quarterly, non-cumulative cash dividend program, the Board declared on November 4, 2025, a cash dividend of $0.275 per common share. The record date for this dividend is December 5, 2025 and the payment date is December 19, 2025. OpenText believes strongly in returning value to its shareholders. Any future declarations of dividends and the establishment of future record and payment dates are all subject to the final determination and discretion of the Board of Directors.
Quarterly Business Highlights
- OpenText appoints Steve Rai as EVP, Chief Financial Officer
- OpenText to strategically divest on-premise solution (eDOCS), a part of its analytics portfolio, for US$163 million
- OpenText appoints George Schindler to the Board of Directors
- Key customer wins in the quarter include: Alten, Australia Department of Health (Health Support Services), Core42, Eisenbahn-Bundesamt, GSTN, Optiv Security, MH Service, National Grid USA Service Company, Wegmans Food Markets
- OpenText expands availability of core threat detection and response with deep Microsoft integrations
- OpenText and Fiserv drive resilient information management in financial services
- OpenText delivers enterprise-ready AI solutions through HPE Unleash AI program
- OpenText unveils new solutions for Guidewire to power AI and cloud-ready insurance workflows
Conference Call Information
OpenText posted an investor presentation on its Investor Relations website and invites the public to listen to the earnings conference call webcast tomorrow on Thursday, November 6, 2025 at 8:30 a.m. ET (5:30 a.m. PT) from the Investor Relations section of the Company's website at https://investors.opentext.com. To join the webcast instantly, use this webcast link. A webcast replay will be available shortly following completion of the live call.
