Press releases

OpenText Reports Fourth Quarter and Fiscal Year 2025 Financial Results

Waterloo, ON – 2025-08-07 –Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX), today announced its financial results for the fourth quarter and year ended June 30, 2025.

$1.86B of Cloud Revenues, 2.0% Y/Y growth
Announces 5% increase of dividend
New $300 million share repurchase program

 

Fiscal 2025 Annual Highlights Y/Y (in millions) (1)

Total Revenues Cloud Revenues Profitability
Net Income
Profitability
A-EBITDA
EPS
GAAP
EPS
Non-GAAP
Operating
Cash Flows
Free Cash
Flows
$5,168 $1,856 $436 $1,784 $1.65 $3.82 $831 $687
-10.4% Y/Y 2.0% Y/Y 8.4% margin 34.5% margin -3.5% Y/Y -8.4% Y/Y -14.2% Y/Y -15.0% Y/Y

"OpenText had a strong Q4 and our cloud business is accelerating. Cloud bookings growth surged to 32%, driven by demand for our new Al-driven Titanium X platform. For the full Fiscal 2025, we delivered 13% total cloud RPO growth, 2.0% cloud revenue growth, an overall Adj EBITDA margin of 34.5% and record capital return of $683 million to our shareholders,"

"Further, in Fiscal 2025, we were focused on completing our large divestiture and excluding that divestiture, total growth was a negative 3%. We are excited about the new fiscal year ahead and the growth opportunities of AI, Cloud and Security which are driving our full-year Fiscal 2026 outlook of 3% to 4% cloud revenue growth and 1% to 2% total revenue growth."

- Mark J. Barrenechea, OpenText CEO & CTO

 

"Our fourth quarter performance demonstrated operational discipline and excellence, reinforcing OpenText's ability to drive sustained margin and free cash flow growth,"

"I remain confident in OpenText's ability to reinvest strategically in out-performing products and building long-term shareholder value. It's been a privilege to serve at OpenText an extraordinary Canadian company."

- Chadwick Westlake, OpenText EVP, CFO

 

Fiscal Year Financial Highlights Y/Y

  • Total revenues: $5.168 billion, -10.4% Y/Y or -3.0% when adjusted for AMC
  • Annual Recurring Revenues (ARR): $4.191 billion, -7.6% Y/Y
  • Cloud revenues: $1.856 billion, +2.0% Y/Y
  • Enterprise cloud bookings (2): $773 million, +10.1% Y/Y
  • Operating cash flows: $831 million and free cash flows (3) were $687 million
  • GAAP-based net income: $436 million, -6.3% Y/Y, margin of 8.4%
  • Adjusted EBITDA) of $1.784 billion, margin of 34.5% while making key investments in cloud, security and AI
  • Record capital returns of $683 million including $272 million via dividends and $411 million of share repurchases
  • Diluted earnings per share (EPS): GAAP $1.65, Non-GAAP(3) of $3.82
  • 5% increase of dividend per share in Fiscal 2026, with declared quarterly dividend of $0.2750 per share

Fiscal 2025 Fourth Quarter Highlights (in millions) (1)

Total Revenues Cloud Revenues Net Income
GAAP
Profitability
A-EBITDA
EPS
GAAP
EPS
Non-GAAP
Operating
Cash Flows
Free Cash
Flows
$1,311
-3.8% Y/Y
$475
+2.1% Y/Y
$29
2.2% margin
$444
33.9% margin
$0.11
-87.9% Y/Y
$0.97
-1.0% Y/Y
$158
-14.6% Y/Y
$124
-14.6% Y/Y
 
  • Total revenues: $1.311 billion, -3.8% Y/Y or -0.7% when adjusted for the AMC divestiture
  • Annual recurring revenues (ARR): $1.055 billion, -3.5% Y/Y or -0.8% when adjusted for the AMC divestiture
  • Cloud revenues: $475 million, +2.1% Y/Y, 18 consecutive quarters of cloud organic growth
  • Quarterly enterprise cloud bookings (2): $238 million, 32.3% Y/Y
  • Cash flows: Operating $158 million and free cash flows(3) $124 million
  • Net income: GAAP $29 million, -88.4% Y/Y, Non-GAAP(3) $250 million, -6.6% Y/Y
  • Adjusted EBITDA(3) of $444 million, margin of 33.9%
  • Diluted earnings per share (EPS): GAAP $0.11, Non-GAAP(3) $0.97
  • Repurchased $145 million of common shares for cancellation

Financial Highlights for Fiscal 2025 and Q4 with Year Over Year Comparisons

Summary of Annual Results

(In millions, except per share data)

  FY'25 FY'24 $ Change % Change FY'25 in CC % Change in CC*
Revenues:
Cloud services and subscriptions $1,856.5 $1,820.5 $36.0 2.0% $1,857.9 2.1%
Customer support 2,334.0 2,713.3 ($379.3) (14.0)% 2,336.9 (13.9)%
Total annual recurring revenues** $4,190.5 $4,533.8 ($343.3) (7.6)% $4,194.8 (7.5)%
License 625.6 834.2 ($208.5) (25.0)% 625.2 (25.1)%
Professional service and other 352.3 401.6 ($49.3) (12.3)% 351.2 (12.5) %
Total revenues $5,168.4 $5,769.6 ($601.2) (10.4)% $5,171.2 (10.4)%
GAAP-based operating income $892.7 $887.1 $5.6 0.6% N/A N/A
Non-GAAP-based operating income (1) $1,654.1 $1,838.8 ($184.7) (10.0)% $1,639.1 (10.9)%
GAAP-based net income attributable to OpenText $435.9 $465.1 ($29.2) (6.3)% N/A N/A
GAAP-based EPS, diluted $1.65 $1.71 ($0.06) (3.5)% N/A N/A
Non-GAAP-based EPS, diluted (1)(2) $3.82 $4.17 ($0.35) (8.4)% $3.78 (9.4)%
Adjusted EBITDA (1) $1,784.5 $1,970.2 ($185.7) (9.4)% $1,769.1 (10.2)%
Operating cash flows $830.6 $967.7 ($137.1) (14.2)% N/A N/A
Free cash flows (1) $687.4 $808.4 ($121.0) (15.0)% N/A N/A
 

Summary of Quarterly Results

(In millions, except per share data)

  Q4 FY'25 Q4 FY'24 $ Change % Change Q4 FY'25 in CC* % Change in CC*
Revenues:
Cloud services and subscriptions $474.5 $464.9 $9.6 2.1% $471.3 1.4%
Customer support 580.6 628.4 ($47.8) (7.6)% 575.5 (8.4)%
Total annual recurring revenues** $1,055.1 $1,093.3 ($38.2) (3.5)% $1,046.8 (4.3)%
License 172.5 171.5 $1.0 0.6% 169.9 (0.9)%
Professional service and other 82.9 97.3 ($14.4) (14.8)% 81.2 (16.5)%
Total revenues $1,310.5 $1,362.1 ($51.6) (3.8)% $1,298.0 (4.7)%
GAAP-based operating income $181.6 $193.3 ($11.7) (6.1)% N/A N/A
Non-GAAP-based operating income (1) $409.9 $413.5 ($3.5) (0.9)% $398.4 (3.6)%
GAAP-based net income attributable to OpenText $28.8 $248.2 ($219.4) (88.4)% N/A N/A
GAAP-based EPS, diluted $0.11 $0.91 ($0.80) (87.9)% N/A N/A
Non-GAAP-based EPS, diluted (1)(2) $0.97 $0.98 ($0.01) (1.0)% $0.94 (4.1)%
Adjusted EBITDA (1) $443.9 $445.4 ($1.5) (0.3)% $432.3 (2.9)%
Operating cash flows $158.2 $185.2 ($27.0) (14.6)% N/A N/A
Free cash flows (1) $124.0 $145.2 ($21.3) (14.6)% N/A N/A
 

Dividend

OpenText announced it is raising its dividend by 5% per share, payable quarterly. As part of the quarterly, non-cumulative cash dividend program, the Board declared on August 6, 2025, a cash dividend of $0.2750 per common share. The record date for this dividend is September 5, 2025 and the payment date is September 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.

Share Repurchase Plan/Normal Course Issuer Bid

OpenText also announced today the renewal of its share repurchase plan pursuant to which it intends to purchase for cancellation in open market transactions, from time to time over the next 12 months, if considered advisable, up to an aggregate of US$300 million of its common shares (Common Shares) on the Toronto Stock Exchange (the "TSX"), the NASDAQ Global Select Market and/or other exchanges and alternative trading systems in Canada and/or the United States, if eligible, subject to applicable law and stock exchange rules (the "Repurchase Plan"). The price that OpenText will pay for Common Shares in open market transactions will be the market price at the time of purchase or such other price as may be permitted by applicable law or stock exchange rules. The Company's determination to renew its share repurchase plan reflects its confidence in its operational execution and expanding cash flows, with the Repurchase Plan being additive to the Company's overall strategic capital allocation, complementing its ongoing M&A activity and dividend program. The Repurchase Plan will be effected in accordance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended. Purchases made under the Repurchase Plan may commence on August 12, 2025 and will expire on August 11, 2026 (subject to earlier termination where the maximum purchase limits have been reached). All Common Shares purchased by OpenText pursuant to the Repurchase Plan will be cancelled.

Normal Course Issuer Bid

The Company has renewed its normal course issuer bid (the "NCIB") in order to provide it with a means to execute purchases over the TSX as part of the overall Repurchase Plan. The TSX has approved the Company's notice of intention to commence the NCIB pursuant to which the Company may purchase Common Shares over the TSX for the period commencing August 12, 2025 until August 11, 2026 (subject to earlier termination where the maximum purchase limits have been reached) in accordance with the TSX's normal course issuer bid rules, including that such purchases are to be made at prevailing market prices or as otherwise permitted. Under the rules of the TSX, the maximum number of Common Shares that may be purchased in this period is 24,906,456, representing 10% of the Company's public float (calculated in accordance with TSX rules based on the 254,316,690 Common Shares issued and outstanding as of July 31, 2025), and the maximum number of Common Shares that may be purchased on a single day is 224,146 Common Shares, which is 25% of 896,585 (calculated in accordance with TSX rules based on the average daily trading volume for the Common Shares on the TSX for the six months ended July 31, 2025), subject to certain exceptions for block purchases, subject in any case to the volume and other limitations under Rule 10b-18.

Further, as part of the NCIB renewal, the Company has entered into an automatic share purchase plan (ASPP) with its broker to facilitate repurchases of the Common Shares. Under the terms of the ASPP, the Company's broker will be permitted to make purchases at its sole discretion based on parameters set by the Company in accordance with TSX rules, applicable law and the terms of the ASPP, during periods when the Company would ordinarily not be permitted to make purchases, whether due to regulatory restriction or customary self-imposed blackout periods. Outside of such periods, Common Shares can be purchased based on management's discretion, in compliance with TSX rules and applicable law. All purchases of Common Shares made under the ASPP will be included in determining the number of Common Shares purchased under the NCIB. The ASPP has been pre-cleared by the TSX and will be effective on August 12, 2025. The ASPP will terminate on the earliest of: (a) the date on which the maximum purchase limits under the NCIB are reached; (b) August 11, 2026; or (c) the date on which the Company terminates the ASPP in accordance with its terms.

Under its previous normal course issuer bid which began on August 7, 2024, and which expired on August 6, 2025, the Company was authorized to repurchase up to 21,179,064 Common Shares, subject to an initial maximum aggregate value of US$300 million (which was increased by US$150 million to US$450 million on March 13, 2025). From August 7, 2024 to July 31, 2025, the Company purchased for cancellation 15,344,187 Common Shares, through the facilities of the TSX or by such other permitted means, for a total of approximately US$435 million at a volume weighted average purchase price of US$28.35 per Common Share. Separately, in connection with the settlement of awards under the long-term incentive plans, during Fiscal 2025, the Company repurchased 4,322,445 Common Shares on the open market at a total cost of approximately US$126 million at a volume weighted average price of US$29.03 per Common Share. As part of its previous normal course issuer bid, the Company entered into an ASPP with its broker on March 13, 2025, which expired on August 6, 2025.