Open Text Corp

Latest Results (16.11.2025):

Open Text Corp's Fiscal 2025 Third Quarter report highlights a mixed performance with total revenues of $1.254 billion, representing a 13.3% year-over-year decline, while cloud revenues grew by 1.8% to reach $463 million. Despite softer overall revenue and net income pressures—the GAAP net income stood at $93 million, down 5.6% from the prior year—the company maintained solid EBITDA margins (31.5% on an adjusted basis) and strong operating and free cash flows of $402 million and $374 million respectively. The report also detailed strategic initiatives including an expanded Business Optimization Plan and substantial shareholder returns through dividends and share repurchases.

Total Revenues and Operational Overview

The third quarter of Fiscal 2025 saw total revenues decline to $1.254 billion, down 13.3% year-over-year. This drop was largely influenced by softer performance in customer support, license, and professional services, reflecting overall demand volatility in the market.

Cloud Revenue & EBITDA Performance

Cloud revenues reached $463 million, showing steady organic growth for 17 consecutive quarters with a 1.8% year-over-year increase. The adjusted EBITDA for the quarter was $395 million, delivering a robust margin of 31.5%, underscoring the company's strength in its cloud services and subscription model.

Net Income and Earnings per Share

Net income on a GAAP basis was $93 million, declining 5.6% compared to the previous quarter, with diluted GAAP EPS of $0.35. Non-GAAP results similarly showed pressure with EPS at $0.82, illustrating the tougher market conditions even as core business segments performed well.

Cash Flow and Shareholder Returns

Operating cash flows improved to $402 million and free cash flows increased to $374 million in Q3 FY2025. In addition, the company returned $183 million of capital to shareholders through dividends, share repurchases, and other measures, reinforcing its commitment to shareholder value.

Strategic Business Optimization and Future Outlook

In parallel with the earnings results, Open Text Corp announced the final phase of its expanded Business Optimization Plan, expected to incur additional costs of around $200 million. This initiative, coupled with key product launches like the Titanium X platform and investments in AI capabilities, sets the stage for long-term margin and earnings growth despite current market headwinds.