Open Text Corp Financials
This page shows Open Text Corp (OTEX) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Open Text’s very high gross margins are supporting a debt-and-goodwill-heavy balance sheet shaped by prior acquisitions.
From FY2024 to FY2025, revenue fell from$5.8B to$5.2B , which means the latest improvement did not come from selling more. Yet operating income was slightly higher and operating margin rose from15.4% to17.3% , signaling profit protection through lower operating costs or a richer revenue mix rather than simple volume dependence.
The balance sheet still carries the imprint of prior deals: goodwill was
Cash conversion remains a core strength: FY2025 operating cash flow of
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Open Text Corp's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Open Text Corp has an operating margin of 17.3%, meaning the company retains $17 of operating profit per $100 of revenue. This results in a moderate score of 57/100, indicating healthy but not exceptional operating efficiency. This is up from 15.4% the prior year.
Open Text Corp's revenue declined 10.4% year-over-year, from $5.8B to $5.2B. This contraction results in a growth score of 46/100.
Open Text Corp carries a low D/E ratio of 1.61, meaning only $1.61 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 69/100, indicating a strong balance sheet with room for future borrowing.
Open Text Corp's current ratio of 0.80 is below the typical benchmark, resulting in a score of 11/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Open Text Corp has a free cash flow margin of 13.3%, earning a moderate score of 59/100. The company generates positive cash flow after capital investments, but with room for improvement.
Open Text Corp's ROE of 11.1% shows moderate profitability relative to equity, earning a score of 32/100. This is up from 11.1% the prior year.
Open Text Corp scores 1.08, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Open Text Corp passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Open Text Corp generates $1.91 in operating cash flow ($830.6M OCF vs $435.9M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Open Text Corp generated $5.2B in revenue in fiscal year 2025. This represents a decrease of 10.4% from the prior year.
Open Text Corp reported $435.9M in net income in fiscal year 2025. This represents a decrease of 6.3% from the prior year.
Open Text Corp earned $1.65 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 3.5% from the prior year.
Cash & Balance Sheet
Open Text Corp generated $687.4M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 15.0% from the prior year.
Open Text Corp held $1.2B in cash against $6.3B in long-term debt as of fiscal year 2025.
Open Text Corp paid $1.05 per share in dividends in fiscal year 2025. This represents an increase of 5.0% from the prior year.
Open Text Corp had 254M shares outstanding in fiscal year 2025. This represents a decrease of 5.2% from the prior year.
Margins & Returns
Open Text Corp's gross margin was 72.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.4 percentage points from the prior year.
Open Text Corp's operating margin was 17.3% in fiscal year 2025, reflecting core business profitability. This is up 1.9 percentage points from the prior year.
Open Text Corp's net profit margin was 8.4% in fiscal year 2025, showing the share of revenue converted to profit. This is up 0.4 percentage points from the prior year.
Open Text Corp's ROE was 11.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 0.0 percentage points from the prior year.
Capital Allocation
Open Text Corp invested $755.9M in research and development in fiscal year 2025. This represents a decrease of 12.6% from the prior year.
Open Text Corp spent $413.3M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 175.5% from the prior year.
Open Text Corp invested $143.2M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 10.1% from the prior year.
OTEX Income Statement
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.3B+3.0% | $1.3B-1.7% | $1.3B+4.5% | $1.3B-6.0% | $1.3B+5.2% | $1.3B-6.8% | $1.4B-5.9% | $1.4B |
| Cost of Revenue | $344.5M-1.7% | $350.6M-3.4% | $362.8M+1.9% | $356.1M-0.1% | $356.5M-0.6% | $358.6M-4.2% | $374.4M-4.3% | $391.4M |
| Gross Profit | $982.2M+4.8% | $937.5M-1.1% | $947.7M+5.5% | $898.3M-8.2% | $978.0M+7.4% | $910.4M-7.8% | $987.7M-6.4% | $1.1B |
| R&D Expenses | $158.3M-6.4% | $169.1M-9.6% | $187.2M-5.1% | $197.3M+9.2% | $180.7M-5.2% | $190.7M-4.1% | $198.9M-12.2% | $226.5M |
| SG&A Expenses | $110.1M+4.1% | $105.8M-0.2% | $106.0M-8.4% | $115.7M+16.5% | $99.4M-6.9% | $106.7M-15.7% | $126.6M-13.2% | $145.9M |
| Operating Income | $291.8M+8.1% | $269.9M+48.7% | $181.6M-13.2% | $209.1M-29.3% | $295.8M+43.4% | $206.2M+6.7% | $193.3M-14.9% | $227.1M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -$132.7M |
| Income Tax | $47.3M+20.8% | $39.2M+322.6% | -$17.6M-262.5% | $10.8M-78.7% | $50.9M+2602.8% | $1.9M-99.2% | $239.6M+3874.4% | $6.0M |
| Net Income | $168.1M+14.6% | $146.6M+408.5% | $28.8M-68.9% | $92.8M-59.6% | $229.9M+172.5% | $84.4M-66.0% | $248.2M+152.6% | $98.3M |
| EPS (Diluted) | $0.66+13.8% | $0.58 | N/A | $0.35-59.8% | $0.87+171.9% | $0.32 | N/A | $0.36 |
OTEX Balance Sheet
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $13.6B+0.7% | $13.5B-2.2% | $13.8B+0.1% | $13.8B+0.2% | $13.7B-0.3% | $13.8B-3.0% | $14.2B-13.3% | $16.4B |
| Current Assets | $2.4B+10.1% | $2.1B-2.9% | $2.2B+1.8% | $2.2B+3.7% | $2.1B+5.3% | $2.0B-13.1% | $2.3B-45.7% | $4.2B |
| Cash & Equivalents | $1.3B+17.0% | $1.1B-6.0% | $1.2B-9.5% | $1.3B+13.9% | $1.1B+12.2% | $1.0B-21.9% | $1.3B+13.8% | $1.1B |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $665.6M+12.6% | $591.0M-10.4% | $659.7M+11.2% | $593.1M-7.3% | $639.6M+7.9% | $592.6M-5.4% | $626.2M-4.3% | $654.2M |
| Goodwill | $7.4B-0.1% | $7.4B-1.0% | $7.5B+0.3% | $7.5B+0.1% | $7.5B-0.3% | $7.5B+0.2% | $7.5B-0.5% | $7.5B |
| Total Liabilities | $9.5B0.0% | $9.5B-3.3% | $9.8B+2.3% | $9.6B+1.3% | $9.5B-1.5% | $9.6B-3.6% | $10.0B-18.4% | $12.3B |
| Current Liabilities | $2.5B+1.7% | $2.5B-10.4% | $2.7B+8.9% | $2.5B+5.1% | $2.4B-3.9% | $2.5B-10.7% | $2.8B-6.3% | $3.0B |
| Long-Term Debt | $6.3B0.0% | $6.3B-0.1% | $6.3B-0.1% | $6.3B-0.1% | $6.3B-0.1% | $6.4B-0.1% | $6.4B-23.5% | $8.3B |
| Total Equity | $4.0B+2.3% | $4.0B+0.6% | $3.9B-4.8% | $4.1B-2.4% | $4.2B+2.3% | $4.1B-1.5% | $4.2B+1.7% | $4.1B |
| Retained Earnings | $2.0B+1.7% | $1.9B-0.1% | $1.9B-6.8% | $2.1B-4.2% | $2.2B+5.3% | $2.1B-2.5% | $2.1B+2.9% | $2.1B |
OTEX Cash Flow Statement
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $318.7M+115.7% | $147.8M-6.6% | $158.2M-60.7% | $402.2M+15.6% | $348.0M+547.3% | -$77.8M-142.0% | $185.2M-51.9% | $384.7M |
| Capital Expenditures | $39.2M-15.7% | $46.5M+36.0% | $34.2M+20.5% | $28.4M-31.2% | $41.3M+5.0% | $39.3M-1.7% | $40.0M+9.4% | $36.5M |
| Free Cash Flow | $279.4M+176.1% | $101.2M-18.3% | $124.0M-66.8% | $373.8M+21.9% | $306.7M+361.9% | -$117.1M-180.6% | $145.2M-58.3% | $348.2M |
| Investing Cash Flow | -$39.2M+12.9% | -$45.0M-32.1% | -$34.1M+4.2% | -$35.6M+25.0% | -$47.4M-30.1% | -$36.4M-101.7% | $2.2B+7960.7% | -$27.7M |
| Financing Cash Flow | -$94.4M+46.5% | -$176.4M+35.6% | -$273.9M-21.4% | -$225.7M-50.6% | -$149.8M+19.1% | -$185.3M+91.6% | -$2.2B-868.0% | -$227.4M |
| Dividends Paid | $68.5M+0.4% | $68.2M+3.1% | $66.2M-2.5% | $67.9M-0.6% | $68.3M-1.1% | $69.1M+3.6% | $66.7M-0.9% | $67.3M |
| Share Buybacks | $50.0M-53.5% | $107.6M-25.9% | $145.3M+26.8% | $114.6M+73.6% | $66.0M-24.5% | $87.4M-41.7% | $150.0M | $0 |
OTEX Financial Ratios
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 74.0%+1.2pp | 72.8%+0.5pp | 72.3%+0.7pp | 71.6%-1.7pp | 73.3%+1.5pp | 71.7%-0.8pp | 72.5%-0.5pp | 73.0% |
| Operating Margin | 22.0%+1.0pp | 21.0%+7.1pp | 13.9%-2.8pp | 16.7%-5.5pp | 22.2%+5.9pp | 16.3%+2.1pp | 14.2%-1.5pp | 15.7% |
| Net Margin | 12.7%+1.3pp | 11.4%+9.2pp | 2.2%-5.2pp | 7.4%-9.8pp | 17.2%+10.6pp | 6.7%-11.6pp | 18.2%+11.4pp | 6.8% |
| Return on Equity | 4.2%+0.4pp | 3.7%+3.0pp | 0.7%-1.5pp | 2.3%-3.2pp | 5.4%+3.4pp | 2.0%-3.9pp | 5.9%+3.5pp | 2.4% |
| Return on Assets | 1.2%+0.1pp | 1.1%+0.9pp | 0.2%-0.5pp | 0.7%-1.0pp | 1.7%+1.1pp | 0.6%-1.1pp | 1.8%+1.2pp | 0.6% |
| Current Ratio | 0.94+0.1 | 0.87+0.1 | 0.80-0.1 | 0.86-0.0 | 0.87+0.1 | 0.79-0.0 | 0.81-0.6 | 1.40 |
| Debt-to-Equity | 1.57-0.0 | 1.600.0 | 1.61+0.1 | 1.54+0.0 | 1.50-0.0 | 1.54+0.0 | 1.51-0.5 | 2.01 |
| FCF Margin | 21.1%+13.2pp | 7.9%-1.6pp | 9.5%-20.3pp | 29.8%+6.8pp | 23.0%+32.2pp | -9.2%-19.9pp | 10.7%-13.4pp | 24.1% |
Note: The current ratio is below 1.0 (0.80), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Open Text Corp's annual revenue?
Open Text Corp (OTEX) reported $5.2B in total revenue for fiscal year 2025. This represents a -10.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Open Text Corp's revenue growing?
Open Text Corp (OTEX) revenue declined by 10.4% year-over-year, from $5.8B to $5.2B in fiscal year 2025.
Is Open Text Corp profitable?
Yes, Open Text Corp (OTEX) reported a net income of $435.9M in fiscal year 2025, with a net profit margin of 8.4%.
How much debt does Open Text Corp have?
As of fiscal year 2025, Open Text Corp (OTEX) had $1.2B in cash and equivalents against $6.3B in long-term debt.
What is Open Text Corp's gross margin?
Open Text Corp (OTEX) had a gross margin of 72.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Open Text Corp's operating margin?
Open Text Corp (OTEX) had an operating margin of 17.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Open Text Corp's net profit margin?
Open Text Corp (OTEX) had a net profit margin of 8.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Open Text Corp pay dividends?
Yes, Open Text Corp (OTEX) paid $1.05 per share in dividends during fiscal year 2025.
What is Open Text Corp's return on equity (ROE)?
Open Text Corp (OTEX) has a return on equity of 11.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Open Text Corp's free cash flow?
Open Text Corp (OTEX) generated $687.4M in free cash flow during fiscal year 2025. This represents a -15.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Open Text Corp's operating cash flow?
Open Text Corp (OTEX) generated $830.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Open Text Corp's total assets?
Open Text Corp (OTEX) had $13.8B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Open Text Corp's capital expenditures?
Open Text Corp (OTEX) invested $143.2M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Open Text Corp spend on research and development?
Open Text Corp (OTEX) invested $755.9M in research and development during fiscal year 2025.
What is Open Text Corp's current ratio?
Open Text Corp (OTEX) had a current ratio of 0.80 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Open Text Corp's debt-to-equity ratio?
Open Text Corp (OTEX) had a debt-to-equity ratio of 1.61 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Open Text Corp's return on assets (ROA)?
Open Text Corp (OTEX) had a return on assets of 3.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Open Text Corp's Altman Z-Score?
Open Text Corp (OTEX) has an Altman Z-Score of 1.08, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Open Text Corp's Piotroski F-Score?
Open Text Corp (OTEX) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Open Text Corp's earnings high quality?
Open Text Corp (OTEX) has an earnings quality ratio of 1.91x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Open Text Corp?
Open Text Corp (OTEX) scores 46 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.