Open Text Corporation ( (OTEX) ) has released its Q3 earnings. Here is a breakdown of the information Open Text Corporation presented to its investors.
OpenText Corporation is a leading Information Management software and services company that provides solutions for complex global problems through its Business Clouds, Business AI, and Business Technology offerings. In its third quarter of fiscal year 2025, OpenText reported a mixed financial performance with cloud revenues showing growth, but overall revenues declining by 13.3% year-over-year. The company highlighted its continued focus on cloud services, with cloud revenues increasing by 1.8% year-over-year, marking 17 consecutive quarters of cloud organic growth. However, total revenues were impacted by demand volatility, resulting in a decrease to $1.254 billion.
Key financial metrics from the quarter included a net income of $93 million under GAAP, a decrease of 5.6% year-over-year, and an adjusted EBITDA of $395 million, representing a margin of 31.5%. The company also returned $183 million to shareholders through dividends and share repurchases. OpenText announced the expansion of its Business Optimization Plan, which aims to achieve significant cost savings and reinvest in growth areas such as AI and cloud products.
The company launched its new Titanium X platform, designed to enhance customer decision-making in SaaS and hybrid environments, and continued to strengthen its cybersecurity offerings. OpenText’s management remains optimistic about the company’s long-term growth prospects, focusing on operational efficiency and reinvestment in strategic areas.
Looking forward, OpenText is committed to maintaining its dividend program and executing its share repurchase plan, reflecting confidence in its cash flow generation capabilities. The company aims to leverage its operational focus to drive long-term margin and earnings growth, despite the current economic uncertainties.