Despite strong free cash flow and a strategic pivot towards AI, the earnings call highlighted significant challenges with revenue and bookings due to external economic factors. The company's commitment to AI and cloud growth is promising, but the immediate financial results and macroeconomic disruptions create a mixed outlook.
Company Guidance
During the Open Text Corporation Third Quarter Fiscal 2025 Financial Results Conference Call, guidance was provided on several key metrics. The company reported total revenue of $1.27 billion, slightly below the expected range due to market volatility, particularly due to the disruption caused by auto tariffs. Cloud revenues grew by 3% year-over-year, marking the 17th consecutive quarter of organic growth. The adjusted EBITDA margin was 31.5%, and free cash flow reached a record $374 million, representing a 7% increase year-over-year. Despite challenges, Open Text reaffirmed its commitment to controlling areas like EBITDA, earnings, and free cash flow. The company announced an expanded business optimization plan aiming for annualized savings of up to $400 million, alongside a net reduction of 1,600 employees. Looking forward, Open Text adjusted its Fiscal 2025 revenue target to $5.1 billion to $5.17 billion and maintained its focus on strategic priorities, including competitive advantage, total revenue growth, and operational excellence, driven by its AI-first initiatives.
Strong Free Cash Flow
Record-free cash flow of $374 million, up 7% year-over-year, with a free cash flow margin of 30%.
AI First Strategy
Open Text has committed to an AI-first strategy, integrating AI across the organization and introducing new products like AI Aviators and My Aviator.
Cloud Revenue Growth
Cloud revenues grew by 3% year-over-year in constant currency, marking the 17th consecutive quarter of organic growth.
Capital Allocation Flexibility
The company plans to resume programmatic M&A and share buybacks with capital flexibility, returning to traditional capital allocation strategies.
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Open Text (TSE:OTEX) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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TSE:OTEX Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Apr 30, 2025
C$37.32
C$35.79
-4.10%
Feb 06, 2025
C$41.83
C$39.37
-5.89%
Oct 31, 2024
C$46.11
C$40.98
-11.13%
Aug 01, 2024
C$41.14
C$38.45
-6.53%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Open Text Corporation (TSE:OTEX) report earnings?
Open Text Corporation (TSE:OTEX) is schdueled to report earning on Jul 31, 2025, TBA Not Confirmed.
What is Open Text Corporation (TSE:OTEX) earnings time?
Open Text Corporation (TSE:OTEX) earnings time is at Jul 31, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.