OPEN TEXT CORP SEC 10-Q Report

Open Text Corp, a leading provider of enterprise information management solutions, has released its Form 10-Q report for the third quarter of fiscal year 2025. The report highlights the company's financial performance and operational activities, providing insights into its revenue streams, geographical performance, and future outlook.

Financial Highlights

Open Text Corp reported the following key financial metrics for the three months ended March 31, 2025:

• Total Revenues: $1,254.4 million, reflecting a decrease from $1,447.1 million in the same period last year, primarily due to lower customer support and license revenues.
• Gross Profit: $898.3 million, down from $1,055.8 million, indicating a reduction in profitability as a result of decreased revenues.
• Income from Operations: $209.1 million, compared to $227.1 million in the prior year, showing a slight decline in operational efficiency.
• Net Income: $92.9 million, a decrease from $98.3 million, impacted by lower revenues and increased operating expenses.
• Earnings per share—diluted attributable to OpenText: $0.35, consistent with the previous year's $0.36, indicating stable earnings per share despite the decline in net income.

Business Highlights

The company's business performance for the three months ended March 31, 2025, includes the following highlights:

• Revenue Segments: The company reported revenue from four main streams:
  • Cloud services and subscriptions: $462.6 million
  • Customer support: $567.4 million
  • License revenue: $138.4 million
  • Professional service and other revenue: $86.0 million
• Geographical Performance:
  • The Americas: $719.8 million
  • EMEA: $420.1 million
  • Asia Pacific: $114.4 million
  All regions experienced a decline in revenue compared to the prior year.
• Contract Assets and Liabilities:
  • Short-term contract assets: $70.9 million
  • Long-term contract assets: $48.0 million
  • Short-term deferred revenues: $1,526.8 million
  • Long-term deferred revenues: $171.9 million
  These figures indicate a stable backlog of future revenue.
• Incremental Costs of Obtaining a Contract: The company capitalized $37.3 million in new costs to obtain contracts during the nine months ended March 31, 2025, with a total of $115.5 million in capitalized costs as of March 31, 2025.
• Remaining Performance Obligations: As of March 31, 2025, the company reported total remaining performance obligations of $4.1 billion, with 63% expected to be recognized as revenue over the following 12 months. Cloud services and subscription RPO was $2.3 billion, with 51% expected to be recognized over the next year.
• Lease Operations: The company has operating leases with a weighted average remaining lease term of 4.68 years and a weighted average discount rate of 4.96%. Total operating lease liabilities were $270.9 million as of March 31, 2025.
• Goodwill and Intangible Assets: Goodwill increased slightly to $7,494.0 million as of March 31, 2025, due to acquisitions and foreign exchange rate changes. Acquired intangible assets, net of amortization, were $2,102.5 million.
• Future Outlook: The company is evaluating the potential impact of new accounting standards on segment reporting and income tax disclosures, which may affect future financial reporting. Additionally, the company is focused on maintaining its competitive position in the market through strategic investments and operational efficiencies.

SEC Filing: OPEN TEXT CORP [ OTEX ] - 10-Q - Apr. 30, 2025