Open Text (OTEX) investor relations material

Executive summary

• Fiscal 2026 delivered total revenues of $5.25B, up 1.5% year-over-year, with Q4 revenues at $1.35B, up 2.9% year-over-year.

• Cloud revenues for FY2026 reached $1.96B, up 5.5% year-over-year, with Q4 cloud revenues at $503M, up 6%.

• Core portfolio revenue grew 3% year-over-year in constant currency in Q4, with all core segments achieving organic growth.

• FY2027 is positioned as a foundation year, focusing on disciplined execution, expanding sales capacity, ecosystem partnerships, and organic investment in core, cloud, and AI.

• Significant debt reduction and capital returns, including $649M debt repaid and 6% of shares repurchased in FY2026.

Financial highlights

• Q4 FY2026 GAAP EPS was $0.64 (up 481.8% year-over-year); adjusted EPS was $1.23 (up 26.8%).

• FY2026 GAAP EPS was $2.58 (up 56.4% year-over-year); adjusted EPS was $4.42 (up 15.7%).

• Q4 adjusted EBITDA margin was 37.6%; FY2026 adjusted EBITDA margin was 36.3%.

• Annual recurring revenues (ARR) reached $4.25B for FY2026, representing 80.9% of total revenue.

• Free cash flow for FY2026 was $808M, up 17.5% year-over-year; Q4 free cash flow was $122M, down 1.6%.

Outlook and guidance

• FY2027 total revenue expected at $5.135B–$5.185B (-2% to -1% reported, 0%–1% constant currency, excluding divestitures).

• Core revenue growth projected at 2%–3% in constant currency; core cloud revenue growth expected at 8%–10%.

• Adjusted EBITDA margin guidance for FY2027 is 32%–33%; free cash flow: $625M–$725M.

• Q1 FY2027 revenue guidance: $1.22B–$1.25B; adjusted EBITDA margin: 32%–33%.

• $100M–$200M in growth investments planned, mainly for sales capacity and partner ecosystem.