OPEN TEXT CORP

OTEXBack Office

OpenText manages information for large organizations.

Key figures

Data as of Jun 2026 · Pills compare vs Mar 2026

ARR Multiple

1.0x

+0.0x

ARR

$5.4B

+5.2%

YoY Growth

2.9%

+0.7pp

Market Cap

$5.4B

+0.3%

Revenue (Q)

$1.3B

+5.2%

Gross Margin

75.0%

+1.9pp

Op. Margin

23.7%

-1.9pp

Rule of 40

26.6

-1.2

Magic Number

0.94

+1.55

Revenue, margins & ratios from SEC filings; market cap & ARR multiple from market data. Market cap & ARR multiple use the close of 2 Oct 2026; their pills compare vs the Jun 2026 quarter-end (1.0x).

Valuation by quarter

Current ARR Multiple: 1.0x

Calculated valuation

FRAMEWORK EST.

Valuation data is not available for this company.

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Levers ranked by valuation impact

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AI Replacement RiskELEVATED

51/ 100

LowModerateElevatedHigh

Estimated likelihood that general-purpose AI replaces this product.

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Why this rating

From the AI Risk Calculator model

Your moat is reasonable today. Stay vigilant — re-evaluate when foundation models add tool-use and long-running workflows that compress your differentiation.

What's driving the score

Content creationCategory baseline

high base

Workflow complexity5/5

-12 risk

Data moat3/5

-1 risk

Integration depthHigh

-10 risk

SegmentEnterprise

-8 risk

IndustryOther

neutral

Own AI integration2/5

+1.6 risk

Company overview

OpenText manages information for large organizations. Documents. Records. Data. The company was founded in 1991 in Waterloo, Ontario, and it is one of Canada largest software firms.

At its core, OpenText helps companies control the flood of content they create. Contracts, invoices, emails, engineering files, and legal records all need to be stored, found, and governed. OpenText content services handle that job for banks, manufacturers, and governments.

The company grew huge through acquisitions. It buys established software firms and folds them into its portfolio. The purchase of Micro Focus added a broad set of IT operations and development tools. Other deals expanded its reach into security, analytics, and business networks that connect trading partners.

Consider a global insurer buried in paperwork. Millions of claims and policies must be stored for years and produced on demand for auditors. OpenText keeps that archive organized and compliant, so the right document appears in seconds.

Revenue runs around $5 billion a year, and the business is solidly profitable with strong cash flow. Growth is modest, and the story is more about steady cash and disciplined dealmaking than rapid expansion. OpenText is a mature roll up that treats enterprise information as an asset worth managing with care.

Entity information

Industry7373: Services-Computer Integrated Systems Design

Fiscal YearJun 30

IncorporatedOntario, Canada

Phone(519) 888-7111

Address275 FRANK TOMPA DRIVE, WATERLOO, ONTARIO CANADA, A6, N2L 0A1

Mailing address275 FRANK TOMPA DRIVE, WATERLOO, ONTARIO CANADA, A6, N2L 0A1

EIN98-0154400

Entity typeoperating

SEC industry framework06 Technology

SaaS KPIs

Reported in at least 3 quarters

Adjusted EBITDA

20 quarters

$507M

Q4 FY2026+15.8%

Adjusted EBITDA Margin

16 quarters

37.6%

Q4 FY2026+3.5pp

Non-GAAP Gross Margin

16 quarters

78.3%

Q4 FY2026+1.6pp

Enterprise Cloud Bookings

14 quarters

$295.0M

Q4 FY2026+50.5%

Cloud Revenues

12 quarters

$478.0M

Q2 FY2026-1.4%

Free Cash Flow

10 quarters

$122M

Q4 FY2026-56.3%

Guidance

Q4 FY2026 earnings report →

Management outlook

Given with Q4 FY2026 results (Jun 2026)

Fiscal 2027

Total revenues (as reported)$5,135 to $5,185

Total revenues growth from Content, Business Network, ITOM, and Cybersecurity (Enterprise) product categories in constant currency (Non-GAAP)2% to 3%

Total cloud services and subscriptions revenues growth from Content, Business Network, ITOM, and Cybersecurity (Enterprise) product categories in constant currency (Non-GAAP)8% to 10%

Adjusted EBITDA Margin (Non-GAAP)32% to 33%

Free Cash Flows (Non-GAAP)$625 to $725

Total revenues (as reported) - expected unfavourable foreign currency impactapproximately $30 million

Total revenues growth from Content, Business Network, ITOM, and Cybersecurity (Enterprise) product categories in constant currency - expected unfavourable foreign currency impactapproximately $25 million

Total cloud services and subscriptions revenues growth from Content, Business Network, ITOM, and Cybersecurity (Enterprise) product categories in constant currency - expected unfavourable foreign currency impactapproximately $5 million

Business Optimization Plan annualized savings realizationexpects to realize the remaining 30% in Fiscal 2027

Share repurchase planup to 23,846,439 of its common shares, representing 10% of the Company's public float

Core organic growthdrive core organic growth in constant currency

Q2 Fiscal 2027

Business Optimization Plan completionexpected to be substantially completed by the second quarter of Fiscal 2027