Open Text (OTEX) investor relations material

Executive summary

• Q1 FY27 revenue was $1,236.6M, down 4.0% YoY; Core revenue grew 2.4% reported and 2.7% CC, while Core Cloud grew 11.2% reported and 11.7% CC.

• GAAP net income rose 5.9% to $155.2M and diluted EPS increased 10.3% to $0.64; Adjusted EBITDA was $442.4M at a 35.8% margin.

• Enterprise assessment is shaping a multi-year growth plan for February 10, 2027 Investor Day; all 300 client executive roles are filled.

Financial highlights

• Revenue was $1,236.6M, down 4.0% reported and 3.9% CC; excluding divestitures, it declined 1.8% reported and 1.7% CC.

• GAAP operating income was $250.8M, down 7.1%; adjusted operating income was $402.7M, down 6.7%.

• GAAP net income was $155.2M, up 5.9%; adjusted net income was $254.4M, down 4.5%, and adjusted diluted EPS was $1.05, flat YoY.

• Operating cash flow was $172.3M, up 16.6%; free cash flow was $138.5M, up 36.8% YoY.

• ARR was $1,040M, down 3.0%; total revenue fell $51.5M, as cloud services and subscriptions rose $21.0M while client support declined $52.7M.

Outlook and guidance

• FY27 outlook was maintained: revenue of $5,135M–$5,185M, Core growth of 2%–3% CC, Core Cloud growth of 8%–10% CC, adjusted EBITDA margin of 32%–33%, and FCF of $625M–$725M.

• Revenue outlook includes ~$30M of unfavorable FX; organic CC revenue growth excluding FY26 divestitures is expected at 0%–1%.

• Q2 FY27 revenue is expected at $1,260M–$1,290M, with adjusted EBITDA margin of 33%–34%.

• Growth investments are weighted to H2; H2 adjusted EBITDA margin is expected below H1 as investment spending ramps.

• Management expects ITOM and cybersecurity to improve each quarter through Q2–Q4 and deliver full-year growth; all Core categories are targeted to grow.