OTEXMEDIUM SIGNALFINANCIAL10-K

OpenText shows mixed financial performance with solid revenue growth offset by declining gross profit margins and reduced cash generation.

The 23% revenue growth indicates strong demand for the company's information management solutions, but the simultaneous 11% decline in gross profit suggests margin compression that could signal pricing pressure or rising costs. The reduced operating cash flow further indicates potential operational efficiency challenges that management will need to address.

Comparing 2025-08-07 vs 2024-08-01View on EDGAR →
FINANCIAL ANALYSIS

OpenText delivered solid top-line growth with revenue expanding 23% to $2.8 billion, demonstrating healthy market demand for its enterprise software solutions. However, profitability metrics deteriorated as gross profit declined 11% to $3.7 billion, indicating margin compression. Operating cash flow also weakened by 14% to $830.6 million, suggesting the company faces operational challenges in converting revenue growth into cash generation efficiency.

FINANCIAL STATEMENT CHANGES
Revenue
P&L
+22.9%
$2.3B→$2.8B

Revenue growing 22.9% — solid top-line momentum, watch margins for quality of growth.

Operating Cash Flow
Cash Flow
-14.2%
$967.7M→$830.6M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Gross Profit
P&L
-10.9%
$4.2B→$3.7B

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

LANGUAGE CHANGES
NEW — 2025-08-07
PRIOR — 2024-08-01
ADDED
As of July 31, 2025, there were 254,316,690 outstanding Common Shares of the registrant.
Unless otherwise noted, any reference to a year preceded by the word Fiscal refers to the fiscal year ended June 30 of that year.
For example, references to Fiscal 2025 refer to the fiscal year ended June 30, 2025.
Due to rounding, certain totals and subtotals may not foot and certain percentages may not reconcile.
3 Tab le of C ontents Summary of Risk Factors The following is a summary of material risks described below in Part I, Item 1A Risk Factors in this Annual Report on Form 10-K.
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REMOVED
As of July 26, 2024, there were 268,189,944 outstanding Common Shares of the registrant.
An adverse outcome of these ongoing audits could have a material adverse effect on our financial position and results of operations Risks associated with data privacy issues, including evolving laws and regulations and associated compliance efforts, may adversely impact our business Certain of our products may be perceived as, or determined by the courts to be, a violation of privacy rights and related laws.
With critical tools and services for connecting and classifying data, OpenText accelerates customers ability to deploy Artificial Intelligence (AI), automate work, and strengthen productivity.
With rising compliance standards for data management, security, environmental, sustainability, and inclusion factors, OpenText empowers customers with foresight and trust.
Our solutions are marketed and delivered on the OpenText Cloud Platform, which supports customer deployments from private cloud to public cloud to off-cloud to API.
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