OpenText(OTEX) - 2026 Q1 - Quarterly Results

Financial Performance - Total revenues for Q1 FY2026 reached $1.288 billion, reflecting a year-over-year increase of 1.5%[7] - Net income for the quarter was $147 million, representing a significant increase of 73.8% year-over-year, with a GAAP EPS of $0.58[7] - Adjusted EBITDA was reported at $467 million, yielding a robust margin of 36.3%[7] - Annual recurring revenues (ARR) totaled $1.071 billion, an increase of 1.8% year-over-year[8] - Gross profit for the quarter was $937,516, an increase from $910,358 in the same quarter of 2024[22] - Non-GAAP-based net income attributable to OpenText was $266,275, translating to a Non-GAAP-based earnings per share of $1.05, compared to $0.58 GAAP-based earnings per share[46] - GAAP-based net income attributable to OpenText for the three months ended September 30, 2025, was $146,616, with a net income margin of 11.4%[47] - Adjusted EBITDA for the same period was $467,411, representing an adjusted EBITDA margin of 36.3%[47] Cash Flow and Liquidity - Operating cash flows were $148 million, a remarkable increase of 289.9% year-over-year, while free cash flows reached $101 million, up 186.4%[7] - Cash flows from operating activities provided $147,763, a significant recovery from a cash outflow of $(77,806) in the prior year[29] - Total cash, cash equivalents, and restricted cash at the end of the period was $1,088,711, up from $1,002,410 a year earlier, indicating a 8.6% increase[31] - Cash used in investing activities was $(45,032), up from $(36,440) in the previous year, reflecting increased capital expenditures[29] - The company experienced a decrease in cash, cash equivalents, and restricted cash of $(69,395) during the period, a significant improvement from a decrease of $(280,383) in the same quarter last year[29] Shareholder Returns - The Board declared a cash dividend of $0.275 per common share, with a record date of December 5, 2025[10] - The company declared dividends of $0.275 per common share during the quarter, totaling $69,365[26] - The company repurchased $107,629 worth of common shares during the quarter, compared to $87,403 in the same period last year, indicating a 23.2% increase in share repurchases[29] Strategic Initiatives - The company announced a strategic divestiture of its on-premise solution (eDOCS) for $163 million as part of its portfolio-shaping strategy[11] - OpenText plans to showcase its innovation roadmap at the upcoming OpenText World User Conference, emphasizing its focus on Information Management for AI[2] Expense Management - Research and development expenses were $169,128, down from $190,693 in the prior year, indicating a focus on cost management[22] - Operating expenses for research and development totaled $169,128, while sales and marketing expenses were $257,055, reflecting ongoing investment in growth[42] Revenue Composition - Quarterly enterprise cloud bookings were $160 million, reflecting a growth of 20.2% year-over-year[7] - Revenue composition for the three months ended September 30, 2024, included 58% from USD, 24% from EURO, and 10% from other currencies[65]