OpenText Reports First Quarter Fiscal Year 2025 Financial Results

Core Insights - OpenText reported total revenues of $1.27 billion for Q1 FY'25, reflecting an 11.0% year-over-year decline, but a 1.8% decrease when adjusted for the AMC divestiture [1][3] - The company achieved a net income margin of 7% and a robust adjusted EBITDA margin of 35.0% [1][2] - OpenText has maintained 15 consecutive quarters of organic growth in cloud revenues, which reached $457 million, up 1.3% year-over-year [1][3] Financial Performance - Annual recurring revenues (ARR) accounted for 83% of total revenues, totaling $1.05 billion, down 8.4% year-over-year [1][3] - GAAP-based net income attributable to OpenText was $84 million, with a diluted GAAP EPS of $0.32, representing a 6.7% increase from the previous year [1][3] - Non-GAAP diluted EPS was reported at $0.93, down 7.9% year-over-year [1][3] Shareholder Returns - The company returned $154 million to shareholders, which included $69 million in dividends and $85 million in share repurchases [3][6] - OpenText purchased and canceled 7.72 million shares over the last two quarters as part of its capital return strategy [2][6] Operational Highlights - OpenText's operating cash flows were negative at ($78) million, and free cash flows were also negative at ($117) million, primarily due to a one-time tax payment related to the AMC divestiture [3][21] - The company is on track to return approximately $570 million in capital to shareholders in Fiscal 2025 [2][3] Strategic Focus - OpenText continues to invest in its future growth areas, including Business Clouds, Business AI, and Cyber Security, with plans to showcase innovations at the upcoming OpenText World User Conference [2][3] - The company aims to drive operational efficiencies and has a defined path for future margin and cash flow growth [2][3]