Open Text Corp Financials
Open Text Corp (OTEX) reported $5.2B in revenue for fiscal year 2026, up 1.5% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Cash generation is paired with debt-funded scale, margin recovery, and substantial shareholder distributions.
From FY2024 to FY2026, operating margin rose from15.4% to20.6% even though revenue remained below its FY2024 peak, indicating that profitability improvement came more from cost and mix discipline than sustained volume growth. In FY2026, operating cash flow of$1.01B exceeded net income of$643M ; free cash flow of$808M remained substantial after$199M of capital spending, showing that reported earnings converted into cash without heavy reinvestment.
Leverage has eased: debt-to-equity declined from 2.1x in FY2023 to 1.4x in FY2026, but the balance sheet still carries a liquidity constraint because the current ratio is only 0.8x. That combination suggests long-term financing is more manageable than short-term obligations.
Cash allocation is shareholder-oriented: FY2026 buybacks totaled
Financial Health Signals
Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Open Text Corp's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Open Text Corp has an operating margin of 20.6%, meaning the company retains $21 of operating profit per $100 of revenue. This strong profitability earns a score of 78/100, reflecting efficient cost management and pricing power. This is up from 17.3% the prior year.
Open Text Corp's revenue grew a modest 1.5% year-over-year to $5.2B. This slow but positive growth earns a score of 19/100.
Open Text Corp has a moderate D/E ratio of 1.43. This balance of debt and equity financing earns a leverage score of 38/100.
Open Text Corp's current ratio of 0.81 is below the typical benchmark, resulting in a score of 12/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Open Text Corp converts 15.4% of revenue into free cash flow ($807.5M). This strong cash generation earns a score of 78/100.
Open Text Corp earns a strong 16.0% return on equity (ROE), meaning it generates $16 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 67/100. This is up from 11.1% the prior year.
Open Text Corp scores 1.24, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Open Text Corp passes 9 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), all 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Open Text Corp generates $1.57 in operating cash flow ($1.0B OCF vs $643.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Open Text Corp generated $5.2B in revenue in fiscal year 2026. This represents an increase of 1.5% from the prior year.
Open Text Corp reported $643.0M in net income in fiscal year 2026. This represents an increase of 47.5% from the prior year.
Open Text Corp earned $2.58 per diluted share (EPS) in fiscal year 2026. This represents an increase of 56.4% from the prior year.
Not reported for fiscal year 2026.
Cash & Balance Sheet
Open Text Corp generated $807.5M in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 17.5% from the prior year.
Open Text Corp held $956.0M in cash against $5.7B in long-term debt as of fiscal year 2026.
Open Text Corp paid $1.10 per share in dividends in fiscal year 2026. This represents an increase of 4.8% from the prior year.
Margins & Returns
Open Text Corp's gross margin was 73.7% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 1.5 percentage points from the prior year.
Open Text Corp's operating margin was 20.6% in fiscal year 2026, reflecting core business profitability. This is up 3.4 percentage points from the prior year.
Open Text Corp's net profit margin was 12.3% in fiscal year 2026, showing the share of revenue converted to profit. This is up 3.8 percentage points from the prior year.
Open Text Corp's ROE was 16.0% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is up 4.9 percentage points from the prior year.
Capital Allocation
Open Text Corp invested $647.7M in research and development in fiscal year 2026. This represents a decrease of 14.3% from the prior year.
Open Text Corp spent $416.4M on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 0.8% from the prior year.
Open Text Corp invested $199.3M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 39.2% from the prior year.
OTEX Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.3B+5.2% | $1.3B-3.3% | $1.3B+3.0% | $1.3B-1.7% | $1.3B+4.5% | $1.3B-6.0% | $1.3B+5.2% | $1.3B |
| Cost of Revenue | $337.6M-2.2% | $345.2M+0.2% | $344.5M-1.7% | $350.6M-3.4% | $362.8M+1.9% | $356.1M-0.1% | $356.5M-0.6% | $358.6M |
| Gross Profit | $1.0B+7.9% | $937.3M-4.6% | $982.2M+4.8% | $937.5M-1.1% | $947.7M+5.5% | $898.3M-8.2% | $978.0M+7.4% | $910.4M |
| R&D Expenses | $149.1M-12.9% | $171.2M+8.1% | $158.3M-6.4% | $169.1M-9.6% | $187.2M-5.1% | $197.3M+9.2% | $180.7M-5.2% | $190.7M |
| SG&A Expenses | $112.0M+3.1% | $108.7M-1.3% | $110.1M+4.1% | $105.8M-0.2% | $106.0M-8.4% | $115.7M+16.5% | $99.4M-6.9% | $106.7M |
| Operating Income | $319.7M+58.9% | $201.2M-31.0% | $291.8M+8.1% | $269.9M+48.7% | $181.6M-13.2% | $209.1M-29.3% | $295.8M+43.4% | $206.2M |
| Income Tax | $94.8M+176.5% | $34.3M-27.6% | $47.3M+20.8% | $39.2M+322.6% | -$17.6M-262.5% | $10.8M-78.7% | $50.9M+2602.8% | $1.9M |
| Net Income | $155.7M-9.8% | $172.7M+2.7% | $168.1M+14.6% | $146.6M+408.5% | $28.8M-68.9% | $92.8M-59.6% | $229.9M+172.5% | $84.4M |
| EPS (Diluted) | $0.64-8.6% | $0.70+6.1% | $0.66+13.8% | $0.58+383.3% | $0.12-65.7% | $0.35-59.8% | $0.87+171.9% | $0.32 |
Not reported in any period shown, so not listed: Interest Expense.
OTEX Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $13.1B-1.6% | $13.3B-1.8% | $13.6B+0.7% | $13.5B-2.2% | $13.8B+0.1% | $13.8B+0.2% | $13.7B-0.3% | $13.8B |
| Current Assets | $2.1B-11.1% | $2.4B+1.3% | $2.4B+10.1% | $2.1B-2.9% | $2.2B+1.8% | $2.2B+3.7% | $2.1B+5.3% | $2.0B |
| Cash & Equivalents | $956.0M-23.8% | $1.3B-1.4% | $1.3B+17.0% | $1.1B-6.0% | $1.2B-9.5% | $1.3B+13.9% | $1.1B+12.2% | $1.0B |
| Accounts Receivable | $751.0M+21.0% | $620.7M-6.7% | $665.6M+12.6% | $591.0M-10.4% | $659.7M+11.2% | $593.1M-7.3% | $639.6M+7.9% | $592.6M |
| Goodwill | $7.3B0.0% | $7.3B-1.5% | $7.4B-0.1% | $7.4B-1.0% | $7.5B+0.3% | $7.5B+0.1% | $7.5B-0.3% | $7.5B |
| Total Liabilities | $9.1B-2.9% | $9.4B-1.7% | $9.5B0.0% | $9.5B-3.3% | $9.8B+2.3% | $9.6B+1.3% | $9.5B-1.5% | $9.6B |
| Current Liabilities | $2.6B+3.5% | $2.5B+1.2% | $2.5B+1.7% | $2.5B-10.4% | $2.7B+8.9% | $2.5B+5.1% | $2.4B-3.9% | $2.5B |
| Long-Term Debt | $5.7B-7.1% | $6.2B-2.5% | $6.3B0.0% | $6.3B-0.1% | $6.3B-0.1% | $6.3B-0.1% | $6.3B-0.1% | $6.4B |
| Total Equity | $4.0B+1.3% | $4.0B-2.0% | $4.0B+2.3% | $4.0B+0.6% | $3.9B-4.8% | $4.1B-2.4% | $4.2B+2.3% | $4.1B |
| Retained Earnings | $2.0B+3.6% | $1.9B-1.3% | $2.0B+1.7% | $1.9B-0.1% | $1.9B-6.8% | $2.1B-4.2% | $2.2B+5.3% | $2.1B |
Not reported in any period shown, so not listed: Inventory.
OTEX Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $185.8M-47.6% | $354.6M+11.3% | $318.7M+115.7% | $147.8M-6.6% | $158.2M-60.7% | $402.2M+15.6% | $348.0M+547.3% | -$77.8M |
| Capital Expenditures | $63.8M+28.4% | $49.7M+26.8% | $39.2M-15.7% | $46.5M+36.0% | $34.2M+20.5% | $28.4M-31.2% | $41.3M+5.0% | $39.3M |
| Free Cash Flow | $122.0M-60.0% | $304.9M+9.1% | $279.4M+176.1% | $101.2M-18.3% | $124.0M-66.8% | $373.8M+21.9% | $306.7M+361.9% | -$117.1M |
| Investing Cash Flow | $89.1M-20.6% | $112.3M+386.4% | -$39.2M+12.9% | -$45.0M-32.1% | -$34.1M+4.2% | -$35.6M+25.0% | -$47.4M-30.1% | -$36.4M |
| Financing Cash Flow | -$569.7M-19.0% | -$478.7M-407.3% | -$94.4M+46.5% | -$176.4M+35.6% | -$273.9M-21.4% | -$225.7M-50.6% | -$149.8M+19.1% | -$185.3M |
| Dividends Paid | $65.4M-1.4% | $66.3M-3.2% | $68.5M+0.4% | $68.2M+3.1% | $66.2M-2.5% | $67.9M-0.6% | $68.3M-1.1% | $69.1M |
| Share Buybacks | $11.8M-95.2% | $247.0M+393.9% | $50.0M-53.5% | $107.6M-25.9% | $145.3M+26.8% | $114.6M+73.6% | $66.0M-24.5% | $87.4M |
OTEX Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 75.0%+1.9pp | 73.1%-0.9pp | 74.0%+1.2pp | 72.8%+0.5pp | 72.3%+0.7pp | 71.6%-1.7pp | 73.3%+1.5pp | 71.7% |
| Operating Margin | 23.7%+8.0pp | 15.7%-6.3pp | 22.0%+1.0pp | 21.0%+7.1pp | 13.9%-2.8pp | 16.7%-5.5pp | 22.2%+5.9pp | 16.3% |
| Net Margin | 11.5%-1.9pp | 13.5%+0.8pp | 12.7%+1.3pp | 11.4%+9.2pp | 2.2%-5.2pp | 7.4%-9.8pp | 17.2%+10.6pp | 6.7% |
| Return on Equity | 3.9%-0.5pp | 4.4%+0.2pp | 4.2%+0.4pp | 3.7%+3.0pp | 0.7%-1.5pp | 2.3%-3.2pp | 5.4%+3.4pp | 2.0% |
| Return on Assets | 1.2%-0.1pp | 1.3%+0.1pp | 1.2%+0.1pp | 1.1%+0.9pp | 0.2%-0.5pp | 0.7%-1.0pp | 1.7%+1.1pp | 0.6% |
| Current Ratio | 0.81-0.1x | 0.940.0x | 0.94+0.1x | 0.87+0.1x | 0.80-0.1x | 0.860.0x | 0.87+0.1x | 0.79 |
| Debt-to-Equity | 1.43-0.1x | 1.560.0x | 1.570.0x | 1.600.0x | 1.61+0.1x | 1.540.0x | 1.500.0x | 1.54 |
| FCF Margin | 9.0%-14.7pp | 23.8%+2.7pp | 21.1%+13.2pp | 7.9%-1.6pp | 9.5%-20.3pp | 29.8%+6.8pp | 23.0%+32.2pp | -9.2% |
Note: The current ratio is below 1.0 (0.81), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Where Open Text Corp Ranks
Frequently Asked Questions
What is Open Text Corp's annual revenue?
Open Text Corp (OTEX) reported $5.2B in total revenue for fiscal year 2026. This represents a 1.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Open Text Corp's revenue growing?
Open Text Corp (OTEX) revenue grew by 1.5% year-over-year, from $5.2B to $5.2B in fiscal year 2026.
Is Open Text Corp profitable?
Yes, Open Text Corp (OTEX) reported a net income of $643.0M in fiscal year 2026, with a net profit margin of 12.3%.
How much debt does Open Text Corp have?
As of fiscal year 2026, Open Text Corp (OTEX) had $956.0M in cash and equivalents against $5.7B in long-term debt.
What is Open Text Corp's gross margin?
Open Text Corp (OTEX) had a gross margin of 73.7% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Open Text Corp's operating margin?
Open Text Corp (OTEX) had an operating margin of 20.6% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Open Text Corp's net profit margin?
Open Text Corp (OTEX) had a net profit margin of 12.3% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
Does Open Text Corp pay dividends?
Yes, Open Text Corp (OTEX) paid $1.10 per share in dividends during fiscal year 2026.
What is Open Text Corp's return on equity (ROE)?
Open Text Corp (OTEX) has a return on equity of 16.0% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Open Text Corp's free cash flow?
Open Text Corp (OTEX) generated $807.5M in free cash flow during fiscal year 2026. This represents a 17.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Open Text Corp's operating cash flow?
Open Text Corp (OTEX) generated $1.0B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Open Text Corp's total assets?
Open Text Corp (OTEX) had $13.1B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Open Text Corp's capital expenditures?
Open Text Corp (OTEX) invested $199.3M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Open Text Corp spend on research and development?
Open Text Corp (OTEX) invested $647.7M in research and development during fiscal year 2026.
What is Open Text Corp's current ratio?
Open Text Corp (OTEX) had a current ratio of 0.81 as of fiscal year 2026, which is below 1.0, which may suggest potential liquidity concerns.
What is Open Text Corp's debt-to-equity ratio?
Open Text Corp (OTEX) had a debt-to-equity ratio of 1.43 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Open Text Corp's return on assets (ROA)?
Open Text Corp (OTEX) had a return on assets of 4.9% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Open Text Corp's Altman Z-Score?
Open Text Corp (OTEX) has an Altman Z-Score of 1.24, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Open Text Corp's Piotroski F-Score?
Open Text Corp (OTEX) has a Piotroski F-Score of 9 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Open Text Corp's earnings high quality?
Open Text Corp (OTEX) has an earnings quality ratio of 1.57x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Open Text Corp?
Open Text Corp (OTEX) scores 49 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.