Open Text CorporationOTEX
NasdaqGS•Technology•Software - Application
Open Text Corporation designs, develops, markets, and sells information management software and solutions in North, Central, and South America, Europe, the Middle East, Africa, Australia, Japan, Singapore, India, and China. The company offers cloud services and subscriptions, including software as a service offerings, application programming interfaces and data services, and private, public, and off-cloud products, such as hosted services and managed service arrangements; foundational platform of technology services; and packaged business applications, as well as managed services and outsourced B2B integration solutions, including program implementation, operational management, and customer support. It also provides fees earned from the licensing of software products to customers; and consulting and learning services, such as implementation, training, and integration of licensed product offerings into the customer's systems. In addition, the company offers various business clouds, including content, cybersecurity, DevOps, business network, observability and service management, and analytics; and artificial intelligence, software developers API, and other related services. It has strategic partnerships with SAP SE, Google Cloud, Amazon Web Services, Microsoft Corporation, Oracle Corporation, and Salesforce.com Corporation, as well as global systems integrators, including Accenture plc, Capgemini Technology Services SAS, Deloitte Consulting LLP, Hewlett Packard Enterprises, and Tata Consultancy Services. The company serves G10K organizations, enterprise companies, public sector agencies, mid-market companies, small and medium-sized businesses, and direct consumers. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.
Open Text Corporation (OTEX) reported trailing twelve months revenue of $5.18B as of December 2025, a 4.3% decline year-over-year. Quarterly revenue reached $1.33B, reflecting a contraction in sales.
Open Text Corporation generated $436.35M in TTM net income, with quarterly EBITDA of $469.99M. The operating margin expanded from 23.3% to 23.5%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (23.5%) and net margin (12.7%) indicates moderate non-operating costs. Net margin has narrowed from 17.2% a year ago, reflecting increased costs or interest expense.
OTEX trades at a P/E of 19.1x (in line with broad market averages) and a P/S of 1.6x. The price-to-book ratio of 2.1x reflects a moderate premium to book value.
The company generated $462.21M in free cash flow over the trailing twelve months, a 2.4% increase year-over-year, indicating strong cash generation ability. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~20.1%, suggesting durable pricing power and cost discipline.
ROE is positive at ~11.6% on average, adequate but below the threshold typically associated with wide moats.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~20.7% — no sign of cost or pricing stress.
FCF covers net income by 3.7x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue declined in 6 of the last 7 quarters — persistent contraction signals a fundamental problem.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 7.5% — net buybacks are reducing shares outstanding and boosting per-share value.