OTEX OPEN TEXT CORP

Overview and Growth

OPEN TEXT CORP generated $5.25B of revenue in fiscal 2026, with net income of $643.02M and an operating cash inflow of $1.01B. The $5.25B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 1.5% above fiscal 2025 revenue of $5.17B, marking a year-over-year increase. Diluted earnings per share were $2.58, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS increased by 56.4% from $1.65 in fiscal 2025, showing how the earnings change reached shareholders on a per-share basis. The revenue-to-assets relationship was 0.4x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $3.87B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. The gross-profit relationship equaled 73.7% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $1.08B of income after the reported operating expense base, before the remaining non-operating and tax effects. Operating margin measured 20.6%, showing the portion of revenue preserved after the full set of operating costs. Net income came to $643.02M, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 12.3%, meaning that this portion of revenue remained as net income after all recognized expenses. Before income taxes, the company reported $858.88M of earnings, providing a bridge between the operating result and final net income. Measured against revenue, pretax income equaled 16.4%, adding a pre-tax profitability layer between revenue and net income. Income tax expense totaled $215.61M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 25.1%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

At period end, the $13.11B asset base was financed through $9.09B of liabilities and $4.02B of equity. Current assets were $2.12B against $2.62B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 0.81x; current liabilities exceeded current assets, leaving a short-term liquidity deficit. Cash and equivalents totaled $956.02M, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 36.4% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Total debt was $5.77B, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 1.44x, showing how much debt the company carried for each unit of book equity. The debt-to-assets relationship was 44.0%, comparing borrowing with the total asset balance. Liabilities represented 69.4% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 7.3%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

Cash flow from operations was $1.01B, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 1.57x of net income, showing how strongly accounting earnings converted into cash from operations. The cash-flow statement records $199.30M of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 19.8% of operating cash flow, leaving the remainder available as free cash flow. The combination of operating cash flow and capital spending produced $807.52M of positive free cash flow for the period. Relative to revenue, free cash flow equaled 15.4%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 6.2%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Jun 30, 2026. Analysis generated Oct 21, 2026.