Open Text (OTEX) investor relations material

Executive summary

• Q3 FY26 total revenue reached $1.283 billion, up 2.2% year-over-year, with cloud revenue growing 6.6% to $493 million and annual recurring revenue at $1.058 billion, up 2.7%.

• Adjusted EBITDA margin improved to 34.1%, up 260 bps year-over-year, and non-GAAP EPS rose 23.2% to $1.01.

• GAAP net income was $173 million, up 86% year-over-year, with diluted EPS doubling to $0.70.

• Free cash flow for Q3 was $305 million; year-to-date free cash flow was $686 million, up from $563 million last year.

• Ayman Antoun was appointed CEO effective April 20, 2026, bringing extensive technology leadership experience.

Financial highlights

• Cloud net renewal rate was 95%, down 1% year-over-year; customer support net renewal rate improved to 93%, up 3%.

• Enterprise cloud bookings grew 28.1% to $196 million, with 41 cloud deals over $1 million.

• GAAP gross margin was 73.1%, non-GAAP gross margin 76.7%, both up year-over-year.

• Non-GAAP net income for Q3 was $250 million (EPS $1.01), up 15.9% year-over-year.

• Adjusted EBITDA was $438 million (34.1% margin), up 10.8% year-over-year.

Outlook and guidance

• FY2026 total revenue growth expected at 1–2%, with cloud revenue growth at 4–5%.

• Enterprise cloud bookings growth guidance increased to 16–20% year-over-year.

• Adjusted EBITDA margin guidance raised by 50–100 bps; free cash flow growth outlook raised to 22–25%.

• Guidance reflects $30 million lower revenue in H2 FY2026 due to eDOCS and Vertica divestitures.

• Dividend per share expected to grow 5%.