Open Text Corporation (OTEX) Stock Analysis
Technology · Software - Application · NasdaqGS
Open Text Corporation (OTEX) posted $5.17B in revenue for fiscal 2025 (down 10.4% year over year), at a 8.4% net margin, and has compounded revenue about 10.7%/yr over five years, per its SEC filings.
Data last refreshed August 2, 2026 from SEC filings · how we compute this
The analyst's take on Open Text Corporation
Open Text Corporation has grown revenue from $1.82B to $5.17B over the last 10 fiscal years, compounding about 10.7% a year. The most recent year was down 10.4%, so growth has cooled from its longer-run pace.
Net margin sits at 8.4%, up 0.3 points year over year on a 72.3% gross margin. It carries about $6.38B of total debt.
At today's valuation the market is pricing in roughly -5.8% annual free-cash-flow growth — versus the -4.9% it actually delivered over the last five years, broadly in line with what it has delivered. The one thing worth a second look in the filings is receivables growing faster than sales.
Synthesised from Open Text Corporation's SEC filings — descriptive, not advice. Ask the analyst your own question →
Open Text Corporation revenue & earnings — last 10 fiscal years
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.82B | $2.29B | $2.82B | $2.87B | $3.11B | $3.39B | $3.49B | $4.48B | $5.77B | $5.17B |
| Gross profit | $1.25B | $1.53B | $1.86B | $1.94B | $2.11B | $2.35B | $2.43B | $3.17B | $4.19B | $3.73B |
| Net income | $284.48M | $1.03B | $242.22M | $285.50M | $234.22M | $310.67M | $397.09M | $150.38M | $465.09M | $435.87M |
| Net margin | 15.6% | 44.8% | 8.6% | 10.0% | 7.5% | 9.2% | 11.4% | 3.4% | 8.1% | 8.4% |
Source: Open Text Corporation SEC filings (10-K). 19 years of history available in the interactive view.
Open Text Corporation: 2 potential red flags in the filings
Patterns in the filed statements worth a second look — computed and cited, not AI guesswork, and not a signal to sell. The kind of thing that hides in a 10-K.
- Receivables growing faster than salesAccounts receivable rose 12.3% while revenue rose -10.4% in the latest year — a gap that can signal looser credit terms or pulled-forward sales. Worth checking days-sales-outstanding.
- Heavy debt loadTotal debt of $6413.8M is 7.7× last year's operating cash flow — it would take years of cash flow to clear.
What growth is priced into OTEX stock?
At today's market cap of $5.23B, Open Text Corporation is priced for free-cash-flow growth of about -5.8% per year for 10 years (assuming a 10% discount rate and 2.5% terminal growth, base FCF $687.40M from the FY ending 2025-06-30). For comparison, free cash flow actually grew -4.9%/yr over the last five fiscal years and revenue 10.7%/yr, computed from its SEC filings. This is a reverse DCF — a translation of the price into a growth assumption you can judge, not a fair value and not advice. Change the assumptions yourself in the interactive view →
Explore 19 years of Open Text Corporation financials — interactive
Full income statement, balance sheet and cash flow with CAGR and trend on every row, 48 quarters, valuation ratios, plain-English health checks, and Ask — our SEC-grounded research assistant.
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Open Text Corporation financial history by metric
About Open Text Corporation
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 — frequently asked questions
What is Open Text Corporation's revenue?
Open Text Corporation (OTEX) reported revenue of $5.17B for fiscal year 2025, down 10.4% from the prior year, according to its SEC filings.
Is Open Text Corporation profitable?
Yes. OTEX earned net income of $435.87M in fiscal 2025, a net margin of 8.4%.
What is OTEX's P/E ratio?
Open Text Corporation trades at a price-to-earnings ratio of about 10.5 based on the latest data in our nightly-refreshed cache.
How fast is Open Text Corporation growing?
OTEX's revenue grew at roughly 10.7% per year over the last five fiscal years (compound annual growth rate), computed from SEC-filed statements.
How much debt does Open Text Corporation have?
As of fiscal year 2025, OTEX carried roughly $6.38B in total debt (short- plus long-term borrowings), per its filed balance sheet.
What is Open Text Corporation's gross margin?
OTEX's gross margin was 72.3% in fiscal 2025 — gross profit of $3.73B on revenue of $5.17B.
What is Open Text Corporation's market cap?
Open Text Corporation (OTEX) has a market capitalization of about $5.23B, based on the latest data in our nightly-refreshed cache.
When does Open Text Corporation's fiscal year end?
OTEX's fiscal year ends in June. Its most recent annual filing covers the fiscal year ending 2025-06-30.
What growth is priced into OTEX stock?
At today's market cap of $5.23B, Open Text Corporation is priced for free-cash-flow growth of about -5.8% per year for 10 years (assuming a 10% discount rate and 2.5% terminal growth, base FCF $687.40M from the FY ending 2025-06-30). For comparison, free cash flow actually grew -4.9%/yr over the last five fiscal years and revenue 10.7%/yr, computed from its SEC filings.
Where does this data come from?
All figures are computed from Open Text Corporation's official SEC filings (10-K and 10-Q), covering 19 years of history, refreshed nightly. stockportfolio.pro does not provide investment advice.