OpenText Corporation reported a total revenue of $5.17 billion for the fiscal year ending June 30, 2025, marking a 10.4% decrease from the previous year. This decline was attributed primarily to the divestiture of its Application Modernization and Connectivity (AMC) business, which was sold for $2.275 billion in cash on May 1, 2024. The company also noted a decrease in customer support revenue, which fell by 14% to $2.33 billion, and license revenue, which dropped by 25% to $625.6 million. In contrast, cloud services and subscriptions revenue increased by 2% to $1.86 billion, indicating a shift towards more stable, recurring revenue streams.
The company’s net income attributable to OpenText was $435.9 million, down from $465.1 million in the prior fiscal year, while diluted earnings per share decreased to $1.65 from $1.71. The gross margin for the year was reported at 72.3%, slightly down from 72.6% in the previous year. OpenText's adjusted EBITDA was $1.78 billion, reflecting a decrease from $1.97 billion in the prior year, as the company navigated the impacts of the AMC divestiture and ongoing restructuring efforts.
Strategically, OpenText completed the acquisition of Micro Focus International Limited for $6.2 billion on January 31, 2023, which has been a significant driver of its product offerings. The company has also focused on enhancing its cloud capabilities, with cloud services and subscriptions now accounting for 35.9% of total revenue. OpenText's total employee count as of June 30, 2025, was approximately 21,400, with a notable reduction in workforce as part of its Business Optimization Plan aimed at achieving annualized savings of approximately $490 million to $550 million.
Looking ahead, OpenText has provided a cautious outlook for fiscal 2026, projecting total revenue growth of 1% to 2% and cloud services and subscriptions revenue growth of 3% to 4%. The company aims to continue its focus on operational excellence and strategic acquisitions while managing its debt, which stood at $6.5 billion as of June 30, 2025. OpenText's management emphasized the importance of navigating the evolving geopolitical landscape and economic conditions, including inflation and potential recessions, as they plan for future growth and stability.
About OPEN TEXT CORP
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