OPEN TEXT CORPOTEX
OPEN TEXT CORP Revenue Disclosure
REVENUES
Disaggregation of Revenue
We have four revenue streams: cloud services and subscriptions, customer support, license, and professional service and other. The following tables disaggregate our revenue by significant geographic area, based on the location of our direct end customer, by type of performance obligation and timing of revenue recognition for the periods indicated:
| Year Ended June 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Total Revenues by Geography: | |||||||||||||||||
Americas (1) | $ | 2,938,709 | $ | 3,341,881 | $ | 2,785,003 | |||||||||||
EMEA (2) | 1,751,543 | 1,878,470 | 1,310,016 | ||||||||||||||
Asia Pacific (3) | 478,153 | 549,226 | 389,961 | ||||||||||||||
| Total revenues | $ | 5,168,405 | $ | 5,769,577 | $ | 4,484,980 | |||||||||||
| Total Revenues by Type of Performance Obligation: | |||||||||||||||||
Recurring revenues (4) | |||||||||||||||||
Cloud services and subscriptions revenue | $ | 1,856,474 | $ | 1,820,524 | $ | 1,700,433 | |||||||||||
Customer support revenue | 2,334,037 | 2,713,297 | 1,915,020 | ||||||||||||||
Total recurring revenues | $ | 4,190,511 | $ | 4,533,821 | $ | 3,615,453 | |||||||||||
| License revenue (perpetual, term and subscriptions) | 625,614 | 834,162 | 539,026 | ||||||||||||||
| Professional service and other revenue | 352,280 | 401,594 | 330,501 | ||||||||||||||
| Total revenues | $ | 5,168,405 | $ | 5,769,577 | $ | 4,484,980 | |||||||||||
| Total Revenues by Timing of Revenue Recognition: | |||||||||||||||||
| Point in time | $ | 625,614 | $ | 834,162 | $ | 539,026 | |||||||||||
| Over time (including professional service and other revenue) | 4,542,791 | 4,935,415 | 3,945,954 | ||||||||||||||
| Total revenues | $ | 5,168,405 | $ | 5,769,577 | $ | 4,484,980 | |||||||||||
______________________
(1)Americas consists of countries in North, Central and South America.
(2)EMEA consists of countries in Europe, the Middle East and Africa.
(3)Asia Pacific primarily consists of Australia, Japan, Singapore, India and China.
(4)Recurring revenue is defined as the sum of Cloud services and subscriptions revenue and Customer support revenue.
Contract Balances
A contract asset, net of allowance for credit losses, will be recorded if we have recognized revenue but do not have an unconditional right to the related consideration from the customer. For example, this will be the case if implementation services offered in a cloud arrangement are identified as a separate performance obligation and are provided to a customer prior to us being able to bill the customer. In addition, a contract asset may arise in relation to subscription licenses if the license revenue that is recognized upfront exceeds the amount that we are able to invoice the customer at that time. Contract assets are reclassified to accounts receivable when the rights become unconditional.
The balance for our contract assets and contract liabilities (i.e., deferred revenues) for the periods indicated below were as follows:
As of June 30, 2025 | As of June 30, 2024 | ||||||||||
Short-term contract assets | $ | 77,920 | $ | 66,450 | |||||||
Long-term contract assets | 49,293 | 38,684 | |||||||||
Short-term deferred revenues | 1,515,382 | 1,521,416 | |||||||||
Long-term deferred revenues | 168,757 | 162,401 | |||||||||
The difference in the opening and closing balances of our contract assets and deferred revenues primarily results from the timing difference between our performance and customer payments. We fulfill our obligations under a contract with a customer by transferring products and services in exchange for consideration from the customer. During the year ended June 30, 2025, we reclassified $114.1 million (year ended June 30, 2024—$116.3 million) of contract assets to receivables as a result of the right to the transaction consideration becoming unconditional. During the year ended June 30, 2025, 2024 and 2023 respectively, there was no significant impairment loss recognized related to contract assets.
We recognize deferred revenue when we have received consideration, or an amount of consideration is due from the customer for future obligations to transfer products or services. Our deferred revenues primarily relate to cloud services and customer support agreements which have been paid for by customers prior to the performance of those services. The amount of revenue that was recognized during the year ended June 30, 2025 that was included in the deferred revenue balances at June 30, 2024 was $1.5 billion (year ended June 30, 2024 and 2023 —$1.7 billion and $887 million, respectively).
Incremental Costs of Obtaining a Contract with a Customer
Incremental costs of obtaining a contract include only those costs that we incur to obtain a contract that we would not have incurred if the contract had not been obtained, such as sales commissions. The following table summarizes the changes in total capitalized costs to obtain a contract, since June 30, 2022:
Capitalized costs to obtain a contract as of June 30, 2022 | $ | 82,562 | |||
| New capitalized costs incurred | 47,305 | ||||
| Amortization of capitalized costs | (33,269) | ||||
Impact of foreign exchange rate changes | 609 | ||||
Capitalized costs to obtain a contract as of June 30, 2023 | 97,207 | ||||
| New capitalized costs incurred | 60,507 | ||||
| Amortization of capitalized costs | (44,016) | ||||
Impact of foreign exchange rate changes | (246) | ||||
Divestiture of AMC business (Note 19) | (3,964) | ||||
Capitalized costs to obtain a contract as of June 30, 2024 | 109,488 | ||||
| New capitalized costs incurred | 60,165 | ||||
| Amortization of capitalized costs | (43,129) | ||||
| Impact of foreign exchange rate changes | 2,502 | ||||
Capitalized costs to obtain a contract as of June 30, 2025 | $ | 129,026 | |||
During the year ended June 30, 2025, 2024 and 2023 respectively, there was no significant impairment loss recognized related to capitalized costs to obtain a contract. Refer to Note 9 “Prepaid Expenses and Other Assets” for additional information on incremental costs of obtaining a contract.
Remaining Performance Obligations
Remaining performance obligations (RPO) represent contracted revenue that has not yet been recognized. They include amounts recognized as deferred revenue and amounts that are contracted but will be billed and recognized as revenue in future periods.
Beginning December 31, 2024, the Company elected to include RPO for contracts with an original expected duration of one year or less in accordance with ASC 606-10-50-14, and discontinued use of the practical expedient relating to the disclosure of RPO within a contract. The Company believes this presentation is preferable as it provides additional information.
The following chart provides RPO information as of the following periods. The 12-month periods noted below are as of the dates presented, with the remaining balances recognized substantially over the next three years thereafter.
| ($ in billions) | As of June 30, 2025 | As of June 30, 2024 | |||||||||
Total RPO (1) | $ | 4.3 | $ | 4.0 | |||||||
% recognized as revenue over the following 12 months | 60% | 63% | |||||||||
Cloud services and subscriptions RPO | $ | 2.5 | $ | 2.2 | |||||||
% recognized as revenue over the following 12 months | 49% | 51% | |||||||||
Customer support and other RPO (2) | $ | 1.8 | $ | 1.8 | |||||||
% recognized as revenue over the following 12 months | 76% | 78% | |||||||||
______________________
(1)RPO amounts presented may be impacted by certain estimates including currency fluctuations, estimates of customers’ deployment of contracted solutions, changes in the scope or termination of contracts, among other factors, and are therefore subject to change.
(2)Customer support and other RPO is primarily comprised of obligations related to customer support revenues, and to a lesser extent license, professional services and other revenues.
Refer to Note 2 “Accounting Policies and Recent Accounting Pronouncements” for additional information on our revenue policy.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 7, 2025 | Showing above |
| 2024 | Aug 1, 2024 | |
| 2023 | Aug 3, 2023 | |
| 2022 | Aug 5, 2022 | |
| 2021 | Aug 5, 2021 | |
| 2020 | Aug 6, 2020 | |
| 2019 | Aug 1, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.