OPEN TEXT CORPOTEX
OPEN TEXT CORP Segments Disclosure
SEGMENT INFORMATION
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ASC Topic 280, “Segment Reporting” (Topic 280), establishes standards for reporting, by public business enterprises, information about operating segments, products and services, geographic areas and major customers. The method of determining what information, under Topic 280, to report is based on the way that an entity organizes operating segments for making operational decisions and how the entity’s management and CODM assess an entity’s financial performance. The Company adopted ASU 2023-07 in the fourth quarter of fiscal 2025 and applied the amendments of the ASU to the prior periods presented to conform with current presentation. See Note 2 “Accounting Policies and Recent Accounting Pronouncements” for details on the ASU.
The Company’s CODM is its Chief Executive Officer. Our operations are analyzed by the CODM as being part of a single industry segment: the design, development, marketing and sale of Information Management software and solutions. As such, segment revenues and significant segment expenses are as presented in the Consolidated Statements of Income. The CODM uses Net income attributable to OpenText and Adjusted EBITDA (as defined below), a non-GAAP measure, on a consolidated Company basis to evaluate and measure financial performance and to make key decisions, including those that involve the preparation of financial projections, strategic decisions and allocation of resources. Adjusted EBITDA is defined and calculated as GAAP-based net income, attributable to OpenText, excluding interest income (expense), provision for (recovery of) income taxes, depreciation and amortization of acquired intangible assets, other income (expense), share-based compensation and special charges (recoveries).
The following tables present Total revenue, significant segment expenses and Adjusted EBITDA for the years presented:
| Year Ended June 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Total revenues | $ | 5,168,405 | $ | 5,769,577 | $ | 4,484,980 | |||||||||||
Adjusted cost of revenues (1) | 1,228,076 | 1,311,114 | 1,072,114 | ||||||||||||||
Adjusted gross profit (1) | 3,940,329 | 4,458,463 | 3,412,866 | ||||||||||||||
| Less: | |||||||||||||||||
Adjusted Research and development (2) | 729,937 | 823,851 | 620,149 | ||||||||||||||
Adjusted Sales and marketing (2) | 1,020,671 | 1,116,562 | 928,261 | ||||||||||||||
Adjusted General and administrative (2) | 405,058 | 547,656 | 391,352 | ||||||||||||||
Add: | |||||||||||||||||
Net (income) attributable to non-controlling interests | (198) | (194) | (187) | ||||||||||||||
Adjusted EBITDA | 1,784,465 | 1,970,200 | 1,472,917 | ||||||||||||||
Less: | |||||||||||||||||
Reconciling items (3) | 1,348,597 | 1,505,110 | 1,322,538 | ||||||||||||||
Net income attributable to OpenText | $ | 435,868 | $ | 465,090 | $ | 150,379 | |||||||||||
(1)Total Adjusted cost of revenues excludes Amortization of acquired technology-based intangible assets and share-based compensation expense, which are costs that are excluded from the CODM’s evaluation of segment performance.
(2)Adjusted operating expenses exclude share-based compensation expense as this expense is excluded from our internal analysis of operating results.
(3)The following adjustments are made to reconcile Adjusted EBITDA to Net income attributable to OpenText:
| Year Ended June 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Provision for (recovery of) income taxes | $ | 46,005 | $ | 264,012 | $ | 70,767 | |||||||||||
| Interest and other related expense, net | 327,831 | 516,180 | 329,428 | ||||||||||||||
| Amortization of acquired technology-based intangible assets | 188,780 | 243,922 | 223,184 | ||||||||||||||
| Amortization of acquired customer-based intangible assets | 321,891 | 432,404 | 326,406 | ||||||||||||||
| Depreciation | 130,573 | 131,599 | 107,761 | ||||||||||||||
| Share-based compensation | 104,840 | 140,079 | 130,302 | ||||||||||||||
Special charges (recoveries) | 145,890 | 135,305 | 169,159 | ||||||||||||||
| Other (income) expense, net | 82,787 | (358,391) | (34,469) | ||||||||||||||
| Total reconciling items | $ | 1,348,597 | $ | 1,505,110 | $ | 1,322,538 | |||||||||||
The following table sets forth the distribution of revenues, by significant geographic area, for the periods indicated:
| Year Ended June 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Revenues (1): | |||||||||||||||||
| United States | $ | 2,646,797 | $ | 3,030,457 | $ | 2,523,737 | |||||||||||
| Canada | 221,627 | 238,737 | 186,014 | ||||||||||||||
| Other | 70,285 | 72,687 | 75,252 | ||||||||||||||
| Total Americas | 2,938,709 | 3,341,881 | 2,785,003 | ||||||||||||||
EMEA (2) | 1,751,543 | 1,878,470 | 1,310,016 | ||||||||||||||
| Asia Pacific | 478,153 | 549,226 | 389,961 | ||||||||||||||
Total | $ | 5,168,405 | $ | 5,769,577 | $ | 4,484,980 | |||||||||||
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(1)Total revenues by geographic area are determined based on the location of our direct customer. During the years ended June 30, 2025, 2024 and 2023, no single country other than the United States accounted for more than 10% of total revenues.
(2)EMEA consists of countries in Europe, the Middle East and Africa.
The following table sets forth the distribution of long-lived assets, representing property and equipment, ROU assets and intangible assets, by significant geographic area, as of the periods indicated below.
As of June 30, 2025 | As of June 30, 2024 | ||||||||||
Long-lived assets (1): | |||||||||||
| United States | $ | 1,339,700 | $ | 1,632,652 | |||||||
| United Kingdom | 860,387 | 1,053,220 | |||||||||
| Canada | 154,240 | 200,695 | |||||||||
| All other countries | 195,493 | 187,211 | |||||||||
| Total | $ | 2,549,820 | $ | 3,073,778 | |||||||
(1)As of June 30, 2025 and 2024, no single country other than the United States and United Kingdom accounted for more than 10% of total long-lived assets.
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 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.