Filing Flows › Open Text (OTEX) › Q3 FY25
Open Text (OTEX) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed Apr 30, 2025
Open Text (OTEX) reported revenue of $1.3B for the third quarter fiscal 2025 (Q3 FY25), -13% from a year earlier and -6% from the quarter before. Operating margin was 16.7%, net earnings $92.9M (7.4% of revenue).
Open Text, Q3 FY25: revenue $1.3B (-13% year over year), operating margin 16.7%, net earnings $92.9M, operating cash flow $402M. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.3B | -6% | -13% |
| Gross profit | $898M | -8% | -15% |
| Operating profit | $209M | -29% | -8% |
| Net earnings | $92.9M | -60% | -6% |
| Operating cash flow | $402M | +16% | +5% |
| Free cash flow | $374M | +22% | +7% |
What changed
Revenue was $1.3B in Q3 FY25, down 13% year over year and down 6% from the previous quarter. Customer support was the largest line at 45% of revenue. Customer support lost $0.12B year over year (down 18%), 64% of the total change.
Gross margin was 71.6%, down 1.3 points from a year earlier. Operating profit was $0.21B, a 16.7% margin (up 1.0 points year over year). Operating expenses fell 17% while revenue fell 13%. Net earnings were $0.09B, down 6% year over year. The effective tax rate was 10.5%.
Operating cash flow was $0.40B (up 5% year over year), 433% of net earnings. Non-cash charges added back $0.02B of share-based compensation. Working capital and other items added $0.29B. Capital expenditures of $0.03B left free cash flow of $0.37B.
Questions
What was Open Text's revenue in the third quarter fiscal 2025?
Open Text (OTEX) reported revenue of $1.3B for the third quarter fiscal 2025 (Q3 FY25), -13% from a year earlier and -6% from the quarter before.
Was Open Text profitable in the third quarter fiscal 2025?
Operating profit was $209M (16.7% of revenue) and net earnings $92.9M.
Source: Open Text 10-Q on SEC EDGAR.