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How Open Text (OTEX) makes money

Open Text (OTEX) made $1.2B of revenue in the first quarter fiscal 2027 (Q1 FY27), +2% from a year earlier. Cloud services and subscriptions brought in $505M (41%); Content brought in $163M (13%); Business Network brought in $161M (13%). Of every dollar of revenue, 73¢ was left as gross profit, 20¢ was left as operating profit, 13¢ was left as net earnings.

Drawing the Sankey…

Open Text revenue by segment, Q1 FY27Open Text revenue by segment, Q1 FY27Cloud services and subscriptions$505MContent$163MBusiness Network$161MBusiness Network$154MCybersecurity (SMB & Consumer)$128MLicense$124M
Open Text revenue by quarterOpen Text revenue by quarter$1.3BQ3 FY25$1.3BQ4 FY25$1.3BQ1 FY26$1.3BQ2 FY26$1.3BQ3 FY26$1.3BQ4 FY26$1.2BQ1 FY27
Open Text: where each dollar of revenue goesOpen Text: where each dollar of revenue goesCost of revenue27¢Gross profit73¢Operating expenses53¢Operating profit20¢Income tax4¢Net earnings13¢Operating cash flow14¢Free cash flow11¢

Revenue by segment, Q1 FY27

SegmentRevenueShareQ/QY/Y
Cloud services and subscriptions$505M40.9%—+4%
Content$163M13.2%—+21%
Business Network$161M13.0%—+0.2%
Business Network$154M12.4%—+1%
Cybersecurity (SMB & Consumer)$128M10.3%—-9%
License$124M10.0%—-8%

Where each dollar of revenue goes

LineQ1 FY27% of revenue
Revenue$1.2B100.0%
Cost of revenue$331M26.8%
Gross profit$906M73.4%
Operating expenses$655M53.0%
Operating profit$251M20.3%
Income tax$43.7M3.5%
Net earnings$155M12.6%
Operating cash flow$172M14.0%
Free cash flow$139M11.2%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q1 FY27$1.2B-4%
Q4 FY26$1.3B+3%
Q3 FY26$1.3B+2%
Q2 FY26$1.3B-0.6%
Q1 FY26$1.3B+2%
Q4 FY25$1.3B-4%
Q3 FY25$1.3B-13%

From Open Text's 10-Q filed Nov 5, 2026 (on EDGAR).

Questions

How does Open Text make money?

Open Text (OTEX) made $1.2B of revenue in the first quarter fiscal 2027 (Q1 FY27), +2% from a year earlier. Cloud services and subscriptions brought in $505M (41%); Content brought in $163M (13%); Business Network brought in $161M (13%). Of every dollar of revenue, 73¢ was left as gross profit, 20¢ was left as operating profit, 13¢ was left as net earnings.

What is Open Text's biggest business?

Cloud services and subscriptions: $505M in the first quarter fiscal 2027, 41% of revenue, +4% from a year earlier.

What is Open Text's profit margin?

Net earnings were $155M, 12.6% of revenue, in the first quarter fiscal 2027; the operating margin was 20.3%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.