Open Text Reports Q1 2027 Results with Strong Cloud Growth and Improved EBITDA Margins
Open Text (OTEX) reported its first-quarter fiscal 2027 results, highlighted by a significant 20.7% year-over-year increase in Content Cloud revenue. While total revenues declined 4.0% to $1.237 billion due to divestitures and noncore declines, the company's core cloud business showed resilience with an 11.7% growth rate in constant currency. Profitability metrics exceeded internal expectations, with Adjusted EBITDA reaching $442 million (a 35.8% margin) and Free Cash Flow growing nearly 37% year-over-year. The company also made significant progress in debt reduction, paying down approximately $949 million over the last twelve months. Despite these strengths, management noted execution challenges in ITOM and Cybersecurity core revenues and cited geopolitical factors causing a slowdown in Middle Eastern markets. Looking ahead, Open Text maintained its full-year fiscal 2027 targets with Q2 revenue guidance set between $1.26 billion and $1.29 billion.
Tickers: $OTEX
Topics: cash flow cloud services earnings report EBITDA revenue growth