Our previously announced business optimization has accelerated our margin opportunity, and our medium-term business model is about approaching the rule of 40. Total revenues of $1.31 billion, and we grew organically year-over-year, excluding the impact of AMC, IP rights, and DXC. Our cloud bookings surged to $238 million, or 32% year-over-year growth, all of which flows directly into cloud RPO. Adjusted EBITDA dollars of $444 million, or 34% margin up strongly, ex-AMC.

You can see in our investor presentation a three-year trend at slide, on a reported basis to help illustrate the magnitude of the total revenues, cloud revenues, and cloud growth rates for our business. I would also like to add some further color to our cloud business and revenue performance by business area. Cybersecurity was -4%, which we expect to return to growth this fiscal year. Cloud bookings were $773 million, up 10% and right in our outlook range.

Adjusted EPS of $3.82, up strongly, ex-AMC, and free cash flows of $687 million above the high end of our range, and ending cash of $1.156 billion. We were focused on rebuilding our margin post-divestiture, modernizing the Micro Focus platform, executing a large and strategic business optimization, delivering Titanium X, and creating an AI foundation for the future. Make no mistake, we are disappointed that the full fiscal year had negative growth. As you can see on slide 10, it is a clear exception for a very long track record of growth.

What went well
  • Q4 enterprise cloud bookings of $238 million, up 32.3% year-over-year; full-year cloud bookings of $773 million, up 10% and within outlook range
  • Q4 license revenue of $173 million, up 77% ex-AMC; Q4 cloud revenue of $475 million, up 2.1%, marking 18 quarters of cloud organic growth
  • Full-year adjusted EBITDA margin of 34.5%, 50 basis points above the top end of the 33%-34% target range; full-year free cash flow of $687 million, above the high end of range
  • Content, OSM (formerly ITOM), and DevOps each grew faster than 10% year-over-year in cloud; cloud renewal rate of 96% ending Q4
  • Record capital return of $683 million in fiscal 2025 ($272 million dividends, $411 million buybacks canceling 14.5 million shares); ending cash of $1.156 billion
  • Strong pipeline (license up over 10%, cloud up nearly 30% year-over-year) and highest account executive productivity in eight quarters, with 43 cloud deals over $1 million in Q4
What went wrong
  • Full fiscal 2025 posted negative growth (total revenues of $5.17 billion, down approximately 1% ex-IP rights and DXC; down 3% less AMC), which management called disappointing and a clear exception to a long growth track record
  • Cybersecurity cloud revenue declined 4% in fiscal 2025, mainly driven by the SMBC business
  • Customer support/maintenance ended fiscal 2025 at a decline rate of 4% ex-AMC
  • Business Network cloud revenue remained constant (flat) with some supply-chain customers taking longer to make decisions
  • Adjusted EPS of $0.97 diluted in Q4 was down 1% year-over-year on a reported basis (up after normalizing for the AMC divestiture)

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Reported 2025-08-08 · figures from the Open Text Corp Q4 2025 earnings call.

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