Open Text Corporation (OTEX): Business Model Canvas [Dec-2025 Updated]

You're trying to make sense of a true enterprise software behemoth, and honestly, mapping the business model of Open Text Corporation after all those acquisitions can feel like navigating a maze. As someone who spent a decade mapping these giants for BlackRock, I can tell you the story here is about scale and transition: they are sitting on a massive installed base of over 120,000 customers, driving an Annual Recurring Revenue (ARR) of $4.191 billion as of FY2025, while aggressively pushing their AI-driven Titanium X platform. The real tension is balancing the operational costs of integrating Micro Focus-aiming for $400 million in synergies-against the need to service $6.485 billion in debt principal. This canvas lays out exactly where that $1.856 billion in FY2025 Cloud Services revenue comes from and how they plan to keep the world's top companies compliant and running on their platform. It's a complex machine, but the blueprint is surprisingly clear. Dive in below to see the nine blocks that define their strategy right now.

Open Text Corporation (OTEX) - Canvas Business Model: Key Partnerships

You're looking at the structure that powers Open Text Corporation's reach in the Information Management space, which is a market valued at about $200 billion as of late 2025. Partnerships are defintely critical for scaling complex enterprise software.

Strategic Cloud Alliances (e.g., Google) for AI and data security

Open Text Corporation has been actively strengthening its hyperscaler relationships to fuel its AI and multi-cloud strategy. For instance, in November 2025, Open Text Corporation announced it deepened its partnership with Google to accelerate AI innovation, data security, and Sovereign Cloud solutions. This focus supports the overall cloud business, which generated $1.856 billion in revenue for the full Fiscal Year 2025. The company supports over 31 million+ public cloud users.

Key aspects of these cloud alliances include:

• Accelerating AI innovation across the platform.
• Ensuring robust data security foundations.
• Supporting Sovereign Cloud deployments.
• Enabling customers to operate in a multi-cloud world.

SAP for solution extensions and enterprise application integration

The relationship with SAP remains a cornerstone for Open Text Corporation, focusing on embedding information governance directly into core business processes. This collaboration earned Open Text Corporation a 2025 SAP® Pinnacle Award in the Partner Solution Success Category. The integration extends across critical processes like Procure-to-Pay, Order-to-Cash, and Hire-to-Retire. Furthermore, the integration of Experience Cloud with SAP, covering document presentment and journeys, is cited as a major differentiator.

Global System Integrators (SIs) for complex digital transformation projects

Global System Integrators are essential for deploying Open Text Corporation's solutions in large, complex digital transformation projects. These partners help bridge the gap between Open Text Corporation's software and the client's existing, often highly customized, enterprise landscape. The company serves 120,000+ enterprise customers globally.

Sovereign Cloud partners like Core42 for public sector AI solutions

The focus on Sovereign Cloud, as highlighted in the Google partnership update, points to strategic alliances aimed at the public sector and regulated industries where data residency and control are paramount. These specialized partners help Open Text Corporation meet specific jurisdictional compliance needs while delivering AI-powered information management.

Channel partners and resellers to reach mid-market and SMB customers

While much of the public data focuses on large enterprises, channel partners and resellers are necessary to efficiently serve the mid-market and Small to Medium Business (SMB) segments. These partners provide localized sales, implementation, and support, extending Open Text Corporation's reach beyond its direct sales force. The company's solutions are deployed in 99 of the top 100 global companies, according to the Forbes Global 1000 for 2025.

Here's a quick look at the scale of the business these partnerships support, based on Fiscal Year 2025 annual results:

Open Text Corporation (OTEX) - Canvas Business Model: Key Activities

You're looking at the engine room of Open Text Corporation, the core actions they must execute to deliver on their value proposition in late 2025. This is where the heavy lifting happens, especially after major acquisitions and strategic shifts.

Integrating the Micro Focus acquisition to realize $400 million in cost synergies

The integration of Micro Focus remains a massive activity, built on the initial expectation of achieving $400 million in cost synergies. Open Text Corporation is now executing the final phases of this integration through its broader Business Optimization Plan. The initial synergy target is now part of a larger savings initiative. The expanded Business Optimization Plan is expected to generate total annualized savings of approximately $490 million to $550 million when fully implemented. You should note that approximately 50% of this total annualized benefit is slated for realization in Fiscal 2026, with the remainder following in Fiscal 2027.

Developing the AI-driven Titanium X platform and Aviator product suite

A critical activity is the engineering and deployment of the next generation of the platform. Open Text Corporation introduced the availability of Project Titanium X, ready with Cloud Editions 25.2, in April 2025. This platform is designed to unify fragmented offerings and power the Business Clouds, Business AI, and Business Technology. The AI focus is embodied in the OpenText Aviator product suite. The roadmap for Aviator includes a target of 15 aviators and over 100 agents embedded across the solution portfolio. As of November 2025, the company unveiled the OpenText AI Data Platform (AIDP), an open, governed data-and-AI framework. The OpenText Aviator entry tier is planned to be included with OT 26.1 upgrades to Content Management, Service Management, and Communications Management at no additional fee, and will also be available on-premises starting with OT 26.1.

Here are some of the specific Aviator components driving this activity:

• Content Aviator: For conversational search and data contextualization.
• DevOps Aviator: Designed to accelerate Java development and automate testing.
• Cybersecurity Aviator: To gain real-time contextual threat intelligence.
• Experience Aviator: To enhance customer communications with generative AI.

Managing a large, global portfolio of enterprise information management (EIM) products

Open Text Corporation must actively manage its vast EIM portfolio, which spans content management, cybersecurity, and cloud computing. As of late 2025, Open Text Corporation is trusted by 98 of the top 100 global companies in its EIM space. The company has a global workforce of approximately 22,900 employees supporting this scale. The financial underpinning of this management is seen in its recurring revenue base. For Fiscal 2025, total revenues were reported in the range of $5.2 billion to $5.4 billion (excluding the AMC business). The Annual Recurring Revenue (ARR) was $4.2 billion for Fiscal 2025. Looking at the most recent reported quarter, Q1 Fiscal 2026, Total Revenues were $1.288 billion, with Cloud Revenues at $485 million.

You can see the revenue mix from Q1 Fiscal 2025, which gives you a sense of the portfolio's components:

Executing the Business Optimization Plan for operational efficiencies

The Business Optimization Plan is a key activity aimed at driving operational efficiencies and margin expansion. The initial plan, announced in Fiscal 2025, targeted a reduction of approximately 1,200 roles and reinvestment in 800 new roles, expecting to reduce annual expense by $150M at an approximate cost of $60M. Following this, the plan was expanded in Q3 Fiscal 2025, aiming for total annualized savings between $490 million and $550 million. This focus on operational streamlining supports the reinvestment into AI and cloud growth products.

Strategic portfolio-shaping, including divesting non-core assets like eDOCS

Rationalizing the sprawling portfolio acquired over years of M&A is a necessary activity. The company is actively divesting non-core assets to focus on its core 'secure information management for AI' business. A concrete example is the agreement to sell the eDOCS legal document management system to NetDocuments for $163 million USD in cash. The eDOCS business contributed approximately $30 million in annual revenue in Open Text Corporation's fiscal year ending June 30, 2025. This follows the earlier divestiture of the Application Modernization and Connectivity (AMC) business in May 2024 for $2.275 billion. Management has indicated an intent to divest non-core units representing 15% to 20% of total revenue when the process is complete. Finance: draft 13-week cash view by Friday.

Open Text Corporation (OTEX) - Canvas Business Model: Key Resources

You're looking at the foundational assets that let Open Text Corporation generate over $5.168 billion in total revenues for Fiscal Year 2025. These aren't just line items; they are the moat protecting the business.

Extensive Intellectual Property (IP) in Information Management and Content

The core value is locked in the proprietary technology. While specific 2025 R&D spend isn't explicitly stated for the full year, the focus on innovation is clear, evidenced by the launch of the Titanium X platform and the Aviator AI suite. Open Text Corporation is embedding 100+ AI Agents across its portfolio, which is built on this IP foundation. This IP underpins their leadership in the Enterprise Information Management (EIM) space.

The strategic output of this IP investment is visible in the recurring revenue stream:

A massive installed base of 120,000+ enterprise customers globally

Scale is a resource unto itself. Open Text Corporation serves 120,000+ enterprise customers globally. This massive footprint means deep integration into mission-critical workflows. To put that penetration in perspective, Open Text Corporation's solutions are deployed in 99 of the top 100 global companies, according to the Forbes Global 1000 for 2025. This high-touch enterprise focus drives the stability of the recurring revenue base.

Annual Recurring Revenue (ARR) base of $4.191 billion as of FY2025

This is the financial backbone. The $4.191 billion ARR figure for the full Fiscal Year 2025 demonstrates the stickiness of the subscription and support revenue streams. Even as the company navigated a large divestiture, this recurring base remained substantial. Looking into the next fiscal period, the Q1 FY2026 ARR was reported at $1.071 billion, showing continued momentum in the subscription business. The profitability derived from this base is also a key resource, with an Adjusted EBITDA margin of 34.5% for FY2025.

Global data center and cloud infrastructure for private and public cloud offerings

The physical and virtual footprint is essential for delivering the Content Cloud, Security Cloud, and Business Network Cloud. While specific data center counts aren't public, the financial results reflect the scale of this infrastructure. Open Text Corporation generated $1.856 billion in Cloud revenues in FY2025. Furthermore, the company generated $687 million in free cash flows in FY2025, which provides the capital flexibility to invest in and maintain this global infrastructure. The cloud business is clearly accelerating; Q1 FY2026 saw cloud revenues hit $485 million, marking 19 consecutive quarters of cloud organic growth.

Highly specialized technical talent focused on cloud, security, and AI

The people executing the strategy are a critical asset. Open Text Corporation is directing its specialized talent toward the highest-growth areas. The focus is explicitly on cloud, security, and AI, which drove the strong Enterprise Cloud Bookings growth of +32.3% in Q4 FY2025. The company returned $683 million to shareholders in FY2025, including $411 million in share repurchases, which helps retain key talent by signaling commitment to shareholder value. This talent is tasked with integrating the 15 Aviator AI products launched in FY25 into the existing platform.

You should track the following talent-driven metrics:

• Cloud Revenue Organic Growth (Q1 FY2026): +6.0%
• Adjusted EBITDA Margin (FY2025): 34.5%
• Free Cash Flow (FY2025): $687 million

Finance: draft 13-week cash view by Friday.

Open Text Corporation (OTEX) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Open Text Corporation keeps its seat at the table for the world's largest enterprises. It's not just about storing files; it's about making that information actionable and secure in an AI-first world. Here are the hard numbers backing up what Open Text Corporation offers.

Secure Information Management (IM) for AI-driven business processes

Open Text Corporation positions its platform as the secure, governed foundation for Artificial Intelligence. This means providing the necessary controls so that AI initiatives, like those using their 15 Aviator AI products, don't compromise sensitive data. The value here is enabling innovation without the risk of data sprawl or exposure. The company has embedded over 100 AI Agents across its portfolio to help knowledge workers accelerate innovation.

The focus on security is measurable in the outcomes they promise, such as reducing breach costs by up to 64% with proper discovery and protection techniques, based on prior data security platform examples.

Comprehensive suite of Business Clouds, AI, and Technology solutions

The breadth of Open Text Corporation's offering is reflected in its revenue structure for Fiscal Year 2025, which ended June 30, 2025. The company reported total revenues of $5.168 billion for the year. The shift to subscription and cloud services is evident in the $1.856 billion in Cloud Revenues for FY 2025, which represented 2.0% year-over-year growth.

The pipeline strength for these services is also a key indicator. Enterprise cloud bookings in the fourth quarter of FY 2025 surged by 32.3% year-over-year, showing strong commitment from the customer base to adopt these cloud solutions.

Accelerating digital transformation by unlocking value from unstructured data

Open Text Corporation helps organizations deal with the sheer volume of information they create. While the most recent figure is from July 2024, the scale is important: the company manages 290 Petabytes of data. Their OpenText Analytics Database, for instance, is designed for real-time analytics at petabyte-scale across structured, semistructured, and time-series data. This capability directly helps enterprises analyze vast amounts of information almost instantly.

Providing mission-critical software to 99 of the top 100 global companies

This is a clear indicator of mission-critical status. Open Text Corporation's solutions are deployed in 99 of the top 100 global companies, according to the Forbes Global 1000 for 2025. Furthermore, the company serves over 120,000+ enterprise customers across 180 countries.

The stickiness of this relationship is supported by the high ARR base of $4.191 billion in FY 2025. You don't get that level of recurring revenue unless your software is essential to daily operations.

Enabling regulatory compliance and data governance for regulated industries

For regulated industries, the value proposition is often tied to risk reduction and efficiency in compliance tasks. Open Text Corporation helps manage compliance across platforms productively. For example, one customer, BMO Harris Bank, reported saving $5 million per year due to reduced licensing, infrastructure, and ongoing support costs after integrating NetIQ Identity Manager and Identity Governance solutions. Also, with OpenText Business Network Cloud Enterprise, the time to release new capabilities to clients has been reduced to as little as two days, which is around 95% faster than previous processes, helping maintain agility while adhering to governance needs.

The commitment to shareholder value is also a value proposition for investors, demonstrated by a record total capital return of $683 million in FY 2025, which included $272 million via dividends (with the dividend per share raised by 5%).

• Content Cloud: Core Enterprise Content Management (ECM).
• Security Cloud: Cybersecurity and data protection solutions.
• Business Network Cloud: B2B integration and supply chain automation.
• DevOps Cloud: Software development and quality engineering tools.

Finance: draft 13-week cash view by Friday.

Open Text Corporation (OTEX) - Canvas Business Model: Customer Relationships

You're looking at how Open Text Corporation keeps its massive installed base engaged and growing, which is key when you consider their scale. The relationship strategy is built around ensuring customers get tangible outcomes from their information management investments. This isn't just about selling software; it's about a dedicated, multi-stage partnership.

Dedicated Enterprise Account Management using the L.O.V.E. (Land, Operate, Value, Expand) model

Open Text Corporation formalizes its customer journey through the L.O.V.E. framework. This model guides interactions from the initial sale (Land) through ongoing operations (Operate), proving utility (Value), and finally, identifying future needs (Expand). This structure is designed to foster deep, outcome-driven engagement, which is crucial given that Open Text Corporation's solutions are deployed in 99 of the top 100 global companies, according to the Forbes Global 1000 for 2025. The Land phase focuses on listening and learning to ensure a fast time to value, while the Operate phase centers on best-in-class implementations supported by Technical Success and Success Management Services.

• Land together: Focus on seamless transition and proactive guidance.
• Operate: Deliver continual successful operations via dedicated services.
• Value: Partner to optimize solutions against stated business needs.
• Expand: Ongoing discovery to increase the value of the software investment.

Professional Services and Managed Services for complex deployments and support

For the complex, large-scale deployments that characterize Open Text Corporation's enterprise base, professional and managed services are a core component of the relationship. These services help customers navigate intricate integrations and maintain high system availability. Looking at the revenue structure, while the focus is shifting, professional services still represent a significant touchpoint. For instance, in the first quarter of Fiscal 2025, revenue from Professional service and other was $90.7 million. This contrasts with the projected future mix where license and professional services are expected to account for about 20% of total revenue, compared to 40% each for Cloud revenue and Customer Support revenue.

Here's a quick look at the projected revenue composition based on forward-looking strategy:

High-touch, long-term relationships with large, sticky enterprise clients

The stickiness of Open Text Corporation's client base is evident in its strong recurring revenue base. For Fiscal Year 2025, the company reported Annual Recurring Revenues (ARR) of $4.191 billion against total revenues of $5.168 billion. This high proportion of recurring revenue underscores the long-term, mission-critical nature of the information management solutions for its over 120,000+ enterprise customers. The relationship is high-touch because the systems manage the organization's core information assets, making the partnership strategic rather than transactional. The commitment to returning value is also clear, with record capital returns of $683 million in FY2025, including $272 million via dividends, which builds confidence with long-term holders.

Self-service support and online communities for product assistance

Not every interaction requires a dedicated consultant; Open Text Corporation supports its vast user base with scalable, self-service options. The OpenText Customer Success Portal is a key resource, offering free access to communities, best practices, and technical documentation. This digital support layer is essential for managing the sheer volume of users, which includes over 31 million+ public cloud users as of Fiscal 2025. This self-service infrastructure helps customers achieve success planning and adoption without always needing a direct, high-cost engagement, keeping the overall cost-to-serve manageable while still providing expert guidance when necessary.

Finance: draft 13-week cash view by Friday.

Open Text Corporation (OTEX) - Canvas Business Model: Channels

You're looking at how Open Text Corporation gets its software and services into the hands of its customers as of its Fiscal Year 2025 close. The channel strategy is clearly multi-pronged, balancing high-touch direct sales with broad ecosystem reach.

Direct Sales Force for top strategic accounts and large enterprise deals

The direct sales force is the mechanism for engaging directly with large corporations and government entities for complex Enterprise Information Management (EIM) software deals. This channel is crucial for securing the largest contracts that drive significant Annual Recurring Revenues (ARR). Open Text Corporation's solutions are deployed in 99 of the top 100 global companies, according to the Forbes Global 1000 for 2025, showing the penetration achieved through this high-touch approach. The company serves a diverse customer base spanning 180 countries. The direct sales effort is aimed at capturing the high-value enterprise segment, which contributes to the overall $4.191 billion in Annual Recurring Revenues (ARR) reported for Fiscal Year 2025. This is where deep, tailored solution selling happens.

Global network of resellers and distributors for broader market reach

To achieve broader market penetration beyond the top-tier direct accounts, Open Text Corporation relies heavily on its partner ecosystem. The unified OpenText Partner Network supports more than 30,000 partners across 150 countries, integrating the former Micro Focus partner base. This network of Value Added Resellers and Global Distributors is equipped to sell the entire portfolio, including Content Services, Security, and IT Operations Management. Furthermore, the OpenText Business Network, which is a channel in itself for B2B integration, connects over 1 million trading partners across 175 countries, facilitating massive transaction volumes.

Public Cloud Marketplaces (e.g., AWS, Azure) for cloud-native offerings

While specific marketplace revenue splits aren't itemized, the overall cloud performance indicates the importance of cloud-centric routes to market, which often include hyperscaler marketplaces. The company is pushing its AI-driven Titanium X platform through these modern channels. The focus on cloud is evident in the bookings surge, signaling strong pull through these digital storefronts and direct cloud sales motions.

OpenText Public and Private Cloud environments for SaaS delivery

The cloud environments are a primary delivery channel for SaaS offerings, showing consistent growth momentum even amidst overall revenue contraction post-divestiture. Cloud revenues for Fiscal Year 2025 reached $1.856 billion, representing 2.0% year-over-year growth. Enterprise cloud bookings for the full year were $773 million, marking a 10.1% year-over-year increase. The company supports 31 million+ public cloud users. For the fourth quarter of Fiscal 2025 specifically, cloud revenues were $475 million, with cloud bookings surging 32% year-over-year to $238 million. The stickiness of this channel is supported by a cloud renewal rate of 96% in Q4 2025.

Here's a quick look at the financial scale of the cloud channel for Fiscal Year 2025:

The reach of Open Text Corporation through its various channels can be summarized by its installed base metrics:

• Enterprise Customers: 120,000+
• Public Cloud Users: 31 million+
• Countries with Customer Presence: 180
• Partners in Unified Network: Over 30,000

Finance: draft 13-week cash view by Friday.

Open Text Corporation (OTEX) - Canvas Business Model: Customer Segments

You're looking at the core of Open Text Corporation's business, which is deeply rooted in serving the largest, most complex organizations globally. This isn't a small-scale operation; it's about managing the information backbone for the world's biggest players.

Large Global Enterprises and Fortune 500 companies (primary focus)

Open Text Corporation's primary customer segment is the massive global enterprise. The scale of their penetration here is significant, showing they are embedded in the critical systems of the world's largest corporations. As of their Fiscal Year 2025 reporting, Open Text Corporation's solutions were deployed in 99 of the top 100 global companies, based on the Forbes Global 1000 for 2025. The total enterprise customer count stood at 120,000+ enterprise customers across 180 countries. This segment drives a substantial portion of their Annual Recurring Revenues (ARR), which was $4.191 billion for Fiscal Year 2025. The company's focus on this segment is clear, as their Enterprise cloud bookings for the full Fiscal Year 2025 reached $773 million, growing 10.1% year-over-year. Honestly, that level of penetration suggests deep, mission-critical relationships.

The customer base is segmented by the type of information management solution they consume. Here's a look at the revenue distribution across their solution areas for Fiscal Year 2025:

Regulated Industries like Financial Services and Healthcare

Within the large enterprise segment, specific industries with heavy regulatory burdens are key targets. These sectors require robust information governance, compliance, and data security, which aligns perfectly with Open Text Corporation's core offerings. The company specifically adapts offerings for sectors like finance and healthcare, providing tools for sensitive data classification and risk detection to help meet compliance mandates. While specific revenue breakdowns for these verticals aren't explicitly detailed in the top-line financials, the overall focus on Content (40% of revenue) and Cybersecurity (25% of revenue) strongly supports this segment. Furthermore, their Cloud revenues, which were $1.856 billion in Fiscal Year 2025, are crucial for modernizing these regulated environments.

Public Sector and Government agencies requiring sovereign cloud solutions

Government entities are a core target, often requiring specific data residency and security postures, which translates to a demand for sovereign cloud or highly controlled on-premises solutions. Open Text Corporation's target market explicitly includes government agencies seeking solutions for content services and security. The company's ability to service this segment is reflected in its overall global reach, serving customers in 180 countries. The focus on cloud and security solutions, which saw Enterprise cloud bookings surge to $238 million in Q4 2025 alone, is how they address the modern infrastructure needs of these public sector clients.

Mid-market and SMBs accessed via channel partners and cloud offerings

While the primary focus is on the top tier, Open Text Corporation also serves smaller organizations, though often indirectly. The strategy here leans heavily on channel partners and scalable cloud offerings. The company serves over 31 million+ public cloud users, which captures a significant portion of the smaller customer base that consumes their services via subscription models. This cloud-first approach allows for lower entry barriers for mid-market and SMBs compared to large, complex on-premises deployments. The growth in cloud bookings, which hit 32.3% year-over-year in Q4 2025, indicates that this channel is a key driver for expanding the customer base beyond the Fortune 500 list. You can see the operational discipline in their margins, with an Adjusted EBITDA margin of 34.5% for the full Fiscal Year 2025, suggesting efficiency in servicing this broader, potentially more transactional segment.

If you're mapping out their customer acquisition strategy, remember that the enterprise segment is likely direct sales-heavy, while the SMB/Mid-market relies on the ecosystem. Finance: draft the 13-week cash view by Friday.

Open Text Corporation (OTEX) - Canvas Business Model: Cost Structure

When you look at the cost side of Open Text Corporation's business, you see a structure heavily weighted toward supporting its large installed base and aggressively funding its pivot to AI and cloud.

High cost of revenue for Cloud Services and Customer Support

The cost to deliver your services, which includes the cost of revenue, is substantial, though Open Text Corporation maintains a high gross margin on its overall business. This margin reflects the recurring nature of the revenue streams, but the operational costs to maintain and scale the cloud infrastructure and support a massive customer base are significant drivers of expense.

Here's a quick look at the scale of the business in Fiscal Year 2025:

The high ARR base, which is the sum of Cloud services and subscriptions revenue and Customer support revenue, is the engine, but it demands continuous, high-cost operational expenditure to maintain service levels.

Significant investment in Research and Development (R&D) for AI and cloud products

To drive the OpenText 3.0 strategy-Information Reimagined through the Power of Cloud, Security, and AI-you have to spend heavily on innovation. The expectation is that this focus will keep R&D costs elevated as a percentage of revenue.

• R&D costs are projected to likely increase to 14%-16% of revenue beyond Fiscal 2025, reflecting the increased emphasis on AI and cloud growth.

Sales and Marketing (S&M) expenses to drive new cloud bookings

Driving the transition of the installed base and securing new cloud commitments requires a focused, and therefore costly, Sales and Marketing effort. You see this reflected in the bookings figures, which are the leading indicator for future revenue.

For instance, Enterprise cloud bookings for the full Fiscal 2025 reached $773 million, marking a 10.1% year-over-year increase, showing the investment is targeted at growth areas.

Debt servicing costs, with annualized interest around $334 million on $6.485 billion principal debt

A major fixed cost component is servicing the debt load taken on, particularly following large acquisitions like Micro Focus. This interest expense is a direct drain on cash flow before any capital deployment decisions are made.

• Total principal debt as of the end of Q4 FY2025 stood at $6.485 billion.
• The resulting annualized interest cost on this debt is approximately $334 million.
• The company aims to maintain leverage near 3x through fiscal 2025.

Operational costs associated with the Business Optimization Plan

The ongoing Business Optimization Plan is designed to offset some operating costs while funding strategic realignment, but it carries its own upfront expense. This plan is about aligning talent and simplifying operations post-acquisition and divestiture.

The final phase of this plan, approved in April 2025, is expected to incur up to approximately $200 million of additional costs, bringing the combined plan cost to roughly $260 million. The goal, however, is significant long-term savings; the entire plan is expected to generate total annualized savings of approximately $490 million to $550 million by fiscal year 2027. This involves reducing approximately 1,200 positions while reinvesting in about 800 new roles in Sales, Professional Services, and Engineering.

Finance: draft 13-week cash view by Friday.

Open Text Corporation (OTEX) - Canvas Business Model: Revenue Streams

You're looking at the core of how Open Text Corporation converts its enterprise information management and AI offerings into actual cash flow as of late 2025. The revenue mix shows a clear, though still transitional, focus on recurring streams.

The foundation of Open Text Corporation's revenue is its commitment to keeping existing software running smoothly and migrating customers to modern platforms. This is evident in the sheer size of the Annual Recurring Revenue (ARR).

For the full Fiscal Year 2025, Open Text Corporation reported total revenues of $5.168 billion. This total is supported by several distinct streams:

• Cloud Services and Subscriptions, which generated $1.856 billion in FY2025.
• Annual Recurring Revenue (ARR) forms the vast majority at $4.191 billion in FY2025.

The structure of these recurring revenues is critical. As defined by Open Text Corporation, Annual Recurring Revenue is the sum of Cloud services and subscriptions revenue and Customer support revenue. This means the Customer Support and Maintenance revenue from the legacy software base is a substantial, embedded part of that $4.191 billion figure.

Here's a quick look at the major components based on the FY2025 results:

The remaining revenue, which is the difference between Total Revenues and ARR (approximately $0.977 billion), is where the transactional and project-based work sits. This bucket primarily includes Professional Services and Consulting fees for implementation and optimization, along with Software License revenue (a smaller, but still defintely present, component). The focus on cloud bookings growth, which surged to 32% in Q4 FY2025, suggests that future recurring revenue is being built through these upfront service engagements.

You can see the mix of revenue types that feed into the overall financial picture:

• Cloud Services and Subscriptions: $1.856 billion in FY2025.
• Customer Support and Maintenance revenue from the legacy software base (Embedded within ARR).
• Professional Services and Consulting fees for implementation and optimization (Part of Non-ARR).
• Software License revenue (a smaller, but still defintely present, component) (Part of Non-ARR).
• Annual Recurring Revenue (ARR): $4.191 billion in FY2025.

Finance: draft 13-week cash view by Friday.