v3.26.3
SEGMENT INFORMATION
 3 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
ASC Topic 280, “Segment Reporting” (Topic 280), establishes standards for reporting, by public business enterprises, information about operating segments, products and services, geographic areas and major clients. The method of determining what information, under Topic 280, to report is based on the way that an entity organizes operating segments for making operational decisions and how the entity’s management and chief operating decision maker (CODM) assess an entity’s financial performance.
The Company’s CODM is its Chief Executive Officer. Our operations are analyzed by the CODM as being part of a single industry segment: the design, development, marketing and sale of data management software and solutions for enterprise AI. The CODM uses Net income on a consolidated basis as the primary measure of profitability, as it is most consistent with the measurement principles used in the Condensed Consolidated Statements of Income. In addition, the CODM utilizes Adjusted EBITDA (as defined below), a non-GAAP measure, as an additional measure of profitability. The Company believes that Adjusted EBITDA is a useful measure for evaluating overall operating performance because it reflects the underlying profitability of the business by excluding the effect of non-cash or non-operational expenses and facilitates comparability across periods and aligns with the metrics used in internal planning processes.
These measures are used to evaluate and measure financial performance and to make key decisions, by comparing results versus historical financial information. The CODM uses these measures while deciding how to allocate resources as a benchmark to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital.
The CODM uses Adjusted EBITDA by comparing results versus forecasted information, in addition to historical financial information. Adjusted EBITDA is defined and calculated as GAAP-based net income, attributable to OpenText, excluding interest income (expense), provision for (recovery of) income taxes, depreciation and amortization of acquired intangible assets, other income (expense), share-based compensation and special charges (recoveries).
The following tables present segment revenues, significant segment costs and expenses and Adjusted EBITDA and reconciliations from Adjusted EBITDA to Net income, as well as from Adjusted EBITDA to Income before income taxes for the periods presented:
Three Months Ended September 30,
20262025
Segment revenues
Cloud services and subscriptions$505,469 $484,509 
Client support534,111 586,845 
License123,847 134,548 
Professional service and other73,207 82,233 
Total revenues1,236,634 1,288,135 
Significant segment costs and expenses
Adjusted Cost of revenues (1)
285,102 303,114 
Adjusted Research and development (2)
138,493 165,519 
Adjusted Sales (2)
217,389 203,481 
Adjusted Marketing (2)
53,327 46,678 
Adjusted General and administrative (2)
99,838 101,888 
Less:
Net income attributable to non-controlling interests
53 44 
Adjusted EBITDA
$442,432 $467,411 
Add:
Net income attributable to non-controlling interests
53 44 
Less:
Depreciation39,802 35,921 
Provision for income taxes43,683 39,199 
Other segment items (3)
203,700 245,675 
Net income
$155,300 $146,660 
______________________
(1)Adjusted cost of revenues excludes Amortization of acquired technology-based intangible assets and share-based compensation expense.
(2)Adjusted operating expenses exclude share-based compensation expense.
(3)Other segment items include Interest and other related expense, net, Amortization of acquired technology-based intangible assets, Amortization of acquired client-based intangible assets, share-based compensation expense, Special charges (recoveries), and Other income (expense), net.
Three Months Ended September 30,
20262025
Adjusted EBITDA$442,432 $467,411 
Add:
Net income attributable to non-controlling interests
53 44 
Less:
Depreciation39,802 35,921 
Interest and other related expense, net67,938 81,114 
Amortization of acquired technology-based intangible assets42,810 44,204 
Amortization of acquired client-based intangible assets56,078 79,561 
Share-based compensation19,694 17,681 
Special charges (recoveries)
33,290 20,139 
Other (income) expense, net(16,110)2,976 
Income before income taxes
$198,983 $185,859