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On November 18, 2025 the company unveiled the OpenText AI Data Platform, positioning a secure, enterprise-scale data and AI architecture for customers. On December 2, 2025 Open Text received a Leader designation in the 2025 IDC MarketScape for Worldwide Analytical Databases, highlighting its analytics database capabilities.
Technical Analysis
Directional indicators show a strong trend environment with ADX at 32.32, signaling trend strength without specifying direction; both DI+ (13.02) and DI− (24.19) sit below typical bulls’ readings and both trend lower, producing a mixed near-term bias where falling DI+ implies weaker buying pressure while falling DI− reduces recent selling pressure, leaving momentum dependent on short-term confirmations.
MACD currently registers at −0.63 with the MACD line above its signal (MACD signal −0.75) and an increasing MACD trend, producing a bullish momentum signal despite negative absolute MACD; this suggests a shift from prior bearish momentum toward a nascent upside impulse that requires follow-through to confirm continuation.
Price sits at $33.37, above the 200-day average ($30.75) but below the 50-day average ($36.04) and the 26-day EMA ($34.13); the 12-day EMA (33.51, decreasing) remains below the 26-day EMA, creating a short-term bearish alignment even as broader averages show longer-term support—expect the 50-day area and the super trend upper at $34.78 to act as near-term resistance.
MRO sits at −5.65 and trends higher, indicating the price remains below the model target and carries potential to rise toward that target; the negative reading signals upside potential rather than overextension at current levels.
RSI at 44.68 with a decreasing trend reflects subdued momentum without oversold conditions, implying that directional follow-through depends on improving volume and MACD confirmation rather than an immediate rebound solely from oversold extremes.
Additional context: narrow Bollinger bands (upper ~ $33.75 / lower ~ $33.35) and below-average volume versus 10‑ and 200‑day averages point to compressed price action; expect volatility expansion to accompany any decisive directional move.
Fundamental Analysis
Revenue totaled $1,288,135,000 with overall revenue growth at −1.71% and YoY revenue growth at −75.01%; QoQ revenue growth registered −138.16%. Gross profit reached $937,516,000, yielding a gross margin of 72.78% (up 1.45% YoY). Operating income stood at $290,088,000 and EBIT at $277,189,000, producing an EBIT margin of 21.52%, which improved 172.29% QoQ and 47.49% YoY.
EPS came in at $1.05 versus an estimate of $0.99, producing an EPS surprise of 6.06%. Forward EPS reads $1.116 and forward PE equals 31.49x, while reported PE sits at 34.29x; PEG stands at 4.16 and forward PEG at 3.82, indicating premium multiple expectations relative to near-term growth.
Cash flow shows operating cash flow of $147,763,000 and free cash flow of $101,229,000, producing a free cash flow yield of 1.12% (above the industry peer mean free cash flow yield of 0.26%). Cash and short‑term investments total $1,087,083,000 while net debt equals $5,287,636,000, translating to debt-to-equity of 167.82% and debt-to-EBITDA of 15.18x, both reflecting materially higher leverage than the industry peer mean and median.
Liquidity metrics include a current ratio of 0.87, below the industry peer mean of 2.05 and median of 1.12, while the cash ratio sits at 44.14%. Return on equity reached 3.71% (up 405.59% QoQ and 81.91% YoY), remaining below the industry peer mean and median. Asset turnover measured 9.45%, slightly below the industry peer mean of 13.14%.
Margin profile shows operating margin of 22.52% and cash flow margin of 28.49%, supporting WMDST’s valuation work. Price-to-book equals 2.30x, well below the industry peer mean of 15.10x and median of 13.00x; price-to-sales equals 7.04x while enterprise multiple runs near 33.46x. WMDST values the stock as under-valued based on margin durability, cash conversion, and relative price-to-book leverage versus peers, though elevated leverage and compressed liquidity elevate execution risk.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 1.2 B |
| Operating Cash Flow | $ 147.8 M | |
| Capital Expenditures | $ -46.53 M | |
| Change In Working Capital | $ -166.51 M | |
| Dividends Paid | $ -68.22 M | |
| Cash Flow Delta | $ -69.39 M | |
| End Period Cash Flow | $ 1.1 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.3 B | |
| Forward Revenue | $ 617.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 350.6 M | |
| Depreciation | $ 80.1 M | |
| Depreciation and Amortization | $ 159.7 M | |
| Research and Development | $ 169.1 M | |
| Total Operating Expenses | $ 998.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 937.5 M | |
| EBITDA | $ 436.9 M | |
| EBIT | $ 277.2 M | |
| Operating Income | $ 290.1 M | |
| Interest Income | $ 10.2 M | |
| Interest Expense | $ 91.3 M | |
| Net Interest Income | $ -81.11 M | |
| Income Before Tax | $ 185.9 M | |
| Tax Provision | $ 39.2 M | |
| Tax Rate | 21.1 % | |
| Net Income | $ 146.6 M | |
| Net Income From Continuing Operations | $ 146.7 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.99 | |
| EPS Actual | $ 1.05 | |
| EPS Difference | $ 0.06 | |
| EPS Surprise | 6.061 % | |
| Forward EPS | $ 1.12 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 13.5 B | |
| Intangible Assets | $ 9.3 B | |
| Net Tangible Assets | $ -5.34 B | |
| Total Current Assets | $ 2.1 B | |
| Cash and Short-Term Investments | $ 1.1 B | |
| Cash | $ 1.1 B | |
| Net Receivables | $ 591.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 33.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 128.1 M | |
| Short-Term Debt | $ 35.9 M | |
| Total Current Liabilities | $ 2.5 B | |
| Net Debt | $ 5.3 B | |
| Total Debt | $ 6.6 B | |
| Total Liabilities | $ 9.5 B | |
| EQUITY | ||
| Total Equity | $ 4.0 B | |
| Retained Earnings | $ 1.9 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 15.68 | |
| Shares Outstanding | 251.964 M | |
| Revenue Per-Share | $ 5.11 | |
| VALUATION | Market Capitalization | $ 9.1 B |
| Enterprise Value | $ 14.6 B | |
| Enterprise Multiple | 33.455 | |
| Enterprise Multiple QoQ | -32.564 % | |
| Enterprise Multiple YoY | 51.784 % | |
| Enterprise Multiple IPRWA | high: 725.943 median: 119.829 mean: 108.505 OTEX: 33.455 low: -500.562 |
|
| EV/R | 11.346 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.411 | |
| Asset To Liability | 1.415 | |
| Debt To Capital | 0.627 | |
| Debt To Assets | 0.492 | |
| Debt To Assets QoQ | 2.013 % | |
| Debt To Assets YoY | 18825.0 % | |
| Debt To Assets IPRWA | high: 1.164 OTEX: 0.492 mean: 0.257 median: 0.207 low: 0.001 |
|
| Debt To Equity | 1.678 | |
| Debt To Equity QoQ | -0.759 % | |
| Debt To Equity YoY | 19256.171 % | |
| Debt To Equity IPRWA | high: 2.803 OTEX: 1.678 mean: 0.492 median: 0.213 low: -0.893 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.296 | |
| Price To Book QoQ | 18.232 % | |
| Price To Book YoY | 10.515 % | |
| Price To Book IPRWA | high: 32.156 mean: 15.101 median: 13.004 OTEX: 2.296 low: -17.466 |
|
| Price To Earnings (P/E) | 34.292 | |
| Price To Earnings QoQ | 16.536 % | |
| Price To Earnings YoY | -1.437 % | |
| Price To Earnings IPRWA | high: 535.496 mean: 156.979 median: 153.023 OTEX: 34.292 low: -396.374 |
|
| PE/G Ratio | 4.158 | |
| Price To Sales (P/S) | 7.043 | |
| Price To Sales QoQ | 20.966 % | |
| Price To Sales YoY | 4.021 % | |
| Price To Sales IPRWA | high: 95.267 median: 42.816 mean: 41.733 OTEX: 7.043 low: 1.307 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 31.492 | |
| Forward PE/G | 3.819 | |
| Forward P/S | 15.801 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -98.059 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.095 | |
| Asset Turnover Ratio QoQ | -0.704 % | |
| Asset Turnover Ratio YoY | 4.245 % | |
| Asset Turnover Ratio IPRWA | high: 0.414 median: 0.133 mean: 0.131 OTEX: 0.095 low: -0.008 |
|
| Receivables Turnover | 2.06 | |
| Receivables Turnover Ratio QoQ | -1.545 % | |
| Receivables Turnover Ratio YoY | -1.077 % | |
| Receivables Turnover Ratio IPRWA | high: 6.055 OTEX: 2.06 mean: 1.72 median: 1.571 low: -0.167 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 44.297 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 11.057 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 226.004 median: 44.35 mean: 24.262 OTEX: 11.057 low: -144.827 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -3.955 | |
| CapEx To Revenue | -0.036 | |
| CapEx To Depreciation | -0.581 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 10.3 B | |
| Net Invested Capital | $ 10.3 B | |
| Invested Capital | $ 10.3 B | |
| Net Tangible Assets | $ -5.34 B | |
| Net Working Capital | $ -325.73 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.441 | |
| Current Ratio | 0.868 | |
| Current Ratio QoQ | 8.278 % | |
| Current Ratio YoY | 9.537 % | |
| Current Ratio IPRWA | high: 8.127 mean: 2.047 median: 1.124 OTEX: 0.868 low: 0.159 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 15.177 | |
| Cost Of Debt | 1.086 % | |
| Interest Coverage Ratio | 3.035 | |
| Interest Coverage Ratio QoQ | 170.475 % | |
| Interest Coverage Ratio YoY | 62.026 % | |
| Interest Coverage Ratio IPRWA | high: 225.0 mean: 21.155 median: 9.798 OTEX: 3.035 low: -266.667 |
|
| Operating Cash Flow Ratio | 0.149 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 33.241 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.149 | |
| Dividend Payout Ratio | 0.465 | |
| Dividend Rate | $ 0.27 | |
| Dividend Yield | 0.008 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.169 % | |
| Revenue Growth | -1.709 % | |
| Revenue Growth QoQ | -138.164 % | |
| Revenue Growth YoY | -75.007 % | |
| Revenue Growth IPRWA | high: 28.215 % mean: 4.813 % median: 4.141 % OTEX: -1.709 % low: -13.442 % |
|
| Earnings Growth | 8.247 % | |
| Earnings Growth QoQ | -54.917 % | |
| Earnings Growth YoY | -261.642 % | |
| Earnings Growth IPRWA | high: 200.0 % median: 12.791 % mean: 8.551 % OTEX: 8.247 % low: -181.25 % |
|
| MARGINS | ||
| Gross Margin | 72.781 % | |
| Gross Margin QoQ | 0.646 % | |
| Gross Margin YoY | 1.454 % | |
| Gross Margin IPRWA | high: 90.981 % median: 77.558 % mean: 76.423 % OTEX: 72.781 % low: 26.432 % |
|
| EBIT Margin | 21.519 % | |
| EBIT Margin QoQ | 172.289 % | |
| EBIT Margin YoY | 47.491 % | |
| EBIT Margin IPRWA | high: 76.323 % median: 29.144 % mean: 25.962 % OTEX: 21.519 % low: -105.646 % |
|
| Return On Sales (ROS) | 22.52 % | |
| Return On Sales QoQ | 12.984 % | |
| Return On Sales YoY | 54.352 % | |
| Return On Sales IPRWA | high: 76.795 % median: 29.387 % mean: 24.441 % OTEX: 22.52 % low: -156.314 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 101.2 M | |
| Free Cash Flow Yield | 1.116 % | |
| Free Cash Flow Yield QoQ | -31.323 % | |
| Free Cash Flow Yield YoY | -181.878 % | |
| Free Cash Flow Yield IPRWA | high: 10.114 % OTEX: 1.116 % median: 0.259 % mean: 0.257 % low: -10.76 % |
|
| Free Cash Growth | -18.341 % | |
| Free Cash Growth QoQ | -72.559 % | |
| Free Cash Growth YoY | -89.847 % | |
| Free Cash Growth IPRWA | high: 368.524 % mean: -16.233 % median: -16.953 % OTEX: -18.341 % low: -324.945 % |
|
| Free Cash To Net Income | 0.69 | |
| Cash Flow Margin | 28.486 % | |
| Cash Flow To Earnings | 2.503 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.076 % | |
| Return On Assets QoQ | 414.833 % | |
| Return On Assets YoY | 78.441 % | |
| Return On Assets IPRWA | high: 13.583 % mean: 2.953 % median: 1.924 % OTEX: 1.076 % low: -19.283 % |
|
| Return On Capital Employed (ROCE) | 2.517 % | |
| Return On Equity (ROE) | 0.037 | |
| Return On Equity QoQ | 405.586 % | |
| Return On Equity YoY | 81.912 % | |
| Return On Equity IPRWA | high: 0.151 mean: 0.051 median: 0.048 OTEX: 0.037 low: -0.395 |
|
| DuPont ROE | 3.721 % | |
| Return On Invested Capital (ROIC) | 2.118 % | |
| Return On Invested Capital QoQ | 148.009 % | |
| Return On Invested Capital YoY | -111.28 % | |
| Return On Invested Capital IPRWA | high: 14.226 % mean: 3.638 % median: 3.218 % OTEX: 2.118 % low: -12.344 % |
|