v3.25.2
SEGMENT INFORMATION
 12 Months Ended
Jun. 30, 2025
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 customers. 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 CODM assess an entity’s financial performance. The Company adopted ASU 2023-07 in the fourth quarter of fiscal 2025 and applied the amendments of the ASU to the prior periods presented to conform with current presentation. See Note 2 “Accounting Policies and Recent Accounting Pronouncements” for details on the ASU.
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 Information Management software and solutions. As such, segment revenues and significant segment expenses are as presented in the Consolidated Statements of Income. The CODM uses Net income attributable to OpenText and Adjusted EBITDA (as defined below), a non-GAAP measure, on a consolidated Company basis to evaluate and measure financial performance and to make key decisions, including those that involve the preparation of financial projections, strategic decisions and allocation of resources. 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 Total revenue, significant segment expenses and Adjusted EBITDA for the years presented:
 Year Ended June 30,
 202520242023
Total revenues$5,168,405 $5,769,577 $4,484,980 
Adjusted cost of revenues (1)
1,228,076 1,311,114 1,072,114 
Adjusted gross profit (1)
3,940,329 4,458,463 3,412,866 
Less:
Adjusted Research and development (2)
729,937 823,851 620,149 
Adjusted Sales and marketing (2)
1,020,671 1,116,562 928,261 
Adjusted General and administrative (2)
405,058 547,656 391,352 
Add:
Net (income) attributable to non-controlling interests
(198)(194)(187)
Adjusted EBITDA
1,784,465 1,970,200 1,472,917 
Less:
Reconciling items (3)
1,348,597 1,505,110 1,322,538 
Net income attributable to OpenText
$435,868 $465,090 $150,379 
______________________
(1)Total Adjusted cost of revenues excludes Amortization of acquired technology-based intangible assets and share-based compensation expense, which are costs that are excluded from the CODM’s evaluation of segment performance.
(2)Adjusted operating expenses exclude share-based compensation expense as this expense is excluded from our internal analysis of operating results.
(3)The following adjustments are made to reconcile Adjusted EBITDA to Net income attributable to OpenText:
 Year Ended June 30,
 202520242023
Provision for (recovery of) income taxes$46,005 $264,012 $70,767 
Interest and other related expense, net327,831 516,180 329,428 
Amortization of acquired technology-based intangible assets188,780 243,922 223,184 
Amortization of acquired customer-based intangible assets321,891 432,404 326,406 
Depreciation130,573 131,599 107,761 
Share-based compensation104,840 140,079 130,302 
Special charges (recoveries)
145,890 135,305 169,159 
Other (income) expense, net82,787 (358,391)(34,469)
Total reconciling items$1,348,597 $1,505,110 $1,322,538 
The following table sets forth the distribution of revenues, by significant geographic area, for the periods indicated:
 Year Ended June 30,
 202520242023
Revenues (1):
United States$2,646,797 $3,030,457 $2,523,737 
Canada221,627 238,737 186,014 
Other70,285 72,687 75,252 
Total Americas2,938,709 3,341,881 2,785,003 
EMEA (2)
1,751,543 1,878,470 1,310,016 
Asia Pacific478,153 549,226 389,961 
Total
$5,168,405 $5,769,577 $4,484,980 
______________________
(1)Total revenues by geographic area are determined based on the location of our direct customer. During the years ended June 30, 2025, 2024 and 2023, no single country other than the United States accounted for more than 10% of total revenues.
(2)EMEA consists of countries in Europe, the Middle East and Africa.
The following table sets forth the distribution of long-lived assets, representing property and equipment, ROU assets and intangible assets, by significant geographic area, as of the periods indicated below. 
As of June 30, 2025
As of June 30, 2024
Long-lived assets (1):
United States$1,339,700 $1,632,652 
United Kingdom860,387 1,053,220 
Canada154,240 200,695 
All other countries195,493 187,211 
Total$2,549,820 $3,073,778 
______________________
(1)As of June 30, 2025 and 2024, no single country other than the United States and United Kingdom accounted for more than 10% of total long-lived assets.