Open Text Corporation

Thank you for standing by. This is the conference operator. Welcome to the Open Tax Corporation first quarter fiscal 2026 financial results conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an analyst Q&A session. To join the question queue, simply press star then one on your touch-tone phone. Should anyone need assistance during the conference call, they may reach an operator by pressing star then zero on their telephone. I would now like to turn the conference over to Greg Secord, Head of Investor Relations. Please go ahead.

Thank you and good morning, everyone. Welcome to Open Tech's fourth quarter fiscal 2026 earnings call. With me on the call today are Open Tech's Executive Chair and Chief Strategy Officer, Tom Jenkins, together with James. Our Senior Vice President and Chief Accounting Officer. Today's call is being webcast live and recorded with replay available shortly thereafter on the Open Text Investor Relations website at investors.opentex.com. Earlier yesterday, we posted our press release and investor presentation online. These materials will supplement our prepared remarks and can also be accessed on the Open Text Investor Relations website. Now turning to the upcoming investor events. I'd like to take the opportunity to invite institutional investors and financial analysts to join us at Open Text World 2025 Investor Track on Tuesday, November 18th in Nashville. The Open Text World Conference is a unique opportunity for investors and financial analysts to learn about our latest product innovations and with full conference access, allow open dialogue with our customers and partners on site. The conference keynotes and Investor Track will also be available by webcast virtually. OpenText will also be participating in the following investor conferences. On November 21st, we'll attend the Needham Tech Conference virtually, and on November 24th, we'll be at the TD Technology, Media, and Telecom Conference in Toronto. On December 2nd, we'll be at the Bank of America Leveraged Finance Credit Conference in Boca Raton, and on the same day, we'll also be at the UBS Global Technology and AI Conference in Scottsdale, Arizona. On December 8th, we'll be at the Raymond James TMT and Consumer Conference in New York. And then finally, on December 10th, we'll be heading to the Barclays Global Technology Conference in San Francisco. We look forward to meeting with you at one of those events. And now, on with the reading of our Safe Harbor Statement. During this call, we'll be making forward-looking statements relating to the future performance of open texts. These statements are based on current expectations, assumptions, and other material factors that are subject to risks and uncertainties, and actual results could differ materially from the forward-looking statements made today. Additional information about the material factors that could cause actual results to differ materially from such forward-looking statements, as well as risk factors that may impact the future performance results of OpenText, are contained in OpenText's recent forms 10-K and 10-Q, as well as in our press release that was distributed earlier yesterday, which may be found on our website. We undertake no obligation to update these forward-looking statements unless required to do so by law. In addition, our conference call may include discussions of certain non-GAAP financial measures. Reconciliations of any non-GAAP financial measures to their most directly comparable GAAP measures may be found within our public filings and other materials which are available on our website. And with that, I'll hand the call over to James.

Thanks very much, Greg. I would like to welcome everyone on the call today. Joining us today is Tom Jenkins, Executive Chair and Chief Strategy Officer. I also want to give a warm welcome to Steve Ray, who joined OpenText as Executive VP and CFO in October. Steve brings a wealth of experience from technology and software. He is based in our Waterloo, Ontario headquarters. Also joining on the call is Cosmin Belota, I want to thank Cosmin for his leadership as interim chief financial officer and Cosmin has now resumed his role as chief accounting officer. The entire OpenText team is committed to delivering secure information management products that let our customers curate and enable agentic AI with their content. We have a tremendously strong and deep customer relationships. It is because of this that we have such incredible and loyal install base. Now, Let's get into our Q1 fiscal 26 results. Q1 total revenues, ARR, adjusted EBITDA margin, adjusted EPS are all above street expectations. As you saw with Q1 performance, we are continuing our momentum from last quarter, especially in our core content business. We remain focused on sales execution, having just completed a major product cycle. We believe that we are in the market with the right products at the right time. Turning to our cloud performance this quarter, Q1 cloud revenue was $485 million, up 6% year-over-year, which is well on track towards our F26 outlook range of 3% to 4% growth. Cloud bookings continue to remain strong, as we saw cloud CRPO up 6% year-over-year. More importantly, our long-term cloud RPO is up 16% year over year, and total cloud RPO is up 11% year on year. Our other measure of cloud performance is enterprise cloud bookings, which were up 20% year on year in Q1. This puts us in a good position towards achieving our F26 outlook range of 12 to 16%. We closed 33 deals greater than 1 million in Q1, which is up 43% year on year. We had key wins in the quarter with Alton, Australia Department of Health, Core42, OptiSecurity, and MH Services. In September, we provided additional disclosure on our main businesses, which we break into product categories. This disclosure is in our IR presentation on the website and allows you to better track the performance. Tom will speak more about the tremendous opportunities in our core information information management for AI business. For Q1, you can see that content being our largest business continues to lead our growth in cloud. Content cloud grew 21% year on year in Q1. This was driven mostly by bookings won in financial services, energy and utilities, as well as telecom verticals. We saw strength in retail, automotive and manufacturing verticals, which also contributed to our business network positive growth in Q1. We are pleased with our enterprise cybersecurity business growth this quarter and mainly driven by a few sizable wins. Our product offerings continue to be recognized by industry experts such as Gartner, and we're establishing key partnerships that are important for content management and agentic AI. We're excited about our upcoming OpenText World event being held in Nashville from November 17th to 20th. of our customers and partners and other stakeholders will join in person to see our latest product offerings and innovations, especially our aviator and agentic AI solutions in action. We will also showcase our sovereign cloud, keeping our customers' data local and secure. We are very excited to see how our customers unlock the power of their own data using OpenText products to foster innovation and spur growth. As we look ahead to the rest of fiscal year, we are not changing our fiscal 26 annual outlook. Please remember that we are an annual business and that results can fluctuate quarter over quarter. With that said, we expect Q2 total revenue to be between $1.275 billion and $1.295 billion, and the adjusted EBITDA margin to be between 35.5 and 36%. We continue to see strength in our content business going forward. For the second half of fiscal 26, we expect revenue to skew higher towards a strong Q4. There's typical seasonality that we see in Q3, but the momentum from our new product cycle is expected to come mostly in the latter part of fiscal 26 and beyond. We continue to expect ARR to return to growth in fiscal 26 with cloud growth outpacing maintenance declines while customer support revenue is on track to meet our fiscal 26 annual outlook. We are seeing some of our customers making faster decisions to shift their workloads from on-premise into the cloud. We have always given our customers the choice of where they want to deploy and note that the on-premise deployment is still being sought after in heavily regulated industries and governments. To conclude my remarks, I want to take a moment to thank our OpenTex team across the company for their professionalism, dedication, and hard work during this period of change, as well as our partners, customers, and shareholders. Finally, I would like to thank Tom Jenkins and all of the members of the OpenText Board of Directors. Their support to both myself and all of our employees has been tremendous. This is an exciting time for OpenText. We're in a great position financially and operationally. We're in the right markets of secure content and data that trains the Gen2KI When I stepped in as interim CEO, my main priority was to take care of our customers and carry forward our initiatives and deliver our fiscal 26 annual outlook. We had a great start to Q1, which sets us up nicely for the rest of the year and beyond. With that, I will hand the call over to Steve Ray, our EVP and CFO.