OTEX
TechnologyOpen Text Corporation · Software - Application · $6B
What is Open Text Corporation?
Open Text Corporation is a Canadian enterprise software company specializing in information management. Founded in 1996 and headquartered in Waterloo, Canada, it serves organizations ranging from large enterprises to small businesses and public sector agencies worldwide.
Open Text designs, develops, and sells information management software and solutions. Its platform helps organizations capture, manage, and secure business content — both inside and outside the corporate firewall. Revenue comes from software licenses, cloud subscriptions, customer support programs, and professional consulting services. The company also addresses cybersecurity needs through products like Carbonite and Webroot, and offers AI-driven analytics and digital process automation tools.
Open Text was founded in 1996 and is headquartered in Waterloo, Canada.
- Content services and enterprise information management platform
- Cybersecurity and business continuity solutions including Carbonite and Webroot
- eDiscovery, digital forensics, and unstructured data analytics
- Digital process automation and AI-powered analytics
- Cloud services, developer APIs, and digital experience platform
Is OTEX a Good Stock to Buy?
UQS Score rates OTEX as Below Average overall.
The most notable positive in OTEX's profile is its Valuation pillar, which is rated Attractive — suggesting the market may already be pricing in the company's challenges. Its Quality pillar lands at Neutral, reflecting a business that generates recurring revenue through software subscriptions and support contracts, even if underlying fundamentals are under pressure.
The Moat, Growth, and Risk pillars are all rated Weak, pointing to competitive pressures, limited near-term expansion momentum, and elevated business or financial risk that investors should weigh carefully.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does OTEX pay dividends?
Yes — Open Text Corporation pays a dividend.
Open Text pays a regular dividend, which may appeal to income-oriented investors. For a technology company, maintaining a dividend signals a degree of cash flow consistency from its recurring software and support revenue streams. Investors should review the current yield and payout sustainability in the context of OTEX's Weak Risk and Growth pillar ratings before relying on dividend continuity.
When does OTEX report earnings?
Open Text reports earnings on a quarterly cadence, typical for US- and Canadian-listed technology equities.
Given the Weak Growth and Risk pillar ratings, recent earnings cycles have likely reflected pressure on expansion metrics and margin sustainability. The Attractive Valuation label suggests the market has adjusted expectations accordingly.
For the most recent quarter's results and upcoming reporting dates, visit Open Text's investor relations page directly.
OTEX Price History
-42.7% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Open Text Corporation?
Based on Open Text Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
OTEX Long-term Outlook
Open Text's fundamental outlook is shaped by its Weak Growth and Weak Risk pillar ratings, suggesting the near-term trajectory faces headwinds from competitive dynamics and integration challenges following recent acquisitions. The Attractive Valuation pillar indicates that downside may be partially reflected in the current price, but a re-rating would likely require demonstrable improvement in growth or risk metrics. The Neutral Quality pillar provides some stability through recurring revenue, though it is not sufficient on its own to drive a materially stronger outlook.
Growth drivers
- Expansion of cloud subscription revenue from enterprise content management customers
- Cross-selling cybersecurity products like Webroot and Carbonite into the existing customer base
- AI and analytics integration across the OpenText platform to deepen customer retention
Key risks
- Elevated financial leverage from acquisition-driven growth strategy
- Competitive pressure from larger, better-resourced enterprise software platforms
- Execution risk in integrating acquired businesses while sustaining organic growth
OTEX vs Peers
Open Text operates in the broader enterprise software and technology services landscape, where it competes for budget and mindshare against a range of specialized platforms.
Lyft operates in ride-sharing rather than enterprise software, representing a different technology business model focused on marketplace and transportation network revenue.
ServiceTitan targets field service management for trades businesses, offering a more vertically focused SaaS model compared to Open Text's broad enterprise content platform.
AppFolio specializes in property management software, serving real estate businesses with a cloud-native platform distinct from Open Text's multi-industry information management approach.
Frequently Asked Questions
What does Open Text do?
Open Text designs and sells enterprise information management software. Its platform helps organizations manage, secure, and analyze business content across their operations. Products span content services, cybersecurity, eDiscovery, digital process automation, and AI-driven analytics, serving enterprises, mid-market companies, and public sector agencies globally.
Does OTEX pay dividends?
Yes, Open Text pays a regular dividend. This is relatively uncommon among mid-cap technology companies and reflects the recurring nature of its software subscription and support revenue. Investors should assess payout sustainability given the company's current Risk and Growth pillar ratings before making income-focused decisions.
When does OTEX report earnings?
Open Text reports earnings on a quarterly cadence, consistent with most publicly listed technology companies. For exact reporting dates and the most recent results, check Open Text's official investor relations page rather than relying on third-party estimates.
Is OTEX a good stock to buy?
UQS Score rates OTEX as Below Average, driven by Weak ratings across Moat, Growth, and Risk pillars. The Valuation pillar is Attractive, which may interest contrarian investors. Whether that valuation discount compensates for the underlying challenges depends on your risk tolerance and investment horizon. The full pillar breakdown is available to Pro members.
Is OTEX overvalued?
Based on the UQS Valuation pillar, OTEX is rated Attractive — meaning the stock does not appear overvalued relative to its fundamentals at current levels. However, an attractive price alone does not guarantee returns if Growth and Risk headwinds persist. View the complete valuation analysis on UQS Pro.
How does OTEX compare to its competitors?
Open Text is a broad enterprise information management platform, while peers like ServiceTitan and AppFolio serve narrower vertical markets with cloud-native models. Each carries a different risk and growth profile. UQS Score provides side-by-side pillar comparisons for Pro members to evaluate these differences systematically.
What is OTEX's market cap bracket?
Open Text is classified as a mid-cap company. This places it in a segment that typically carries more volatility than mega- or large-cap peers but may offer more liquidity than small- or micro-cap stocks. Mid-cap technology companies often face distinct competitive pressures from both larger incumbents and nimble smaller rivals.
Who founded Open Text Corporation?
Open Text was founded in 1996. Details on the founding team are widely available through the company's official history and public filings. The company has grown substantially since its origins, primarily through organic development and a long series of acquisitions in the enterprise software space.
Is OTEX a long-term quality investment?
As a long-term quality indicator, OTEX's Below Average UQS Score — with Weak Moat, Growth, and Risk ratings — suggests the business faces structural challenges that could limit compounding over time. The Neutral Quality pillar and dividend history provide some stability, but long-term conviction would require improvement across multiple pillars.
What is the main competitive advantage of Open Text?
Open Text's scale and breadth across content management, cybersecurity, and analytics give it cross-selling potential within large enterprise accounts. However, the UQS Moat pillar is rated Weak, indicating that these advantages may not yet translate into durable pricing power or switching costs strong enough to fend off well-resourced competitors.
What sector does OTEX belong to?
Open Text belongs to the Technology sector, specifically within enterprise software and information management. It competes for IT budgets alongside a wide range of software vendors offering content, security, and analytics solutions. You can explore other [top Technology stocks](/sector/technology) rated by UQS Score.
Is OTEX a growth stock or value stock?
Given its Weak Growth pillar and Attractive Valuation pillar, OTEX sits closer to the value end of the spectrum — but without the growth profile that typically drives re-rating. It may appeal to investors seeking a discounted entry into enterprise software, though the weak growth trajectory tempers that thesis.
Unlock Full OTEX Analysis
Sign in to unlock the detailed analysis behind the UQS Score.
- ✓View exact scores for all five UQS pillars
- ✓Access complete financial metrics and trend data
- ✓Compare OTEX side-by-side with sector peers
- ✓See the full Risk and Moat breakdown in detail
- ✓Track pillar changes across quarterly earnings cycles
- ✓Filter top-rated mid-cap tech stocks by quality
Pro Analysis
OTEX — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 19, 2026 | 43.3 | 48.6 | 35.0 | 27.9 | 11.9 | 100.0 | +4.2 |
| May 10, 2026 | 39.1 | 14.9 | 35.0 | 28.1 | 39.8 | 100.0 | -0.8 |
| May 8, 2026 | 39.9 | 14.9 | 35.0 | 32.1 | 39.9 | 100.0 | -2.4 |
| May 4, 2026 | 42.3 | 45.2 | 35.0 | 27.8 | 11.6 | 100.0 | -0.9 |
| Apr 21, 2026 | 43.2 | 45.2 | 35.0 | 32.0 | 11.6 | 100.0 | 0.0 |
| Apr 15, 2026 | 43.2 | 45.2 | 35.0 | 31.8 | 11.6 | 100.0 | +0.1 |
| Apr 2, 2026 | 43.1 | 45.2 | 35.0 | 31.6 | 11.6 | 100.0 | — |
OTEX — Pillar Breakdown
Quality
— 48.6/100 (25%)Open Text Corporation has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 27.7/100 (20%)Open Text Corporation faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 11.9/100 (15%)Open Text Corporation presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 100.0/100 (15%)Open Text Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 35/100 (25%)Open Text Corporation possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for OTEX.
Score Composition
Financial Data
More Stock Analysis
How is the OTEX UQS Score Calculated?
The UQS (Unified Quality Score) for Open Text Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Open Text Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Open Text Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.