OPEN TEXT CORP

Previous wording

When used in this report, the words “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “may”, “could”, “would”, “might”, “will” and other similar language, as they relate to Open Text Corporation (OpenText or the Company), are intended to identify forward-looking statements under applicable securities laws. Specific forward-looking statements in this report include, but are not limited to, statements regarding: (i) our focus in the fiscal years beginning July 1, 2025 and ending June 30, 2026 (Fiscal 2026) and July 1, 2026 and ending June 30, 2027 (Fiscal 2027) on growth in earnings and cash flows; (ii) creating value through investments in broader Information Management capabilities; (iii) our future business plans and operations, strategic goals and business planning process, including the Company’s business optimization plan announced in July 2024 (the Business Optimization Plan) and the potential redeployment of capital from non-core assets to enhance focus on our core Information Management for Artificial Intelligence (AI) business and support long-term shareholder returns; (iv) business trends; (v) distribution; (vi) the Company’s presence in the cloud and in growth markets; (vii) product and solution developments, enhancements and releases, the timing thereof and the customers targeted; (viii) the Company’s financial condition, results of operations and earnings; (ix) the basis for any future growth, including organic and inorganic growth, and for our financial performance; (x) declaration of quarterly dividends; (xi) future tax rates, including Canada and United Kingdom’s newly enacted global minimum tax acts; (xii) the changing regulatory environment; (xiii) annual recurring revenues; (xiv) research and development and related expenditures; (xv) our building, development and consolidation of our network infrastructure; (xvi) competition and changes in the competitive landscape; (xvii) our management and protection of intellectual property and other proprietary rights; (xviii) existing and foreign sales and exchange rate fluctuations; (xix) cyclical or seasonal aspects of our business; (xx) capital expenditures; (xxi) potential legal and/or regulatory proceedings; (xxii) acquisitions and their expected impact, including our ability to realize the benefits expected from the acquisitions and to successfully integrate the assets we acquire or utilize such assets to their full capacity (see Note 17 “Acquisitions and Divestitures” to our Condensed Consolidated Financial Statements for more details); (xxiii) tax audits; (xxiv) the expected impact of the Russia-Ukraine conflict, the conflict involving Iran , the broader Middle East instability and other geopolitical disputes on our business;(xxv) expected costs of the restructuring and business optimization plans; (xxvi) initiatives we establish and targets that we set related to corporate citizenship-related activities; (xvii) divestitures and their expected impact; …

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Current wording

When used in this report, the words “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “may”, “could”, “would”, “might”, “will” and other similar language, as they relate to Open Text Corporation (OpenText or the Company), are intended to identify forward-looking statements under applicable securities laws. Specific forward-looking statements in this report include, but are not limited to, statements regarding: (i) our focus in the fiscal years beginning July 1, 2026 and ending June 30, 2027 (Fiscal 2027) and July 1, 2027 and ending June 30, 2028 (Fiscal 2028) on growth in earnings and cash flows; (ii) creating value through investments in broader data management capabilities; (iii) our future business plans and operations, strategic goals and business planning process, including the Company’s business optimization plan announced in July 2024 (the Business Optimization Plan) and the potential redeployment of capital from non-core assets to enhance focus on our core data management business as clients increasingly adopt AI and support long-term shareholder returns; (iv) business trends; (v) distribution; (vi) the Company’s presence in the cloud and in growth markets; (vii) product and solution developments, enhancements and releases, the timing thereof and the clients targeted; (viii) the Company’s financial condition, results of operations and earnings; (ix) the basis for any future growth, including organic and inorganic growth, and for our financial performance; (x) declaration of quarterly dividends; (xi) future tax rates; (xii) the changing regulatory environment; (xiii) annual recurring revenues; (xiv) research and development and related expenditures; (xv) our building, development and consolidation of our network infrastructure; (xvi) competition and changes in the competitive landscape; (xvii) our management and protection of intellectual property and other proprietary rights; (xviii) existing and foreign sales and exchange rate fluctuations; (xix) cyclical or seasonal aspects of our business; (xx) capital expenditures; (xxi) potential legal and/or regulatory proceedings; (xxii) acquisitions and their expected impact, including our ability to realize the benefits expected from the acquisitions and to successfully integrate the assets we acquire or utilize such assets to their full capacity (see Note 17 “Acquisitions and Divestitures” to our Condensed Consolidated Financial Statements for more details); (xxiii) tax audits; (xxiv) the expected impact of the Russia-Ukraine and Middle East conflicts and other geopolitical disputes on our business;(xxv) expected costs of the Business Optimization Plan and other initiatives; (xxvi) initiatives we establish and targets that we set related to corporate citizenship-related activities; (xxvii) divestitures and their expected impact; (xxviii) the implementation of or changes to global tariff regimes or other trade policies and the resulting uncertainty to the macroeconom…

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Previous wording

In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking, and based on our current expectations, forecasts and projections about the operating environment, economies and markets in which we operate. Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management’s perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The forward-looking statements contained in this report are based on certain assumptions including the following: (i) countries continuing to implement and enforce existing and additional customs and security regulations relating to the provision of electronic information for imports and exports; (ii) our continued operation of a secure and reliable business network; (iii) the stability of general political, economic and market conditions; (iv) our ability to manage inflation, including increased labour costs associated with attracting and retaining employees, and volatile interest rates; (v) our continued ability to manage certain foreign currency risk through hedging; (vi) equity and debt markets continuing to provide us with access to capital; (vii) our continued ability to identify, source and finance attractive and executable business combination opportunities; (viii) our continued ability to avoid infringing third-party intellectual property rights; and (ix) our ability to successfully implement our restructuring plans. Management’s estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. We can give no assurance that such estimates, beliefs and assumptions will prove to be correct.

Current wording

In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking, and based on our current expectations, forecasts and projections about the operating environment, economies and markets in which we operate. Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management’s perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The forward-looking statements contained in this report are based on certain assumptions including the following: (i) the evolving adoption of artificial intelligence (AI)-enabled technologies by our clients and the level of demand for our products and solutions; (ii) countries continuing to implement and enforce existing and additional customs and security regulations relating to the provision of electronic information for imports and exports; (iii) our continued operation of a secure and reliable business network; (iv) the stability of general political, economic and market conditions, including any potential recession and current or threatened tariffs or trade restrictions; (v) our ability to manage inflation, including increased labour costs associated with attracting and retaining employees, and volatile interest rates; (vi) our continued ability to manage certain foreign currency risk through hedging; (vii) equity and debt markets continuing to provide us with access to capital on acceptable terms; (viii) our continued ability to identify, source and finance attractive and executable business combination and portfolio divestiture opportunities, as well as our ability to continue to successfully integrate any such opportunities, including in accordance with the expected timeframe and/or cost budget for such integration; (ix) our continued ability to avoid infringing third-party intellectual property rights; and (x) our ability to successfully implement our restructuring plans. Management’s estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. We can give no assurance that such estimates, beliefs and assumptions will prove to be correct.

Previous wording

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) our inability to realize successfully any anticipated synergy benefits from acquisitions; (ii) the actual and potential impacts of the use of cash and incurrence of indebtedness, including the granting of security interests related to such debt; (iii) the change in scope and size of our operations as a result of acquisitions or divestitures and risks relating to any such acquisitions or divestitures and the impact of divestitures on our remaining business, including the divestiture of eDOCS and the proposed divestiture of Vertica; (iv) the uncertainty around expectations related to the business prospects from potential acquisitions; (v) integration of acquisitions and related restructuring efforts, including the quantum of restructuring charges and the timing thereof; (vi) the possibility that we may be unable to successfully integrate the assets we acquire or fail to utilize such assets to their full capacity and not realize the benefits we expect from our acquired portfolios and businesses; (vii) the potential for the incurrence of or assumption of debt in connection with acquisitions, its impact on future operations and on the ratings or outlooks of rating agencies on our outstanding debt securities, the possibility of not being able to generate sufficient cash to service all indebtedness, and our ability to reduce our outstanding debt; (viii) the possibility that the Company may be unable to meet its future reporting requirements under the Exchange Act, and the rules promulgated thereunder, or applicable Canadian securities regulation; (ix) the risks associated with bringing new products and services to market; (x) fluctuations in currency exchange rates (including as a result of the impact of any policy changes resulting from trade and tariff disputes) and the impact of mark-to-market valuation relating to associated derivatives; (xi) delays in the purchasing decisions of the Company’s customers; (xii) competition the Company faces in its industry and/or marketplace; (xiii) the final determination of litigation, tax audits (including tax examinations in Canada, the United States or elsewhere) and other legal proceedings; (xiv) potential exposure to greater than anticipated tax liabilities or expenses, including with respect to changes in Canadian, United States or international tax regimes; (xv) the possibility of technical, logistical or planning issues in connection with the deployment of the Company’s products or services; (xvi) the continuous commitment of the Company’s customers; (xvii) demand for the Company’s products and services; (xviii) inc…

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Current wording

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) our inability to realize successfully any anticipated synergy benefits from acquisitions; (ii) the actual and potential impacts of the use of cash and incurrence of indebtedness, including the granting of security interests related to such debt; (iii) the change in scope and size of our operations as a result of acquisitions or divestitures and risks relating to any such acquisitions or divestitures and the impact of divestitures on our remaining business, including the divestiture of eDOCS and divestiture of Vertica; (iv) the uncertainty around expectations related to the business prospects from potential acquisitions; (v) integration of acquisitions and related restructuring efforts, including the quantum of restructuring charges and the timing thereof; (vi) the possibility that we may be unable to successfully integrate the assets we acquire or fail to utilize such assets to their full capacity and not realize the benefits we expect from our acquired portfolios and businesses; (vii) the potential for the incurrence of or assumption of debt in connection with acquisitions, its impact on future operations and on the ratings or outlooks of rating agencies on our outstanding debt securities, the possibility of not being able to generate sufficient cash to service all indebtedness, and our ability to reduce our outstanding debt; (viii) the possibility that the Company may be unable to meet its future reporting requirements under the Exchange Act, and the rules promulgated thereunder, or applicable Canadian securities regulation; (ix) the risks associated with bringing new products and services to market; (x) fluctuations in currency exchange rates (including as a result of the impact of any policy changes resulting from trade and tariff disputes) and the impact of mark-to-market valuation relating to associated derivatives; (xi) delays in the purchasing decisions of the Company’s clients; (xii) competition the Company faces in its industry and/or marketplace; (xiii) the final determination of litigation, tax audits (including tax examinations in Canada, the United States or elsewhere) and other legal proceedings; (xiv) potential exposure to greater than anticipated tax liabilities or expenses, including with respect to changes in Canadian, United States or international tax regimes; (xv) the possibility of technical, logistical or planning issues in connection with the deployment of the Company’s products or services; (xvi) the continuous commitment of the Company’s clients; (xvii) demand for the Company’s products and services; (xviii) increase in exposure…

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Previous wording

All dollar and percentage comparisons made herein refer to the three and nine months ended March 31, 2026, compared with the three and nine months ended March 31, 2025, unless otherwise noted.

Current wording

All dollar and percentage comparisons made herein refer to the three months ended September 30, 2026, compared with the three months ended September 30, 2025, unless otherwise noted.

Previous wording

As of March 31, 2026, we employed a total of approximately 20,500 individuals. Of the total 20,500 individuals we employed as of March 31, 2026, approximately 7,000 or 34% are in the Americas, 4,800 or 23% are in EMEA and 8,700 or 43% are in Asia Pacific. Currently, we have employees in 42 countries enabling strong access to multiple talent pools while ensuring reach and proximity to our customers. See “Results of Operations” below for our definitions of geographic regions.

Current wording

As of September 30, 2026, we had approximately 19,500 employees, of which approximately 6,700 or 34% are in the Americas, 4,500 or 23% are in EMEA and 8,300 or 43% are in Asia Pacific. Currently, we have employees in 42 countries enabling strong access to multiple talent pools while ensuring reach and proximity to our clients. See “Results of Operations” below for our definitions of geographic regions.

Previous wording

During the third quarter of Fiscal 2026, we saw the following activity as compared to the third quarter of Fiscal 2025:

Current wording

During the first quarter of Fiscal 2027, we saw the following activity as compared to the first quarter of Fiscal 2026:

Previous wording

•Total revenue was $1,282.5 million, up 2.2% compared to the same period in the prior fiscal year; down 2.1% after factoring in the favourable impact of $54.6 million of foreign exchange rate changes. Total revenue was up as increases in the Content, Business Network and ADM product categories were offset by decreases in the Cybersecurity (Enterprise), Cybersecurity (SMB & Consumer), ITOM and Analytics product categories.

Current wording

•Total revenue was $1,236.6 million, down 4.0% compared to the same period in the prior fiscal year; down 3.9% after excluding the unfavourable impact of $1.6 million of foreign currency exchange rates and down 1.7% after additionally adjusting for the impact of revenues from the divested eDOCS and Vertica businesses. Total revenue was down as increases in the Content and Business Network product categories were offset by decreases in the Cybersecurity (Enterprise), Cybersecurity (SMB & Consumer), ITOM, ADM, Analytics and Portfolio product categories.

Previous wording

•Total annual recurring revenue, which we define as the sum of cloud services and subscriptions revenue and customer support revenue, was $1,057.8 million, up 2.7% compared to the same period in the prior fiscal year; down 1.4% after factoring in the favourable impact of $42.1 million of foreign exchange rate changes.

Current wording

•Total annual recurring revenue, which we define as the sum of cloud services and subscriptions revenue and client support revenue, was $1,039.6 million, down 3.0% compared to the same period in the prior fiscal year; down 2.9% after excluding the unfavourable impact of $1.1 million of foreign exchange rate changes.

Previous wording

•Cloud services and subscriptions revenue was $492.9 million, up 6.6% compared to the same period in the prior fiscal year; up 3.2% after factoring in the favourable impact of $15.7 million of foreign exchange rate changes.

Current wording

•Cloud services and subscriptions revenue was $505.5 million, up 4.3% compared to the same period in the prior fiscal year; up 4.3% after excluding the unfavourable impact of $0.1 million of foreign exchange rate changes.

Previous wording

•GAAP-based earnings per share (EPS), diluted, was $0.70 compared to $0.35 in the same period in the prior fiscal year.

Current wording

•GAAP-based earnings per share (EPS), diluted, was $0.64 compared to $0.58 in the same period in the prior fiscal year.

Previous wording

•Non-GAAP-based EPS, diluted, was $1.01 compared to $0.82 in the same period in the prior fiscal year.

Current wording

•Non-GAAP-based EPS, diluted, a non-GAAP measure, was $1.05 compared to $1.05 in the same period in the prior fiscal year.

Previous wording

•Adjusted EBITDA, a non-GAAP measure, was $437.9 million compared to $395.3 million in the same period in the prior fiscal year.

Current wording

•Adjusted EBITDA, a non-GAAP measure, was $442.4 million compared to $467.4 million in the same period in the prior fiscal year.

Previous wording

•Operating cash flow was $821.0 million for the nine months ended March 31, 2026 compared to $672.4 million in the same period in the prior fiscal year, up 22.1%.

Current wording

•Operating cash flow was $172.3 million for the three months ended September 30, 2026 compared to $147.8 million in the same period in the prior fiscal year, up 16.6%.

Previous wording

•Cash and cash equivalents were $1,254.1 million as of March 31, 2026, compared to $1,156.5 million as of June 30, 2025.

Current wording

•Cash and cash equivalents were $983.3 million as of September 30, 2026, compared to $956.0 million as of June 30, 2026.

Previous wording

•During the three months ended March 31, 2026, we repurchased and cancelled 9,679,300 Common Shares for $251.7 million, inclusive of 2% Canadian excise taxes recorded (4,350,716 for $116.7 million in the three months ended March 31, 2025).

Current wording

•During the three months ended September 30, 2026, we repurchased and cancelled 980,700 Common Shares for $23.4 million, inclusive of 2% Canadian excise taxes recorded (3,156,323 Common Shares for $102.0 million in the three months ended September 30, 2025).

Previous wording

See “Use of Non-GAAP Financial Measures” below for definitions and reconciliations of GAAP-based measures to Non-GAAP-based measures. See “Acquisitions” below for the impact of acquisitions on the period-to-period comparability of results.

Current wording

See “Use of Non-GAAP Financial Measures” below for definitions and reconciliations of GAAP-based measures to Non-GAAP-based measures. See “Acquisitions and Divestitures” below for the impact of divestitures on the period-to-period comparability of results.

Previous wording

On February 2, 2026, the Company reached a definitive agreement to divest Vertica, a part of its Analytics product category, to Rocket Software Inc. (Rocket Software) for $150.0 million in cash, before taxes, fees and other adjustments. The Company intends to use the proceeds from the divestiture to reduce outstanding debt. The transaction remains subject to customary approvals and closing conditions and is expected to close during Fiscal 2026. See Note 17 “Acquisitions and Divestitures” to our Condensed Consolidated Financial Statements for more information.

Current wording

On May 11, 2026, the Company completed the divestiture of Vertica, a part of its Analytics product category, to Rocket Software Inc. (Rocket Software) for $150.0 million in cash, before taxes, fees and other adjustments. The Company used the proceeds from the transaction to prepay $150.0 million of the outstanding debt. See Note 17 “Acquisitions and Divestitures” to our Condensed Consolidated Financial Statements for more information.

Previous wording

On October 2, 2025 the Company reached a definitive agreement to divest an on-premise solution (eDOCS), a part of its Analytics product category, to NetDocuments, for $163.0 million in cash before taxes, fees and other adjustments. The Company completed the divestiture on January 12, 2026. The Company used the proceeds from the transaction to prepay $163.0 million of the outstanding principal balance of the Acquisition Term Loan (as defined below). See Note 17 “Acquisitions and Divestitures” to our Condensed Consolidated Financial Statements for more information.

Current wording

On January 12, 2026, the Company completed the divestiture of an on-premise solution (eDOCS), a part of its Portfolio product category, to NetDocuments, for $163.0 million in cash before taxes, fees and other adjustments. The Company used the proceeds from the transaction to prepay $163.0 million of its outstanding principal balance of the Acquisition Term Loan (as defined below). See Note 17 “Acquisitions and Divestitures” to our Condensed Consolidated Financial Statements for more information.

Previous wording

We continue to monitor the geopolitical conflicts and diplomatic tensions around the world, including the Russia-Ukraine conflict, the conflict involving Iran and the broader Middle East instability. We have ceased all direct business in Russia and Belarus. We continue to operate our Israeli-based business and support our employees in the region. While our operations within these locations are not material and we do not expect these geopolitical conflicts to have a material adverse effect on our overall business, results of operations or financial condition, it is not possible to predict the broader consequences or broader expansion of these conflicts, including adverse effects on the global economy, on our business and operations as well as those of our customers, partners and third-party service providers. See also “Outlook for Remainder of Fiscal 2026” for significant tariff and trade developments. For more information, see Part I, Item 1A “Risk Factors” and Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for Fiscal 2025.

Current wording

We continue to monitor the geopolitical conflicts and diplomatic tensions around the world, including the Russia-Ukraine and Middle East conflicts. We have ceased all direct business in Russia and Belarus. While our operations within these locations are not material and we do not expect these geopolitical conflicts to have a material adverse effect on our overall business, results of operations or financial condition, it is not possible to predict the broader consequences or broader expansion of these conflicts, including adverse effects on the global economy, on our business and operations as well as those of our clients, partners and third-party service providers. See also “Outlook for Remainder of Fiscal 2027” for significant tariff and trade developments. For more information, see Part I, Item 1A “Risk Factors” and Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for Fiscal 2026.

Previous wording

As of May 7, 2026, the Company updated its full year Fiscal 2026 outlook, which is as follows:

Current wording

As of November 5, 2026, the Company maintains its full year Fiscal 2027 outlook, which remains unchanged following the product category reclassifications made as part of the enterprise assessment. See Note 3, “Revenues” to the Condensed Consolidated Financial Statements for additional information regarding the product category reclassifications. The Company’s outlook is as follows:

Previous wording

The forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially. The Company does not present a reconciliation of the forward-looking non-GAAP financial measure, Adjusted EBITDA (as defined below), to the most directly comparable GAAP financial measure because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized.

Current wording

Company’s Annual Report on Form 10-K, including Part I, Item 1A “Risk Factors” therein, and actual results may vary materially. The Company does not present a reconciliation of the forward-looking non-GAAP financial measures, Adjusted EBITDA (as defined below), to the most directly comparable GAAP financial measure because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized.

Previous wording

As of March 31, 2026, we have incurred $215.0 million of the total expected costs of up to approximately $260.0 million. These costs primarily related to workforce reduction driven by automation, centralization, and simplification, as well as associated real estate footprint reductions globally.

Current wording

As of September 30, 2026, we have incurred $246.2 million of the total expected costs of up to approximately $270.0 million. These costs primarily related to workforce reduction driven by automation, centralization, and simplification, as well as associated real estate footprint reductions globally.

Previous wording

The Business Optimization Plan along with other savings initiatives, when fully implemented, is expected to generate total annualized savings of approximately $490.0 million to $550.0 million. The Company realized approximately 35% of these savings during Fiscal 2025 and expects to realize an additional 35% in Fiscal 2026, with the balance thereafter. The entire business optimization plan is expected to be substantially completed by the second quarter of Fiscal 2027. See Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for Fiscal 2025.

Current wording

The Business Optimization Plan along with other savings initiatives, when fully implemented, is expected to generate total annualized savings of approximately $580.0 million. The Company realized approximately 67% of these savings during Fiscal 2025 and 2026 and expects to realize the remaining 33% in Fiscal 2027. The entire Business Optimization Plan is expected to be substantially completed by the second quarter of Fiscal 2027. See Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for Fiscal 2026.

Previous wording

We conduct business globally and are subject to a complex and evolving international trade environment. Recent trade tensions among major economies, including the United States, Canada, China, the European Union and others, have led to the dissolution of trade agreements and the imposition of tariffs and other restrictive measures. These tariffs and other restrictive measures do not currently target digital goods and services, including software, services, intangibles or other digital services; however, we cannot predict future trade policy or tariffs, including whether such digital goods and services will be subject to any form of tariffs or other restrictions in the future, or the timing of any impacts thereof. We also cannot predict the impact that such tariffs and other restrictive measures will have on the macroeconomic environment or our customers, which could adversely impact our business and our results of operations.

Current wording

We conduct business globally and are subject to a complex and evolving international trade environment. Recent trade tensions among major economies have led to the dissolution of trade agreements and the imposition of tariffs and other restrictive measures. These tariffs and other restrictive measures generally do not currently target digital goods and services, including software, services, intangibles or other digital services; however, we cannot predict future trade policy or tariffs, including whether such digital goods and services will be subject to any form of tariffs or other restrictions in the future, or the timing of any impacts thereof. We also cannot predict the impact that such tariffs and other restrictive measures will have on the macroeconomic environment or our clients, which could adversely impact our business and our results of operations.

Previous wording

On January 12, 2026, the Company completed the sale of its eDOCS business to NetDocuments. The comparability of our operating results for the three and nine months ended March 31, 2026, as compared to the three and nine months ended March 31, 2025, was impacted by the eDOCS divestiture, as the operating results of the eDOCS business were excluded from the Company’s consolidated results, beginning January 12, 2026. As such, consolidated operating results for the three and nine months ended March 31, 2026 included the business operating results of eDOCS up to the date of the eDOCS divestiture. eDOCS business operating results were included in the consolidated operating results for the three and nine months ended March 31, 2025. For more details on the Company’s divestitures, see Note 17 “Acquisitions and Divestitures” to the Consolidated Financial Statements.

Current wording

The comparability of our operating results for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, was impacted by the divestitures of the eDOCS and Vertica businesses. The Company’s consolidated results excluded the results of eDOCS beginning January 12, 2026, and the results of Vertica beginning May 11, 2026. As such, consolidated operating results for the three months ended September 30, 2026 exclude the operating results of the eDOCS and Vertica businesses, while consolidated operating results for the three months ended September 30, 2025 include the operating results of the eDOCS and Vertica businesses for the entire period.

Previous wording

The following table illustrates the revenues contributed by the eDOCS business during the three and nine months ended March 31, 2026 and 2025.

Current wording

The following tables illustrate the revenues contributed by the divested businesses during the three months ended September 30, 2025.

Previous wording

In connection with the eDOCS divestiture, the Company entered into a transition services agreement (TSA) with NetDocuments, pursuant to which the Company agreed to provide certain transition services to NetDocuments for up to 12 months following the closing date. These transition service costs are reimbursable by NetDocuments.

Current wording

In connection with the eDOCS and Vertica divestitures, the Company entered into separate transition services agreements (TSAs) with NetDocuments and Rocket Software, respectively, pursuant to which the Company agreed to provide certain transition services for up to 12 months following the closing date for the eDOCS divestiture and for up to 12 months following the closing date for the Vertica divestiture, with optional extensions for up to an additional six months. The costs of these transition services are reimbursable by NetDocuments and Rocket Software, respectively.

Previous wording

The following table illustrates the financial statement impact of these TSA reimbursements for the periods presented, which were recorded as an offset to the respective costs incurred, within our Condensed Consolidated Statements of Income.

Current wording

The following table illustrates the financial statement impact of these TSA reimbursements for the period presented, which were recorded as an offset to the respective costs incurred, within our Condensed Consolidated Statements of Income.

Previous wording

(1)Total revenues by geography are determined based on the location of our direct end customer.

Current wording

(1)Total revenues by geography are determined based on the location of our direct end client.

Previous wording

Cloud services and subscriptions revenues are from hosting arrangements where in connection with the licensing of software, the end user does not take possession of the software, as well as from end-to-end fully outsourced business-to-business integration solutions to our customers (collectively referred to as cloud arrangements). The software application resides on our hardware or that of a third-party, and the customer accesses and uses the software on an as-needed basis via an identified line. Our cloud arrangements can be broadly categorized as platform as a service, software as a service, cloud subscriptions and managed services.

Current wording

Cloud services and subscriptions revenues are from hosting arrangements where in connection with the licensing of software, the end user does not take possession of the software, as well as from end-to-end fully outsourced business-to-business integration solutions to our clients (collectively referred to as cloud arrangements). The software application resides on our hardware or that of a third-party, and the client accesses and uses the software on an as-needed basis via an identified line. Our cloud arrangements can be broadly categorized as platform as a service, software as a service, cloud subscriptions and managed services.

Previous wording

For the quarter ended March 31, 2026, our cloud net renewal rate (Cloud NRR), excluding the impact of Carbonite Inc. and Zix Corporation, decreased to 95% from 96%, as compared to the quarter ended March 31, 2025. Cloud net renewal rate measures the percentage of annual contract value retained from Enterprise cloud customer subscription agreements available to renew, after giving effect to contract expansions (such as price increases and upsells) and reductions (cancellations). Cloud NRR excludes internal portfolio movements (such as migrations to the Company’s other Cloud offerings). Cloud NRR includes enterprise-based customers, which contribute approximately 90% of the Company’s total revenues, and excludes the impact of Carbonite Inc. and Zix Corporation, whose businesses primarily serve our small- and medium-sized business and consumer customers and comprise the remainder of our revenues.

Current wording

For the quarter ended September 30, 2026, our cloud net renewal rate (Cloud NRR), excluding the impact of Carbonite Inc. and Zix Corporation, decreased to 95%, as compared to 96% for the quarter ended September 30, 2025. Cloud NRR measures the percentage of annual contract value retained from Enterprise cloud client subscription agreements available to renew, after giving effect to contract expansions (such as price increases and upsells) and reductions (cancellations). Cloud NRR excludes internal portfolio movements (such as migrations to the Company’s other Cloud offerings). Cloud NRR includes enterprise-based clients, which contribute approximately 90% of the Company’s total revenues, and excludes the impact of Carbonite Inc. and Zix Corporation, whose businesses primarily serve our small- and medium-sized business and consumer clients and comprise the remainder of our revenues.

Previous wording

Cloud services and subscriptions revenues increased by $30.3 million or 6.6% during the three months ended March 31, 2026 as compared to the same period in the prior fiscal year; up 3.2% after factoring in the favourable impact of $15.7 million of foreign exchange rate changes. The change was primarily driven by increases in the Content, Business Network, ITOM, and ADM product categories, partly offset by decreases in the Cybersecurity (SMB & Consumer), Cybersecurity (Enterprise) and Analytics product categories. Geographically, the overall change was primarily attributable to an increase in EMEA of $28.3 million, an increase in Asia Pacific of $1.6 million and an increase in Americas of $0.4 million.

Current wording

Cloud services and subscriptions revenues increased by $21.0 million or 4.3% during the three months ended September 30, 2026, as compared to the same period in the prior fiscal year; up 4.3% after excluding the unfavourable impact of $0.1 million of foreign exchange rate changes. The change was primarily driven by increases in the Content, Business Network, ITOM, Cybersecurity (Enterprise) and Analytics product categories, partly offset by a decrease in the Cybersecurity (SMB & Consumer), ADM and Portfolio product categories. Geographically, the overall change was attributable to an increase in EMEA of $17.1 million, an increase in Asia Pacific of $2.8 million and an increase in Americas of $1.1 million.

Previous wording

There were 41 cloud services contracts greater than $1.0 million that closed during the third quarter of Fiscal 2026, compared to 32 contracts during the third quarter of Fiscal 2025.

Current wording

There were 35 cloud services contracts greater than $1.0 million that closed during the first quarter of Fiscal 2027, compared to 33 contracts during the first quarter of Fiscal 2026.

Previous wording

Cost of Cloud services and subscriptions revenues increased by $3.2 million during the three months ended March 31, 2026 as compared to the same period in the prior fiscal year. This was primarily due to an increase in third-party network usage fees of $2.7 million. Overall, the gross margin percentage on Cloud services and subscriptions revenues increased to 64% from 62%.

Current wording

Cost of Cloud services and subscriptions revenues increased by $6.2 million during the three months ended September 30, 2026, as compared to the same period in the prior fiscal year. This was primarily due to an increase in third-party network usage fees of $3.4 million and an increase in labour-related costs of $2.3 million. Overall, the gross margin percentage on Cloud services and subscriptions revenues increased to 65% from 64%.

Previous wording

Customer support revenues consist of revenues from our customer support and maintenance agreements. These agreements allow our customers to receive technical support, enhancements and upgrades to new versions of our software products when available. Customer support revenues are generated from support and maintenance relating to current year sales of software products and from the renewal of existing maintenance agreements for software licenses sold in prior periods. Therefore, changes in Customer support revenues do not always correlate directly to the changes in license revenues from period to period. The terms of support and maintenance agreements are typically twelve months, and are renewable, generally on an annual basis, at the option of the customer. Our management reviews our customer support renewal rates on a quarterly basis, and we use these rates as a method of monitoring our customer service performance.

Current wording

Client support revenues consist of revenues from our client support and maintenance agreements. These agreements allow our clients to receive technical support, enhancements and upgrades to new versions of our software products when available. Client support revenues are generated from support and maintenance relating to current year sales of software products and from the renewal of existing maintenance agreements for software licenses sold in prior periods. Therefore, changes in Client support revenues do not always correlate directly to the changes in license revenues from period to period. The terms of support and maintenance agreements are typically twelve months, and are renewable, generally on an annual basis, at the option of the client. Our management reviews our client support renewal rates on a quarterly basis, and we use these rates as a method of monitoring our client service performance.

Previous wording

For the quarter ended March 31, 2026, our customer support net renewal rate (Customer Support NRR) increased to 93% from 90%, for the quarter ended March 31, 2025. Customer Support NRR measures the percentage of annual contract value retained from Enterprise customer support agreements available to renew, after giving effect to contract expansions (such as price increases and upsells) and reductions (cancellations). Customer Support NRR excludes internal portfolio movements (such as migrations to the Company's Cloud and other offerings). Customer Support NRR includes enterprise-based customers, which contribute approximately 90% of the Company’s revenues, and excludes the impact of Carbonite Inc. and Zix Corporation, whose businesses primarily serve small- and medium-sized business and consumer customers and comprise the remainder of our revenues.

Current wording

For the quarter ended September 30, 2026, our client support net renewal rate (Client Support NRR) increased to 92%, as compared to 91% for the quarter ended September 30, 2025. Client Support NRR measures the percentage of annual contract value retained from Enterprise client support agreements available to renew, after giving effect to contract expansions (such as price increases and upsells) and reductions (cancellations). Client Support NRR excludes internal portfolio movements (such as migrations to the Company's Cloud and other offerings). Client Support NRR includes enterprise-based clients, which contribute approximately 90% of the Company’s revenues, and excludes the impact of Carbonite Inc. and Zix Corporation, whose businesses primarily serve small- and medium-sized business and consumer clients and comprise the remainder of our revenues.

Previous wording

Cost of Customer support revenues is comprised primarily of technical support personnel and related costs, as well as third-party royalty costs.

Current wording

Cost of Client support revenues is comprised primarily of technical support personnel and related costs, as well as third-party royalty costs.

Previous wording

During the third quarter of Fiscal 2026, we closed 52 license contracts greater than $0.5 million, of which 19 contracts were greater than $1.0 million, contributing $71.4 million of License revenues. This was compared to 51 license contracts greater than $0.5 million during the third quarter of Fiscal 2025, of which 19 contracts were greater than $1.0 million, contributing $52.2 million of License revenues.

Current wording

During the first quarter of Fiscal 2027, we closed 38 license contracts greater than $0.5 million, of which 12 contracts were greater than $1.0 million, contributing $64.4 million of License revenues. This was compared to 40 license contracts greater than $0.5 million during the first quarter of Fiscal 2026, of which 9 contracts were greater than $1.0 million, contributing $56.1 million of License revenues.

Previous wording

Cost of License revenues decreased by $2.5 million during the three months ended March 31, 2026 as compared to the same period in the prior fiscal year. Overall, the gross margin percentage on License revenues increased to 97% from 95%.

Current wording

Cost of License revenues decreased by $2.8 million during the three months ended September 30, 2026 as compared to the same period in the prior fiscal year. Overall, the gross margin percentage on License revenues increased to 97% from 95%.

Previous wording

Cost of Professional service and other revenues decreased by $2.0 million during the three months ended March 31, 2026 as compared to the same period in the prior fiscal year. This was primarily due to a decrease in labour-related costs of $2.1 million. Overall, the gross margin percentage on Professional service and other revenues decreased to 20% from 24%.

Current wording

Cost of Professional service and other revenues decreased by $5.3 million during the three months ended September 30, 2026 as compared to the same period in the prior fiscal year. This was primarily due to a decrease in labour-related costs of $5.4 million. Overall, the gross margin percentage on Professional service and other revenues decreased to 21% from 23%.