How did Open Text's revenue and expenses shift in Q2 2025 compared to previous quarters?

Open Text's revenue and expenses in Q2 2025 showed notable shifts compared to previous quarters, reflecting strategic adjustments and operational changes.

1. **Revenue Shift**:
- In Q2 2025, Open Text's revenue was $1.335 billion, surpassing estimates, despite a 13.1% year-over-year decline. This decline was attributed to the divestiture of AMC, which was adjusted to show a 4.9% revenue decline.
- Cloud revenues increased by 2.7% year-over-year, reaching $462 million, highlighting continued growth in cloud services.
- The company's revenue in Q2 2024 was $1.535 billion, marking a significant 71% increase year-over-year, driven by surge in cloud demand.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|OTEX|OTEX.O|Open Text|2024 Q3|16.265865600149116|1.447131E9|185|
|OTEX|OTEX.O|Open Text|2024 Q4|-8.631500573506033|1.362149E9|185|
|OTEX|OTEX.O|Open Text|2025 Q1|-10.973819109896038|1.269005E9|185|
|OTEX|OTEX.O|Open Text|2025 Q2|-13.054412496709814|1.3345E9|185|

2. **Expense Shift**:
- Specific expense data for Q2 2025 is not available. However, the company's overall performance in Q2 2025 showed a significant increase in net income, up 510.1% from the previous year, indicating a potential for increased expenses being managed effectively.
- Open Text's focus on operational discipline and efficiency suggests that while revenue may have declined, expense management could have been strengthened to maintain profitability.
3. **Profitability**:
- The company reported a GAAP EPS of $0.87 in Q2 2025, significantly exceeding estimates and marking a 521.4% increase from the previous year.
- Net income margin increased to 17%, and the adjusted EBITDA margin stood at 37.6%, reflecting robust profitability and cash flow generation.
- Free cash flow was generated at $307 million, reflecting a slight increase of 0.4% compared to the previous year.

In summary, Open Text experienced a decline in revenue due to the divestiture of AMC but showed strong profitability and cash flow generation, indicating effective expense management and strategic focus on high-growth areas such as cloud services.