OpenText Increases Share Repurchase Program to US$500 Million

Executive Summary

• OpenText raised its Fiscal 2026 normal‑course issuer bid (NCIB) from US$300 million to US$500 million, adding an additional US$200 million to the authorized repurchase limit.
• The maximum share count eligible for purchase remains at 24,906,456 shares, as previously approved by the TSX.
• To date in Fiscal 2026, OpenText has already repurchased approximately US$190 million of common stock (≈5 million shares for about US$165 million) since the NCIB began on August 12 2025.

Key Details

• Program Expansion: Authorized repurchase ceiling increased by US$200 million, bringing total authorized amount to US$500 million.
• Share Limit: Maximum number of common shares that may be acquired under the NCIB stays at 24,906,456 shares.
• NCIB Period: Effective for a 12‑month window starting August 12 2025 and ending August 11 2026 (or earlier if limits are reached).
• Purchase Mechanism: Repurchases can occur on the TSX, NASDAQ Global Select Market, and/or alternative trading systems in Canada or the United States; includes an automatic share purchase plan (ASPP) that counts toward the NCIB limit.
• Fiscal 2026 Activity to Date (as of Jan 31 2026):
• Total repurchased for cancellation: ~US$190 million.
• Shares repurchased and cancelled since NCIB start: ≈5 million shares valued at ~US$165 million.
• Strategic Rationale: CFO Steve Rai stated the expanded program reflects confidence in OpenText’s “robust cash flow engine” and is a key component of its capital allocation strategy.

Notable Quotes

“Our share repurchase program is an important component of the OpenText capital allocation strategy,” – Steve Rai, Executive Vice President & Chief Financial Officer.
“We are raising our authorized limits … from US$300 million to US$500 million, given our confidence in our robust cash flow engine.” – Steve Rai

Materiality Assessment: Material – Positive (the increase signals strong cash generation and a commitment to returning value to shareholders).