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CEO Mark J. Barrenechea stated clearly that the goal is to turn the cybersecurity segment's negative growth into positive growth in fiscal 2026. On capital allocation, he explained that any potential divestiture would be strategically considered to accelerate the company's overall growth rate, with a singular focus on accelerating organic cloud growth, similar to the rationale for the mainframe business sale.

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CEO Mark Barrenechea expressed confidence in fiscal 2026, citing a new 'AI first' narrative, a new product cycle, and capital flexibility from the business optimization plan. He expects improved growth and higher free cash flow but will provide formal guidance in August. Regarding current trends, he reiterated that Q3 bookings were impacted by tariffs and that while the annual target of 20%+ growth is unlikely, the company expects mid-teens growth for the year, implying a strong Q4.

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CFO Madhu Ranganathan explained that the guidance remains unchanged because strong enterprise cloud bookings have a 6-to-9-month ramp to revenue, impacting future periods more significantly. CEO and CTO Mark Barrenechea noted that the global public sector represents about 15% of revenue and that OpenText is well-positioned to capitalize on U.S. government efficiency initiatives.

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CFO Brandon Farber explained that the acceleration in the >$100k customer count was due to a combination of strong new mid-market logos, successful customer expansions, and a favorable foreign exchange impact. Regarding ARR, Farber guided for a seasonal step-down in Q3 from Q2's $8 million addition, followed by a Q4 that is typically strong but will be impacted by the AWS contract churn.

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CEO Alessio Artuffo confirmed the SMB segment is about 25% of ARR and sees no signs of accelerated churn, though the strategic focus remains on mid-market and enterprise. He identified 'AI readiness' in buyer organizations as a key non-macro factor causing delays. He explained that while business leaders want AI, their procurement and legal teams are still adapting, creating a temporary friction in the buying cycle similar to the early days of cloud adoption.

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Interim CFO Brandon Farber attributed the NDR decline to a previously disclosed large customer downgrade (over 1% impact) and a 40% increase in contracts up for renewal, which led to customers rightsizing their plans. He noted Q1 2025 is the largest renewal quarter but expects NDR to inflect upwards after. CEO Alessio Artuffo stated that there have been no material changes to win rates or the competitive landscape, where Docebo continues to replace legacy players.

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CFO Asha Bakshani confirmed that software ARPU is higher in the growth portfolio due to the adoption of flagship products and innovation. She expects software revenue growth to continue improving as the sales team ramps up. Regarding currency impact, she estimated that the 15% total revenue growth would have been a 'couple points under' that on a constant currency basis.

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Executive Alexander Dobranowski clarified that AI tools are monetized through life sciences partners, not practitioners, with public sector opportunities now being explored. CFO Anthony Lam noted that recurring revenue constitutes 5-8% of the AI business. Dobranowski added that demonstrating value and cost savings across the healthcare ecosystem is key to growth and that M&A focuses on filling capability gaps in areas like dermatology and high-burden conditions.

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Chairman and CEO Hamed Shahbazi addressed margins by explaining that HEALWELL is not expected to contribute significant EBITDA initially and that timing differences on acquisitions can affect short-term profitability. He expects overall margins to improve over time. Regarding the guidance range, Shahbazi identified the Canadian M&A pipeline as the primary source for potential outperformance, stating that executing on these opportunities could push results to the high end of the range or beyond.

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CEO Ed Ryan described the 300-person sales force's heavy focus on cross-selling (65-70% of activity) and noted the success of smaller, focused innovation forums. Regarding de minimis, he explained that while the outcome is uncertain, a rule change could shift volume from low-fee de minimis transactions to higher-fee traditional customs filings, which could be a net positive for Descartes.

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CEO Ed Ryan described the ~300-person sales force, which achieves a high cross-sell rate of 65-70%. He noted the innovation forums are valuable for customers to learn from Descartes and each other. Regarding de minimis, he explained that while the outcome is uncertain, any changes would likely be a net positive, as Descartes could trade many low-fee transactions for fewer, but more valuable, complex customs filings.

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CEO Ed Ryan viewed the situation as a long-term opportunity. He explained that increased government requests for information create an opportunity for Descartes to provide a more significant, enhanced service. Furthermore, if some filers are forced to stop operating due to non-compliance, Descartes, as a major player in the space, expects to pick up that volume through its other customers. He emphasized that underlying demand driven by social commerce continues to grow, positioning Descartes well for the long run.

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