diff --git a/backend/drm/drm.c b/backend/drm/drm.c
index b3f52cd5..e06213fe 100644
--- a/backend/drm/drm.c
+++ b/backend/drm/drm.c
@@ -895,10 +895,6 @@ static bool drm_connector_set_cursor(struct wlr_output *output,
 		}
 	}
 
-	float hotspot_proj[9];
-	wlr_matrix_projection(hotspot_proj, plane->surf.width,
-		plane->surf.height, output->transform);
-
 	struct wlr_box hotspot = { .x = hotspot_x, .y = hotspot_y };
 	wlr_box_transform(&hotspot, &hotspot,
 		wlr_output_transform_invert(output->transform),
@@ -939,8 +935,19 @@ static bool drm_connector_set_cursor(struct wlr_output *output,
 
 		struct wlr_box cursor_box = { .width = width, .height = height };
 
+		float output_matrix[9];
+		wlr_matrix_identity(output_matrix);
+		if (output->transform != WL_OUTPUT_TRANSFORM_NORMAL) {
+			wlr_matrix_translate(output_matrix, plane->surf.width / 2.0,
+					plane->surf.height / 2.0);
+			wlr_matrix_transform(output_matrix, output->transform);
+			wlr_matrix_translate(output_matrix, - plane->surf.width / 2.0,
+					- plane->surf.height / 2.0);
+		}
+
 		float matrix[9];
-		wlr_matrix_project_box(matrix, &cursor_box, transform, 0, hotspot_proj);
+		wlr_matrix_project_box(matrix, &cursor_box, transform, 0,
+				output_matrix);
 
 		wlr_renderer_begin(rend, plane->surf.width, plane->surf.height);
 		wlr_renderer_clear(rend, (float[]){ 0.0, 0.0, 0.0, 0.0 });
diff --git a/backend/drm/renderer.c b/backend/drm/renderer.c
index ad823398..260d041f 100644
--- a/backend/drm/renderer.c
+++ b/backend/drm/renderer.c
@@ -156,7 +156,7 @@ static struct wlr_buffer *drm_surface_blit(struct wlr_drm_surface *surf,
 	}
 
 	float mat[9];
-	wlr_matrix_projection(mat, 1, 1, WL_OUTPUT_TRANSFORM_NORMAL);
+	wlr_matrix_identity(mat);
 
 	wlr_renderer_begin(renderer, surf->width, surf->height);
 	wlr_renderer_clear(renderer, (float[]){ 0.0, 0.0, 0.0, 0.0 });
diff --git a/backend/wayland/output.c b/backend/wayland/output.c
index d5410e0d..1e13f455 100644
--- a/backend/wayland/output.c
+++ b/backend/wayland/output.c
@@ -431,11 +431,16 @@ static bool output_set_cursor(struct wlr_output *wlr_output,
 			.height = height,
 		};
 
-		float projection[9];
-		wlr_matrix_projection(projection, width, height, wlr_output->transform);
+		float output_matrix[9];
+		wlr_matrix_identity(output_matrix);
+		if (wlr_output->transform != WL_OUTPUT_TRANSFORM_NORMAL) {
+			wlr_matrix_translate(output_matrix, width / 2.0, height / 2.0);
+			wlr_matrix_transform(output_matrix, wlr_output->transform);
+			wlr_matrix_translate(output_matrix, - width / 2.0, - height / 2.0);
+		}
 
 		float matrix[9];
-		wlr_matrix_project_box(matrix, &cursor_box, transform, 0, projection);
+		wlr_matrix_project_box(matrix, &cursor_box, transform, 0, output_matrix);
 
 		wlr_renderer_begin(backend->renderer, width, height);
 		wlr_renderer_clear(backend->renderer, (float[]){ 0.0, 0.0, 0.0, 0.0 });
diff --git a/backend/x11/output.c b/backend/x11/output.c
index ef2d1c13..406185e3 100644
--- a/backend/x11/output.c
+++ b/backend/x11/output.c
@@ -415,11 +415,16 @@ static bool output_cursor_to_picture(struct wlr_x11_output *output,
 		.height = height,
 	};
 
-	float projection[9];
-	wlr_matrix_projection(projection, width, height, output->wlr_output.transform);
+	float output_matrix[9];
+	wlr_matrix_identity(output_matrix);
+	if (output->wlr_output.transform != WL_OUTPUT_TRANSFORM_NORMAL) {
+		wlr_matrix_translate(output_matrix, width / 2.0, height / 2.0);
+		wlr_matrix_transform(output_matrix, output->wlr_output.transform);
+		wlr_matrix_translate(output_matrix, - width / 2.0, - height / 2.0);
+	}
 
 	float matrix[9];
-	wlr_matrix_project_box(matrix, &cursor_box, transform, 0, projection);
+	wlr_matrix_project_box(matrix, &cursor_box, transform, 0, output_matrix);
 
 	wlr_renderer_begin(x11->renderer, width, height);
 	wlr_renderer_clear(x11->renderer, (float[]){ 0.0, 0.0, 0.0, 0.0 });
diff --git a/include/render/gles2.h b/include/render/gles2.h
index c152b944..8b4de5a2 100644
--- a/include/render/gles2.h
+++ b/include/render/gles2.h
@@ -34,6 +34,7 @@ struct wlr_gles2_tex_shader {
 struct wlr_gles2_renderer {
 	struct wlr_renderer wlr_renderer;
 
+	float projection[9];
 	struct wlr_egl *egl;
 	int drm_fd;
 
diff --git a/render/gles2/renderer.c b/render/gles2/renderer.c
index 196d0573..504af574 100644
--- a/render/gles2/renderer.c
+++ b/render/gles2/renderer.c
@@ -191,6 +191,10 @@ static void gles2_begin(struct wlr_renderer *wlr_renderer, uint32_t width,
 	renderer->viewport_width = width;
 	renderer->viewport_height = height;
 
+	// refresh projection matrix
+	wlr_matrix_projection(renderer->projection, width, height,
+			WL_OUTPUT_TRANSFORM_NORMAL);
+
 	// enable transparency
 	glEnable(GL_BLEND);
 	glBlendFunc(GL_ONE, GL_ONE_MINUS_SRC_ALPHA);
@@ -271,7 +275,8 @@ static bool gles2_render_subtexture_with_matrix(
 	}
 
 	float gl_matrix[9];
-	wlr_matrix_multiply(gl_matrix, flip_180, matrix);
+	wlr_matrix_multiply(gl_matrix, renderer->projection, matrix);
+	wlr_matrix_multiply(gl_matrix, flip_180, gl_matrix);
 
 	// OpenGL ES 2 requires the glUniformMatrix3fv transpose parameter to be set
 	// to GL_FALSE
@@ -325,7 +330,8 @@ static void gles2_render_quad_with_matrix(struct wlr_renderer *wlr_renderer,
 		gles2_get_renderer_in_context(wlr_renderer);
 
 	float gl_matrix[9];
-	wlr_matrix_multiply(gl_matrix, flip_180, matrix);
+	wlr_matrix_multiply(gl_matrix, renderer->projection, matrix);
+	wlr_matrix_multiply(gl_matrix, flip_180, gl_matrix);
 
 	// OpenGL ES 2 requires the glUniformMatrix3fv transpose parameter to be set
 	// to GL_FALSE
@@ -355,7 +361,8 @@ static void gles2_render_ellipse_with_matrix(struct wlr_renderer *wlr_renderer,
 		gles2_get_renderer_in_context(wlr_renderer);
 
 	float gl_matrix[9];
-	wlr_matrix_multiply(gl_matrix, flip_180, matrix);
+	wlr_matrix_multiply(gl_matrix, renderer->projection, matrix);
+	wlr_matrix_multiply(gl_matrix, flip_180, gl_matrix);
 
 	// OpenGL ES 2 requires the glUniformMatrix3fv transpose parameter to be set
 	// to GL_FALSE
@@ -579,7 +586,7 @@ static bool gles2_blit_dmabuf(struct wlr_renderer *wlr_renderer,
 
 	// TODO: use ANGLE_framebuffer_blit if available
 	float mat[9];
-	wlr_matrix_projection(mat, 1, 1, WL_OUTPUT_TRANSFORM_NORMAL);
+	wlr_matrix_identity(mat);
 
 	wlr_renderer_begin(wlr_renderer, dst_attr->width, dst_attr->height);
 	wlr_renderer_clear(wlr_renderer, (float[]){ 0.0, 0.0, 0.0, 0.0 });
diff --git a/types/wlr_output.c b/types/wlr_output.c
index 1ce3a199..237ed161 100644
--- a/types/wlr_output.c
+++ b/types/wlr_output.c
@@ -141,8 +141,15 @@ void wlr_output_update_enabled(struct wlr_output *output, bool enabled) {
 }
 
 static void output_update_matrix(struct wlr_output *output) {
-	wlr_matrix_projection(output->transform_matrix, output->width,
-		output->height, output->transform);
+	float width = output->width / 2.f;
+	float height = output->height / 2.f;
+
+	wlr_matrix_identity(output->transform_matrix);
+	if (output->transform != WL_OUTPUT_TRANSFORM_NORMAL) {
+		wlr_matrix_translate(output->transform_matrix, width, height);
+		wlr_matrix_transform(output->transform_matrix, output->transform);
+		wlr_matrix_translate(output->transform_matrix, -width, -height);
+	}
 }
 
 void wlr_output_enable(struct wlr_output *output, bool enable) {