Constellation Software Inc. and Topicus.Com Inc. Announce Results for Topicus.com Inc. for the Second Quarter Ended June 30, 2025
TORONTO, Aug. 01, 2025 (GLOBE NEWSWIRE) -- Topicus.com Inc. (TSXV:TOI) in a joint release with Constellation Software Inc. (TSX:CSU) today announced financial results for Topicus.com Inc. ("Topicus" or the "Company") for the second quarter ended June 30, 2025. Please note that all amounts referred to in this press release are in Euros unless otherwise stated.
The following press release should be read in conjunction with the Company's Unaudited Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2025 and the accompanying notes, our Management's Discussion and Analysis for the three and six months ended June 30, 2025 and the Annual Consolidated Financial Statements of Topicus.com Inc. for the year ended December 31, 2024, which we prepared in accordance with International Financial Reporting Standards ("IFRS") and the Company's annual Management's Discussion and Analysis for the year ended December 31, 2024, which can be found on SEDAR+ at www.sedarplus.com and on Topicus.com Inc.'s website www.topicus.com. Additional information about Topicus.com Inc. is also available on SEDAR+ at www.sedarplus.com.
Q2 2025 Headlines:
Revenue increased 20% (5% organic growth) to €372.0 million compared to €311.2 million in Q2 2024.
Net income increased 54% to €41.5 million (€0.31 on a diluted per share basis) from €26.9 million (€0.21 on a diluted per share basis).
Acquisitions were completed for aggregate cash consideration of €210.3 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of €30.5 million resulting in total consideration of €240.8 million.
Cash flows from operations ("CFO") decreased €23.8 million to negative €14.9 million compared to €8.8 million in Q2 2024.
Free cash flow available to shareholders1 ("FCFA2S") decreased €12.9 million to negative €16.7 million compared to negative €3.8 million in Q2 2024.
Total revenue for the quarter ended June 30, 2025 was €372.0 million, an increase of 20%, or €60.8 million, compared to €311.2 million for the comparable period in 2024. For the first six months of 2025 total revenues were €727.6 million, an increase of 18%, or €109.9 million, compared to €617.8 million for the comparable period in 2024. The increase for both the three and six-month periods compared to the same periods in the prior year is primarily attributable to growth from acquisitions as the Company experienced organic growth of 5% and 4% respectively. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.
Net income for the quarter ended June 30, 2025 increased €14.5 million to €41.5 million compared to €26.9 million for the same period in 2024. On a per share basis, this translated into net income per basic and diluted share of €0.31 in the quarter ended June 30, 2025 compared to €0.21 for the same period in 2024. For the six months ended June 30, 2025 net income increased €56.4 million to €111.6 million compared to €55.2 million for the same period in 2024. On a per share basis, this translated into net income per basic and diluted share of €0.85 in the six months ended June 30, 2025 compared to €0.43 for the same period in 2024.
For the quarter ended June 30, 2025, CFO were negative €14.9 million compared to €8.8 million for the same period in 2024. Many of the businesses invoice customers for annual software maintenance fees in Q1 each year resulting in a disproportionate amount of cash being received in the first quarter as compared to the remaining three quarters. For the six months ended June 30, 2025, CFO increased €20.2 million to €256.5 million compared to €236.3 million for the same period in 2024 representing an increase of 9%.
For the quarter ended June 30, 2025, FCFA2S was negative €16.7 million compared to negative €3.8 million for the same period in 2024. For the six months ended June 30, 2025, FCFA2S increased €14.9 million to €145.0 million compared to €130.1 million for the same period in 2024 representing an increase of 11%.
Forward Looking Statements
Certain statements herein may be "forward looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Topicus or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Topicus assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.
Non-IFRS Measures
Free cash flow available to shareholders ‘‘FCFA2S'' refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on other facilities, credit facility transaction costs, repayments of lease obligations, and property and equipment purchased, and includes interest and dividends received, and the proceeds from sale of interest rate caps. The portion of this amount applicable to non-controlling interests is then deducted. Topicus believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Topicus does not make any acquisitions, or investments, and does not repay any debts. While Topicus could use the FCFA2S to pay dividends or repurchase shares, Topicus' objective is to invest all of our FCFA2S in acquisitions which meet Topicus' hurdle rate.
FCFA2S is not a recognized measure under IFRS and, accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities.
The following table reconciles FCFA2S to net cash flows from operating activities:
Three months endedJune 30,
Six months endedJune 30,
2025
2024
2025
2024
(€ in millions)
(€ in millions)
Net cash flows from operating activities
(14.9
)
8.8
256.5
236.3
Adjusted for:
Interest paid on lease obligations
(0.7
)
(0.5
)
(1.4
)
(0.9
)
Interest paid on other facilities
(4.3
)
(6.7
)
(9.0
)
(9.9
)
Credit facility transaction costs
(3.2
)
(0.3
)
(3.3
)
(0.3
)
Payments of lease obligations
(7.2
)
(6.1
)
(14.0
)
(11.9
)
Property and equipment purchased
(3.8
)
(1.8
)
(6.7
)
(4.4
)
Interest and dividends received
8.3
-
8.6
-
(25.8
)
(6.6
)
230.7
208.8
Less amount attributable to
non-controlling interests
9.1
2.8
(85.7
)
(78.7
)
Free cash flow available to shareholders
(16.7
)
(3.8
)
145.0
130.1
Due to rounding, certain totals may not foot.
About Topicus.com Inc.
Topicus' subordinate voting shares are listed on the Toronto Venture Stock Exchange under the symbol "TOI". Topicus acquires, manages and builds vertical market software businesses.
About Constellation Software Inc.
Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation acquires, manages and builds vertical market software businesses.
For further information:Jamal BakshChief Financial Officer (416) 861-9677
SOURCE: TOPICUS.COM INC.
Topicus.com Inc.
Condensed Consolidated Interim Statements of Financial Position
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
June 30, 2025
December 31, 2024
June 30, 2024
Assets
Current assets:
Cash
249,254
206,157
233,749
Accounts receivable
155,305
142,791
121,629
Unbilled revenue
59,780
45,415
47,740
Inventories
7,424
4,930
4,970
Other assets
78,311
55,107
62,955
550,075
454,400
471,043
Non-current assets:
Property and equipment
27,698
23,245
21,007
Right of use assets
94,822
75,666
62,147
Deferred income taxes
25,614
19,905
21,089
Equity securities
395,677
-
-
Other assets
36,056
11,983
13,130
Intangible assets
1,195,438
950,670
933,837
1,775,305
1,081,470
1,051,209
Total assets
2,325,380
1,535,870
1,522,252
Liabilities and Shareholders' Equity
Current liabilities:
Topicus Revolving Credit Facility and current portion of Term and other loans
142,506
225,718
246,155
Accounts payable and accrued liabilities
254,931
250,361
177,887
Deferred revenue
319,820
166,593
279,338
Provisions
2,001
2,582
1,638
Acquisition holdback payables
20,536
13,073
15,270
Lease obligations
28,685
23,629
21,749
Income taxes payable
29,840
18,233
20,616
798,319
700,189
762,653
Non-current liabilities:
Term and other loans
341,267
49,300
89,880
Deferred income taxes
199,526
145,911
145,807
Acquisition holdback payables
34,759
10,061
7,069
Lease obligations
67,480
53,188
41,478
Other liabilities
57,664
45,825
38,491
700,696
304,285
322,726
Total liabilities
1,499,015
1,004,474
1,085,379
Shareholders' Equity:
Capital stock
39,412
39,412
39,412
Accumulated other comprehensive income (loss)
125,668
5,584
3,667
Retained earnings
338,596
266,281
208,991
Non-controlling interests
322,688
220,119
184,802
826,365
531,396
436,873
Total liabilities and shareholders' equity
2,325,380
1,535,870
1,522,252
Topicus.com Inc.
Condensed Consolidated Interim Statements of Income (Loss)
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Revenue
License
10,435
8,169
19,831
17,334
Professional services
88,218
79,308
170,523
154,314
Hardware and other
8,471
5,037
15,790
10,588
Maintenance and other recurring
264,907
218,674
521,482
435,522
372,032
311,189
727,627
617,757
Expenses
Staff
206,036
177,462
403,924
350,577
Hardware
4,653
3,570
8,778
8,190
Third party license, maintenance and professional services
