Alithya reports year over year continued improvement
Q1-2026 Highlights
Revenues increased 2.7% to $124.2 million, compared to $120.9 million for the same quarter last year.
84.8% of revenues were generated from clients which we had in the same quarter last year.
Gross margin increased 3.3% to $39.8 million, compared to $38.5 million for the same quarter last year.
Gross Margin as a Percentage of Revenues(a) increased to 32.1%, compared to 31.9% for the same quarter last year.
Selling, general and administrative expenses decreased by $1.1 million, or 3.4%, to $30.6 million, compared to $31.7 million for the same quarter last year. Selling, general and administrative expenses as a percentage of revenues(a) decreased to 24.6%, from 26.2% for the same quarter last year.
Net earnings increased to $0.2 million, or nil per share, compared to a net loss of $2.8 million, or $0.03 per share, for the same quarter last year.
Adjusted Net Earnings(b) increased by $1.6 million, or 31.8%, to $6.5 million, from $4.9 million for the same quarter last year. This translated into Adjusted Net Earnings per Share(b) of $0.07, compared to $0.05 for the same quarter last year.
Adjusted EBITDA(b) increased by $1.5 million, or 15.6%, to $11.6 million, for an Adjusted EBITDA Margin(b) of 9.4% of revenues, compared to $10.1 million, for an Adjusted EBITDA Margin(b) of 8.3% of revenues, for the same quarter last year.
Net cash used in operating activities was $4.2 million, representing a decrease of $20.9 million, from $16.7 million of cash generated for the same quarter last year.
Q1 Bookings(a) reached $118.1 million, which translated into a Book-to-Bill Ratio(a) of 0.95 for the quarter. The Book-to-Bill Ratio would have been 1.06 if revenues from the two long-term contracts signed as part of an acquisition in the first quarter of fiscal year 2022 were excluded.
Backlog(a) represented approximately 15 months of trailing twelve-month revenues as at June 30, 2025.
Signed 20 new clients.
Acquired eVerge Interests, Inc. and its subsidiaries (the "eVerge Acquisition", "eVerge"), on May 31, 2025, specializing in enterprise application and transformation services.
Subsequent to June 30, 2025, Pierre Blanchette joined Alithya as Chief Financial Officer and the Company extended the maturity of the subordinated unsecured loans to October 2027.
MONTREAL, Aug. 13, 2025 /PRNewswire/ - Alithya Group inc. (TSX:ALYA) ("Alithya" or the "Company") reported today its results for the first quarter of fiscal 2026 ended June 30, 2025. All amounts are in Canadian dollars unless otherwise stated.
Summary of the financial results for the first quarter:
Financial Highlights
(in thousands of $, except for margin percentages)
F2026-Q1
F2025-Q1
Revenues
124,158
120,875
Gross Margin
39,793
38,530
Gross Margin as a percentage of revenues (%)(a)
32.1 %
31.9 %
Selling, general and administrative expenses
30,573
31,659
Selling, general and administrative expenses (%)(a)
24.6 %
26.2 %
Net Earnings (Loss)
185
(2,762)
Basic and Diluted Earnings (Loss) per Share
—
(0.03)
Adjusted Net Earnings(b)
6,519
4,944
Adjusted Net Earnings per Share(b)
0.07
0.05
Adjusted EBITDA(b)
11,629
10,058
Adjusted EBITDA Margin (%)(b)
9.4 %
8.3 %
(a)
These are other financial measures without a standardized definition under IFRS, which may not be comparable to similar measures used by other issuers. See "Non-IFRS and Other Financial Measures" below.
(b)
These are non-IFRS financial measures without a standardized definition under IFRS, which may not be comparable to similar measures used by other issuers. More information and quantitative reconciliations of Adjusted Net Earnings and Adjusted EBITDA to the most directly comparable IFRS measures are presented below under the caption "Non-IFRS and Other Financial Measures". "Adjusted EBITDA Margin" refers to the percentage of total revenue that Adjusted EBITDA represents for a given period.
Quote by Paul Raymond, President and CEO, Alithya:
"The Alithya team has delivered another quarter of year over year improvements in many areas of the business. We achieved double digit organic growth in our US operations, as clients seek to roll out the latest mission critical cloud enterprise systems to better leverage data and AI capabilities. This is a clear indication of our position as a trusted advisor. We have also harnessed synergies from our latest acquisitions to bolster our client offerings, enabling us to better support our clients. Our team remains focused on executing our long-term plan of profitable growth and value creation."
First Quarter Results
Revenues
Revenues amounted to $124.2 million for the three months ended June 30, 2025, representing an increase of $3.3 million, or 2.7%, from $120.9 million for the three months ended June 30, 2024.
Revenues in Canada decreased by $5.5 million, or 8.5%, to $59.6 million for the three months ended June 30, 2025, from $65.1 million for the three months ended June 30, 2024. The decrease in revenues was due primarily to reduced revenues from government contracts, certain client projects reaching maturity, and one less billable day compared to the same quarter last year, partially offset by revenues from the acquisition of XRM Vision Inc. and its subsidiaries on December 1, 2024 (the "XRM Acquisition", "XRM Vision"), and a continued recovery in the banking sector.
U.S. revenues increased by $8.8 million, or 17.3%, to $59.5 million for the three months ended June 30, 2025, from $50.7 million for the three months ended June 30, 2024, due primarily to organic growth in enterprise transformation services, higher billing rates, revenues from eVerge since its acquisition, and a favorable US$ exchange rate impact of $0.7 million between the two periods.
International revenues increased by $0.1 million, or 0.7%, to $5.1 million for the three months ended June 30, 2025, from $5.0 million for the three months ended June 30, 2024.
Gross Margin
Gross margin increased by $1.3 million, or 3.3%, to $39.8 million for the three months ended June 30, 2025, from $38.5 million for the three months ended June 30, 2024. Gross margin as a percentage of revenues increased to 32.1% for the three months ended June 30, 2025, from 31.9% for the three months ended June 30, 2024.
In Canada, gross margin as a percentage of revenues decreased compared to the same quarter last year, mainly due to decreases in utilization rates and tax credits, and salary increases that came into effect at the beginning of this fiscal year, partially offset by a positive margin contribution from XRM Vision since its acquisition.
In the U.S., gross margin as a percentage of revenues increased compared to the same quarter last year, primarily due to increased efficiencies, higher billing rates, and the increased use of our smart ...
