Alithya Group (ALYA) investor relations material

Executive summary

• Bookings exceeded CAD 130.9 million in Q3, driven by key renewals, new AI-driven engagements, and a strong pipeline, with U.S. business growth and 22 new clients signed.

• Net earnings improved to CAD 0.7 million from a loss of CAD 3.7 million in the prior year, supported by a $1.0 million tax credit recovery.

• Announced the spin-off of Datum Consulting Group for a minority stake in a new AI-focused healthcare venture, with a related share repurchase agreement.

• The company is shifting toward higher-value, complex transformation projects, leveraging AI and Smart Shoring capabilities.

• Strong cash position and reduced debt underpin ongoing strategic growth and capital allocation.

Financial highlights

• Consolidated revenue was CAD 115.2 million, down 0.5% year-over-year; gross margin was 31.7%, down from 32.3%.

• Adjusted EBITDA was CAD 10 million (8.7% of revenue), slightly down from CAD 10.3 million (8.9%) last year.

• Adjusted net earnings were CAD 5.1 million (CAD 0.05/share), down year-over-year.

• Net cash from operating activities was CAD 25.5 million, up CAD 13.8 million year-over-year.

• Book-to-bill ratio was 1.14 for the quarter and 0.9 on a trailing twelve-month basis.

Outlook and guidance

• Management remains focused on long-term value creation, executing a shift to higher-value services, leveraging AI, and expanding geographic presence.

• Bookings and pipeline remain healthy, with continued demand for complex digital transformation and AI integration.

• The Datum Transaction and related share repurchase are expected to close in Q4-2026, aiming for a streamlined structure and improved returns.