Alithya Group (ALYA) Q1 2026 earnings summary

Executive summary

• Achieved year-over-year improvements in adjusted EBITDA, gross margin, and consolidated revenues in Q1 fiscal 2026, driven by a disciplined focus on higher-value services and operational efficiency.

• Revenue for the quarter ended June 30, 2025 was $124.2M, up from $120.9M year-over-year.

• U.S. segment delivered double-digit organic revenue growth of 17.3%, now matching Canadian revenues, with strong performance in Oracle and Microsoft practices.

• Completed the acquisition of eVerge, a US-based enterprise applications and transformation services group, for $27.97M adjusted consideration, expanding US presence and AI capabilities.

• Over 84% of revenues came from repeat clients, reflecting strong client relationships and recurring business.

Financial highlights

• Consolidated revenues reached CAD 124.2 million, up 2.7% year-over-year; U.S. revenues rose 17.3% to CAD 59.5 million, while Canadian revenues declined 8.5% to CAD 59.6 million.

• Gross margin improved to 32.1% from 31.9% year-over-year, with gross margin for the quarter at $39.8M.

• Adjusted EBITDA was CAD 11.6 million, up 15.6% year-over-year, with margin rising to 9.4% from 8.3%.

• Adjusted net earnings reached CAD 6.5 million, up CAD 1.6 million, or CAD 0.07 per share year-over-year.

• Net earnings for the quarter were $0.2M, compared to a net loss of $2.8M in the same quarter last year.

Outlook and guidance

• Management remains confident in continued U.S. growth, closely tied to the performance of key partners Microsoft and Oracle.

• Canadian business is shifting toward higher-margin, transformational projects, with slower adoption compared to the U.S.

• AI and data-driven transformation are expected to be major growth drivers, with the company well-positioned to help clients leverage these technologies.

• Bookings for the quarter were CAD 118.1 million (book-to-bill ratio 0.95), with a 12-month backlog representing approximately 15 months of revenue.