Alithya Group (ALYA) Q2 2026 earnings summary

Executive summary

• Revenue grew 11.5% year-over-year to CAD 124.3 million, with U.S. operations up 34.8%–35% and strong organic growth and acquisitions.

• Gross margin rose to 34.4% from 30.6% year-over-year, reflecting higher value services and improved utilization.

• Adjusted EBITDA increased 37.5% to CAD 12.8 million (10.3% margin), and adjusted net earnings rose 80% to CAD 9.5 million.

• Net loss of CAD 31 million due to a non-cash impairment charge of CAD 38 million related to Canadian and industry solution units.

• Launched a Normal Course Issuer Bid for share repurchases and signed 22 new clients.

Financial highlights

• Consolidated revenue: CAD 124.3 million, up 11.5% year-over-year; U.S. revenue: CAD 63.1 million, up 34.8%; Canadian revenue: CAD 55.2 million, down 7.4%.

• Gross margin: 34.4% (up from 30.6%); gross margin dollars up 25.5% to CAD 42.8 million.

• Adjusted EBITDA: CAD 12.8 million (10.3% margin), up from CAD 9.3 million (8.3%).

• Adjusted net earnings: CAD 9.5 million, or CAD 0.10 per share, up 80% year-over-year.

• Net cash from operating activities: CAD 1.1 million, down from CAD 3.0 million year-over-year.

Outlook and guidance

• Management expects continued growth through expanded capabilities, acquisitions, and integration of new technologies, with a focus on AI and cloud migration.

• Pipeline grew by double digits year-over-year, with strong demand for higher value project services.

• Market uncertainty is leading to longer sales cycles and bookings split into smaller phases.