Alithya Group (ALYA) Q4 2025 earnings summary

Executive summary

• Achieved record net earnings, adjusted EBITDA margin, and gross margin, with sequential and year-over-year revenue growth driven by higher-value business, operational efficiencies, and successful project completions.

• Completed acquisitions of eVerge and XRM Vision, expanding capabilities in Oracle, Salesforce, Microsoft, AI consulting, and smart shoring.

• Announced appointment of new CFO, Pierre Blanchette, to support ongoing growth strategy.

• Strong cash flows enabled deleveraging and support for M&A strategy.

• Industry recognition received from Microsoft and Oracle for innovation and excellence.

Financial highlights

• Q4 revenues reached $125.3M (CAD 125.3 million), up 4% year-over-year and 8.3% sequentially, with growth across all geographies.

• Gross margin hit a record 36.8%, up 470 bps year-over-year and 450 bps sequentially, with Q4 gross margin at $46.1M.

• Adjusted EBITDA was $18.0M (14.4% margin), up 71.8% year-over-year and 550 bps sequentially.

• Adjusted net earnings were $12.2M, up 101.9% year-over-year; net earnings for Q4 were $8.0M, up from $2.3M last year.

• Net cash from operating activities was $17.1M in Q4, up 75.4% year-over-year.

Outlook and guidance

• Withdrew long-term quantitative guidance due to macroeconomic and geopolitical uncertainty, having surpassed previous margin and EBITDA targets ahead of schedule.

• Focus remains on higher-value services, margin expansion, organic growth, and strategic acquisitions.

• Strategic emphasis on leveraging AI, expanding service offerings, and entering new markets.