Canada · Delayed Price · Currency is CAD Alithya Group Earnings Call Transcripts
Fiscal Year 2026
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Q4 revenue declined 9.2% year-over-year due to a tough prior-year comparison, but gross margin improved to 37.8% with support from tax credits. U.S. and international segments grew, while Canada saw lower revenue amid a shift to higher-margin services. Net loss was $8.7 million, with stable pipeline and continued focus on AI and modernization.
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Q3 saw strong bookings over CAD 130 million, positive net earnings, and robust cash flow, with U.S. revenue up 12.7% and a strategic spin-off of Datum assets to focus on AI in healthcare. The company continues its shift to higher-value services and maintains a healthy pipeline.
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Revenue grew 11.5% year-over-year to CAD 124.3 million, with U.S. operations up 34.8% and gross margin rising to 34.4%. Adjusted EBITDA improved to CAD 12.8 million, while a CAD 38 million impairment charge led to a net loss. Pipeline and U.S. growth remain strong.
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Year-over-year revenue and adjusted EBITDA grew, led by 17.3% organic U.S. growth and higher gross margins. Acquisitions expanded capabilities, while the business mix shifted toward higher-value services and AI-driven transformation.
Fiscal Year 2025
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The meeting confirmed strong financial growth, with rising margins and successful acquisitions driving performance. All director nominees and the auditor were elected with overwhelming support. Strategic initiatives focus on industry expertise, AI solutions, and global talent expansion.
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Sequential and year-over-year improvements in revenue, gross margin, and adjusted EBITDA were driven by higher-value services, operational efficiencies, and strategic acquisitions. The company achieved record margins, strong cash flow, and expanded capabilities with the eVerge and XRM integrations.
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Record gross margin and adjusted EBITDA margin achieved, with strong sequential growth and robust bookings, especially in financial services. The XRM Vision acquisition enhanced smart shoring and Microsoft capabilities, while the company remains focused on higher-value services and disciplined cost management.
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Double-digit Adjusted EBITDA growth and improved margins were achieved despite a 5.9% revenue decline, with strong U.S. and international performance offsetting softness in Quebec. Cost optimization and a shift to higher-margin services drove profitability, while a healthy pipeline and reduced net debt position the company for future growth.
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Adjusted EBITDA rose 11.1% year-over-year to over CAD 10 million, with gross margin up to 31.9% and strong operating cash flow driving net debt reduction. U.S. revenues grew, Canadian revenues declined, and the backlog remains robust, supporting a stable outlook.
Fiscal Year 2024
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Targets 5%-10% annual organic growth and CAD 150M in acquisitions over three years, aiming for 11%-13% EBITDA margin. Focuses on industry expertise, proprietary IP, smart shoring, and strong partnerships to drive margin expansion and differentiation.
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Q4 delivered record gross margin and adjusted EBITDA margin, with strong U.S. growth and major healthcare wins offsetting Canadian revenue declines. The new three-year plan targets 5–10% organic growth, 11–13% EBITDA margin, and CAD 150 million in acquisitions.