Constellation Software Inc. and Topicus.Com Inc. Announce Results for Topicus.com Inc. for the First Quarter Ended March 31, 2026

TORONTO, May 05, 2026 (GLOBE NEWSWIRE) -- Topicus.com Inc. (TSXV:TOI) in a joint release with Constellation Software Inc. (TSX:CSU) today announced financial results for Topicus.com Inc. (“Topicus” or the “Company”) for the first quarter ended March 31, 2026. Please note that all amounts referred to in this press release are in Euros unless otherwise stated. The following press release should be read in conjunction with the Company’s Unaudited Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2026 and the accompanying notes, our Management’s Discussion and Analysis for the three months ended March 31, 2026 and the Annual Consolidated Financial Statements of Topicus.com Inc. for the year ended December 31, 2025, which we prepared in accordance with International Financial Reporting Standards (“IFRS”) and the Company’s annual Management’s Discussion and Analysis for the year ended December 31, 2025, which can be found on SEDAR+ at www.sedarplus.com and on Topicus.com Inc.’s website www.topicus.com. Additional information about Topicus.com Inc. is also available on SEDAR+ at www.sedarplus.com. Q1 2026 Headlines: Revenue increased 23% (5% organic growth) to €435.7 million compared to €355.6 million in Q1 2025. Net income decreased to €55.1 million (€0.41 on a diluted per share basis) from €70.1 million (€0.54 on a diluted per share basis). Acquisitions were completed for aggregate cash consideration of €15.0 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of €7.5 million resulting in total consideration of €22.5 million. Cash flows from operations (“CFO”) increased €9.0 million to €280.5 million compared to €271.4 million in Q1 2025 representing an increase of 3%. Free cash flow available to shareholders1 (“FCFA2S”) increased €3.7 million to €165.4 million compared to €161.7 million in Q1 2025 representing an increase of 2%. Total revenue for the quarter ended March 31, 2026 was €435.7 million, an increase of 23%, or €80.1 million, compared to €355.6 million for the comparable period in 2025. The increase is primarily attributable to growth from acquisitions as the Company experienced organic growth of 5% in the quarter. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers. Net income for the quarter ended March 31, 2026 decreased €15.1 million to €55.1 million compared to €70.1 million for the same period in 2025. On a per share basis, this translated into net income per basic and diluted share of €0.41 in the quarter ended March 31, 2026 compared to €0.54 for the same period in 2025. For the quarter ended March 31, 2026, CFO increased €9.0 million to €280.5 million compared to €271.4 million for the same period in 2025 representing an increase of 3%. For the quarter ended March 31, 2026, FCFA2S increased €3.7 million to €165.4 million compared to €161.7 million for the same period in 2025 representing an increase of 2%. Forward Looking Statements  Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Topicus or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Topicus assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances. Non-IFRS Measures Free cash flow available to shareholders ‘‘FCFA2S’’ refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on other facilities, credit facility transaction costs, repayments of lease obligations, and property and equipment purchased, and includes interest and dividends received, and the proceeds from sale of interest rate caps. The portion of this amount applicable to non-controlling interests is then deducted. Topicus believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Topicus does not make any acquisitions, or investments, and does not repay any debts. While Topicus could use the FCFA2S to pay dividends or repurchase shares, Topicus’ objective is to invest all of our FCFA2S in acquisitions which meet Topicus’ hurdle rate. FCFA2S is not a recognized measure under IFRS and, accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities. The following table reconciles FCFA2S to net cash flows from operating activities:                 Three months ended March 31,         2026 2025       (€ in millions)             Net cash flows from operating activities     280.5   271.4     Adjusted for:           Interest paid on lease obligations     (0.9 ) (0.7 )   Interest paid on other facilities     (3.7 ) (4.7 )   Credit facility transaction costs     (0.3 ) (0.1 )   Payments of lease obligations     (8.4 ) (6.8 )   Property and equipment purchased     (3.2 ) (2.9 )   Interest and dividends received     0.6   0.3                       264.5   256.5     Less amount attributable to           non-controlling interests     (99.1 ) (94.8 )               Free cash flow available to shareholders     165.4   161.7                 Due to rounding, certain totals may not foot.             About Topicus.com Inc. Topicus’ subordinate voting shares are listed on the Toronto Venture Stock Exchange under the symbol "TOI". Topicus acquires, manages and builds vertical market software businesses. About Constellation Software Inc. Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation acquires, manages and builds vertical market software businesses. For further information: Jamal Baksh Chief Financial Officer (416) 861-9677 [email protected] www.topicus.com SOURCE: TOPICUS.COM INC. NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.     Topicus.com Inc.   Condensed Consolidated Interim Statements of Financial Position     (In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)               Unaudited               March 31, 2026 December 31, 2025               Assets                     Current assets:           Cash   331,173 326,686     Accounts receivable   210,486 175,613     Unbilled revenue   70,315 53,909     Inventories   7,870 7,057     Other assets   84,856 67,969         704,700 631,234               Non-current assets:           Property and equipment   28,273 27,343     Right of use assets   95,766 96,656     Deferred income taxes   24,223 23,494     Investments in associates   527,439 515,368     Other assets   18,456 17,790     Intangible assets 1,190,258 1,201,287         1,884,415 1,881,939               Total assets   2,589,115 2,513,173               Liabilities and Shareholders' Equity                     Current liabilities:           Topicus Revolving Credit Facility and current portion of Term and other loans 96,065 345,324     Accounts payable and accrued liabilities   380,113 365,229     Deferred revenue   453,789 207,140     Provisions   3,091 3,548     Acquisition holdback payables   24,077 23,740     Lease obligations   32,134 30,915     Income taxes payable   40,128 39,201         1,029,396 1,015,098               Non-current liabilities:           Term and other loans   352,579 347,218     Deferred income taxes   183,948 188,313     Acquisition holdback payables   39,414 40,133     Lease obligations   65,425 67,436     Other liabilities   81,126 73,166         722,492 716,266               Total liabilities   1,751,888 1,731,363                           Shareholders' Equity:           Capital stock   39,412 39,412     Accumulated other comprehensive income (loss)   127,327 124,611     Retained earnings   343,910 309,801     Non-controlling interests   326,577 307,985         837,227 781,810               Total liabilities and shareholders' equity   2,589,115 2,513,173                   Topicus.com Inc.         Condensed Consolidated Interim Statements of Income (Loss)       (In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)                     Unaudited               Three months ended March 31,       2026     2025               Revenue         License   11,518     9,396   Professional services   98,221     82,305   Hardware and other   9,885     7,319   Maintenance and other recurring   316,064     256,575         435,688     355,595   Expenses         Staff   237,594     197,889   Hardware   5,312     4,125   Third party license, maintenance and professional services 36,951     28,422   Travel, telecommunications, supplies, software and equipment 17,938     14,592   Professional fees   7,085     7,608   Other, net   7,033     8,584   Depreciation   11,655     9,376   Amortization of intangible assets   44,420     36,852         367,988     307,448               Impairment of intangible and other non-financial assets -     -   Finance and other (income) expenses   2,593     (5,243 ) Share in net (income) loss of equity investee (9,096 )   (15 ) (Increase) decrease in the fair value of equity securities -     (32,789 ) Finance costs   9,808     6,189         3,306     (31,858 )             Income (loss) before income taxes   64,395     80,005               Current income tax expense (recovery)   20,568     18,747   Deferred income tax expense (recovery)   (11,236 )   (8,871 ) Income tax expense (recovery)   9,332     9,877               Net income (loss)   55,062     70,129               Net income (loss) attributable to:         Equity holders of Topicus   34,209     44,811   Non-controlling interests   20,854     25,317   Net income (loss)   55,062     70,129               Weighted average shares           Basic shares outstanding   83,338,874     83,068,874     Diluted shares outstanding   129,841,819     129,841,819               Earnings (loss) per common share of Topicus         Basic   0.41     0.54     Diluted   0.41     0.54                                       Topicus.com Inc.           Condensed Consolidated Interim Statements of Comprehensive Income (Loss)         (In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)                         Unaudited             Three months ended March 31,       2026   2025               Net income (loss)   55,062   70,129               Items that are or may be reclassified subsequently to net income (loss):                     Foreign currency translation differences from foreign operations and other 3,961   1,296               Items that will not be reclassified to net income (loss):                     Changes in the fair value of equity investments at FVOCI -   111,097               Other comprehensive (loss) income for the period, net of income tax 3,961   112,393               Total comprehensive income (loss) for the period 59,023   182,521               Total other comprehensive income (loss) attributable to:         Equity holders of Topicus   2,716   72,219   Non-controlling interests   1,245   40,173   Total other comprehensive income (loss) 3,961   112,393               Total comprehensive income (loss) attributable to:         Equity holders of Topicus   36,924   117,030   Non-controlling interests   22,099   65,491   Total comprehensive income (loss)   59,023   182,521                                 Topicus.com Inc.                           Condensed Consolidated Interim Statement of Changes in Shareholders' Equity (Deficiency)                   (In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)                                 Unaudited                           Three months ended March 31, 2026                                                   Capital Stock   Accumulated other comprehensive (loss) income   Retained earnings   Total   Non-controlling interests   Total equity                                 Balance at January 1, 2026   39,412   124,611   309,801     473,825     307,985     781,810                                   Total comprehensive income (loss) for the period:                                                         Net income (loss)   -   -   34,209     34,209     20,854     55,062                                   Foreign currency translation differences from                             foreign operations and other, net of income tax and                             changes in the fair value of equity investments at FVOCI   -   2,716   -     2,716     1,245     3,961                                   Total other comprehensive income (loss)                             for the period   -   2,716   -     2,716     1,245     3,961                                   Total comprehensive income (loss) for the period   -   2,716   34,209     36,924     22,099     59,023                                   Transactions with owners, recorded directly in equity                                                           Other movements in non-controlling interests and equity   -   -   (100 )   (100 )   (56 )   (155 )                                   Dividends paid to non-controlling interests   -   -   -     -     (3,451 )   (3,451 )                                 Balance at March 31, 2026   39,412   127,327   343,910     510,650     326,577     837,227         Topicus.com Inc.                             Condensed Consolidated Interim Statement of Changes in Shareholders' Equity (Deficiency)                     (In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)                                   Unaudited                             Three months ended March 31, 2025                                                                                     Capital Stock   Accumulated other comprehensive (loss) income   Retained earnings     Total   Non-controlling interests   Total equity                                   Balance at January 1, 2025   39,412   5,584     266,281     311,277   220,119     531,396                                     Total comprehensive income (loss) for the period:                                                             Net income (loss)   -   -     44,811     44,811   25,317     70,129                                     Other comprehensive income (loss)                                                             Foreign currency translation differences from                               foreign operations and other, net of income tax   -   72,219     -     72,219   40,173     112,393                                     Total other comprehensive income (loss) for the period   -   72,219     -     72,219   40,173     112,393                                     Total comprehensive income (loss) for the period   -   72,219     44,811     117,030   65,491     182,521                                                                     Transactions with owners, recorded directly in equity                                                               Other movements in non-controlling interests and equity   -   (0 )   37     37   19     55                                       Dividends paid to non-controlling interests   -   -     -     -   (38 )   (38 )                                   Balance at March 31, 2025   39,412   77,803     311,129     428,344   285,591     713,935         Topicus.com Inc.           Condensed Consolidated Interim Statements of Cash Flows         (In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)                           Unaudited                 Three months ended March 31,         2026     2025                   Cash flows from (used in) operating activities:           Net income (loss)   55,062     70,129       Adjustments for:               Depreciation   11,655     9,376         Amortization of intangible assets 44,420     36,852         Impairment of intangible and other non-financial assets   -     -         Finance and other expenses (income)   2,593     (5,243 )       Share in net (income) loss of equity investee   (9,096 )   (15 )       (Increase) decrease in the fair value of equity securities   -     (32,789 )       Finance costs   9,808     6,189         Income tax expense (recovery) 9,332     9,877       Change in non-cash operating assets and liabilities             exclusive of effects of business combinations 174,015     190,533       Transaction costs associated with equity securities classified as FVOCI   -     (1,659 )     Income taxes (paid) received (17,301 )   (11,803 )     Net cash flows from (used in) operating activities 280,490     271,446                   Cash flows from (used in) financing activities:           Interest paid on lease obligations   (872 )   (663 )     Interest paid on other facilities   (3,736 )   (4,708 )     Net increase (decrease) in Topicus Revolving Credit Facility (245,000 )   30,000       Proceeds from issuance of term and other loans 7,500     18,010       Increase (decrease) in bank indebtedness   5,663     -       Repayments of term and other loans (7,429 )   (10,585 )     Credit facility transaction costs (312 )   (91 )     Payments of lease obligations   (8,374 )   (6,828 )     Dividends paid to non-controlling interests   (3,451 )   (38 )     Net cash flows from (used in) in financing activities (256,010 )   25,098                   Cash flows from (used in) investing activities:           Acquisition of businesses (15,028 )   (39,413 )     Cash obtained with acquired businesses   2,936     7,934       Post-acquisition settlement payments, net of receipts (5,814 )   (6,299 )     Purchase of equity securities of Asseco Poland S.A.   -     (167,977 )     (Increase) decrease in restricted cash   (1,342 )   (425 )     Interest, dividends and other proceeds received, net of income taxes paid 572     255       Property and equipment purchased (3,236 )   (2,898 )     Net cash flows from (used in) investing activities (21,913 )   (208,822 )                 Effect of foreign currency on           cash and cash equivalents 1,920     2,428                   Increase (decrease) in cash 4,487     90,150                   Cash, beginning of period 326,686     206,157                   Cash, end of period 331,173     296,307