Constellation Software Inc. Announces Results for the First Quarter Ended March 31, 2026 and Declares Quarterly Dividend

TORONTO, May 12, 2026 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the first quarter ended March 31, 2026 and declared a $1.00 per share dividend payable on July 10, 2026 to all common shareholders of record at close of business on June 19, 2026. This dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada). Please note that all dollar amounts referred to in this press release are in U.S. Dollars 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 Discussion and Analysis for the three months ended March 31, 2026 and with our annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and our 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 the Company’s website www.csisoftware.com. Additional information about the Company is also available on SEDAR+ at www.sedarplus.com Q1 2026 Headlines: Revenue increased 20% (6% organic growth, 2% after adjusting for changes in foreign exchange rates) to $3,181 million compared to $2,654 million in Q1 2025. Net income attributable to common shareholders was $367 million for Q1 2026 ($17.32 on a diluted per share basis), compared to net income attributable to common shareholders of $136 million ($6.41 on a diluted per share basis) in Q1 2025. A number of acquisitions were completed for aggregate cash consideration of $697 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $112 million resulting in total consideration of $809 million. Cash flows from operations (“CFO”) were $897 million, an increase of 9%, or $70 million, compared to $827 million for the comparable period in 2025. Free cash flow available to shareholders1 (“FCFA2S”) were $733 million, an increase of 44%, or $223 million, compared to $510 million for the comparable period in 2025. Subsequent to March 31, 2026, the Company completed or has open commitments to acquire a number of businesses for aggregate cash consideration of $627 million on closing plus total estimated deferred payments of $159 million for total consideration of $786 million. Total revenue for the quarter ended March 31, 2026 was $3,181 million, an increase of 20%, or $527 million, compared to $2,654 million for the comparable period in 2025. The increase is primarily attributable to growth from acquisitions as the Company experienced organic growth of 6% in the quarter, 2% after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business. For acquired companies, organic growth is calculated as the difference between actual revenues achieved by each company in the financial period following acquisition compared to the estimated revenues they achieved in the corresponding financial period preceding the date of acquisition by Constellation. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers. The net income attributable to common shareholders of CSI for the quarter ended March 31, 2026 was $367 million compared to $136 million for the same period in 2025. On a per share basis this translated into net income per basic and diluted share of $17.32 in the quarter ended March 31, 2026 compared to $6.41 for the same period in 2025.   There was no change in the number of shares outstanding. For the quarter ended March 31, 2026, CFO increased $70 million to $897 million compared to $827 million for the same period in 2025 representing an increase of 9%. For the quarter ended March 31, 2026, FCFA2S increased $223 million to $733 million compared to $510 million for the same period in 2025 representing an increase of 44%. 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 Constellation 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 Constellation 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 debt, debt transaction costs, payments of lease obligations, the IRGA / TSS membership liability revaluation charge, 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. We believe that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if we do not make any acquisitions, or investments, and do not repay any debts. While we could use the FCFA2S to pay dividends or repurchase shares, our objective is to invest all of our FCFA2S in acquisitions which meet our 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   897   827       Adjusted for:           Interest paid on lease obligations   (4 ) (4 )     Interest paid on debt   (61 ) (62 )     Debt transaction costs   (1 ) (0 )     Payments of lease obligations   (38 ) (31 )     IRGA / TSS membership liability revaluation charge   76   (94 )     Property and equipment purchased   (19 ) (15 )     Interest and dividends received   12   11                       863   632       Less amount attributable to           Non-controlling interests   (130 ) (121 )                 Free cash flow available to shareholders   733   510                   Due to rounding, certain totals may not foot.                       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.csisoftware.com  SOURCE: CONSTELLATION SOFTWARE INC.  CONSTELLATION SOFTWARE INC.   Condensed Consolidated Interim Statements of Financial Position   (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)                     Unaudited                               March 31, 2026 December 31, 2025                     Assets                                   Current assets:                 Cash and cash equivalents       $ 3,010 $ 3,089   Accounts receivable           1,630   1,467   Unbilled revenue           478   450   Inventories             83   66   Other assets           755   726                   5,956   5,798                     Non-current assets:               Property and equipment         239   241   Right of use assets           390   384   Deferred income taxes         369   355   Investments in associates         683   655   Other assets           425   345   Intangible assets   8,907   8,388                   11,013   10,368                     Total assets           $ 16,969 $ 16,167                     Liabilities and Shareholders' Equity                           Current liabilities:               Debt with recourse to Constellation Software Inc. $ - $ -   Liability of CSI under the IRGA         655   775   Debt without recourse to Constellation Software Inc.   585   591   Accounts payable and accrued liabilities       1,759   1,941   Dividends payable           21   21   Deferred revenue           2,891   2,215   Provisions             17   17   Acquisition holdback payables         238   218   Lease obligations           149   141   Income taxes payable         217   150                   6,532   6,069                     Non-current liabilities:               Debt with recourse to Constellation Software Inc.   1,480   1,489   Liability of CSI under the IRGA         478   458   Debt without recourse to Constellation Software Inc.   1,925   2,051   Deferred income taxes         935   890   Acquisition holdback payables         234   208   Lease obligations           289   282   Other liabilities           487   451                   5,828   5,830                     Total liabilities             12,360   11,899                                         Shareholders' equity:               Capital stock           99   99   Accumulated other comprehensive income (loss)   98   130   Retained earnings           3,687   3,347   Non-controlling interests         725   692                   4,609   4,267                                                             Total liabilities and shareholders' equity     $ 16,969 $ 16,167                     CONSTELLATION SOFTWARE INC.         Condensed Consolidated Interim Statements of Income (loss)         (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)                               Unaudited                             Three months ended March 31,                 2026       2025                                           Revenue               License         $ 91     $ 96   Professional services         546       487   Hardware and other         100       74   Maintenance and other recurring     2,444       1,996                   3,181       2,654                       Expenses               Staff           1,687       1,412   Hardware           57       40   Third party license, maintenance and professional services     312       254   Travel, telecommunications, supplies, software and equipment     159       131   Professional fees         64       47   Other, net           87       70   Depreciation           55       46   Amortization of intangible assets     326       272                   2,745       2,272                                           Foreign exchange loss (gain)       (45 )     32   IRGA/TSS Membership liability revaluation charge     (76 )     94   Finance and other expense (income)     (15 )     (80 ) Share in net (income) loss of equity investee     (10 )     0   Bargain purchase gain         0       -   Impairment of intangible and other non-financial assets     8       3   Finance costs           81       71                   (58 )     119                       Income (loss) before income taxes     493       262                       Current income tax expense (recovery)     172       137   Deferred income tax expense (recovery)     (78 )     (49 ) Income tax expense (recovery)     93       89                       Net income (loss)         400       174                       Net income (loss) attributable to:         Common shareholders of Constellation Software Inc.     367       136   Non-controlling interests         33       38   Net income (loss)         400       174                       Earnings per common share of Constellation Software Inc.         Basic and diluted       $ 17.32     $ 6.41                                           CONSTELLATION SOFTWARE INC.           Condensed Consolidated Interim Statements of Comprehensive Income (loss)           (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)                                     Unaudited                               Three months ended March 31,                   2026       2025                         Net income (loss)       $ 400     $ 174                         Items that are or may be reclassified subsequently to net income (loss):                                 Foreign currency translation differences from foreign operations and other, net of tax     (37 )     79                         Items that will not be reclassified to net income (loss):                                 Changes in the fair value of equity investments at FVOCI     -       120                         Other comprehensive income (loss), net of income tax     (37 )     199                         Total comprehensive income (loss)   $ 363     $ 372                         Total other comprehensive income (loss) attributable to:           Common shareholders of Constellation Software Inc.     (32 )     139   Non-controlling interests         (5 )     60   Total other comprehensive income (loss)     $ (37 )   $ 199                         Total comprehensive income (loss) attributable to:           Common shareholders of Constellation Software Inc.     335       275   Non-controlling interests         28       97   Total comprehensive income (loss)     $ 363     $ 372   CONSTELLATION SOFTWARE INC.             Condensed Consolidated Interim Statement of Changes in Equity         (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)                   Unaudited               Three months ended March 31, 2026                   Equity Attributable to Common Shareholders of CSI           Capital stock Accumulated other comprehensive income (loss) Retained earnings Total Non-controlling interests Total equity                   Balance at January 1, 2026 $ 99 $ 130   $ 3,347   $ 3,576   $ 692   $ 4,267                     Total comprehensive income (loss):                               Net income (loss)   -   -     367     367     33     400                     Other comprehensive income (loss)                               Foreign currency translation differences from               foreign operations and other, net of tax and               changes in the fair value of equity investments at FVOCI   -   (32 )   -     (32 )   (5 )   (37 )                                 Total other comprehensive income (loss)   -   (32 )   -     (32 )   (5 )   (37 )                   Total comprehensive income (loss)   -   (32 )   367     335     28     363                     Transactions with owners, recorded directly in equity                               Other movements in non-controlling interests   -   -     (5 )   (5 )   5     0                     Dividends to shareholders of the Company   -   -     (21 )   (21 )   -     (21 )                   Balance at March 31, 2026 $ 99 $ 98   $ 3,687   $ 3,884   $ 725   $ 4,609                     CONSTELLATION SOFTWARE INC.             Condensed Consolidated Interim Statement of Changes in Equity         (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)                   Unaudited               Three months ended March 31, 2025                                     Equity Attributable to Common Shareholders of CSI           Capital stock Accumulated other comprehensive income (loss) Retained earnings Total Non-controlling interests Total equity                   Balance at January 1, 2025 $ 99 $ (224 ) $ 2,919   $ 2,795   $ 493   $ 3,288                     Total comprehensive income (loss):                               Net income (loss)   -   -     136     136     38     174                     Other comprehensive income (loss)                               Foreign currency translation differences from               foreign operations and other, net of tax   -   139     -     139     60     199                     Total other comprehensive income (loss)   -   139     -     139     60     199                     Total comprehensive income (loss)   -   139     136     275     97     372                     Transactions with owners, recorded directly in equity                               Other movements in non-controlling interests   -   -     (4 )   (4 )   4     (0 )                   Dividends paid to non-controlling interests   -   -     -     -     (0 )   (0 )                   Dividends to shareholders of the Company     -     (21 )   (21 )   -     (21 )                   Balance at March 31, 2025 $ 99 $ (85 ) $ 3,030   $ 3,045   $ 594   $ 3,639                     CONSTELLATION SOFTWARE INC.           Condensed Consolidated Interim Statements of Cash Flows         (In millions of U.S. dollars, 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)         400       174     Adjustments for:                 Depreciation         55       46       Amortization of intangible assets     326       272       IRGA/TSS Membership liability revaluation charge     (76 )     94       Finance and other expense (income)     (15 )     (80 )     Share in net (income) loss of equity investee       (10 )     0       Bargain purchase (gain)     0       -       Impairment of intangible and other non-financial assets       8       3       Finance costs         81       71       Income tax expense (recovery)     93       89       Foreign exchange loss (gain)     (45 )     32       Depreciation of third party costs       4       5     Change in non-cash operating assets and liabilities             exclusive of effects of business combinations     185       231     Transaction costs associated with equity securities classified as FVOCI       -       (2 )   Income taxes paid     (107 )     (107 )   Net cash flows from (used in) operating activities     897       827                         Cash flows from (used in) financing activities:           Interest paid on lease obligations       (4 )     (4 )   Interest paid on debt       (61 )     (62 )   Increase (decrease) in Topicus revolving credit debt facility without recourse to CSI     (286 )     31     Proceeds from issuance of debt facilities without recourse to CSI     244       27     Repayments of debt facilities without recourse to CSI     (73 )     (30 )   Other financing activities     4       (1 )   Dividends paid to non-controlling interests     -       (0 )   Debt transaction costs     (1 )     (0 )   Payments of lease obligations, net of sublease receipts       (38 )     (31 )   Dividends paid to common shareholders of the Company     (21 )     (21 )   Net cash flows from (used in) in financing activities     (236 )     (91 )                       Cash flows from (used in) investing activities:           Acquisition of businesses     (697 )     (94 )   Cash obtained with acquired businesses       77       11     Post-acquisition settlement payments, net of receipts     (69 )     (16 )   Purchases of investments and other assets       (32 )     (175 )   Decrease (increase) in restricted cash       1       7     Interest, dividends and other proceeds received     12       11     Property and equipment purchased     (19 )     (15 )   Net cash flows from (used in) investing activities     (726 )     (271 )                       Effect of foreign currency on           cash and cash equivalents     (13 )     33                         Increase (decrease) in cash and cash equivalents     (78 )     497                         Cash and cash equivalents, beginning of period   $ 3,089     $ 1,980                         Cash and cash equivalents, end of period   $ 3,010     $ 2,477                         1. See Non-IFRS measures.