Constellation Software Inc. Announces Results for the Third Quarter Ended September 30, 2025 and Declares Quarterly Dividend

TORONTO, Nov. 07, 2025 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the third quarter ended September 30, 2025 and declared a $1.00 per share dividend payable on January 12, 2026 to all common shareholders of record at close of business on December 19, 2025. 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 and nine months ended September 30, 2025 and the accompanying notes, our Management Discussion and Analysis for the three and nine months ended September 30, 2025 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, 2024, 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. Q3 2025 and Subsequent Headlines: Revenue grew 16% (5% organic growth, 3% after adjusting for changes in foreign exchange rates) to $2,948 million compared to $2,541 million in Q3 2024.   Net income attributable to common shareholders increased 28% to $210 million ($9.89 on a diluted per share basis) from $164 million ($7.74 on a diluted per share basis) in Q3 2024. A number of acquisitions were completed for aggregate cash consideration of $281 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $134 million resulting in total consideration of $415 million. Cash flows from operations (“CFO”) were $685 million, an increase of 33%, or $168 million, compared to $517 million for the comparable period in 2024. Free cash flow available to shareholders1 (“FCFA2S”) was $529 million, an increase of 46%, or $167 million, compared to $362 million for the comparable period in 2024. Total revenue for the quarter ended September 30, 2025 was $2,948 million, an increase of 16%, or $407 million, compared to $2,541 million for the comparable period in 2024. For the first nine months of 2025 total revenues were $8,446 million, an increase of 15%, or $1,083 million, compared to $7,363 million for the comparable period in 2024. The increase for both the three and nine month periods compared to the same periods in the prior year is primarily attributable to growth from acquisitions as the Company experienced organic growth of 5% and 3% respectively, 3% and 3% respectively for both periods after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers. Net income attributable to common shareholders of CSI for the quarter ended September 30, 2025 was $210 million compared to $164 million for the same period in 2024. On a per share basis this translated into a net income per diluted share of $9.89 in the quarter ended September 30, 2025 compared to net income per diluted share of $7.74 for the same period in 2024. For the nine months ended September 30, 2025, net income attributable to common shareholders of CSI was $402 million or $18.96 per diluted share compared to $446 million or $21.04 per diluted share for the same period in 2024. For the quarter ended September 30, 2025, CFO increased $168 million to $685 million compared to $517 million for the same period in 2024 representing an increase of 33%. For the first nine months of 2025, CFO increased $426 million to $1,944 million compared to $1,518 million during the same period in 2024, representing an increase of 28%. For the quarter ended September 30, 2025, FCFA2S increased $167 million to $529 million compared to $362 million for the same period in 2024 representing an increase of 46%. For the nine months ended September 30, 2025, FCFA2S increased $269 million to $1,259 million compared to $990 million for the same period in 2024 representing an increase of 27%.   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 September 30,       Nine months ended September 30,           2025   2024         2025   2024           ($ in millions)   ($ in millions)                           Net cash flows from operating activities     685   517         1,944   1,518       Adjusted for:                       Interest paid on lease obligations     (4 ) (4 )       (12 ) (10 )     Interest paid on debt     (59 ) (63 )       (153 ) (141 )     Debt transaction costs     (4 ) (1 )       (8 ) (13 )     Payments of lease obligations     (34 ) (31 )       (97 ) (89 )     IRGA / TSS membership liability revaluation charge     (16 ) (33 )       (236 ) (122 )     Property and equipment purchased     (16 ) (19 )       (47 ) (42 )     Interest and dividends received     13   10         44   25                                     565   376         1,435   1,125       Less amount attributable to                         Non-controlling interests     (36 ) (14 )       (176 ) (135 )                             Free cash flow available to shareholders     529   362         1,259   990                               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                                 September 30, 2025 December 31, 2024 September 30, 2024                       Assets                                       Current assets:                   Cash           $ 2,770 $ 1,980   $ 2,069     Restricted cash           299   18     17     Accounts receivable           1,286   1,290     1,149     Unbilled revenue           498   369     426     Inventories             74   56     66     Derivatives             119   -     -     Other assets           739   577     624                     5,786   4,290     4,351                         Non-current assets:                 Property and equipment         231   222     224     Right of use assets           388   329     331     Deferred income taxes         288   219     206     Investments accounted for using the equity method   258   14     9     Other assets           330   314     322     Intangible assets   8,045   7,459     7,128                     9,540   8,559     8,220                         Total assets           $ 15,326 $ 12,849   $ 12,571                         Liabilities and Shareholders' Equity                               Current liabilities:                 Debt with recourse to Constellation Software Inc. $ 565 $ 303   $ 294     Debt without recourse to Constellation Software Inc.   578   319     414     Accounts payable and accrued liabilities       1,714   1,591     1,422     Dividends payable           21   21     21     Deferred revenue           2,304   1,965     2,020     Provisions             13   22     10     Acquisition holdback payables         223   215     276     Lease obligations           136   115     115     Income taxes payable         142   110     116                     5,695   4,661     4,690                         Non-current liabilities:                 Debt with recourse to Constellation Software Inc.   1,948   1,855     1,881     Debt without recourse to Constellation Software Inc.   1,924   1,689     1,560     Deferred income taxes         785   671     641     Acquisition holdback payables         193   131     121     Lease obligations           291   252     256     Other liabilities           386   300     285                     5,527   4,899     4,745                         Total liabilities             11,222   9,561     9,435                                               Shareholders' equity:                 Capital stock           99   99     99     Accumulated other comprehensive income (loss)   112   (224 )   (98 )   Retained earnings           3,258   2,919     2,657     Non-controlling interests         634   493     478                     4,103   3,288     3,136                                                                     Total liabilities and shareholders' equity     $ 15,326 $ 12,849   $ 12,571                         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 September 30,   Nine months ended September 30,               2025       2024       2025       2024                                                       Revenue                     License       $ 107     $ 84     $ 290     $ 259   Professional services       538       487       1,558       1,451   Hardware and other       89       78       244       204   Maintenance and other recurring   2,213       1,893       6,354       5,449                 2,948       2,541       8,446       7,363                             Expenses                     Staff         1,487       1,336       4,356       3,956   Hardware         51       43       134       114   Third party license, maintenance and professional services   285       243       807       701   Occupancy         17       18       51       48   Travel, telecommunications, supplies, software and equipment   149       120       424       365   Professional fees       55       43       157       126   Other, net         45       34       154       134   Depreciation         52       46       148       135   Amortization of intangible assets   307       271       865       771                 2,448       2,152       7,095       6,349                                                       Foreign exchange loss (gain)     (17 )     30       132       16   IRGA/TSS Membership liability revaluation charge   16       33       236       122   Finance and other expense (income)   (83 )     (18 )     (191 )     (50 ) Bargain purchase gain       (1 )     1       (6 )     (4 ) Impairment of intangible and other non-financial assets   12       2       23       17   Redeemable preferred securities expense (income)   -       -       -       58   Revaluation of investment accounted for using the equity method to cost   260       -       260       -   Finance costs         74       72       216       207                 261       119       670       366                             Income (loss) before income taxes   239       270       681       648                             Current income tax expense (recovery)   153       126       445       396   Deferred income tax expense (recovery)   (76 )     (43 )     (185 )     (196 ) Income tax expense (recovery)   77       83       261       200                             Net income (loss)       162       187       420       448                             Net income (loss) attributable to:               Common shareholders of Constellation Software Inc.   210       164       402       446   Non-controlling interests       (48 )     23       18       2   Net income (loss)       162       187       420       448                             Earnings per common share of Constellation Software Inc.                 Basic and diluted     $ 9.89     $ 7.74     $ 18.96     $ 21.04                                                       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 September 30,   Nine months ended September 30,                 2025       2024     2025     2024                               Net income (loss)     $ 162     $ 187   $ 420   $ 448                               Items that are or may be reclassified subsequently to net income (loss):                                               Foreign currency translation differences from foreign operations and other, net of tax   (14 )     71     250     8                               Items that will not be reclassified to net income (loss):                                             Changes in the fair value of equity investments at FVOCI   (5 )     -     209     -                               Other comprehensive income (loss), net of income tax   (19 )     71     459     8                               Total comprehensive income (loss) $ 142     $ 258   $ 879   $ 456                               Total other comprehensive income (loss) attributable to:                 Common shareholders of Constellation Software Inc.   (17 )     60     336     7   Non-controlling interests       (3 )     11     123     2   Total other comprehensive income (loss)   $ (19 )   $ 71   $ 459   $ 8                               Total comprehensive income (loss) attributable to:                 Common shareholders of Constellation Software Inc.   193       224     738     453   Non-controlling interests       (51 )     34     141     3   Total comprehensive income (loss)   $ 142     $ 258   $ 879   $ 456                                 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                 Nine months ended September 30, 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)   -   -     402     402     18     420                         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   -   336     -     336     123     459                                         Total other comprehensive income (loss)   -   336     -     336     123     459                         Total comprehensive income (loss)   -   336     402     738     141     879                         Transactions with owners, recorded directly in equity                                   Other movements in non-controlling interests   -   0     0     0     (1 )   (0 )                       Dividends paid to non-controlling interests   -   -     -     -     (0 )   (0 )                       Dividends to shareholders of the Company   -   -     (64 )   (64 )   -     (64 )                       Balance at September 30, 2025 $ 99 $ 112   $ 3,258   $ 3,469   $ 634   $ 4,103                         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                 Nine months ended September 30, 2024                                         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, 2024 $ 99 $ (99 ) $ 1,876   $ 1,877   $ 85   $ 1,961                         Total comprehensive income (loss):                                   Net income (loss)   -   -     446     446     2     448                         Other comprehensive income (loss)                                   Foreign currency translation differences from                 foreign operations and other, net of tax   -   7     -     7     2     8                         Total other comprehensive income (loss)   -   7     -     7     2     8                         Total comprehensive income (loss)   -   7     446     453     3     456                         Transactions with owners, recorded directly in equity                                   Non-controlling interests arising from business combinations   -   -     -     -     (0 )   (0 )                       Conversion of Lumine Special Shares to subordinate voting shares of Lumine and settlement of accrued dividend on Lumine Special Shares through the issuance of subordinate voting shares of Lumine   -   -     -     -     872     872                         Conversion of Lumine Preferred Shares to subordinate voting shares of Lumine and settlement of accrued dividend on Lumine Preferred Shares through the issuance of subordinate voting shares of Lumine   -   (6 )   400     394     (394 )   -                         Other movements in non-controlling interests   -   -     (1 )   (1 )   (3 )   (4 )                       Dividends paid to non-controlling interests   -   -     -     -     (86 )   (86 )                       Dividends to shareholders of the Company     -     (64 )   (64 )   -     (64 )                       Balance at September 30, 2024 $ 99 $ (98 ) $ 2,657   $ 2,658   $ 478   $ 3,136                         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 September 30,   Nine months ended September 30,                 2025       2024       2025       2024                               Cash flows from (used in) operating activities:                 Net income (loss)       162     $ 187     $ 420     $ 448     Adjustments for:                       Depreciation       52       46       148       135       Amortization of intangible assets   307       271       865       771       IRGA/TSS Membership liability revaluation charge   16       33       236       122       Finance and other expense (income)   (83 )     (18 )     (191 )     (50 )     Bargain purchase (gain)   (1 )     1       (6 )     (4 )     Impairment of intangible and other non-financial assets     12       2       23       17       Redeemable preferred securities expense (income)     -       -       -       58       Revaluation of investment accounted for using the equity method to cost   260       -       260       -       Finance costs       74       72       216       207       Income tax expense (recovery)   77       83       261       200       Foreign exchange loss (gain)   (17 )     30       132       16       Depreciation of third party costs     5       -       14       -     Change in non-cash operating assets and liabilities                   exclusive of effects of business combinations   (47 )     (72 )     (2 )     (38 )   Transaction costs associated with equity securities classified as FVOCI     -       -       (2 )     -     Income taxes paid   (131 )     (118 )     (430 )     (363 )   Net cash flows from (used in) operating activities   685       517       1,944       1,518                               Cash flows from (used in) financing activities:                 Interest paid on lease obligations     (4 )     (4 )     (12 )     (10 )   Interest paid on debt     (59 )     (63 )     (153 )     (141 )   Increase (decrease) in CSI facility     -       -       -       (578 )   Increase (decrease) in Topicus revolving credit debt facility without recourse to CSI   301       55       197       147     Proceeds from issuance of Senior Notes   -       -       -       1,000     Proceeds from issuance of debt facilities without recourse to CSI   77       37       445       313     Repayments of debt facilities without recourse to CSI   (108 )     (81 )     (207 )     (113 )   Other financing activities   (1 )     (4 )     (1 )     (31 )   Dividends paid to non-controlling interests   -       -       (0 )     (86 )   Debt transaction costs   (4 )     (1 )     (8 )     (13 )   Payments of lease obligations, net of sublease receipts     (34 )     (31 )     (97 )     (89 )   Distribution to the Joday Group     -       -       -       (64 )   Principal repayments to the Joday Group pursuant to the Call Notice     -       -       -       (22 )   Dividends paid to common shareholders of the Company   (21 )     (21 )     (64 )     (64 )   Net cash flows from (used in) in financing activities   147       (113 )     100       250                               Cash flows from (used in) investing activities:                 Acquisition of businesses   (281 )     (196 )     (755 )     (871 )   Cash obtained with acquired businesses     44       23       100       89     Post-acquisition settlement payments, net of receipts   (70 )     (53 )     (200 )     (183 )   Purchases of investments and other assets     (36 )     (4 )     (225 )     (5 )   Proceeds from sales of other investments and other assets     0       2       16       7     Decrease (increase) in restricted cash     (289 )     (4 )     (284 )     (13 )   Interest, dividends and other proceeds received   13       12       44       25     Property and equipment purchased   (16 )     (19 )     (47 )     (42 )   Net cash flows from (used in) investing activities   (634 )     (240 )     (1,351 )     (993 )                             Effect of foreign currency on                 cash   (3 )     33       97       11                               Increase (decrease) in cash   195       195       790       785                               Cash, beginning of period $ 2,575     $ 1,873     $ 1,980     $ 1,284                               Cash, end of period $ 2,770     $ 2,069     $ 2,770     $ 2,069                                See Non-IFRS measures.