Altus Group Reports Q2 2025 Financial Results

Executive Summary

• Altus Group Limited reported financial and operating results for the second quarter ended June 30, 2025, highlighting a return to profitability and significant margin expansion.
• The company executed a substantial share buyback program, repurchasing over $100 million in shares during the quarter, citing conviction in future growth and cash flow generation.
• Management refined its 2025 business outlook, adjusting revenue growth expectations slightly lower due to interest rate volatility and trade uncertainty, while maintaining guidance for Adjusted EBITDA margin expansion.

Key Details

• Q2 2025 Financial Performance (Constant Currency):
  • Revenue: $131.5 million (down 0.8% from $130.4 million in Q2 2024).
  • Recurring Revenue: $100.8 million (up 3.7% from $95.2 million).
  • Profit from continuing operations: $9.3 million (compared to a loss of $8.6 million in Q2 2024).
  • Adjusted EBITDA: $28.5 million (up 55.7% from $18.0 million).
  • Adjusted EBITDA Margin: 21.7% (up 790 basis points from 13.8%).
  • Analytics Adjusted EBITDA Margin: 29.2% (up 290 basis points from 26.1%).
• Cash Flow and Capital Management:
  • Net cash provided by operating activities: $27.8 million (down 30.3% from $39.8 million; note Q2 2024 included Property Tax business contribution sold in Jan 2025).
  • Free Cash Flow: $26.1 million (down 30.5% from $37.5 million).
  • Investment in share repurchases: $101.7 million (vs. $0.0 in Q2 2024).
  • Funded debt to EBITDA ratio: 1.26 (down from 2.11).
• Six-Month Performance (Jan-June 2025):
  • Revenue: $260.6 million (up from $255.8 million).
  • Profit from continuing operations: $2.9 million (vs. loss of $20.8 million).
  • Adjusted EBITDA: $44.3 million (up from $28.9 million).
  • Adjusted Earnings: $30.7 million (up from $6.0 million).
• 2025 Business Outlook (Constant Currency):
  • Analytics Segment: Total revenue growth revised to 3-6% (previously 4-7%); Recurring revenue growth 5-7% (previously 6-9%); Adjusted EBITDA margin expansion 250-350 bps (unchanged).
  • Appraisals and Development Advisory: Revenue growth revised to flat to low single-digit decline (previously low single-digit growth); Adjusted EBITDA margin expansion unchanged.
  • Consolidated: Revenue growth revised to 2-4% (previously 3-5%); Adjusted EBITDA margin expansion revised to 400-500 bps (previously 300-400 bps).
• Q3 2025 Guidance (Constant Currency):
  • Analytics: 3-6% total revenue growth; 5-7% recurring revenue growth; 100-200 bps Adjusted EBITDA margin expansion.
  • Appraisals & Development Advisory: Flat to low single-digit revenue growth; Adjusted EBITDA margin expansion.
  • Consolidated: 3-5% revenue growth; 200-300 bps Adjusted EBITDA margin expansion.
• Operational Highlights:
  • CEO Jim Hannon noted steady recurring revenue and significant growth in recurring new bookings for the second consecutive quarter.
  • Launch of "ARGUS Intelligence" is driving revenue and accelerating asset-based pricing adoption.
  • Corporate costs assumed to remain elevated throughout 2025 consistent with 2024 levels.

Notable Quotes

• "Altus continued to deliver steady recurring revenue and Adjusted EBITDA margin expansion across all of our business segments,” said Jim Hannon, Chief Executive Officer. “For the second quarter in a row, we are seeing significant growth in recurring new bookings. The launch of ARGUS Intelligence is driving revenue and accelerating the adoption of asset-based pricing. In Q2 we executed the buyback of over $100M of our shares based on our conviction that we’ll continue to drive growth, increase profitability, and generate strong cashflows from our operating model."