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

Executive Summary

• Constellation Software Inc. reported financial results for the second quarter ended June 30, 2025, declaring a $1.00 per share dividend payable on October 10, 2025.
• Revenue grew 15% to $2,844 million (5% organic growth), while net income attributable to common shareholders decreased 68% to $56 million ($2.66 diluted per share) compared to the prior year period.
• Cash flows from operations increased 63% to $433 million, and free cash flow available to shareholders rose 20% to $220 million. The company completed acquisitions with aggregate cash consideration of $380 million and deferred payments valued at $89 million.

Key Details

• Revenue: Q2 2025 revenue was $2,844 million, an increase of 15% ($376 million) from $2,468 million in Q2 2024. For the first six months of 2025, total revenue was $5,498 million, a 14% increase from $4,822 million in the same period of 2024.
• Organic Growth: Organic growth was 5% for the quarter and 3% for the six-month period. Adjusting for foreign exchange, revenue growth was 4% for the quarter and 3% for the six-month period.
• Net Income: Net income attributable to common shareholders was $56 million ($2.66 diluted per share) for Q2 2025, down from $177 million ($8.35 diluted per share) in Q2 2024. For the six months ended June 30, 2025, net income was $192 million ($9.07 diluted per share), compared to $282 million ($13.31 diluted per share) in 2024.
• Cash Flow from Operations (CFO): CFO increased 63% to $433 million in Q2 2025 from $265 million in Q2 2024. For the six months ended June 30, 2025, CFO was $1,260 million, a 26% increase from $1,002 million in 2024.
• Free Cash Flow Available to Shareholders (FCFA2S): FCFA2S increased 20% to $220 million in Q2 2025 from $182 million in Q2 2024. For the six months ended June 30, 2025, FCFA2S was $730 million, a 16% increase from $628 million in 2024.
• Acquisitions: The company completed a number of acquisitions for aggregate cash consideration of $380 million (including acquired cash). Deferred payments associated with these acquisitions have an estimated value of $89 million, resulting in total consideration of $469 million.
• Dividend: A dividend of $1.00 per share was declared, payable on October 10, 2025, to shareholders of record at the close of business on September 19, 2025. The dividend is designated as an eligible dividend for Canadian income tax purposes.
• Balance Sheet Highlights (June 30, 2025):
  • Total Assets: $14,728 million (vs. $12,123 million in June 2024).
  • Cash: $2,575 million.
  • Intangible Assets: $7,907 million.
  • Total Liabilities: $10,746 million.
  • Shareholders' Equity: $3,982 million.
• Income Statement Breakdown (Q2 2025):
  • Revenue by segment: Maintenance and other recurring ($2,144M), Professional services ($532M), Hardware and other ($80M), License ($87M).
  • Total Expenses: $2,375 million.
  • Income before taxes: $179 million.
  • Income tax expense: $95 million.
• Non-IFRS Measures: FCFA2S is defined as 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, including interest and dividends received and proceeds from sale of interest rate caps, with non-controlling interests deducted.