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

TORONTO, Aug. 08, 2025 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the second quarter ended June 30, 2025 and declared a $1.00 per share dividend payable on October 10, 2025 to all common shareholders of record at close of business on September 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 six months ended June 30, 2025 and the accompanying notes, our Management Discussion and Analysis for the three and six months ended June 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. Q2 2025 and Subsequent Headlines: Revenue grew 15% (5% organic growth, 4% after adjusting for changes in foreign exchange rates) to $2,844 million compared to $2,468 million in Q2 2024. Net income attributable to common shareholders decreased 68% to $56 million ($2.66 on a diluted per share basis) from $177 million ($8.35 on a diluted per share basis) in Q2 2024. A number of acquisitions were completed for aggregate cash consideration of $380 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $89 million resulting in total consideration of $469 million. Cash flows from operations (“CFO”) were $433 million, an increase of 63%, or $168 million, compared to $265 million for the comparable period in 2024. Free cash flow available to shareholders1 (“FCFA2S”) increased $37 million to $220 million compared to $182 million for the same period in 2024. Total revenue for the quarter ended June 30, 2025 was $2,844 million, an increase of 15%, or $376 million, compared to $2,468 million for the comparable period in 2024. For the first six months of 2025 total revenues were $5,498 million, an increase of 14%, or $676 million, compared to $4,822 million for the comparable period in 2024. The increase for both the three and six 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, 4% 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 June 30, 2025 was $56 million compared to $177 million for the same period in 2024. On a per share basis this translated into a net income per diluted share of $2.66 in the quarter ended June 30, 2025 compared to net income per diluted share of $8.35 for the same period in 2024. For the six months ended June 30, 2025, net income attributable to common shareholders of CSI was $192 million or $9.07 per diluted share compared to $282 million or $13.31 per diluted share for the same period in 2024. For the quarter ended June 30, 2025, CFO increased $168 million to $433 million compared to $265 million for the same period in 2024 representing an increase of 63%. For the first six months of 2025, CFO increased $258 million to $1,260 million compared to $1,002 million during the same period in 2024, representing an increase of 26%. For the quarter ended June 30, 2025, FCFA2S increased $37 million to $220 million compared to $182 million for the same period in 2024 representing an increase of 20%. For the six months ended June 30, 2025, FCFA2S increased $102 million to $730 million compared to $628 million for the same period in 2024 representing an increase of 16%. 1. See Non-IFRS measures. 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 June 30,       Six months ended June 30,           2025   2024         2025   2024           ($ in millions)   ($ in millions)                           Net cash flows from operating activities     433   265         1,260   1,002       Adjusted for:                       Interest paid on lease obligations     (4 ) (3 )       (8 ) (7 )     Interest paid on debt     (32 ) (37 )       (94 ) (78 )     Proceeds from sale of interest rate cap     -   -         -   -       Debt transaction costs     (4 ) (2 )       (4 ) (13 )     Payments of lease obligations     (33 ) (29 )       (63 ) (58 )     IRGA / TSS membership liability revaluation charge     (126 ) (8 )       (220 ) (89 )     Property and equipment purchased     (16 ) (13 )       (31 ) (23 )     Interest and dividends received     20   9         32   15                                     239   182         871   749       Less amount attributable to                       Non-controlling interests     (19 ) 1         (140 ) (121 )                             Free cash flow available to shareholders     220   182         730   628                               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             June 30, 2025 December 31, 2024 June 30, 2024               Assets                     Current assets:           Cash $ 2,575 $ 1,980   $ 1,873       Accounts receivable   1,285   1,292     1,116       Unbilled revenue   466   369     419       Inventories   67   56     60       Other assets   685   596     628           5,079   4,293     4,096                 Non-current assets:           Property and equipment   231   222     215       Right of use assets   381   329     324       Deferred income taxes   281   219     192       Equity securities   481   13     14       Other assets   369   316     298       Intangible assets   7,907   7,459     6,985           9,650   8,559     8,027                 Total assets $ 14,728 $ 12,851   $ 12,123                 Liabilities and Shareholders' Equity                     Current liabilities:           Debt with recourse to Constellation Software Inc. $ 575 $ 303   $ 274       Debt without recourse to Constellation Software Inc.   250   319     342       Accounts payable and accrued liabilities   1,515   1,589     1,312       Dividends payable   21   21     21       Deferred revenue   2,415   1,966     2,086       Provisions   23   22     11       Acquisition holdback payables   183   218     271       Lease obligations   130   115     115       Income taxes payable   112   111     104           5,223   4,664     4,537                 Non-current liabilities:           Debt with recourse to Constellation Software Inc.   1,932   1,855     1,834       Debt without recourse to Constellation Software Inc.   1,981   1,689     1,604       Deferred income taxes   787   670     620       Acquisition holdback payables   165   131     110       Lease obligations   291   252     247       Other liabilities   367   300     268           5,523   4,899     4,683                 Total liabilities   10,746   9,563     9,220                             Shareholders' equity:           Capital stock   99   99     99       Accumulated other comprehensive income (loss)   129   (224 )   (158 )     Retained earnings   3,068   2,919     2,517       Non-controlling interests   686   493     445           3,982   3,288     2,903                 Total liabilities and shareholders' equity $ 14,728 $ 12,851   $ 12,123                 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 June 30,   Six months ended June 30,       2025       2024       2025       2024                                         Revenue                 License $ 87     $ 87     $ 183     $ 175     Professional services   532       495       1,019       964     Hardware and other   80       68       155       127     Maintenance and other recurring   2,144       1,819       4,141       3,556         2,844       2,468       5,498       4,822                       Expenses                 Staff   1,457       1,328       2,869       2,620     Hardware   43       37       83       72     Third party license, maintenance and professional services   268       243       522       458     Occupancy   17       16       33       30     Travel, telecommunications, supplies, software and equipment   144       133       275       245     Professional fees   55       44       102       83     Other, net   56       51       109       101     Depreciation   50       45       96       89     Amortization of intangible assets   286       258       558       500         2,375       2,155       4,647       4,197                                         Foreign exchange loss (gain)   118       4       150       (15 )   IRGA/TSS Membership liability revaluation charge   126       8       220       89     Finance and other expense (income)   (28 )     (23 )     (108 )     (32 )   Bargain purchase gain   (5 )     (2 )     (5 )     (5 )   Impairment of intangible and other non-financial assets   9       6       11       16     Redeemable preferred securities expense (income)   -       -       -       58     Finance costs   71       69       142       136         290       61       409       247                       Income (loss) before income taxes   179       252       441       378                       Current income tax expense (recovery)   155       143       292       270     Deferred income tax expense (recovery)   (60 )     (78 )     (109 )     (153 )   Income tax expense (recovery)   95       65       183       117                       Net income (loss)   85       187       258       261                       Net income (loss) attributable to:                 Common shareholders of Constellation Software Inc.   56       177       192       282     Non-controlling interests   28       10       66       (21 )   Net income (loss)   85       187       258       261                       Earnings per common share of Constellation Software Inc.                 Basic and diluted $ 2.66     $ 8.35     $ 9.07     $ 13.31                       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 June 30,   Six months ended June 30,       2025     2024       2025     2024                       Net income (loss) $ 85   $ 187     $ 258   $ 261                       Items that are or may be reclassified subsequently to net income (loss):                                   Foreign currency translation differences from foreign operations and other, net of tax   185     (14 )     264     (62 )                     Items that will not be reclassified to net income (loss):                                   Changes in the fair value of equity investments at FVOCI   95     -       215     -                       Other comprehensive income (loss), net of income tax   280     (14 )     479     (62 )                     Total comprehensive income (loss) $ 364   $ 173     $ 737   $ 198                       Total other comprehensive income (loss) attributable to:                 Common shareholders of Constellation Software Inc.   213     (13 )     353     (53 )   Non-controlling interests   66     (1 )     126     (9 )   Total other comprehensive income (loss) $ 280   $ (14 )   $ 479   $ (62 )                     Total comprehensive income (loss) attributable to:                 Common shareholders of Constellation Software Inc.   270     164       545     229     Non-controlling interests   95     9       192     (30 )   Total comprehensive income (loss) $ 364   $ 173     $ 737   $ 198     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             Six months ended June 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)   -   -     192     192     66     258                   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   -   353     -     353     126     479                                 Total other comprehensive income (loss)   -   353     -     353     126     479                   Total comprehensive income (loss)   -   353     192     545     192     737                   Transactions with owners, recorded directly in equity                             Other movements in non-controlling interests   -   -     (1 )   (1 )   1     (0 )                 Dividends paid to non-controlling interests   -   -     -     -     (0 )   (0 )                 Dividends to shareholders of the Company   -   -     (42 )   (42 )   -     (42 )                 Balance at June 30, 2025 $ 99 $ 129   $ 3,068   $ 3,296   $ 686   $ 3,982                   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               Six months ended June 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)   -   -     282     282     (21 )   261                     Other comprehensive income (loss)                                               Foreign currency translation differences from foreign operations and other, net of tax   -   (53 )   -     (53 )   (9 )   (62 )                   Total other comprehensive income (loss)   -   (53 )   -     (53 )   (9 )   (62 )                   Total comprehensive income (loss)   -   (53 )   282     229     (30 )   198                     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     (1 )   (0 )                   Dividends paid to non-controlling interests   -   -     -     -     (86 )   (86 )                   Dividends to shareholders of the Company     -     (42 )   (42 )   -     (42 )                   Balance at June 30, 2024 $ 99 $ (158 ) $ 2,517   $ 2,458   $ 445   $ 2,903                     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 June 30,   Six months ended June 30,       2025       2024       2025       2024                       Cash flows from (used in) operating activities:                 Net income (loss) $ 85     $ 187     $ 258     $ 261     Adjustments for:                 Depreciation   50       45       96       89     Amortization of intangible assets   286       258       558       500     IRGA/TSS Membership liability revaluation charge   126       8       220       89     Finance and other expense (income)   (28 )     (23 )     (108 )     (32 )   Bargain purchase (gain)   (5 )     (2 )     (5 )     (5 )   Impairment of intangible and other non-financial assets   9       6       11       16     Redeemable preferred securities expense (income)   -       -       -       58     Finance costs (note 13)   71       69       142       136     Income tax expense (recovery)   95       65       183       117     Foreign exchange loss (gain)   118       4       150       (15 )   Depreciation of third party costs   4       -       9       -     Change in non-cash operating assets and liabilities exclusive of effects of business combinations   (185 )     (174 )     46       34     Transaction costs associated with equity securities classified as FVOCI   -       -       (2 )     -     Income taxes paid   (192 )     (177 )     (299 )     (245 )   Net cash flows from (used in) operating activities   433       265       1,260       1,002                       Cash flows from (used in) financing activities:                 Interest paid on lease obligations   (4 )     (3 )     (8 )     (7 )   Interest paid on debt   (32 )     (37 )     (94 )     (78 )   Increase (decrease) in CSI facility   -       -       -       (578 )   Increase (decrease) in Topicus revolving credit debt facility without recourse to CSI   (135 )     (21 )     (104 )     92     Proceeds from issuance of Senior Notes   -       -       -       1,000     Proceeds from issuance of debt facilities without recourse to CSI   341       164       368       276     Repayments of debt facilities without recourse to CSI   (69 )     (14 )     (99 )     (32 )   Other financing activities   1       (24 )     (0 )     (27 )   Dividends paid to non-controlling interests   -       (0 )     (0 )     (86 )   Debt transaction costs   (4 )     (2 )     (4 )     (13 )   Payments of lease obligations, net of sublease receipts   (33 )     (29 )     (63 )     (58 )   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 )     (42 )     (42 )   Net cash flows from (used in) in financing activities   43       12       (48 )     363                       Cash flows from (used in) investing activities:                 Acquisition of businesses   (380 )     (452 )     (474 )     (675 )   Cash obtained with acquired businesses   45       31       56       66     Post-acquisition settlement payments, net of receipts   (114 )     (54 )     (130 )     (130 )   Purchases of investments and other assets   (14 )     (0 )     (189 )     (1 )   Proceeds from sales of other investments and other assets   15       2       15       5     Decrease (increase) in restricted cash   (3 )     2       5       (9 )   Interest, dividends and other proceeds received   20       8       32       13     Property and equipment purchased   (16 )     (13 )     (31 )     (23 )   Net cash flows from (used in) investing activities   (446 )     (476 )     (717 )     (753 )                     Effect of foreign currency on cash   68       (5 )     101       (22 )                     Increase (decrease) in cash   98       (205 )     596       590                       Cash, beginning of period $ 2,477     $ 2,078     $ 1,980     $ 1,284                       Cash, end of period $ 2,575     $ 1,873     $ 2,575     $ 1,873