Constellation Software Inc. and Topicus.Com Inc. Announce Results for Topicus.com Inc. for the Second Quarter Ended June 30, 2025

TORONTO, Aug. 01, 2025 (GLOBE NEWSWIRE) -- Topicus.com Inc. (TSXV:TOI) in a joint release with Constellation Software Inc. (TSX:CSU) today announced financial results for Topicus.com Inc. (“Topicus” or the “Company”) for the second quarter ended June 30, 2025. Please note that all amounts referred to in this press release are in Euros 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’s Discussion and Analysis for the three and six months ended June 30, 2025 and the Annual Consolidated Financial Statements of Topicus.com Inc. for the year ended December 31, 2024, which we prepared in accordance with International Financial Reporting Standards (“IFRS”) and the Company’s 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 Topicus.com Inc.’s website www.topicus.com. Additional information about Topicus.com Inc. is also available on SEDAR+ at www.sedarplus.com. Q2 2025 Headlines: Revenue increased 20% (5% organic growth) to €372.0 million compared to €311.2 million in Q2 2024. Net income increased 54% to €41.5 million (€0.31 on a diluted per share basis) from €26.9 million (€0.21 on a diluted per share basis). Acquisitions were completed for aggregate cash consideration of €210.3 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of €30.5 million resulting in total consideration of €240.8 million. Cash flows from operations (“CFO”) decreased €23.8 million to negative €14.9 million compared to €8.8 million in Q2 2024. Free cash flow available to shareholders1 (“FCFA2S”) decreased €12.9 million to negative €16.7 million compared to negative €3.8 million in Q2 2024. Total revenue for the quarter ended June 30, 2025 was €372.0 million, an increase of 20%, or €60.8 million, compared to €311.2 million for the comparable period in 2024. For the first six months of 2025 total revenues were €727.6 million, an increase of 18%, or €109.9 million, compared to €617.8 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 4% respectively. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers. Net income for the quarter ended June 30, 2025 increased €14.5 million to €41.5 million compared to €26.9 million for the same period in 2024. On a per share basis, this translated into net income per basic and diluted share of €0.31 in the quarter ended June 30, 2025 compared to €0.21 for the same period in 2024. For the six months ended June 30, 2025 net income increased €56.4 million to €111.6 million compared to €55.2 million for the same period in 2024. On a per share basis, this translated into net income per basic and diluted share of €0.85 in the six months ended June 30, 2025 compared to €0.43 for the same period in 2024.  For the quarter ended June 30, 2025, CFO were negative €14.9 million compared to €8.8 million for the same period in 2024. Many of the businesses invoice customers for annual software maintenance fees in Q1 each year resulting in a disproportionate amount of cash being received in the first quarter as compared to the remaining three quarters. For the six months ended June 30, 2025, CFO increased €20.2 million to €256.5 million compared to €236.3 million for the same period in 2024 representing an increase of 9%. For the quarter ended June 30, 2025, FCFA2S was negative €16.7 million compared to negative €3.8 million for the same period in 2024. For the six months ended June 30, 2025, FCFA2S increased €14.9 million to €145.0 million compared to €130.1 million for the same period in 2024 representing an increase of 11%.  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 Topicus 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 Topicus 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 other facilities, credit facility transaction costs, repayments of lease obligations, 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. Topicus believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Topicus does not make any acquisitions, or investments, and does not repay any debts. While Topicus could use the FCFA2S to pay dividends or repurchase shares, Topicus’ objective is to invest all of our FCFA2S in acquisitions which meet Topicus’ 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     (14.9 ) 8.8         256.5   236.3     Adjusted for:                     Interest paid on lease obligations     (0.7 ) (0.5 )       (1.4 ) (0.9 )   Interest paid on other facilities     (4.3 ) (6.7 )       (9.0 ) (9.9 )   Credit facility transaction costs     (3.2 ) (0.3 )       (3.3 ) (0.3 )   Payments of lease obligations     (7.2 ) (6.1 )       (14.0 ) (11.9 )   Property and equipment purchased     (3.8 ) (1.8 )       (6.7 ) (4.4 )   Interest and dividends received     8.3   -         8.6   -                                 (25.8 ) (6.6 )       230.7   208.8     Less amount attributable to                     non-controlling interests     9.1   2.8         (85.7 ) (78.7 )                         Free cash flow available to shareholders     (16.7 ) (3.8 )       145.0   130.1                           Due to rounding, certain totals may not foot.                       About Topicus.com Inc. Topicus’ subordinate voting shares are listed on the Toronto Venture Stock Exchange under the symbol "TOI". Topicus acquires, manages and builds vertical market software businesses. 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.topicus.com SOURCE: TOPICUS.COM INC.       Topicus.com Inc.     Condensed Consolidated Interim Statements of Financial Position (In thousands of euros, 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   249,254   206,157   233,749     Accounts receivable   155,305   142,791   121,629     Unbilled revenue   59,780   45,415   47,740     Inventories   7,424   4,930   4,970     Other assets   78,311   55,107   62,955         550,075   454,400   471,043                     Non-current assets:                 Property and equipment   27,698   23,245   21,007     Right of use assets   94,822   75,666   62,147     Deferred income taxes   25,614   19,905   21,089     Equity securities   395,677   -   -     Other assets   36,056   11,983   13,130     Intangible assets 1,195,438   950,670   933,837         1,775,305   1,081,470   1,051,209                     Total assets   2,325,380   1,535,870   1,522,252                     Liabilities and Shareholders' Equity                                 Current liabilities:                 Topicus Revolving Credit Facility and current portion of Term and other loans 142,506   225,718   246,155     Accounts payable and accrued liabilities   254,931   250,361   177,887     Deferred revenue   319,820   166,593   279,338     Provisions   2,001   2,582   1,638     Acquisition holdback payables   20,536   13,073   15,270     Lease obligations   28,685   23,629   21,749     Income taxes payable   29,840   18,233   20,616         798,319   700,189   762,653                     Non-current liabilities:                 Term and other loans   341,267   49,300   89,880     Deferred income taxes   199,526   145,911   145,807     Acquisition holdback payables   34,759   10,061   7,069     Lease obligations   67,480   53,188   41,478     Other liabilities   57,664   45,825   38,491         700,696   304,285   322,726                     Total liabilities   1,499,015   1,004,474   1,085,379                                       Shareholders' Equity:                 Capital stock   39,412   39,412   39,412     Accumulated other comprehensive income (loss)   125,668   5,584   3,667     Retained earnings   338,596   266,281   208,991     Non-controlling interests   322,688   220,119   184,802         826,365   531,396   436,873                                       Total liabilities and shareholders' equity   2,325,380   1,535,870   1,522,252                     Topicus.com Inc.                 Condensed Consolidated Interim Statements of Income (Loss) (In thousands of euros, 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   10,435     8,169     19,831     17,334   Professional services   88,218     79,308     170,523     154,314   Hardware and other   8,471     5,037     15,790     10,588   Maintenance and other recurring   264,907     218,674     521,482     435,522         372,032     311,189     727,627     617,757   Expenses                 Staff   206,036     177,462     403,924     350,577   Hardware   4,653     3,570     8,778     8,190   Third party license, maintenance and professional services 32,074     23,705     60,496     47,056   Occupancy   2,896     2,679     5,854     5,389   Travel, telecommunications, supplies, software and equipment 15,699     12,904     30,292     24,887   Professional fees   7,134     5,183     14,742     10,274   Other, net   5,402     4,060     11,028     8,365   Depreciation   9,977     8,438     19,353     16,450   Amortization of intangible assets   39,294     33,410     76,146     65,082         323,164     271,409     630,612     536,271                       Impairment of intangible and other non-financial assets -     -     -     633   Bargain purchase (gain)   (154 )   -     (154 )   (323 ) Finance and other (income) expenses   (9,239 )   (371 )   (14,497 )   (844 ) (Increase) decrease in the fair value of equity securities -     -     (32,789 )   -   Finance costs   6,575     6,807     12,764     12,277         (2,818 )   6,435     (34,676 )   11,744                       Income (loss) before income taxes   51,686     33,344     131,691     69,742                       Current income tax expense (recovery)   18,738     13,447     37,485     28,530   Deferred income tax expense (recovery)   (8,536 )   (7,041 )   (17,407 )   (14,039 ) Income tax expense (recovery)   10,202     6,406     20,079     14,491                       Net income (loss)   41,484     26,938     111,612     55,252                       Net income (loss) attributable to:                 Equity holders of Topicus   25,858     17,018     70,669     35,107   Non-controlling interests   15,625     9,920     40,943     20,145   Net income (loss)   41,484     26,938     111,612     55,252                       Weighted average shares                   Basic shares outstanding   83,098,544     82,883,874     83,083,791     82,539,759     Diluted shares outstanding   129,841,819     129,841,819     129,841,819     129,841,819                       Earnings (loss) per common share of Topicus                   Basic   0.31     0.21     0.85     0.43     Diluted   0.31     0.21     0.85     0.43                       Topicus.com Inc.                     Condensed Consolidated Interim Statements of Comprehensive Income (Loss)                 (In thousands of euros, 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)   41,484     26,938     111,612     55,252                         Items that are or may be reclassified subsequently to net income (loss):                                         Foreign currency translation differences from foreign operations and other (9,671 )   1,244     (8,375 )   3,170                         Items that will not be reclassified to net income (loss):                                         Changes in the fair value of equity investments at FVOCI 82,236     -     193,333     -                         Other comprehensive (loss) income for the period, net of income tax 72,565     1,244     184,958     3,170                         Total comprehensive income (loss) for the period 114,049     28,182     296,570     58,422                         Total other comprehensive income (loss) attributable to:                   Equity holders of Topicus   47,866     651     120,085     1,277   Non-controlling interests   24,699     593     64,873     1,894   Total other comprehensive income (loss)   72,565     1,244     184,958     3,170                         Total comprehensive income (loss) attributable to:                   Equity holders of Topicus   73,724     17,670     190,754     36,383   Non-controlling interests   40,325     10,513     105,816     22,038   Total comprehensive income (loss)   114,049     28,182     296,570     58,422   Topicus.com Inc.             Condensed Consolidated Interim Statement of Changes in Shareholders' Equity (Deficiency)         (In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)                 Unaudited             Six months ended June 30, 2025                           Capital Stock Accumulated other comprehensive (loss) income Retained earnings Total Non-controlling interests Total equity                 Balance at January 1, 2025 39,412 5,584   266,281 311,277 220,119   531,396                   Total comprehensive income (loss) for the period:                               Net income (loss) - -   70,669 70,669 40,943   111,612                   Foreign currency translation differences from             foreign operations and other, net of income tax and changes in the fair value of equity investments at FVOCI - 120,085   - 120,085 64,873   184,958                   Total other comprehensive income (loss)               for the period - 120,085   - 120,085 64,873   184,958                   Total comprehensive income (loss) for the period - 120,085   70,669 190,754 105,816   296,570                   Transactions with owners, recorded directly in equity                               Other movements in non-controlling interests and equity - (0 ) 12 12 18   31                     Exchange of Topicus Coop ordinary units held by non-controlling interests to subordinate voting shares of Topicus - -   1,633 1,633 (1,633 ) -                     Dividends paid to non-controlling interests - -   - - (1,632 ) (1,632 )                 Balance at June 30, 2025 39,412 125,668   338,596 503,677 322,688   826,365   Topicus.com Inc.             Condensed Consolidated Interim Statement of Changes in Shareholders' Equity (Deficiency)         (In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)                 Unaudited             Six months ended June 30, 2024                                           Capital Stock Accumulated other comprehensive (loss) income Retained earnings Total Non-controlling interests Total equity                 Balance at January 1, 2024 39,412 2,390 297,382   339,185   253,299   592,483                   Total comprehensive income (loss) for the period:                             Net income (loss) - - 35,107   35,107   20,145   55,252                   Other comprehensive income (loss)                             Foreign currency translation differences from             foreign operations and other, net of income tax - 1,277 -   1,277   1,894   3,170                   Total other comprehensive income (loss) for the period - 1,277 -   1,277   1,894   3,170                   Total comprehensive income (loss) for the period - 1,277 35,107   36,383   22,038   58,422                                   Transactions with owners, recorded directly in equity                               Other movements in non-controlling interests and equity - - (91 ) (91 ) (64 ) (155 )                   Exchange of Topicus Coop ordinary units held by non-controlling interests to subordinate voting shares of Topicus - - 4,235   4,235   (4,235 ) -                     Dividends paid to shareholders of the Company - - (127,641 ) (127,641 ) -   (127,641 )                   Return of capital to non-controlling interests - - -   -   (9,048 ) (9,048 )                   Dividends paid to non-controlling interests - - -   -   (77,188 ) (77,188 )                 Balance at June 30, 2024 39,412 3,667 208,991   252,071   184,802   436,873   Topicus.com Inc.                 Condensed Consolidated Interim Statements of Cash Flows               (In thousands of euros, 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)   41,484     26,938     111,612     55,252     Adjustments for:                     Depreciation   9,977     8,438     19,353     16,450       Amortization of intangible assets 39,294     33,410     76,146     65,082       Impairment of intangible and other non-financial assets   -     0     -     633       Bargain purchase (gain)   (154 )   -     (154 )   (323 )     Finance and other expenses (income)   (9,239 )   (371 )   (14,497 )   (844 )     (Increase) decrease in the fair value of equity securities   -     -     (32,789 )   -       Finance costs   6,575     6,807     12,764     12,277       Income tax expense (recovery) 10,202     6,406     20,079     14,491     Change in non-cash operating assets and liabilities                   exclusive of effects of business combinations (97,574 )   (58,970 )   92,959     96,038     Transaction costs associated with equity securities classified as FVOCI   (0 )   -     (1,659 )   -     Income taxes (paid) received (15,508 )   (13,849 )   (27,311 )   (22,749 )   Net cash flows from (used in) operating activities (14,944 )   8,809     256,503     236,306                         Cash flows from (used in) financing activities:                 Interest paid on lease obligations   (719 )   (481 )   (1,381 )   (937 )   Interest paid on other facilities   (4,307 )   (6,727 )   (9,015 )   (9,888 )   Net increase (decrease) in Topicus Revolving Credit Facility (115,000 )   (20,000 )   (85,000 )   85,000     Proceeds from issuance of Loan   200,000     -     200,000     -     Proceeds from issuance of term and other loans 95,400     28,917     113,410     29,733     Return of capital to non-controlling interests   -     (9,048 )   -     (9,048 )   Repayments of term and other loans (3,526 )   (1,983 )   (14,111 )   (5,667 )   Credit facility transaction costs (3,187 )   (314 )   (3,278 )   (314 )   Payments of lease obligations   (7,177 )   (6,116 )   (14,005 )   (11,933 )   Dividends paid to non-controlling interests   (1,595 )   (2,649 )   (1,632 )   (77,188 )   Dividends paid to shareholders of the Company   -     -     -     (127,641 )   Net cash flows from (used in) in financing activities 159,890     (18,401 )   184,988     (127,884 )                       Cash flows from (used in) investing activities:                 Acquisition of businesses (210,244 )   (10,289 )   (249,657 )   (46,831 )   Cash obtained with acquired businesses   20,804     5,095     28,738     12,119     Post-acquisition settlement payments, net of receipts (2,935 )   (5,019 )   (9,233 )   (9,233 )   Purchase of equity securities of Asseco Poland S.A.   -     -     (167,977 )   -     (Increase) decrease in restricted cash   343     -     (82 )   (6,000 )   Interest, dividends and other proceeds received 8,302     -     8,557     -     Property and equipment purchased (3,768 )   (1,751 )   (6,666 )   (4,406 )   Net cash flows from (used in) investing activities (187,499 )   (11,964 )   (396,321 )   (54,350 )                       Effect of foreign currency on                 cash and cash equivalents (4,500 )   706     (2,072 )   618                         Increase (decrease) in cash (47,053 )   (20,850 )   43,097     54,690                         Cash, beginning of period 296,307     254,599     206,157     179,059                         Cash, end of period 249,254     233,749     249,254     233,749