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

Executive Summary

• Topicus.com Inc. reported financial results for the second quarter ended June 30, 2025, showing significant growth in revenue and net income driven largely by acquisitions.
• Total revenue increased 20% to €372.0 million (5% organic growth), while net income rose 54% to €41.5 million (€0.31 per diluted share).
• The company completed acquisitions with aggregate cash consideration of €210.3 million (total consideration €240.8 million), impacting cash flow metrics for the quarter.

Key Details

• Revenue: Q2 2025 revenue was €372.0 million, an increase of 20% (€60.8 million) compared to €311.2 million in Q2 2024. For the first six months of 2025, total revenue was €727.6 million, an 18% increase year-over-year.
• Organic Growth: Organic growth was 5% for Q2 2025 and 4% for the first six months of 2025.
• Net Income: Q2 2025 net income increased 54% to €41.5 million (€0.31 diluted EPS) from €26.9 million (€0.21 diluted EPS) in Q2 2024. For the six months ended June 30, 2025, net income was €111.6 million (€0.85 diluted EPS), up from €55.2 million (€0.43 diluted EPS) in the prior year period.
• Acquisitions: Acquisitions were completed for aggregate cash consideration of €210.3 million (including 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 Flow from Operations (CFO): Q2 2025 CFO was negative €14.9 million, compared to positive €8.8 million in Q2 2024. For the six months ended June 30, 2025, CFO increased 9% to €256.5 million from €236.3 million in the prior year period.
• Free Cash Flow Available to Shareholders (FCFA2S): Q2 2025 FCFA2S was negative €16.7 million, compared to negative €3.8 million in Q2 2024. For the six months ended June 30, 2025, FCFA2S increased 11% to €145.0 million from €130.1 million in the prior year period.
• Balance Sheet Highlights (June 30, 2025):
  • Total Assets: €2,325.4 million (up from €1,535.9 million at Dec 31, 2024).
  • Cash: €249.3 million.
  • Intangible Assets: €1,195.4 million.
  • Total Liabilities: €1,499.0 million.
  • Shareholders' Equity: €826.4 million.
• Income Statement Breakdown (Q2 2025):
  • Revenue by type: Maintenance and other recurring (€264.9M), Professional services (€88.2M), License (€10.4M), Hardware and other (€8.5M).
  • Total Expenses: €323.2 million.
  • Income before taxes: €51.7 million.
  • Income tax expense: €10.2 million.
• Comprehensive Income: Total comprehensive income for Q2 2025 was €114.0 million, significantly impacted by a €82.2 million gain from changes in the fair value of equity investments at FVOCI.