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

TORONTO, Nov. 04, 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 third quarter ended September 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 nine months ended September 30, 2025 and the accompanying notes, our Management’s Discussion and Analysis for the three and nine months ended September 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. Q3 2025 Headlines: Revenue increased 24% (3% organic growth) to €387.9 million compared to €312.2 million in Q3 2024.   Net loss was €120.9 million (€0.94 on a diluted per share basis) compared to net income of €38.0 million in Q3 2024 (€0.28 on a diluted per share basis). The net loss for the period is primarily the result of a €221.7 million expense associated with electing to record the Q1 2025 investment in Asseco at cost as a result of the application of the equity method of accounting.  This expense offsets gains recorded through net income and other comprehensive income during Q1 2025, Q2 2025, and Q3 2025.  During the period, the Company also recorded income of €60.7 million associated with mark to market adjustments on derivatives related to the Company’s binding agreement to acquire a further interest in Asseco. Acquisitions were completed for aggregate cash consideration of €11.4 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of €7.8 million resulting in total consideration of €19.2 million. Cash flows from operations (“CFO”) increased €16.7 million to €48.4 million compared to €31.7 million in Q3 2024. Free cash flow available to shareholders1 (“FCFA2S”) increased €11.9 million to €22.3 million compared to €10.4 million in Q3 2024. Total revenue for the quarter ended September 30, 2025 was €387.9 million, an increase of 24%, or €75.7 million, compared to €312.2 million for the comparable period in 2024. For the first nine months of 2025 total revenues were €1,115.5 million, an increase of 20%, or €185.5 million, compared to €930.0 million for the comparable period in 2024. The increase for both the three and nine-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 3% and 4% respectively. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers. Net loss for the quarter ended September 30, 2025 was €120.9 million compared to net income of €38.0 million for the same period in 2024.  On a per share basis, this translated into net loss per basic and diluted share of €0.94 in the quarter ended September 30, 2025 compared to net income per basic and diluted share of €0.28 for the same period in 2024. The net loss for the period is primarily the result of a €221.7 million expense associated with electing to record the Q1 2025 investment in Asseco at cost as a result of the application of the equity method of accounting. This expense offsets gains recorded through net income and other comprehensive income during Q1 2025, Q2 2025, and Q3 2025. During the period, the Company also recorded income of €60.7 million associated with mark to market adjustments on derivatives related to the Company’s binding agreement to acquire a further interest in Asseco.  For the nine months ended September 30, 2025 net loss was €9.3 million compared to net income of €93.3 million for the same period in 2024.  On a per share basis, this translated into net loss per basic and diluted share of €0.09 in the nine months ended September 30, 2025 compared to net income per basic and diluted share of €0.71 for the same period in 2024.    For the quarter ended September 30, 2025, CFO increased €16.7 million to €48.4 million compared to €31.7 million for the same period in 2024 representing an increase of 53%. 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 nine months ended September 30, 2025, CFO increased €36.9 million to €304.9 million compared to €268.0 million for the same period in 2024 representing an increase of 14%.   For the quarter ended September 30, 2025, FCFA2S increased €11.9 million to €22.3 million compared to €10.4 million for the same period in 2024 representing an increase of 114%. For the nine months ended September 30, 2025, FCFA2S increased €26.7 million to €167.5 million compared to €140.7 million for the same period in 2024 representing an increase of 19%.      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 September 30,       Nine months ended September 30,         2025 2024       2025 2024       (€ in millions)   (€ in millions)                               Net cash flows from operating activities     48.4   31.7         304.9   268.0     Adjusted for:                             Interest paid on lease obligations     (0.8 ) (0.5 )       (2.2 ) (1.5 )   Interest paid on other facilities     (2.9 ) (5.6 )       (11.9 ) (15.4 )   Credit facility transaction costs     (0.2 ) (0.7 )       (3.5 ) (1.0 )   Payments of lease obligations     (7.8 ) (6.1 )       (21.8 ) (18.1 )   Property and equipment purchased     (1.7 ) (2.0 )       (8.3 ) (6.4 )   Interest and dividends received     (0.4 ) -         8.2   -                                         34.7   16.9         265.4   225.7     Less amount attributable to non-controlling interests     (12.4 ) (6.5 )       (98.0 ) (85.0 )                                 Free cash flow available to shareholders     22.3   10.4         167.5   140.7                                   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                 September 30, 2025 December 31, 2024 September 30, 2024                 Assets                             Current assets:               Cash 276,061   206,157   234,603     Restricted cash 248,473   2,128   7,697     Accounts receivable 135,892   142,791   107,575     Unbilled revenue 60,002   45,415   46,394     Inventories 8,381   4,930   5,262     Derivatives 101,686   -   -     Other assets 73,295   52,979   56,133       903,790   454,400   457,663                   Non-current assets:               Property and equipment 26,918   23,245   20,730     Right of use assets 93,954   75,666   67,189     Deferred income taxes 24,917   19,905   20,468     Investments accounted for using the equity method 195,533   2,549   2,633     Other assets 9,583   9,433   10,309     Intangible assets 1,172,236   950,670   927,295       1,523,140   1,081,470   1,048,624                   Total assets 2,426,930   1,535,870   1,506,286                   Liabilities and Shareholders' Equity                             Current liabilities:               Topicus Revolving Credit Facility and current portion of Term and other loans 403,598   225,718   295,855     Accounts payable and accrued liabilities 306,940   250,361   184,555     Deferred revenue 239,324   166,593   202,880     Provisions 2,015   2,582   1,578     Acquisition holdback payables 18,604   13,073   14,315     Lease obligations 29,382   23,629   21,544     Income taxes payable 33,532   18,233   21,616       1,033,395   700,189   742,343                   Non-current liabilities:               Term and other loans 338,818   49,300   49,259     Deferred income taxes 195,249   145,911   142,913     Acquisition holdback payables 38,866   10,061   10,439     Lease obligations 66,196   53,188   46,788     Other liabilities 55,920   45,825   44,155       695,048   304,285   293,554                   Total liabilities 1,728,443   1,004,474   1,035,897                                   Shareholders' Equity:               Capital stock 39,412   39,412   39,412     Accumulated other comprehensive income (loss) 122,414   5,584   2,649     Retained earnings 260,396   266,281   232,796     Non-controlling interests 276,266   220,119   195,532       698,488   531,396   470,389                   Subsequent events                             Total liabilities and shareholders' equity 2,426,930   1,535,870   1,506,286                   See accompanying notes to the condensed consolidated interim financial statements.           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 September 30, Nine months ended September 30,   2025 2024 2025 2024           Revenue         License 8,894   8,650   28,726   25,984   Professional services 94,545   76,318   265,068   230,632   Hardware and other 6,875   4,494   22,665   15,081   Maintenance and other recurring 277,574   222,760   799,056   658,282     387,888   312,222   1,115,515   929,979   Expenses         Staff 205,209   164,506   609,133   515,083   Hardware 4,032   3,204   12,810   11,395   Third party license, maintenance and professional services 34,723   23,737   95,220   70,794   Occupancy 3,272   2,674   9,125   8,063   Travel, telecommunications, supplies, software and equipment 15,454   11,789   45,746   36,675   Professional fees 6,150   4,991   20,892   15,265   Other, net 5,242   5,008   16,271   13,373   Depreciation 10,890   8,430   30,243   24,880   Amortization of intangible assets 43,429   34,255   119,574   99,337     328,402   258,594   959,014   794,865             Impairment of intangible and other non-financial assets 7   0   7   633   Bargain purchase (gain) -   -   (154 ) (323 ) Finance and other (income) expenses (61,539 ) (835 ) (76,036 ) (1,679 ) (Increase) decrease in the fair value of equity securities -   -   (32,789 ) -   Revaluation of investment accounted for using the equity method to cost 221,748   -   221,748   -   Finance costs 9,175   7,656   21,939   19,933     169,392   6,821   134,716   18,565             Income (loss) before income taxes (109,905 ) 46,807   21,786   116,549             Current income tax expense (recovery) 18,921   16,168   56,407   44,698   Deferred income tax expense (recovery) (7,887 ) (7,390 ) (25,293 ) (21,429 ) Income tax expense (recovery) 11,035   8,778   31,113   23,269             Net income (loss) (120,940 ) 38,029   (9,328 ) 93,280             Net income (loss) attributable to:         Equity holders of Topicus (78,192 ) 23,340   (7,523 ) 58,447   Non-controlling interests (42,748 ) 14,689   (1,805 ) 34,834   Net income (loss) (120,940 ) 38,029   (9,328 ) 93,280             Weighted average shares         Basic shares outstanding 83,338,874   82,912,026   83,169,753   82,664,754   Diluted shares outstanding 129,841,819   129,841,819   129,841,819   129,841,819             Earnings (loss) per common share of Topicus         Basic (0.94 ) 0.28   (0.09 ) 0.71   Diluted (0.94 ) 0.28   (0.09 ) 0.71                       See accompanying notes to the condensed consolidated interim financial statements.   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 September 30, Nine months ended September 30,   2025 2024 2025 2024             Net income (loss) (120,940 ) 38,029   (9,328 ) 93,280               Items that are or may be reclassified subsequently to net income (loss):                       Foreign currency translation differences from foreign operations and other (913 ) (2,365 ) (9,288 ) 806               Items that will not be reclassified to net income (loss):                       Changes in the fair value of equity investments at FVOCI (4,374 ) -   188,959   -               Other comprehensive (loss) income for the period, net of income tax (5,287 ) (2,365 ) 179,671   806               Total comprehensive income (loss) for the period (126,227 ) 35,664   170,343   94,086               Total other comprehensive income (loss) attributable to:           Equity holders of Topicus (3,288 ) (1,019 ) 116,796   258   Non-controlling interests (1,998 ) (1,346 ) 62,875   547   Total other comprehensive income (loss) (5,287 ) (2,365 ) 179,671   806               Total comprehensive income (loss) attributable to:           Equity holders of Topicus (81,481 ) 22,321   109,274   58,705   Non-controlling interests (44,746 ) 13,342   61,070   35,381   Total comprehensive income (loss) (126,227 ) 35,664   170,343   94,086               See accompanying notes to the condensed consolidated interim financial statements.   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                 Nine months ended September 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) -   -   (7,523 ) (7,523 ) (1,805 ) (9,328 )                   Foreign currency translation differences from foreign operations and other, net of income tax and changes in the fair value of equity investments at FVOCI -   116,796   -   116,796   62,875   179,671                     Total other comprehensive income (loss) for the period -   116,796   -   116,796   62,875   179,671                     Total comprehensive income (loss) for the period -   116,796   (7,523 ) 109,274   61,070   170,343                     Transactions with owners, recorded directly in equity                                   Other movements in non-controlling interests and equity -   34   5   38   60   98                     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 -   -   -   -   (3,350 ) (3,350 )                   Balance at September 30, 2025 39,412   122,414   260,396   422,222   276,266   698,488                     See accompanying notes to the condensed consolidated interim financial statements.   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                 Nine months ended September 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) -   -   58,447   58,447   34,834   93,280                     Other comprehensive income (loss)                                   Foreign currency translation differences from foreign operations and other, net of income tax -   258   -   258   547   806                     Total other comprehensive income (loss) for the period -   258   -   258   547   806                     Total comprehensive income (loss) for the period -   258   58,447   58,705   35,381   94,086                                       Transactions with owners, recorded directly in equity                                   Other movements in non-controlling interests and equity -   -   (188 ) (188 ) (305 ) (493 )                   Exchange of Topicus Coop ordinary units held by non-controlling interests to subordinate voting shares of Topicus -   -   4,797   4,797   (4,797 ) -                     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 -   -   -   -   (78,998 ) (78,998 )                   Balance at September 30, 2024 39,412   2,649   232,796   274,857   195,532   470,389                     See accompanying notes to the condensed consolidated interim financial statements.                   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 September 30, Nine months ended September 30,   2025 2024 2025 2024           Cash flows from (used in) operating activities:         Net income (loss) (120,940 ) 38,029   (9,328 ) 93,280   Adjustments for:         Depreciation 10,890   8,430   30,243   24,880   Amortization of intangible assets 43,429   34,255   119,574   99,337   Impairment of intangible and other non-financial assets 7   -   7   633   Bargain purchase (gain) -   -   (154 ) (323 ) Finance and other expenses (income) (61,539 ) (835 ) (76,036 ) (1,679 ) (Increase) decrease in the fair value of equity securities -   -   (32,789 ) -   Finance costs 9,175   7,656   21,939   19,933   Revaluation of investments accounted for using the equity method to cost 221,748   -   221,748   -   Income tax expense (recovery) 11,035   8,778   31,113   23,269   Change in non-cash operating assets and liabilities exclusive of effects of business combinations (51,340 ) (49,742 ) 41,619   46,296   Transaction costs associated with equity securities classified as FVOCI -   -   (1,659 ) -   Income taxes (paid) received (14,019 ) (14,839 ) (41,330 ) (37,588 ) Net cash flows from (used in) operating activities 48,446   31,732   304,949   268,039             Cash flows from (used in) financing activities:         Interest paid on lease obligations (807 ) (524 ) (2,188 ) (1,461 ) Interest paid on other facilities (2,881 ) (5,553 ) (11,896 ) (15,441 ) Net increase (decrease) in Topicus Revolving Credit Facility 257,000   50,000   172,000   135,000   Proceeds from issuance of Loan -   -   200,000   -   Proceeds from issuance of term and other loans 4,262   -   117,672   29,733   Increase (decrease) in bank indebtedness (83 ) -   (83 ) -   Increase (decrease) in loan from Vela Software Group (287 ) (300 ) (287 ) (300 ) Return of capital to non-controlling interests -   -   -   (9,048 ) Repayments of term and other loans (2,066 ) (39,014 ) (16,177 ) (44,681 ) Credit facility transaction costs (190 ) (657 ) (3,468 ) (971 ) Payments of lease obligations (7,805 ) (6,124 ) (21,810 ) (18,057 ) Other financing activities -   (356 ) -   (356 ) Dividends paid to non-controlling interests (1,718 ) (1,809 ) (3,350 ) (78,997 ) Dividends paid to shareholders of the Company -   -   -   (127,641 ) Net cash flows from (used in) in financing activities 245,426   (4,337 ) 430,414   (132,222 )           Cash flows from (used in) investing activities:         Acquisition of businesses (note 4) (11,437 ) (18,221 ) (261,095 ) (65,052 ) Cash obtained with acquired businesses 2,338   2,325   31,075   14,444   Post-acquisition settlement payments, net of receipts (8,906 ) (6,707 ) (18,139 ) (15,940 ) Purchase of equity securities of Asseco Poland S.A. -   -   (167,977 ) -   (Increase) decrease in restricted cash (246,775 ) (1,525 ) (246,857 ) (7,525 ) Interest, dividends and other proceeds received, net of income taxes paid (376 ) -   8,181   -   Property and equipment purchased (1,653 ) (1,960 ) (8,319 ) (6,366 ) Net cash flows from (used in) investing activities (266,810 ) (26,090 ) (663,131 ) (80,439 )           Effect of foreign currency on cash and cash equivalents (256 ) (452 ) (2,328 ) 166             Increase (decrease) in cash 26,807   854   69,904   55,544             Cash, beginning of period 249,254   233,749   206,157   179,059             Cash, end of period 276,061   234,603   276,061   234,603                       See accompanying notes to the condensed consolidated interim financial statements.