Alithya reports third quarter Fiscal 2026 results

Executive Summary

• Alithya reported Q3‑FY2026 revenue of C$115.2 M (down 0.5% YoY) and net earnings of C$0.7 M, reversing a loss from the prior year.
• Bookings were C$130.9 M, yielding a book‑to‑bill ratio of 1.14; backlog now represents ~14 months of trailing twelve‑month revenue.
• The company announced a pending spin‑off of Datum Consulting Group in exchange for a minority equity stake in the purchaser and disclosed related share‑repurchase transactions tied to its Normal Course Issuer Bid (NCIB).

Key Details

• Revenue: C$115,162 k (−0.5% YoY); U.S. revenue up 12.7% to $55.0 M, Canada revenue down 12.5% to $54.0 M, International revenue up 19.2% to $6.2 M.
• Gross Margin: C$36,514 k (−2.4% YoY); margin % fell to 31.7% from 32.3%.
• Net Earnings: C$676 k (+C$4.4 M vs. loss of C$3.7 M YoY); EPS = $0.01 vs. −$0.04 prior year.
• Adjusted Net Earnings: C$5,054 k (−11.6% YoY); Adjusted EPS = $0.05 vs. $0.06.
• Adjusted EBITDA: C$9,982 k (−2.9% YoY); margin 8.7% vs. 8.9%.
• Operating Cash Flow: Net cash from operations C$25.5 M (+C$13.8 M YoY).
• Bookings: C$130.9 M; Book‑to‑Bill 1.14 (down from 1.20). Trailing‑12‑month bookings C$440.0 M, backlog ≈14 months.
• Liquidity: Credit facility drawdowns $80.6 M; total available liquidity $125.1 M.
• NCIB Activity: 347,160 subordinate voting shares repurchased to date; up to 5,939,183 shares may be purchased under the program.
• Datum Transaction: Binding agreement to sell Datum Consulting Group to Medivra Holdings LLC; consideration is a minority equity interest in the purchaser. Closing expected Q4 FY2026.
• Share Repurchase Transaction: Private agreement to repurchase 2,489,682 Class A subordinate voting shares at VWAP‑based price; closing anticipated ~Feb 17 2026, tied to NCIB.
• Management Commentary: CEO Paul Raymond highlighted disciplined execution, healthy bookings, strong cash position, and the strategic spin‑off aimed at accelerating AI‑focused assets.

Notable Quotes

“I am proud of the team's continued discipline in executing our long‑term strategy… we are reporting healthy bookings and building momentum in strategic areas.” – Paul Raymond, President & CEO

All amounts are presented in Canadian dollars unless otherwise noted.