Q3-2026 Highlights
Revenues decreased 0.5% to $115.2 million, compared to $115.8 million for the same quarter last year. 82.2% of revenues were generated from clients which we had in the same quarter last year.
Gross margin decreased 2.4% to $36.5 million, compared to $37.4 million for the same quarter last year. Gross Margin as a Percentage of Revenues(1) decreased to 31.7%, compared to 32.3% for the same quarter last year.
Net earnings increased to $0.7 million, or $0.01 per share, compared to a loss of $3.7 million, or a loss of $0.04 per share, for the same quarter last year.
Adjusted Net Earnings(2) decreased by $0.6 million, or 11.6%, to $5.1 million, from $5.7 million for the same quarter last year. This translated into Adjusted Net Earnings per Share(2) of $0.05, compared to $0.06 for the same quarter last year.
Adjusted EBITDA(2) decreased by $0.3 million, or 2.9%, to $10.0 million, for an Adjusted EBITDA Margin(2) of 8.7% of revenues, compared to $10.3 million, for an Adjusted EBITDA Margin of 8.9% of revenues, for the same quarter last year.
Net cash from operating activities was $25.5 million, representing an increase of $13.8 million, compared to $11.7 million for the same quarter last year.
Q3 Bookings reached $130.9 million, which translated into a Book-to-Bill Ratio(1) of 1.14 for the quarter, compared to Bookings of $138.4 million and a Book-to-Bill Ratio of 1.20 for the same quarter last year. Backlog(1) represented approximately 14 months of trailing twelve-month revenues as at December 31, 2025.
MONTREAL, Feb. 13, 2026 /PRNewswire/ - Alithya Group inc. (TSX:ALYA) ("Alithya" or the "Company") reported today its results for the third quarter of fiscal 2026 ended December 31, 2025. All amounts are in Canadian dollars unless otherwise stated.
Summary of the financial results for the third quarter:
Financial Highlights
(in thousands of $, except for margin percentages)
F2026-Q3
F2025-Q3
Revenues
115,162
115,761
Gross Margin
36,514
37,385
Gross Margin as a percentage of revenues (%)(1)
31.7 %
32.3 %
Selling, general and administrative expenses
28,460
28,814
Selling, general and administrative expenses (%)(1)
24.7 %
24.9 %
Net Earnings (Loss)
676
(3,716)
Basic and Diluted Earnings (Loss) per Share
0.01
(0.04)
Adjusted Net Earnings(2)
5,054
5,719
Adjusted Net Earnings per Share(2)
0.05
0.06
Adjusted EBITDA(2)
9,982
10,275
Adjusted EBITDA Margin (%)(2)
8.7 %
8.9 %
(1)
These are other financial measures without a standardized definition under IFRS, which may not be comparable to similar measures used by other issuers. See "Non-IFRS and Other Financial Measures" below.
(2)
These are non-IFRS financial measures without a standardized definition under IFRS, which may not be comparable to similar measures used by other issuers. More information and quantitative reconciliations of Adjusted Net Earnings, Adjusted Net Earnings per share and Adjusted EBITDA to the most directly comparable IFRS measures are presented below under the caption "Non-IFRS and Other Financial Measures". "Adjusted EBITDA Margin" refers to the percentage of total revenue that Adjusted EBITDA represents for a given period.
Quote by Paul Raymond, President and CEO, Alithya:
"I am proud of the team's continued discipline in executing our long-term strategy. While our third quarter was slower compared to the same period last year, we are reporting healthy bookings and building momentum in strategic areas. Also, our strong cash position gives us the flexibility to pursue growth opportunities and allocate capital where it drives value for our shareholders.
In addition, we are announcing the signature of an agreement to spin off our equity interests related to Datum Consulting Group in consideration for a minority interest in a strategic partnership dedicated to investing in entities commercializing AI solutions. With a streamlined structure and greater operational focus, we believe this approach will enable these assets to scale more rapidly and unlock stronger returns.
As we remain focused on our industry‑first model, we are steadily shifting toward higher‑value, specialized transformation work that helps our clients leverage the latest AI‑driven technologies from our partners."
Third Quarter Results
Revenues
Revenues amounted to $115.2 million for the three months ended December 31, 2025, representing a decrease of $0.6 million, or 0.5%, from $115.8 million for the three months ended December 31, 2024.
U.S. revenues increased by $6.2 million, or 12.7%, to $55.0 million for the three months ended December 31, 2025, from $48.8 million for the three months ended December 31, 2024, due primarily to revenues from the acquisition of eVerge Interests, Inc. and its subsidiaries on May 31, 2025 ("eVerge") and organic growth in enterprise transformation services, partially offset by an unfavorable US$ exchange rate impact of $0.2 million between the two periods.
Revenues in Canada decreased by $7.7 million, or 12.5%, to $54.0 million for the three months ended December 31, 2025, from $61.7 million for the three months ended December 31, 2024. The decrease in revenues was due primarily to reduced revenues from government contracts and certain client projects reaching maturity, partially offset by revenues from the acquisition of XRM Vision Inc. and its subsidiaries on December 1, 2024 ("XRM Vision").
International revenues increased by $1.0 million, or 19.2%, to $6.2 million for the three months ended December 31, 2025, from $5.2 million for the three months ended December 31, 2024. The increase in revenues was primarily due to organic growth in enterprise transformation services and a favorable foreign exchange rate impact of $0.5 million between the two periods.
During the quarter, 22 new clients were signed.
Gross Margin
Gross margin decreased by $0.9 million, or 2.4%, to $36.5 million for the three months ended December 31, 2025, from $37.4 million for the three months ended December 31, 2024. Gross margin as a percentage of revenues decreased to 31.7% for the three months ended December 31, 2025, from 32.3% for the three months ended December 31, 2024.
In the U.S., gross margin as a percentage of revenues decreased compared to the same quarter last year, primarily due to decreased utilization rates, partially offset by the increased use of our smart shoring capabilities and a proportionally larger increase in the use of permanent employees compared to subcontractors.
In Canada, gross margin as a percentage of revenues increased compared to the same quarter last year, mainly due to a proportionally larger decrease in the use of subcontractors compared to permanent employees, a positive margin contribution from XRM Vision, and a reduction in revenues from lower gross margin clients in favor of higher-value offerings, partially offset by a slight decrease in utilization rates.
International gross margin as a percentage of revenues decreased compared to the same quarter last year, mainly due to one client project coming to maturity, which historically had a higher gross margin.
Selling, General and Administrative Expenses
Selling, general and administrative expenses totaled $28.5 million for the three months ended December 31, 2025, representing a decrease of $0.3 million, or 1.0%, from $28.8 million for the three months ended December 31, 2024, despite including an increase of $2.6 million of expenses related to XRM Vision and eVerge. Selling, general and administrative expenses as a percentage of revenues amounted to 24.7% for the three months ended December 31, 2025, compared to 24.9% for the same period last year. The decrease in selling, general and administrative expenses was mainly due to decreased employee compensation costs, mainly stemming from variable compensation, and decreased information technology and communications costs, partially offset by expenses from XRM Vision and eVerge, increased occupancy costs, and increased professional fees.
Net Earnings (Loss)
Net earnings for the three months ended December 31, 2025 were $0.7 million, representing an increase of $4.4 million, from a net loss of $3.7 million for the three months ended December 31, 2024. The increase was due primarily to the decreased impairment of goodwill and intangibles, decreased selling, general and administrative expenses, despite additional expenses related to XRM Vision and eVerge, decreased depreciation and amortization of intangibles, and decreased income tax expense, partially offset by decreased gross margin, due to decreased utilization rates, decreased business acquisition, integration and reorganization costs recovery, and increased foreign exchange loss for the three months ended December 31, 2025, compared to the three months ended December 31, 2024. On a per share basis, this translated into basic and diluted earnings per share of $0.01 for the three months ended December 31, 2025, compared to a loss of $0.04 per share for the three months ended December 31, 2024.
Adjusted Net Earnings
Adjusted Net Earnings amounted to $5.1 million for the three months ended December 31, 2025, representing a decrease of $0.6 million, or 11.6%, from $5.7 million for the three months ended December 31, 2024. As explained above, the decrease was primarily due to decreased gross margin, due to decreased utilization rates, and increased foreign exchange loss, partially offset by decreased selling, general and administrative expenses, despite additional expenses related to XRM Vision and eVerge, decreased depreciation, and decreased income tax expense for the three months ended December 31, 2025, compared to the three months ended December 31, 2024. This translated into Adjusted Net Earnings per Share of $0.05 for the three months ended December 31, 2025, compared to $0.06 for the three months ended December 31, 2024.
Adjusted EBITDA
Adjusted EBITDA amounted to $10.0 million for the three months ended December 31, 2025, representing a decrease of $0.3 million, or 2.9%, from $10.3 million for the three months ended December 31, 2024. As explained above, the decrease was due primarily to decreased gross margin, due to decreased utilization rates, partially offset by decreased selling, general and administrative expenses, despite additional expenses related to XRM Vision and eVerge. Adjusted EBITDA Margin was 8.7% for the three months ended December 31, 2025, compared to 8.9% for the three months ended December 31, 2024.
Bookings
Bookings amounted to $130.9 million, which translated into a Book-to-Bill Ratio of 1.14 for the quarter, compared to $138.4 million, which translated into a Book-to-Bill Ratio of 1.20, for the same quarter last year. Bookings for the trailing twelve months amounted to $440.0 million as at December 31, 2025, which translated into a Book-to-Bill ratio of 0.90.
If revenues from the two long-term contracts signed as part of an acquisition in the first quarter of fiscal year 2022 were excluded, the Book-to-Bill ratio would have been 1.26, compared to 1.34 for the same quarter last year. For the trailing twelve months as at December 31, 2025, the Book-to-Bill ratio, excluding revenues from the two long-term contracts, would have been 1.00.
Liquidity and Capital Resources
For the three months ended December 31, 2025, net cash from operating activities was $25.5 million, representing an increase of $13.8 million, from $11.7 million for the three months ended December 31, 2024. The net cash from operating activities for the three months ended December 31, 2025, resulted primarily from
