The following press release should be read in conjunction with the Company's Unaudited Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2026 and the accompanying notes, our Management's Discussion and Analysis for the three months ended March 31, 2026 and the Annual Consolidated Financial Statements of Topicus.com Inc. for the year ended December 31, 2025, 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, 2025, 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.
Q1 2026 Headlines:
Revenue increased 23% (5% organic growth) to €435.7 million compared to €355.6 million in Q1 2025.
Net income decreased to €55.1 million (€0.41 on a diluted per share basis) from €70.1 million (€0.54 on a diluted per share basis).
Acquisitions were completed for aggregate cash consideration of €15.0 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of €7.5 million resulting in total consideration of €22.5 million.
Cash flows from operations ("CFO") increased €9.0 million to €280.5 million compared to €271.4 million in Q1 2025 representing an increase of 3%.
Free cash flow available to shareholders1 ("FCFA2S") increased €3.7 million to €165.4 million compared to €161.7 million in Q1 2025 representing an increase of 2%.
Total revenue for the quarter ended March 31, 2026 was €435.7 million, an increase of 23%, or €80.1 million, compared to €355.6 million for the comparable period in 2025. The increase is primarily attributable to growth from acquisitions as the Company experienced organic growth of 5% in the quarter. 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 March 31, 2026 decreased €15.1 million to €55.1 million compared to €70.1 million for the same period in 2025. On a per share basis, this translated into net income per basic and diluted share of €0.41 in the quarter ended March 31, 2026 compared to €0.54 for the same period in 2025.
For the quarter ended March 31, 2026, CFO increased €9.0 million to €280.5 million compared to €271.4 million for the same period in 2025 representing an increase of 3%.
For the quarter ended March 31, 2026, FCFA2S increased €3.7 million to €165.4 million compared to €161.7 million for the same period in 2025 representing an increase of 2%.
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 March 31,
2026
2025
(€ in millions)
Net cash flows from operating activities
280.5
271.4
Adjusted for:
Interest paid on lease obligations
(0.9
)
(0.7
)
Interest paid on other facilities
(3.7
)
(4.7
)
Credit facility transaction costs
(0.3
)
(0.1
)
Payments of lease obligations
(8.4
)
(6.8
)
Property and equipment purchased
(3.2
)
(2.9
)
Interest and dividends received
0.6
0.3
264.5
256.5
Less amount attributable to
non-controlling interests
(99.1
)
(94.8
)
Free cash flow available to shareholders
165.4
161.7
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 BakshChief Financial Officer (416) 861-9677 [email protected]www.topicus.com
SOURCE: TOPICUS.COM INC.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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
March 31, 2026
December 31, 2025
Assets
Current assets:
Cash
331,173
326,686
Accounts receivable
210,486
175,613
Unbilled revenue
70,315
53,909
Inventories
7,870
7,057
Other assets
84,856
67,969
704,700
631,234
Non-current assets:
Property and equipment
28,273
27,343
Right of use assets
95,766
96,656
Deferred income taxes
24,223
23,494
Investments in associates
527,439
515,368
Other assets
18,456
17,790
Intangible assets
1,190,258
1,201,287
1,884,415
1,881,939
Total assets
2,589,115
2,513,173
Liabilities and Shareholders' Equity
Current liabilities:
Topicus Revolving Credit Facility and current portion of Term and other loans
96,065
345,324
Accounts payable and accrued liabilities
380,113
365,229
Deferred revenue
453,789
207,140
Provisions
3,091
3,548
Acquisition holdback payables
24,077
23,740
Lease obligations
32,134
30,915
Income taxes payable
40,128
39,201
1,029,396
1,015,098
Non-current liabilities:
Term and other loans
352,579
347,218
Deferred income taxes
183,948
188,313
Acquisition holdback payables
39,414
40,133
Lease obligations
65,425
67,436
Other liabilities
81,126
73,166
722,492
716,266
Total liabilities
1,751,888
1,731,363
Shareholders' Equity:
Capital stock
39,412
39,412
Accumulated other comprehensive income (loss)
127,327
124,611
Retained earnings
343,910
309,801
Non-controlling interests
326,577
307,985
837,227
781,810
Total liabilities and shareholders' equity
2,589,115
2,513,173
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 March 31,
2026
2025
Revenue
License
11,518
9,396
Professional services
98,221
82,305
Hardware and other
9,885
7,319
Maintenance and other recurring
316,064
256,575
435,688
355,595
Expenses
Staff
237,594
197,889
Hardware
5,312
4,125
Third party license, maintenance and professional services
36,951
28,422
Travel, telecommunications, supplies, software and equipment
17,938
14,592
Professional fees
7,085
7,608
Other, net
7,033
8,584
Depreciation
11,655
9,376
Amortization of intangible assets
44,420
36,852
367,988
307,448
Impairment of intangible and other non-financial assets
-
-
Finance and other (income) expenses
2,593
(5,243
)
Share in net (income) loss of equity investee
(9,096
)
(15
)
(Increase) decrease in the fair value of equity securities
-
(32,789
)
Finance costs
9,808
6,189
3,306
(31,858
)
