#Canada #Montreal #Alithya #Financial Growth #Q1-2026

Alithya's Q1-2026 Performance Analysis

Alithya Group Inc. recently announced its financial results for the first quarter of fiscal 2026, ending on June 30, 2025. This period marked significant improvements compared to the same quarter in the previous year, reflecting the company's commitment to growth and effective transformations.

Financial Highlights

The most notable points from the report include:

• - Revenue Growth: Alithya's revenues rose by 2.7%, amounting to $124.2 million, in contrast to $120.9 million from Q1-2025.
• - Client Retention: About 84.8% of this revenue came from existing clients, showcasing strong client loyalty and service satisfaction.
• - Gross Margin: There was a 3.3% increase in gross margin, totaling $39.8 million, raising the percentage of gross margin relative to revenue to 32.1%, up from 31.9% in the previous year.
• - Cost Efficiency: Selling, general and administrative expenses decreased by $1.1 million or 3.4%, reflecting improved efficiency in operations.
• - Net Earnings: The company transformed a prior loss of $2.8 million into positive net earnings of $0.2 million, indicating a successful recovery.

Adjusted Performance Metrics

Further operational success is highlighted in the adjusted metrics:

• - Adjusted Net Earnings surged by 31.8%, reaching $6.5 million compared to $4.9 million last fiscal year, which positions the adjusted net earnings per share at $0.07, up from $0.05.
• - Adjusted EBITDA increased by 15.6%, reaching $11.6 million with an adjusted EBITDA margin of 9.4% compared to 8.3% in the same quarter last year. This indicates effective management of both costs and revenues.

Key Drivers of Growth

Alithya’s growth is substantially driven by robust performance in its U.S. operations, where revenue skyrocketed by 17.3% to $59.5 million. Conversely, Canadian revenues faced a decrease, attributed primarily to a reduction in government contracts and certain projects reaching maturity. Notable acquisitions, such as eVerge Interests, Inc., which specializes in enterprise application and transformation, have further empowered Alithya's service offerings.

Future Outlook and Strategic Initiatives

Looking forward, Alithya is committed to executing its strategy aimed at profitable growth and value creation, maintaining its role as a trusted consulting partner for enterprises leveraging advanced technologies. The company's management, including the recently appointed Chief Financial Officer, Pierre Blanchette, is confident in strengthening its position in the market through innovative solutions and strategic client partnerships.

As Alithya continues on its path of transformation and adaptation, the first quarter results not only display current successes but also set a positive tone for the remainder of the fiscal year.

For more information, Alithya will host a conference call discussing these results further on August 13, 2025, where interested parties can join and engage with the management team.