#Canada #Montreal #financial results #Alithya Group #Q2-2026

Alithya Reports Significant Growth in Q2-2026 Financial Results

Alithya Group Inc. has recently released its financial results for the second quarter of fiscal 2026, indicating a noteworthy growth trajectory for the company. As of September 30, 2025, Alithya achieved a revenue increase of 11.5%, totaling $124.3 million, compared to $111.5 million from the same quarter in the previous year. This performance is attributed to the company's strategic focus on enhancing service value for clients, thereby solidifying its industry presence.

The revenue growth is particularly impressive considering that 79.8% of this revenue was derived from clients retained from the previous year, showcasing a commitment to customer loyalty and satisfaction. Alithya's gross margin also experienced a significant increase, rising to $42.8 million, which marks a 25.5% year-over-year improvement. As a percentage of revenues, this gross margin rose to 34.4% from 30.6%, reflecting enhanced operational efficiencies and better pricing strategies.

However, challenges remain for Alithya, as the company reported a net loss of $31.0 million, primarily due to a substantial impairment charge of $38.0 million. This contrasts with a much smaller net loss of $0.3 million recorded in the same quarter last year. Despite the heightened net loss, adjusted net earnings surged by 80% to reach $9.5 million, translating to $0.10 per share compared to $0.05 in the previous year.

Strategic Growth Initiatives

A closer look at Alithya's revenue breakdown reveals that while Canadian revenues dipped to $55.2 million, accounting for a 7.4% year-over-year decline, U.S. revenues significantly increased by 34.8%, reaching $63.1 million. This growth in the U.S. market can be attributed to a combination of organic growth in enterprise transformation services and revenues generated from strategic acquisitions made in the recent fiscal year.

The company's international revenues also showed positive momentum, achieving a growth of 15.7% to $5.9 million. This consistent growth across various markets showcases Alithya's ability to leverage technological advancements and industry connections to drive forward its growth agenda.

Enhancements in Operational Efficiency

In the terms of operational efficiency, Alithya's gross margins in Canada increased due to higher hourly billing rates as well as reduced reliance on subcontractors. The U.S. market also experienced a similar positive trend, with improved utilization rates contributing to better margins.

Alithya's selling, general, and administrative expenses reported an increase of 20.8%, totaling $31.3 million for the quarter. This rise is partly attributable to the acquisition-related costs racked up during recent business expansions. Despite these increased costs, Alithya’s commitment to managing operating expenses has led to a commendable adjusted EBITDA of $12.8 million, marking a 37.5% increase from the prior year. This translates to an adjusted EBITDA margin of 10.3%, up from 8.3% in the same quarter last year.

Future Outlook

Looking ahead, Alithya aims to build on its momentum by increasing its focus on high-value projects that leverage artificial intelligence and other emerging technologies. The President and CEO of Alithya, Paul Raymond, articulated a positive outlook for the workforce, emphasizing the importance of creating substantial value for clients.

Moreover, the ongoing integration of acquired technologies is expected to enable Alithya to handle larger, mission-critical projects that are vital for organizations navigating the complexities of digital transformations in an AI-driven market.

Incorporating these insights, Alithya is not only on a path toward recovering from current challenges but also establishing itself as a key player in the industry, committed to enhancing profitability and long-term growth.

Conclusion

Alithya's Q2-2026 results underline a balanced scenario of growth and ongoing challenges. The company's ability to adapt to market dynamics while enhancing its service offerings positions it well for the future, as it strives to capitalize on opportunities in an increasingly competitive landscape. As Alithya continues to innovate and expand its capabilities, it remains steadfast in its mission to deliver exceptional value to clients across various sectors.