Alithya reports continued gross margin improvement and record Adjusted EBITDA Margin

Core Insights - Alithya Group inc. reported a 4.0% increase in revenues for Q4 2025, reaching $125.3 million compared to $120.5 million in Q4 2024, with a sequential increase of 8.3% from Q3 2025 [3][4][9] - The company achieved a record gross margin of 36.8% in Q4 2025, up from 32.1% in Q4 2024, driven by increased efficiencies and a higher value-added business mix [3][14][19] - Net earnings for Q4 2025 rose to $8.0 million, or $0.08 per share, compared to $2.3 million, or $0.02 per share, in the same quarter last year [3][19][21] Financial Performance - Revenues for the fiscal year 2025 totaled $473.5 million, a decrease of 3.6% from $491.1 million in fiscal 2024 [3][28] - Adjusted EBITDA for Q4 2025 increased by 71.8% to $18.0 million, with an Adjusted EBITDA margin of 14.4%, compared to 8.7% in Q4 2024 [3][22][38] - Selling, general and administrative expenses for Q4 2025 were $29.7 million, a slight increase of 0.4% from $29.6 million in Q4 2024, but as a percentage of revenues, it decreased to 23.7% from 24.6% [3][18][28] Client and Market Activity - The company signed 22 new clients in Q4 2025 and reported a backlog representing approximately 16 months of trailing twelve-month revenues as of March 31, 2025 [3][10][23] - Fiscal 2025 bookings reached $420.7 million, resulting in a Book-to-Bill ratio of 0.89, which would have been 1.00 excluding revenues from two long-term contracts [10][23][24] Strategic Developments - Alithya acquired eVerge Interests, Inc. on May 31, 2025, enhancing its Salesforce capabilities and Oracle expertise [3][8][10] - The company aims to leverage its industry knowledge and global delivery model to target higher value IT segments by the end of fiscal year 2027 [29][30][31]