Alithya reports third quarter Fiscal 2026 results

Core Insights - Alithya reported third quarter fiscal 2026 results, showing a shift towards higher-value transformation projects while maintaining a strong cash position [1][2] Financial Performance - Q3 2026 bookings reached $130.9 million, with a Book-to-Bill ratio of 1.14, down from 1.20 in Q3 2025 [1][2] - Revenues decreased by 0.5% to $115.2 million compared to $115.8 million in the same quarter last year [1][2] - Net cash from operating activities increased to $25.5 million, up by $13.8 million from $11.7 million in Q3 2025 [1][2] - Adjusted EBITDA decreased by 2.9% to $10.0 million, with an Adjusted EBITDA margin of 8.7% [1][2] - Adjusted net earnings fell by 11.6% to $5.1 million, translating to $0.05 per share, down from $0.06 in Q3 2025 [1][2] Revenue Breakdown - U.S. revenues increased by 12.7% to $55.0 million, driven by the acquisition of eVerge and organic growth [1][2] - Canadian revenues decreased by 12.5% to $54.0 million, primarily due to reduced government contract revenues [1][2] - International revenues rose by 19.2% to $6.2 million, attributed to organic growth and favorable foreign exchange impacts [1][2] Operational Efficiency - Gross margin decreased by 2.4% to $36.5 million, with a gross margin percentage of 31.7%, down from 32.3% [1][2] - Selling, general and administrative expenses decreased by 1.0% to $28.5 million, with a percentage of revenues at 24.7% [1][2] Strategic Initiatives - The company announced a spin-off agreement for Datum Consulting Group, aiming to focus on AI solutions and enhance operational efficiency [1][2] - Alithya is shifting towards specialized transformation work leveraging AI-driven technologies [1][2] Shareholder Actions - The company initiated a Normal Course Issuer Bid (NCIB) allowing the repurchase of up to 5,939,183 subordinate voting shares [3] - As of December 31, 2025, 347,160 shares were repurchased under the NCIB [3]