Core Insights - Alithya Group inc. reported a revenue increase of 11.5% year-over-year for Q2 fiscal 2026, reaching CAD 124.3 million, driven by growth in U.S. operations and acquisitions [5][7][9] - The company experienced a net loss of CAD 31.0 million, primarily due to a CAD 38.0 million impairment charge, contrasting with a minimal loss in the same quarter last year [5][16] - Adjusted Net Earnings rose by 80.0% to CAD 9.5 million, reflecting improved gross margins and contributions from recent acquisitions [5][17] Financial Highlights - **Revenues**: Increased to CAD 124.3 million from CAD 111.5 million, a rise of CAD 12.8 million [3][7] - **Gross Margin**: Grew by 25.5% to CAD 42.8 million, with a gross margin percentage of 34.4%, up from 30.6% [3][11] - **Net Loss**: Increased to CAD 31.0 million from CAD 0.3 million, translating to a loss per share of CAD 0.32 [5][16] - **Adjusted Net Earnings**: Increased to CAD 9.5 million, or CAD 0.10 per share, compared to CAD 5.3 million, or CAD 0.05 per share, in the prior year [5][17] - **Adjusted EBITDA**: Rose by 37.5% to CAD 12.8 million, with an Adjusted EBITDA margin of 10.3% [5][18] Revenue Breakdown - **Canada**: Revenues decreased by CAD 4.4 million, or 7.4%, to CAD 55.2 million, attributed to reduced government contracts and project maturity [8] - **U.S.**: Revenues increased by CAD 16.3 million, or 34.8%, to CAD 63.1 million, driven by organic growth and acquisitions [9] - **International**: Revenues rose by CAD 0.8 million, or 15.7%, to CAD 5.9 million, mainly due to organic growth [10] Operational Metrics - **Bookings**: Totaled CAD 90.9 million, resulting in a Book-to-Bill ratio of 0.73 for the quarter [19] - **Backlog**: Represented approximately 15 months of trailing twelve-month revenues as of September 30, 2025 [5] Expenses - **Selling, General and Administrative Expenses**: Increased by CAD 5.4 million, or 20.8%, to CAD 31.3 million, with expenses related to recent acquisitions contributing significantly [14][15] Liquidity and Capital Resources - **Net Cash from Operating Activities**: Decreased to CAD 1.1 million from CAD 3.0 million, impacted by unfavorable changes in working capital [21][23] - **Credit Facility**: Drawings amounted to CAD 102.3 million, with additional capital resources available totaling CAD 108.3 million [24]

Core Insights - Alithya Group inc. reported a revenue increase of 2.7% to $124.2 million for Q1 fiscal 2026 compared to the same quarter last year [3][4][7] - The company achieved a net earnings of $0.2 million, a significant improvement from a net loss of $2.8 million in the same quarter last year [15][16] - Adjusted Net Earnings rose by 31.8% to $6.5 million, translating to an Adjusted Net Earnings per Share of $0.07 [16][30] - The company signed 20 new clients and acquired eVerge Interests, Inc., enhancing its service offerings [23][24] Financial Highlights - Revenues for Q1 fiscal 2026 were $124.2 million, up from $120.9 million in Q1 fiscal 2025 [3][7] - Gross margin increased by 3.3% to $39.8 million, with a gross margin percentage of 32.1% [11][12] - Selling, general and administrative expenses decreased by 3.4% to $30.6 million, representing 24.6% of revenues [14] - Adjusted EBITDA increased by 15.6% to $11.6 million, with an Adjusted EBITDA Margin of 9.4% [17][31] Revenue Breakdown - Canadian revenues decreased by 8.5% to $59.6 million, primarily due to reduced government contracts and project maturities [8] - U.S. revenues increased by 17.3% to $59.5 million, driven by organic growth and higher billing rates [9] - International revenues saw a slight increase of 0.7% to $5.1 million [10] Bookings and Backlog - Q1 bookings reached $118.1 million, resulting in a Book-to-Bill Ratio of 0.95 [18][19] - The backlog represented approximately 15 months of trailing twelve-month revenues as of June 30, 2025 [4] Liquidity and Capital Resources - Net cash used in operating activities was $4.2 million, a decrease of $20.9 million from the previous year [20][21] - As of June 30, 2025, the company had $115.7 million in available capital resources [22]