Alithya Group (ALYA) investor relations material

Executive summary

• Achieved year-over-year improvements in adjusted EBITDA, gross margin, and revenue, with double-digit organic growth in the US segment, driven by higher-value service offerings and efficiency gains.

• Revenue for the quarter ended June 30, 2025 was $124.2M, up from $120.9M year-over-year.

• Completed the eVerge acquisition using 100% cash, expanding capabilities in Oracle, AI, and SmartShore delivery, and added Salesforce as a new partner.

• 84.8% of revenues came from repeat clients, and recent acquisitions (XRM Vision and eVerge) are contributing to growth and new opportunities.

• US revenues now match Canadian revenues, reflecting a strategic shift toward the faster-growing US market.

Financial highlights

• Consolidated Q1 revenues were $124.2M, up 2.7% year-over-year; US revenues grew 17.3% to $59.5M, while Canadian revenues fell 8.5% to $59.6M.

• Gross margin improved to 32.1% from 31.9% year-over-year, driven by higher-value business mix and efficiencies.

• Adjusted EBITDA was $11.6M, up 15.6% year-over-year, with margin rising to 9.4% from 8.3%.

• Adjusted net earnings reached $6.5M, up $1.6M year-over-year.

• Cash generated from operating activities (adjusted for non-cash items) was $8.7M, but net cash used in operating activities was $4.2M due to unfavorable working capital changes.

Outlook and guidance

• Continued focus on higher-value, higher-margin business, especially in the US, with expectations for incremental profitability improvements in Canada.

• AI, cloud, and data consolidation trends are expected to drive ongoing demand for enterprise transformation services.

• Bookings for the quarter were $118.1M (book-to-bill ratio 0.95), with a backlog of approximately 15 months of revenue.

• Q2 is expected to be seasonally slower due to summer holidays and partner fiscal cycles.