Constellation Software (CSU) investor relations material

Executive summary

• Significant focus on AI, with extensive upskilling of development teams and cross-portfolio collaboration to embed AI-augmented coding and productivity improvements across business units entering 2026.

• AI is viewed as a long-term opportunity, leveraging deep vertical knowledge, customer relationships, and data assets to build knowledge networks and guide customers in adopting AI safely.

• Revenue increased 18% year-over-year in Q4 2025 to $3,177 million, with 6% organic growth and 2% growth after adjusting for FX rates.

• Net income attributable to common shareholders fell 61% in Q4 2025 to $110 million ($5.19 per diluted share) compared to Q4 2024.

• Introduction of the Permanent Engaged Minority Shareholder (PEMS) strategy, exemplified by the Sabre investment, to deploy larger amounts of capital as long-term, engaged minority holders.

Financial highlights

• Q4 2025 cash flows from operations increased 16% year-over-year to $788 million; full year CFO up 24% to $2,732 million.

• Free cash flow available to shareholders (FCFA2S) decreased 12% in Q4 2025 to $423 million, but increased 14% for the year to $1,683 million.

• Total assets at year-end 2025 were $16,171 million, up from $12,848 million at year-end 2024.

• Shareholders’ equity increased to $4,267 million at December 31, 2025.

• Net income margin for 2025 was approximately 4.4% ($512 million net income on $11,623 million revenue).

Outlook and guidance

• AI-enabled coding and productivity gains are expected to continue growing as skills deepen across teams.

• No significant new revenue from AI yet, but ongoing investment and experimentation are expected to drive future opportunities.

• Organic growth rates for maintenance and recurring revenue are expected to remain in line with historical levels, around 5% FX-adjusted for maintenance and 2-3% total organic growth.

• Forward-looking statements caution about significant risks and uncertainties that could cause actual results to differ materially from projections.