Alithya Group (ALYA) Q1 2027 earnings summary

Executive summary

• Revenues for Q1 FY2027 declined 15.4% year-over-year to $105.1 million, reflecting project maturities, lower billable hours, and longer client decision cycles.

• Net loss was $2.4 million, compared to net earnings of $0.2 million in the prior year quarter.

• Adjusted Net Earnings fell 56% to $2.9 million; Adjusted EBITDA dropped 53.4% to $5.4 million.

• A strategic review process was initiated to evaluate alternatives for unlocking shareholder value, including potential sale, merger, or recapitalization, with Scotiabank retained as financial advisor.

• New segment reporting was introduced to enhance transparency and reflect strategic growth areas, focusing on higher-value, AI-enabled, industry-focused services.

Financial highlights

• Q1 revenues were $105.1 million, down 15.4% year-over-year and 7.6% sequentially.

• Gross margin was $31.9 million (30.4% of revenue), down from $39.8 million (32.1%) last year.

• Adjusted EBITDA was $5.4 million (5.2% of revenue), compared to $11.6 million (9.4%) last year.

• Net loss was $2.4 million (or $0.03 per share) versus net earnings of $0.2 million last year.

• Bookings were $89.0 million, with a book-to-bill ratio of 0.85, down from 0.95 year-over-year.

Outlook and guidance

• Management remains optimistic about long-term growth, citing strong demand for digital transformation, AI, and modernization services, but notes longer client decision and conversion cycles.

• No formal guidance provided, but late-stage pipeline opportunities are increasing and strategic review aims to maximize shareholder value.