Alithya Group (ALYA) Q4 2025 earnings summary

Executive summary

• Achieved record gross margin, adjusted EBITDA, and net earnings, with sequential and year-over-year revenue growth driven by higher-value services, operational efficiencies, and successful project completions.

• Completed acquisitions of eVerge and XRM Vision, expanding capabilities in Oracle, Salesforce, Microsoft, AI consulting, and smart shoring.

• Strong cash flows enabled deleveraging and supported ongoing M&A strategy.

• Customer satisfaction remained high, with an average rating of 9.0/10 from 194 surveys in fiscal 2025.

• Announced appointment of new CFO, Pierre Blanchette, to support growth strategy.

Financial highlights

• Q4 revenues reached $125.3M (CAD 125.3 million), up 4% year-over-year and 8.3% sequentially.

• Gross margin hit a record 36.8%, up from 32.1% last year, with Q4 gross margin at $46.1M.

• Adjusted EBITDA was $18.0M (14.4% margin), up 71.8% year-over-year.

• Adjusted net earnings were $12.2M, up 101.9% year-over-year; net earnings for Q4 were $8.0M.

• Net cash from operating activities was $17.1M in Q4, up 75.4% year-over-year.

Outlook and guidance

• Withdrew long-term quantitative guidance due to macroeconomic uncertainty and outperformance of previous targets; focus remains on margin growth and doubling the company in 3–5 years.

• Expects continued improvements in gross margin and EBITDA, though Q1 is typically seasonally weaker.

• Strategic emphasis on leveraging AI, expanding service offerings, and entering new markets.

• Positive on pipeline and cross-selling opportunities, especially with new capabilities from recent acquisitions.