Canada's Alithya Q3 revenue misses analyst expectations, gross margin shrinks

Alithya

13/02/2026 12:26

Overview

Canada IT consulting firm's Q3 revenue fell 0.5% yr/yr, missing analyst expectations

Net earnings improved to C$0.7 mln from a loss of C$3.7 mln last year

Adjusted EBITDA decreased slightly to C$10.0 mln

Outlook

Company announces strategic partnership for investing in AI solutions

Alithya maintains strong cash position to pursue growth opportunities

Company shifts focus to higher-value transformation projects leveraging AI

Result Drivers

CANADIAN REVENUE DECLINE - Co attributed revenue decrease to reduced revenues from Canadian government contracts and client projects reaching maturity

U.S. REVENUE GROWTH - U.S. revenues increased due to acquisitions and organic growth in enterprise transformation services

GROSS MARGIN IMPACT - Decreased utilization rates affected gross margin, partially offset by strategic shifts in Canada

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$115.16 mln
C$125.86 mln (6 Analysts)
Q3 Adjusted EPS
C$0.05
Q3 Adjusted Net Income
C$5.05 mln
Q3 Net Income
C$676,000
Q3 Adjusted EBITDA
C$9.98 mln
Q3 Adjusted EBITDA Margin
8.70%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Alithya Group Inc is C$3.05, about 91.8% above its February 12 closing price of C$1.59

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nCNW045rPa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)