IT services firm Alithya's Q2 revenue edges past estimates on higher pricing

Alithya

14/11/2025 12:26

Overview

Alithya fiscal Q2 revenue grows 11.5%, slightly beating analyst expectations

Adjusted net earnings for fiscal Q2 rise 80% yr/yr

Net loss for fiscal Q2 increases due to C$38 mln impairment charge

Outlook

Alithya focuses on leveraging acquisitions and new technologies for growth

Company aims to capitalize on AI transformation projects

Alithya notes challenging market conditions impacting the industry

Result Drivers

U.S. REVENUE GROWTH - U.S. revenues rose 34.8% due to organic growth in enterprise transformation services and higher billing rates

GROSS MARGIN IMPROVEMENT - Gross margin increased due to higher billing rates and a shift towards higher-value services

IMPAIRMENT CHARGE - Net loss increased due to a C$38 mln impairment of goodwill and intangibles

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
C$124.29 mln
C$123.10 mln (6 Analysts)
Q2 Adjusted EPS
C$0.10
Q2 EPS
-C$0.32
Q2 Adjusted Net Income
C$9.47 mln
Q2 Net Income
-C$30.96 mln
Q2 Adjusted EBITDA
C$12.79 mln
Q2 Adjusted EBITDA Margin
10.30%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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$3.00, about 42% above its November 13 closing price of C$1.74

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPnGy6bJa

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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.)