Q4 2026 Alithya Group Inc Earnings Call Transcript
Key Points
- Alithya Group Inc (ALYAF) reported an increase in gross margin to 37.8% in Q4, up from 36.8% the previous year, supported by the recognition of non-refundable tax credits.
- The company achieved organic growth in the US segment, with revenues reaching $55.6 million, up 2.6% year-over-year, driven by the eVerge acquisition and growth in enterprise transformation services.
- Alithya Group Inc (ALYAF) successfully integrated the eVerge acquisition, expanding access to larger enterprise opportunities and enhancing capabilities in Oracle and Microsoft practices.
- The International segment saw a significant revenue increase of 49.1% year-over-year, driven by additional enterprise transformation services.
- The company has strengthened its leadership team to improve sales execution and cross-selling, aiming to enhance revenue quality and margin potential over time.
- Alithya Group Inc (ALYAF) experienced a 9.2% year-over-year decline in Q4 revenue, attributed to a tough comparison with an unusually strong Q4 in fiscal 2025.
- The Canadian segment saw a 24% decrease in revenue year-over-year, primarily due to reduced government contracts and the decision not to renew lower-margin work.
- Net loss for the quarter was $8.7 million, compared to net earnings of $8 million in the same period last year, driven by decreased gross margin and increased SG&A expenses.
- Adjusted EBITDA decreased to $12.7 million or 11.1% of revenue in Q4, down from $18 million or 14.4% of revenue last year, reflecting lower revenue and higher SG&A expenses.
- Net cash from operating activities dropped to $3.5 million in the quarter, compared to $17.1 million for the same quarter last year, due to unfavorable working capital variation and lower profitability.
Good morning, everyone, and welcome to Alithya's fourth-quarter and full fiscal 2026 results conference call. Thank you for joining us this morning. The press release, along with the MD&A containing condensed financial statements and related notes was published this morning and is now accessible on our website. The presentation can also be found on our website in the Investors section.
Please be advised that this call will contain forward-looking statements, which are subject to various risks and uncertainties that may cause actual results to differ materially from those anticipated. These statements include our estimates, plans, expectations and statements regarding future growth, operational results, performance and business prospects that do not solely relate to historical facts.
These statements may also refer to future events, including expectations around client demand, business opportunities, leveraging our services, IP, AI and expertise to meet client needs, excelling in a competitive market, achieving our
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