The following press release should be read in conjunction with the Company's Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended September 30, 2025 and the accompanying notes, our Management Discussion and Analysis for the three and nine months ended September 30, 2025 and with our annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards ("IFRS") and our annual Management's Discussion and Analysis for the year ended December 31, 2024, which can be found on SEDAR+ at www.sedarplus.com and on the Company's website www.csisoftware.com. Additional information about the Company is also available on SEDAR+ at www.sedarplus.com.
Q3 2025 and Subsequent Headlines:
Revenue grew 16% (5% organic growth, 3% after adjusting for changes in foreign exchange rates) to $2,948 million compared to $2,541 million in Q3 2024.
Net income attributable to common shareholders increased 28% to $210 million ($9.89 on a diluted per share basis) from $164 million ($7.74 on a diluted per share basis) in Q3 2024.
A number of acquisitions were completed for aggregate cash consideration of $281 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $134 million resulting in total consideration of $415 million.
Cash flows from operations ("CFO") were $685 million, an increase of 33%, or $168 million, compared to $517 million for the comparable period in 2024.
Free cash flow available to shareholders1 ("FCFA2S") was $529 million, an increase of 46%, or $167 million, compared to $362 million for the comparable period in 2024.
Total revenue for the quarter ended September 30, 2025 was $2,948 million, an increase of 16%, or $407 million, compared to $2,541 million for the comparable period in 2024. For the first nine months of 2025 total revenues were $8,446 million, an increase of 15%, or $1,083 million, compared to $7,363 million for the comparable period in 2024. The increase for both the three and nine month periods compared to the same periods in the prior year is primarily attributable to growth from acquisitions as the Company experienced organic growth of 5% and 3% respectively, 3% and 3% respectively for both periods after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.
Net income attributable to common shareholders of CSI for the quarter ended September 30, 2025 was $210 million compared to $164 million for the same period in 2024. On a per share basis this translated into a net income per diluted share of $9.89 in the quarter ended September 30, 2025 compared to net income per diluted share of $7.74 for the same period in 2024. For the nine months ended September 30, 2025, net income attributable to common shareholders of CSI was $402 million or $18.96 per diluted share compared to $446 million or $21.04 per diluted share for the same period in 2024.
For the quarter ended September 30, 2025, CFO increased $168 million to $685 million compared to $517 million for the same period in 2024 representing an increase of 33%. For the first nine months of 2025, CFO increased $426 million to $1,944 million compared to $1,518 million during the same period in 2024, representing an increase of 28%.
For the quarter ended September 30, 2025, FCFA2S increased $167 million to $529 million compared to $362 million for the same period in 2024 representing an increase of 46%. For the nine months ended September 30, 2025, FCFA2S increased $269 million to $1,259 million compared to $990 million for the same period in 2024 representing an increase of 27%.
Forward Looking Statements
Certain statements herein may be "forward looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Constellation or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Constellation assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.
Non-IFRS MeasuresFree cash flow available to shareholders ‘‘FCFA2S'' refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on debt, debt transaction costs, payments of lease obligations, the IRGA / TSS membership liability revaluation charge, and property and equipment purchased, and includes interest and dividends received, and the proceeds from sale of interest rate caps. The portion of this amount applicable to non-controlling interests is then deducted. We believe that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if we do not make any acquisitions, or investments, and do not repay any debts. While we could use the FCFA2S to pay dividends or repurchase shares, our objective is to invest all of our FCFA2S in acquisitions which meet our hurdle rate.
FCFA2S is not a recognized measure under IFRS and, accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities.
The following table reconciles FCFA2S to net cash flows from operating activities:
Three months ended September 30,
Nine months ended September 30,
2025
2024
2025
2024
($ in millions)
($ in millions)
Net cash flows from operating activities
685
517
1,944
1,518
Adjusted for:
Interest paid on lease obligations
(4
)
(4
)
(12
)
(10
)
Interest paid on debt
(59
)
(63
)
(153
)
(141
)
Debt transaction costs
(4
)
(1
)
(8
)
(13
)
Payments of lease obligations
(34
)
(31
)
(97
)
(89
)
IRGA / TSS membership liability revaluation charge
(16
)
(33
)
(236
)
(122
)
Property and equipment purchased
(16
)
(19
)
(47
)
(42
)
Interest and dividends received
13
10
44
25
565
376
1,435
1,125
Less amount attributable to
Non-controlling interests
(36
)
(14
)
(176
)
(135
)
Free cash flow available to shareholders
529
362
1,259
990
Due to rounding, certain totals may not foot.
About Constellation Software Inc.
Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation acquires, manages and builds vertical market software businesses.
For further information:
Jamal BakshChief Financial Officer (416) 861-9677
SOURCE: CONSTELLATION SOFTWARE INC.
CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Financial Position
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
September 30, 2025
December 31, 2024
September 30, 2024
Assets
Current assets:
Cash
$
2,770
$
1,980
$
2,069
Restricted cash
299
18
17
Accounts receivable
1,286
1,290
1,149
Unbilled revenue
498
369
426
Inventories
74
56
66
Derivatives
119
-
-
Other assets
739
577
624
5,786
4,290
4,351
Non-current assets:
Property and equipment
231
222
224
Right of use assets
388
329
331
Deferred income taxes
288
219
206
Investments accounted for using the equity method
258
14
9
Other assets
330
314
322
Intangible assets
8,045
7,459
7,128
9,540
8,559
8,220
Total assets
$
15,326
$
12,849
$
12,571
Liabilities and Shareholders' Equity
Current liabilities:
Debt with recourse to Constellation Software Inc.
$
565
$
303
$
294
Debt without recourse to Constellation Software Inc.
578
319
414
Accounts payable and accrued liabilities
1,714
1,591
1,422
Dividends payable
21
21
21
Deferred revenue
2,304
1,965
2,020
Provisions
13
22
10
Acquisition holdback payables
223
215
276
Lease obligations
136
115
115
Income taxes payable
142
110
116
5,695
4,661
4,690
Non-current liabilities:
Debt with recourse to Constellation Software Inc.
1,948
1,855
1,881
Debt without recourse to Constellation Software Inc.
1,924
1,689
1,560
Deferred income taxes
785
671
641
Acquisition holdback payables
193
131
121
Lease obligations
291
252
256
Other liabilities
386
300
285
5,527
4,899
4,745
Total liabilities
11,222
9,561
9,435
Shareholders' equity:
Capital stock
99
99
99
Accumulated other comprehensive income (loss)
112
(224
)
(98
)
Retained earnings
3,258
2,919
2,657
Non-controlling interests
634
493
478
4,103
3,288
3,136
Total liabilities and shareholders' equity
$
15,326
$
12,849
$
12,571
CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Income (loss)
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
Three months ended September 30,
Nine months ended September 30,
2025
2024
2025
2024
Revenue
License
$
107
$
84
$
290
$
259
Professional services
538
487
1,558
1,451
Hardware and other
89
78
244
204
Maintenance and other recurring
2,213
1,893
6,354
5,449
2,948
2,541
8,446
7,363
Expenses
Staff
1,487
1,336
4,356
3,956
Hardware
51
