Constellation Software Inc. Announces Results for the Second Quarter Ended June 30, 2025 and Declares Quarterly Dividend
TORONTO, Aug. 08, 2025 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX:CSU) ("Constellation" or the "Company") today announced its financial results for the second quarter ended June 30, 2025 and declared a $1.00 per share dividend payable on October 10, 2025 to all common shareholders of record at close of business on September 19, 2025. This dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada). Please note that all dollar amounts referred to in this press release are in U.S. Dollars unless otherwise stated.
The following press release should be read in conjunction with the Company's Unaudited Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2025 and the accompanying notes, our Management Discussion and Analysis for the three and six months ended June 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.
Q2 2025 and Subsequent Headlines:
Revenue grew 15% (5% organic growth, 4% after adjusting for changes in foreign exchange rates) to $2,844 million compared to $2,468 million in Q2 2024.
Net income attributable to common shareholders decreased 68% to $56 million ($2.66 on a diluted per share basis) from $177 million ($8.35 on a diluted per share basis) in Q2 2024.
A number of acquisitions were completed for aggregate cash consideration of $380 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $89 million resulting in total consideration of $469 million.
Cash flows from operations ("CFO") were $433 million, an increase of 63%, or $168 million, compared to $265 million for the comparable period in 2024.
Free cash flow available to shareholders1 ("FCFA2S") increased $37 million to $220 million compared to $182 million for the same period in 2024.
Total revenue for the quarter ended June 30, 2025 was $2,844 million, an increase of 15%, or $376 million, compared to $2,468 million for the comparable period in 2024. For the first six months of 2025 total revenues were $5,498 million, an increase of 14%, or $676 million, compared to $4,822 million for the comparable period in 2024. The increase for both the three and six 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, 4% 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 June 30, 2025 was $56 million compared to $177 million for the same period in 2024. On a per share basis this translated into a net income per diluted share of $2.66 in the quarter ended June 30, 2025 compared to net income per diluted share of $8.35 for the same period in 2024. For the six months ended June 30, 2025, net income attributable to common shareholders of CSI was $192 million or $9.07 per diluted share compared to $282 million or $13.31 per diluted share for the same period in 2024.
For the quarter ended June 30, 2025, CFO increased $168 million to $433 million compared to $265 million for the same period in 2024 representing an increase of 63%. For the first six months of 2025, CFO increased $258 million to $1,260 million compared to $1,002 million during the same period in 2024, representing an increase of 26%.
For the quarter ended June 30, 2025, FCFA2S increased $37 million to $220 million compared to $182 million for the same period in 2024 representing an increase of 20%. For the six months ended June 30, 2025, FCFA2S increased $102 million to $730 million compared to $628 million for the same period in 2024 representing an increase of 16%.
1. See Non-IFRS measures.
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 June 30,
Six months ended June 30,
2025
2024
2025
2024
($ in millions)
($ in millions)
Net cash flows from operating activities
433
265
1,260
1,002
Adjusted for:
Interest paid on lease obligations
(4
)
(3
)
(8
)
(7
)
Interest paid on debt
(32
)
(37
)
(94
)
(78
)
Proceeds from sale of interest rate cap
-
-
-
-
Debt transaction costs
(4
)
(2
)
(4
)
(13
)
Payments of lease obligations
(33
)
(29
)
(63
)
(58
)
IRGA / TSS membership liability revaluation charge
(126
)
(8
)
(220
)
(89
)
Property and equipment purchased
(16
)
(13
)
(31
)
(23
)
Interest and dividends received
20
9
32
15
239
182
871
749
Less amount attributable to
Non-controlling interests
(19
)
1
(140
)
(121
)
Free cash flow available to shareholders
220
182
730
628
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
June 30, 2025
December 31, 2024
June 30, 2024
Assets
Current assets:
Cash
$
2,575
$
1,980
$
1,873
Accounts receivable
1,285
1,292
1,116
Unbilled revenue
466
369
419
Inventories
67
56
60
Other assets
685
596
628
5,079
4,293
4,096
Non-current assets:
Property and equipment
231
222
215
Right of use assets
381
329
324
Deferred income taxes
281
219
192
Equity securities
481
13
14
Other assets
369
316
298
Intangible assets
7,907
7,459
6,985
9,650
8,559
8,027
Total assets
$
14,728
$
12,851
$
12,123
Liabilities and Shareholders' Equity
Current liabilities:
Debt with recourse to Constellation Software Inc.
$
575
$
303
$
274
Debt without recourse to Constellation Software Inc.
250
319
342
Accounts payable and accrued liabilities
1,515
1,589
1,312
Dividends payable
21
21
21
Deferred revenue
2,415
1,966
2,086
Provisions
23
22
11
Acquisition holdback payables
183
218
271
Lease obligations
130
115
115
Income taxes payable
112
111
104
5,223
4,664
4,537
Non-current liabilities:
Debt with recourse to Constellation Software Inc.
1,932
1,855
1,834
Debt without recourse to Constellation Software Inc.
1,981
1,689
1,604
Deferred income taxes
787
670
620
Acquisition holdback payables
165
131
110
Lease obligations
291
252
247
Other liabilities
367
300
268
5,523
4,899
4,683
Total liabilities
10,746
9,563
9,220
Shareholders' equity:
Capital stock
99
99
99
Accumulated other comprehensive income (loss)
129
(224
)
(158
)
Retained earnings
3,068
2,919
2,517
Non-controlling interests
686
493
445
3,982
3,288
2,903
Total liabilities and shareholders' equity
$
14,728
$
12,851
$
12,123
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 June 30,
Six months ended June 30,
2025
2024
2025
2024
Revenue
License
$
87
$
87
$
183
$
175
Professional services
532
495
1,019
964
Hardware and other
80
68
155
127
Maintenance and other recurring
2,144
1,819
4,141
3,556
2,844
2,468
5,498
4,822
Expenses
Staff
1,457
1,328
2,869
2,620
Hardware
43
37
83
72
Third party license, maintenance and professional services
268
243
522
458
Occupancy
17
16
33
30
Travel, telecommunications, supplies, software and equipment
144
133
275
245
Professional fees
55
44
102
83
Other, net
56
51
109
101
Depreciation
