TORONTO, ONTARIO (March 9, 2026) — Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the fourth quarter and year ended December 31, 2025 and declared a $1.00 per share dividend payable on April 15, 2026 to all common shareholders of record at close of business on March 27, 2026. 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 annual Consolidated Financial Statements, prepared in accordance with IFRS Accounting Standards (“IFRS”) and our annual Management’s Discussion and Analysis for the year ended December 31, 2025, 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.
Q4 2025 Headlines:
- Revenue grew 18% (6% organic growth, 2% after adjusting for changes in foreign exchange rates) to $3,177 million compared to $2,703 million in Q4 2024.
- Net income attributable to common shareholders decreased 61% to $110 million ($5.19 on a diluted per share basis) from $285 million ($13.44 on a diluted per share basis) in Q4 2024.
- A number of acquisitions were completed for aggregate cash consideration of $472 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $99 million resulting in total consideration of $571 million. Other net investments of $321 million were completed, including the Company’s net investment in Asseco Poland S.A.
- Cash flows from operations (“CFO”) was $788 million, an increase of 16%, or $110 million, compared to $678 million for the comparable period in 2024.
- Free cash flow available to shareholders1 (“FCFA2S”) was $423 million, a decrease of 12%, or $59 million compared to $482 million for the comparable period in 2024.
- Subsequent to December 31, 2025, the Company completed or has open commitments to acquire a number of businesses for aggregate cash consideration of $707 million on closing plus total estimated deferred payments of $95 million for total consideration of $802 million.
2025 Headlines:
- Revenue grew 15% (4% organic growth, 3% after adjusting for changes in foreign exchange rates) to $11,623 million compared to $10,066 million in 2024.
- Net income attributable to common shareholders decreased 30% to $512 million ($24.15 on a diluted per share basis) from $731 million ($34.48 on a diluted per share basis) in 2024.
- A number of acquisitions were completed for total consideration of $1,579 million including holdbacks and contingent consideration. Other net investments of $530 million were completed, including the Company’s net investments in Asseco Poland S.A.
- Cash flows from operations (“CFO”) was $2,732 million, an increase of 24%, or $536 million, compared to $2,196 million for the comparable period in 2024.
- Free cash flow available to shareholders (“FCFA2S”) was $1,683 million, an increase of 14%, or $210 million, compared to $1,472 million for the comparable period in 2024.
Total revenue for the quarter ended December 31, 2025 was $3,177 million, an increase of 18%, or $474 million, compared to $2,703 million for the comparable period in 2024. For the year ended December 31, 2025 total revenues were $11,623 million, an increase of 15%, or $1,557 million, compared to $10,066 million for the comparable period in 2024. The increase for both the three and twelve 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 6% and 4% respectively, 2% and 3% 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 December 31, 2025 was $110 million compared to $285 million for the same period in 2024. On a per share basis this translated into a net income per diluted share of $5.19 in the quarter ended December 31, 2025 compared to net income per diluted share of $13.44 for the same period in 2024. For the year ended December 31, 2025, net income attributable to common shareholders of CSI was $512 million or $24.15 per diluted share compared to $731 million or $34.48 per diluted share for the same period in 2024. The increase in the fair value of Topicus’ investment in the equity securities of Asseco increases the value of the IRGA / TSS membership liability. The fair value is determined by Asseco’s share price at the end of each reporting period. The liability increase and related expense for the three and twelve month periods relating to the increased share price of Asseco was $155 million and $225 million respectively. Subsequent to September 25, 2025 the Company has accounted for the investment in Asseco under the equity method which does not require the Company to record the asset at fair value at the end of each reporting period under IFRS.
For the quarter ended December 31, 2025, CFO increased $110 million to $788 million compared to $678 million for the same period in 2024 representing an increase of 16%. For the year ended December 31, 2025, CFO increased $536 million to $2,732 million compared to $2,196 million during the same period in 2024, representing an increase of 24%.
For the quarter ended December 31, 2025, FCFA2S decreased $59 million to $423 million compared to $482 million for the same period in 2024 representing an decrease of 12%. For the year ended December 31, 2025, FCFA2S increased $210 million to $1,683 million compared to $1,472 million for the same period in 2024 representing an increase of 14%. The IRGA / TSS membership liability revaluation charge relating to the investment in equity securities of Sygnity and Asseco was $144 million and $252 million for the three and twelve month periods respectively. The fair value of these investments for purposes of calculating the revaluation charge is determined by their respective share prices at the end of each reporting period.
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 Measures
Free 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.
- See Non-IFRS measures.
For the full press release including financial information, download the PDF using the link below.
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 Baksh
Chief Financial Officer
(416) 861-9677
info@csisoftware.com www.csisoftware.com
SOURCE: CONSTELLATION SOFTWARE INC.