Alithya Sustains Operational Strength with Continued Solid Margin Improvement

Alithya Group Inc. (TSX: ALYA), a leading provider of strategy and digital technology services, has demonstrated remarkable resilience and solid margin improvement, despite facing industry challenges and flat revenue growth. The company's operational strength can be attributed to several key factors, including strategic cost management, diversification into high-value services, and a focus on greater efficiency and a higher-value business mix.

Alithya's Q3 2025 results, released on February 13, 2025, showcased a record Adjusted EBITDA margin of 8.9% and a gross margin as a percentage of revenues of 32.3%, both record levels for the company. These impressive figures are a testament to Alithya's commitment to cost management and the shift towards higher-value services. The company's net loss of $3.7 million was a significant improvement from the same quarter last year, and adjusted net earnings amounted to $5.7 million, representing an increase of $1.4 million from the same quarter last year.

Alithya's strategic cost management and diversification into high-value services have enabled the company to maintain margins and fuel growth opportunities. The company's operational resilience in Q1 FY25 is evident in its improved cash flow, reduced debt, and strong client retention, despite flat revenue growth and industry challenges. Alithya's expansion into the U.S. market and AI services, along with the acquisition of XRM Vision, have opened up new avenues for growth and deepened the company's expertise in Microsoft services and smart shore capabilities.

The company's focus on greater efficiency and a higher-value business mix has led to record gross margins and Adjusted EBITDA margins. Alithya's strong client retention and expanded global operations have also contributed to the company's sustained revenue growth and profitability. The company's growing profitability is driven by its cash flow generation and debt reduction, with a high percentage of repeat business from a loyal and extensive client base.

Alithya's continued solid margin improvement is a testament to the company's ability to adapt and thrive in a dynamic and competitive market. The company's strategic cost management, diversification into high-value services, and focus on greater efficiency and a higher-value business mix have all contributed to its sustained operational strength and margin improvement. As Alithya continues to execute on its strategic plan, investors can expect the company to maintain its strong financial performance and continue to grow both organically and through acquisitions.

In conclusion, Alithya Group Inc. has demonstrated remarkable operational strength and solid margin improvement, driven by strategic cost management, diversification into high-value services, and a focus on greater efficiency and a higher-value business mix. The company's Q3 2025 results showcase record Adjusted EBITDA margin and gross margin as a percentage of revenues, as well as improved net loss and adjusted net earnings. As Alithya continues to execute on its strategic plan, investors can expect the company to maintain its strong financial performance and continue to grow both organically and through acquisitions.