Aug 13, 2026 earnings call — Board launches strategic review; Q1 results
Board launched a strategic review and Q1 revenue was $105.1 million, down 15.4% year-over-year.
Revenue $0.1B (est $0.1B) · EPS $0.02 (est $0.04)
Key quotes
"Over the last several years, we've fundamentally transformed Alithya."
"Alithya's first quarter bookings amounted to $89.0 million, which translated into a book-to-bill ratio of 0.85 for the quarter."
"The Board initiated this review from a position of confidence in our strategy and in the business we have built."
Analyst Q&A 3
quarter drivers, U.S. softness, strategic review
Q (Jerome Dubreuil · Desjardins): Analyst asked if there were one-time items that explained the quarter. He also asked why U.S. growth slowed and why the company is exploring a strategic review or sale now.
A: Management said the biggest issue was utilization: they are waiting for larger projects to start, so qualified staff were unbilled which hurt revenue and margins. For the U.S., the softness was mainly a slowdown in Salesforce project starts, though the pipeline and cross-selling opportunities remain robust. On the review, the Board is evaluating a broad range of alternatives because management believes the company is not valued at its worth and cannot use its stock as currency to grow.
"First, I mean, as we announced previously, we -- the Board initiated the review to evaluate a broad range of alternatives." — Paul Raymond (CEO)
new bookings, fixed-price mix, pipeline
Q (Kevin Krishnaratne · Scotiabank): Analyst asked about the 70% of bookings from new business and what's driving it. He also asked how much of the business is fixed-price and how the pipeline and deal timing look for future bookings.
A: Management said "new business" means new projects and excludes change requests, add-ons and renewals; this quarter had fewer renewals and more new-project bookings, with 28%, 29% from new clients. On pricing mix, about 40% of engagements are fixed-price or fixed-price-like and that mix has been growing. They would not give guidance but said the pipeline is stronger quarter-over-quarter, deals are taking longer to close, and they are still adding deals at the same volume.
"So the new business is really just new opportunities outside of -- so it excludes everything that's not a change request or add-on or renewal." — Bernard Dockrill (COO)
U.S. focus, Canada outlook, eVerge amount
Q (Vincent Colicchio · Barrington): Analyst asked whether U.S. weakness was cyclical or structural and whether to put more resources there. He also asked about Canadian government IT spending and the quarter contribution from eVerge.
A: Management said Q1 softness was driven by the Salesforce business being between projects, which left many people unbillable and hurt utilization. They said the U.S. is the largest market for their services, they will keep investing there, and they deploy U.S. specialties globally. In Canada, energy/nuclear and financial services outside Quebec are doing well, while they purposely exited low-margin government work in Quebec to focus on higher-value services; on eVerge, the number is integrated in Enterprise Transformation and they track acquisitions for 12 months before full integration.
"The U.S. is the largest market in the world for our services." — Paul Raymond (CEO)