EX-99.1 2 alithyagroupfsenglishq22026.htm EX-99.1 Document


backdrop1a.jpg

picture11a.jpg
Interim Condensed Consolidated
Financial Statements
of Alithya Group inc.

For the three and six months ended September 30, 2025 and 2024
(unaudited)
Exhibit 99.1


TABLE OF CONTENTS
Interim Consolidated Statements of Operations and Comprehensive Loss
Interim Consolidated Statements of Cash Flows
Notes to Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
1.
2.
3.
4.
5.
Goodwill
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.


INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the three months ended September 30,For the six months ended September 30,
(in thousands of Canadian dollars, except per share data) (unaudited)2025202420252024
Notes$$$$
Revenues15124,292 111,514 248,450 232,389 
Cost of revenues1181,512 77,386 165,877 159,731 
Gross margin42,780 34,128 82,573 72,658 
Operating expenses
Selling, general and administrative expenses1131,296 25,869 61,869 57,528 
Business acquisition, integration and reorganization costs (recovery)12(3,885)549 (1,838)1,332 
Depreciation11978 1,102 2,043 2,197 
Amortization of intangibles45,317 4,635 10,272 9,279 
Impairment of goodwill and intangibles
4,5
38,028 — 38,028 — 
Foreign exchange (gain) loss(469)259 697 242 
71,265 32,414 111,071 70,578 
Operating (loss) income(28,485)1,714 (28,498)2,080 
Net financial expenses132,126 1,502 4,966 3,874 
(Loss) earnings before income taxes(30,611)212 (33,464)(1,794)
Income tax expense (recovery)
Current486 195 788 299 
Deferred(136)287 (3,476)939 
350 482 (2,688)1,238 
Net loss(30,961)(270)(30,776)(3,032)
Other comprehensive income (loss)
Items that may be classified subsequently to profit or loss
Cumulative translation adjustment on consolidation of foreign subsidiaries991 (330)(1,374)215 
991 (330)(1,374)215 
Comprehensive loss(29,970)(600)(32,150)(2,817)
Basic and diluted loss per share10(0.32)(0.00)(0.31)(0.03)
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 2

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As atSeptember 30,March 31,
(in thousands of Canadian dollars) (unaudited)20252025
Notes$$
Assets
Current assets
Cash17,809 15,956
Accounts receivable and other receivables92,247 95,270
Unbilled revenues25,112 14,803
Tax credits receivable10,925 10,996
Prepaids 8,373 8,680
154,466 145,705
Non-current assets
Tax credits receivable12,898 9,979
Other assets1,185 1,327 
Property and equipment3,701 3,960
Right-of-use assets3,327 4,277
Intangibles468,780 74,450
Deferred tax assets5,324 4,875
Goodwill5162,579 181,407
412,260 425,980
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities73,826 80,899 
Deferred revenues20,560 25,024
Current portion of lease liabilities2,231 3,546
Current portion of long-term debt78,581 8,059
Current portion of contingent consideration63,700 —
108,898 117,528
Non-current liabilities
Contingent consideration62,365 5,359
Long-term debt7131,303 101,860
Lease liabilities4,835 5,449
Deferred tax liabilities10,105 11,228
257,506 241,424
Shareholders' equity
Share capital8318,648 316,685
Deficit(185,018)(155,075)
Accumulated other comprehensive income6,624 7,998
Contributed surplus14,500 14,948
154,754 184,556
412,260 425,980
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 3

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
For the six months ended September 30,
(in thousands of Canadian dollars, except share data) (unaudited)
NotesShares
issued		Share capitalDeficitAccumulated other
comprehensive
income		Contributed
surplus		Total
Number$$$$$
Balance as at March 31, 202599,305,100 316,685 (155,075)7,998 14,948 184,556 
Net loss— — (30,776)— — (30,776)
Other comprehensive loss— — — (1,374)— (1,374)
Total comprehensive loss— — (30,776)(1,374)— (32,150)
Share-based compensation9— — — — 2,078 2,078 
Share-based compensation granted on business acquisitions9— — — — 928 928 
Issuance of Subordinate Voting Shares pursuant to vesting of share-based compensation granted on business acquisitions8622,420 1,966 — — (1,966)— 
Issuance of Multiple Voting Shares from exercise of stock options
8,9
52,632 178 — — (78)100 
Shares purchased for cancellation8(30,345)(103)53 — — (50)
Shares purchased for settlement of RSUs8(78,486)(266)71 — — (195)
Delivery of Subordinate Voting Shares upon settlement of RSUs8,978,486 188 — — (248)(60)
Change from equity-settled to cash-settled DSUs— — — — (453)(453)
Transfer upon forfeiture and cancellation of PSUs— — 709 — (709)— 
Total contributions by, and distributions to, shareholders644,707 1,963 833 — (448)2,348 
Balance as at September 30, 202599,949,807 318,648 (185,018)6,624 14,500 154,754 
Balance as at March 31, 202495,415,248 312,409 (157,370)4,606 15,559 175,204 
Net loss— — (3,032)— — (3,032)
Other comprehensive income— — — 215 — 215 
Total comprehensive (loss) income— — (3,032)215 — (2,817)
Share-based compensation— — — — 1,464 1,464 
Share-based compensation granted on business acquisition— — — — 573 573 
Issuance of Subordinate Voting Shares pursuant to vesting of share-based compensation granted on business acquisitions622,420 1,971 — — (1,971)— 
Shares purchased for cancellation(205,483)(717)315 — — (402)
Shares purchased for settlement of RSUs(63,856)(223)85 — — (138)
Delivery of Subordinate Voting Shares upon settlement of RSUs63,856 159 — — (245)(86)
Total contributions by, and distributions to, shareholders416,937 1,190 400 — (179)1,411 
Balance as at September 30, 202495,832,185 313,599 (160,002)4,821 15,380 173,798 
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 4

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended September 30,For the six months ended September 30,
(in thousands of Canadian dollars) (unaudited)2025202420252024
Notes$$$$
Operating activities
Net loss(30,961)(270)(30,776)(3,032)
Adjustments for:
Depreciation and amortization6,2955,73712,31511,476
Change in fair value of contingent consideration12(4,172)—(4,172)—
Net financial expenses132,1261,5024,9663,874
Share-based compensation99626963,0062,037
Unrealized foreign exchange (gain) loss(39)(63)737(117)
Realized foreign exchange (gain) loss on repayment of long-term debt(418)72(457)126
Impairment of goodwill and intangibles
4,5
38,028—38,028—
Loss on disposal of property and equipment and intangible11——37—
Loss on lease termination——208—
Deferred taxes(136)287(3,476)939
11,6857,96120,41615,303
Changes in non-cash working capital items14(10,630)(4,979)(23,535)4,375
Net cash from (used in) operating activities1,0552,982(3,119)19,678
Investing activities
Additions to property and equipment(212)(369)(624)(608)
Additions to intangibles4(32)(64)(97)(64)
Business acquisition, net of cash acquired3——(9,494)—
Net cash used in investing activities(244)(433)(10,215)(672)
Financing activities
Advances on the Credit Facility, net of related transaction costs15,00032,03843,38566,332
Repayment of the Credit Facility(10,254)(25,905)(16,654)(62,173)
Repayment of secured loans———(8,537)
Repayment of balance of purchase price(4,262)(4,268)(4,262)(4,268)
Repayment of other debt(88)—(175)—
Repayment of lease liabilities, including lease termination costs(899)(1,198)(2,265)(2,712)
Withholding taxes paid pursuant to the settlement of RSUs 9——(60)—
Exercise of stock options8——100—
Shares purchased for settlement of RSUs8——(195)(138)
Shares purchased for cancellation8(50)(230)(50)(402)
Financial expenses paid13(1,736)(1,403)(4,264)(3,610)
Net cash (used in) from financing activities(2,289)(966)15,560(15,508)
Effect of exchange rate changes on cash20314(373)72
Net change in cash(1,275)1,5971,8533,570
Cash, beginning of period19,08410,83215,9568,859
Cash, end of period17,80912,42917,80912,429
Cash paid (included in cash flow from (used in) operating activities)
Income taxes paid 4311391,377355
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 5
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
1. GOVERNING STATUTES AND NATURE OF OPERATIONS
Alithya Group inc. (together with its subsidiaries, “Alithya” or the “Company”) is a professional services firm providing IT services and solutions through the optimal use of digital technologies in the areas of strategic consulting, enterprise transformation and business enablement.
The Company’s Class A subordinate voting shares (the “Subordinate Voting Shares”) trade on the Toronto Stock Exchange (“TSX”) under the symbol “ALYA”.
The Company’s head office is located at 700, René Lévesque West Blvd, Suite 400, Montréal, Québec, Canada, H3B 1X8.
2. BASIS OF PREPARATION
Statement of Compliance
These interim condensed consolidated financial statements have been prepared in accordance with IAS 34 - Interim Financial Reporting. They do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, and should be read in conjunction with the annual audited consolidated financial statements for the year ended March 31, 2025. The Company applied the accounting policies adopted in its most recent annual audited consolidated financial statements for the year ended March 31, 2025, except for changes as detailed below.
These interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors (the “Board”) on November 13, 2025.
Basis of Measurement
These interim condensed consolidated financial statements have been prepared under the historical cost basis except for:
•Identifiable assets acquired and liabilities and contingent liabilities resulting from a business acquisition, which are generally measured initially at their fair values at the acquisition date and contingent purchase considerations which are measured at the acquisition date and subsequently at fair value;
•Lease obligations, which are initially measured at the present value of the lease payments that are not paid at the lease commencement date;
•Equity classified share-based payment arrangements which are measured at fair value at grant date pursuant to IFRS 2, Share-Based Payment; and
•Liabilities for cash-settled share-based payment arrangements which are initially and subsequently measured at fair value.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 6
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
2. BASIS OF PREPARATION (CONT’D)
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE
At the date of authorization of these interim condensed consolidated financial statements, certain new standards, amendments and interpretations, and improvements to existing standards have been published by the IASB but are not yet effective and have not been adopted early by the Company. Management anticipates that all the relevant pronouncements will be adopted in the first reporting period following the date of application. Information on new standards, amendments and interpretations, and improvements to existing standards, which could potentially impact the Company’s consolidated financial statements, are detailed as follows:
IFRS 7 and IFRS 9 - Classification and measurement of Financial Instruments
In May 2024, the IASB issued amendments to IFRS 9 – Financial Instruments and IFRS 7 – Financial Instruments: Disclosures. The standard amendments clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system. Furthermore, they clarify the description of non-recourse assets and contractually linked instruments and they introduce additional disclosures for financial instruments with contractual terms that can change cash flows, and equity instruments classified at fair value through other comprehensive income. The amendments to IFRS 7 and IFRS 9 apply retrospectively and are effective for annual periods beginning on or after January 1, 2026, with earlier application permitted. The amendments to IFRS 7 and IFRS 9 will have no significant impact on the Company’s consolidated financial statements.
IFRS 18 - Presentation and Disclosures in Financial Statements
On April 9, 2024, the IASB published the new IFRS 18 – Presentation and Disclosures in Financial Statements that will replace IAS 1 – Presentation of Financial Statements.
IFRS 18 covers four main areas:
•Introduction of defined subtotals and categories in the statement of profit or loss;
•Introduction of requirements to improve aggregation and disaggregation;
•Introduction of disclosures about management-defined performance measures (MPMs) in the notes to the financial statements; and
•Targeted improvements to the statement of cash flows by amending IAS 7 – Statement of Cash Flows.
IFRS 18 applies retrospectively and is effective for annual periods beginning on or after January 1, 2027, with earlier application permitted. Management is currently evaluating the impact of the amendment on its consolidated financial statements.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 7
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
3. BUSINESS ACQUISITION
eVerge
Overview
On May 31, 2025, the Company acquired all of the issued and outstanding shares of U.S.-based eVerge Interests, Inc. and its subsidiaries (“eVerge”) (the “eVerge Acquisition”), a group specialized in enterprise applications and transformation services. Management expects that eVerge’s expertise will complement its existing Oracle business, will increase its AI capabilities, and will reinforce it’s smart shoring capabilities.
The eVerge Acquisition was completed for total consideration of US$23,500,000 ($32,292,000), before working capital and other adjustments, all payable in cash.
The total preliminary purchase consideration, in the amount of US$20,357,000 ($27,974,000) once adjusted for working capital and other adjustments, consisted of: (i) US$7,557,000 ($10,385,000) paid in cash on closing; (ii) US$580,000 ($797,000) of holdback, included in accounts payable and accrued liabilities as at September 30, 2025; (iii) US$7,520,000 ($10,334,000) of balance of sale payable in two installments of US$3,760,000 ($5,167,000) on May 31st, 2026 and 2027 (each an "Anniversary Date"); and (iv) potential earn-out consideration of US$4,700,000 ($6,458,000), payable in two installments (50% within 90 days of the first Anniversary Date and 50% on the second Anniversary Date).
The final purchase consideration could be adjusted based on post-closing conditions related to revenues and gross margin.
The total earn-out consideration of US$4,700,000 ($6,458,000) is contingent upon the future financial performance of the acquired business over the 12-month period following the acquisition date. The contingent consideration included in the purchase consideration is classified as a financial liability recorded at fair value through profit and loss and comprised an undiscounted scenario-based weighted average expected payout amount. The contingent consideration liability is included in Level 3 of the fair value hierarchy and will be remeasured at fair value at each reporting date. The fair value was determined using a scenario-based method, under which the Company identifies multiple outcomes, probability-weights the contingent consideration payoff under each outcome, and discounts the result to arrive at the expected present value of the contingent consideration. At acquisition date, the discount rate used was 17.8%.
Due to the short period of time between the acquisition date and reporting period, the determination of the fair value of intangible assets and earn-out consideration, closing adjustments and related deferred tax considerations is preliminary pending completion of selection and application of appropriate valuation techniques. Accordingly, the related preliminary values in the below allocation of the fair value of the assets acquired and the liabilities assumed and fair value of the earn-out consideration are subject to change within the measurement period, which could be significant. The eVerge Acquisition is being accounted for using the acquisition method.
For the three and six months ended September 30, 2025, the Company incurred acquisition-related costs pertaining to the eVerge Acquisition of approximately $13,000 and $883,000, respectively. These costs have been recorded in the interim consolidated statement of operations in business acquisition, integration and reorganization costs.

Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 8
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
3. BUSINESS ACQUISITION (CONT’D)
Purchase Price Allocation

The allocation of the fair value of the assets acquired and the liabilities assumed is detailed as follows:
Acquisition of eVerge
$
Current assets
Cash891 
Accounts receivable and other receivables5,376 
Prepaids339 
6,606 
Non-current assets
Property and equipment62 
Intangibles (note 4)
7,376 
Goodwill (note 5)
20,025 
Total assets acquired34,069 
Current liabilities
Accounts payable and accrued liabilities6,448 
Income taxes payable31 
Deferred revenue431 
6,910 
Non-current liabilities
Deferred tax liabilities1,948 
Total liabilities assumed8,858 
Net assets acquired25,211 
Goodwill
The goodwill recognized consists mainly of the future economic value attributable to the profitability of the acquired business, as well as its workforce and expected synergies from the integration of eVerge into the Company's existing business. The Company does not expect the goodwill to be deductible for income tax purposes.

Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 9
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
3. BUSINESS ACQUISITION (CONT’D)
Purchase consideration
The following table summarizes the acquisition date fair value of each class of purchase consideration as follows:
Acquisition of eVerge
$
Cash consideration10,385 
Holdback presented in accounts payable and accrued liabilities797 
Balance of purchase price payable with a nominal value of US$7,520,000 ($10,334,000) (note 7) (a)
9,214 
Contingent consideration of US$4,700,000 ($6,458,000), recorded at fair value (a)
4,815 
Total purchase consideration25,211 
a) Non-cash financing activities
eVerge’s contribution to the Company’s results
For the three months ended September 30, 2025, the eVerge business contributed revenues of approximately $8,611,000 and a loss before income taxes in the amount of $314,000, including amortization, primarily related to the acquired customer relationships, of $1,864,000, change in fair value of contingent consideration of $272,000, interest accretion of $180,000 and business acquisition costs of $13,000 (note 12).
For the six months ended September 30, 2025, the eVerge business contributed revenues of approximately $11,676,000, and a loss before income taxes in the amount of $1,205,000, including amortization, primarily related to the acquired customer relationships, of $2,482,000, change in fair value of contingent consideration of $272,000, interest accretion of $240,000 and business acquisition costs of $883,000 (note 12).
If the acquisition had occurred on April 1, 2025, the Company’s pro-forma consolidated revenues and loss before income taxes would have been $254,703,000 and $33,630,000, respectively, for the six months ended September 30, 2025. These amounts have been calculated using eVerge’s results and adjusting for:
•differences in accounting policies between the Company and eVerge;
•the removal of transaction costs incurred by eVerge from April 1, 2025 to May 31, 2025; and
•the additional amortization that would have been charged assuming the fair value adjustments to intangibles had been applied from April 1, 2025.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 10
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
4. INTANGIBLES
As atSeptember 30, 2025March 31, 2025
Customer relationshipsSoftware
Tradenames (a)
Non-compete agreementsTotalCustomer
relationships		Software
Tradenames (a)
Non-compete agreementsTotal
$$$$$$$$$$
Opening cost175,492 16,833 3,020 8,806 204,151 163,297 15,866 2,844 7,738 189,745 
Additions, purchased— — — — — — 116 — — 116 
Additions through business acquisition (note 3)
7,008 24 — 344 7,376 7,800 300 — 1,600 9,700 
Additions, internally generated— 97 — — 97 — 123 — — 123 
Disposals / retirements— (46)— — (46)(424)(338)— (810)(1,572)
Foreign currency translation adjustment(2,570)(426)(97)(149)(3,242)4,819 766 176 278 6,039 
Ending cost179,930 16,482 2,923 9,001 208,336 175,492 16,833 3,020 8,806 204,151 
Opening accumulated amortization107,441 15,206 — 7,054 129,701 91,530 10,578 — 6,364 108,472 
Amortization8,924 1,110 — 238 10,272 13,321 4,361 — 1,244 18,926 
Impairment loss (note 5)1,072 — 733 — 1,805 — — — — — 
Disposals / retirements— — — — — (424)(338)— (810)(1,572)
Foreign currency translation adjustment(1,700)(383)5 (144)(2,222)3,014 605 — 256 3,875 
Ending accumulated amortization115,737 15,933 738 7,148 139,556 107,441 15,206 — 7,054 129,701 
Net carrying amount64,193 549 2,185 1,853 68,780 68,051 1,627 3,020 1,752 74,450 
(a) Tradenames are allocated to the Industry Solutions CGU for the purpose of impairment testing.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 11
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
5. GOODWILL
As atSeptember 30, 2025
CanadaFranceEPM-USERP-USERP-CAN
Industry Solutions
Not allocatedTotal
$$$$$$$$
Beginning balance78,405 143 10,196 67,893 — 10,108 14,662 181,407 
Allocation (a)
— — — — 14,662 — (14,662)— 
Business acquisition (note 3)
— — 20,025 — — — — 20,025 
Impairment loss(26,500)— — — — (9,723)— (36,223)
Foreign currency translation adjustment— 7 (71)(2,181)— (385)— (2,630)
Net carrying amount51,905 150 30,150 65,712 14,662 — — 162,579 
As atMarch 31, 2025
CanadaFranceEPM-USERP-USERP-CAN
Industry Solutions
Not allocatedTotal
$$$$$$$$
Beginning balance78,405 135 9,603 63,941 — 14,409 — 166,493 
Business acquisition— — — — — — 14,662 14,662 
Impairment loss— — — — — (5,144)— (5,144)
Foreign currency translation adjustment— 8 593 3,952 — 843 — 5,396 
Net carrying amount78,405 143 10,196 67,893 — 10,108 14,662 181,407 
(a) During the six months ended September 30, 2025, upon completion of the purchase price allocation, the Company allocated the goodwill from the acquisition of XRM Vision Inc. and its affiliates (the “XRM Acquisition”) to the ERP-CAN CGU for the purpose of impairment testing. There were no other changes to the purchase price allocation.
The carrying amounts of the Company's goodwill are reviewed for impairment when events or changes in circumstances indicate that the carrying value may be impaired. At each reporting date, the Company assesses whether there is any indication of impairment. During the three months ended September 30, 2025, management concluded that profitability targets not being achieved for the Canada and Industry Solutions CGUs constituted an indication of impairment. Consequently, management performed impairment tests for the Canada and Industry Solutions CGUs. In assessing whether the goodwill is impaired, the carrying amount of the CGU was compared to its recoverable amount. The recoverable amount of the CGU is based on the higher of the value in use and fair value less costs of disposal.
The recoverable amount of the Canada and Industry Solutions CGUs were determined based on their value-in-use. The value-in-use calculations covered a forty-two months forecast, followed by an extrapolation of future expected net operating cash flows for the remaining useful lives using the long-term growth rate determined by management. The present value of the future expected operating cash flows is determined by applying a suitable pre-tax weighted average cost of capital (“WACC”) reflecting current market assessments of the time value of money and the CGU-specific risks.

Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 12
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
5. GOODWILL (CONT'D)
Key assumptions used in the impairment testing of the Canada and Industry Solutions CGUs were as follows:
As atSeptember 30, 2025March 31, 2025
CanadaIndustry SolutionsCanadaIndustry Solutions
%%%%
Pre-tax WACC14.4 14.1 14.0 17.5 
Long-term growth rate of net operating cash flows2.02.21.9 2.1 
As a result of the impairment tests performed, management concluded that the recoverable amount of the Canada and Industry Solutions CGUs were less than their carrying amount, resulting in an impairment of goodwill of $26,500,000 and $9,723,000, respectively, and an impairment of intangibles of $1,805,000 for the Industry Solutions CGU for the three and six months ended September 30, 2025.
Varying the key assumptions in the values of the recoverable amount calculations, individually, as indicated below, assuming all other variables remain constant, would have the following effects on the net earnings:
As atSeptember 30, 2025
IncreaseDecrease
$$
Canada
After-tax WACC (1% movement (100 basis points))(16,310)20,401 
Long-term growth rate of net operating cash flows (1% movement (100 basis points))15,788 (12,753)
Furthermore, a decrease of 5% of the forty-two months forecasts would result in the increase of impairment in the amount of $8,149,000 for the Canada CGU.
6. CONTINGENT CONSIDERATION
The following table presents information concerning contingent consideration activity for the period:
As atSeptember 30,March 31,
20252025
$$
Beginning balance5,359 4,082 
Business acquisition (note 3)4,815 5,104 
Change in fair value (note 12)(4,172)— 
Recovery from change in estimate— (4,056)
Foreign currency translation adjustment63 229 
6,065 5,359 
Current portion of contingent consideration3,700 — 
2,365 5,359 
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 13
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
7. LONG-TERM DEBT
The following table summarizes the Company’s long-term debt:
As atSeptember 30,March 31,
20252025
$$
Senior secured revolving credit facility (the "Credit Facility") (a)
102,310 77,729 
Subordinated unsecured loans (b)
20,000 20,000 
Balance of purchase price payable with a nominal value as at March 31, 2025 of US$3,115,000 ($4,479,000), non-interest bearing (4.4% effective interest rate), matured on July 1, 2025
— 4,431 
Balance of purchase price payable with a nominal value of $8,625,000, non-interest bearing (8.0% effective interest rate), payable in annual installments of $3,450,000 for the first and second anniversaries, and $1,725,000 for the third anniversary, maturing on December 1, 2027
8,020 7,718 
Balance of purchase price payable with a nominal value of US$7,520,000 ($10,466,000), non-interest bearing (8.0% effective interest rate), payable in annual installments of US$3,760,000 ($5,233,000), maturing on May 31, 2027 (note 3)
9,574 — 
Other debt 204 379 
Unamortized transaction costs (net of accumulated amortization of $250,000 and $403,000)
(224)(338)
139,884 109,919 
Current portion of long-term debt8,581 8,059 
131,303 101,860 
(a) The Credit Facility is available to a maximum amount of $140,000,000 which can be increased under an accordion provision to $190,000,000, under certain conditions, and can be drawn in Canadian dollars and the equivalent amount in U.S. dollars. It is available in prime rate advances, CORRA advances, SOFR advances and letters of credit of up to $2,500,000.
The advances bear interest at the Canadian or U.S. prime rate, plus an applicable margin ranging from 0.75% to 1.75%, or CORRA or SOFR rates, plus an applicable margin ranging from 2.00% to 3.00%, as applicable for Canadian and U.S. advances, respectively. The applicable margin is determined based on certain financial ratios. As security for the Credit Facility, Alithya provided a first ranking hypothec on the universality of its assets excluding any leased equipment and Investissement Québec’s first ranking lien on tax credits receivable for the financing related to refundable tax credits. Under the terms of the agreement, the Company is required to maintain certain financial covenants which are measured on a quarterly basis.
The Credit Facility matures on April 1, 2027 and is renewable for additional one-year periods at the lender’s discretion, provided that the term of the Credit Facility never exceeds three years at a given time.
As at September 30, 2025, the amount outstanding under the Credit Facility includes $65,410,000 (March 31, 2025 - $61,829,000) payable in U.S. dollars (US$47,000,000; March 31, 2025 - US$43,000,000).
The Company has an additional operating credit facility available to a maximum amount of $2,783,000 (US$2,000,000), bearing interest at the U.S. prime rate plus 1.00%. This operating credit facility can be terminated by the lender at any time. There was no amount outstanding under this additional operating credit facility as at September 30, 2025.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 14
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
7. LONG-TERM DEBT (CONT’D)
(b) The subordinated unsecured loans with Investissement Québec, in the amount of $20,000,000, mature on October 1, 2027 and are renewable for one additional year at the lender’s discretion. For the period up to November 1, 2025, the first $10,000,000 bears fixed interest rates ranging between 6.00% and 7.25% and the additional $10,000,000 bears interest ranging between 7.10% and 8.35%, determined and payable quarterly, based on certain financial ratios. Starting November 1, 2025, the total amount of $20,000,000 will bear variable interest rate at Canadian prime rate, plus an applicable margin ranging from 3.21% to 4.46%, determined and payable quarterly based on certain financial ratios.
Under the terms of the loans, the Company is required to maintain compliance with certain financial covenants which are measured on a quarterly basis.
(a)(b) The Company was in compliance with all of its financial covenants as at September 30, 2025 and March 31, 2025.
8. SHARE CAPITAL
The following table presents information concerning issued share capital activity for the period:
Subordinate Voting SharesMultiple Voting Shares
Number of shares$Number of shares$
Beginning balance as at April 1, 202592,030,852 311,861 7,274,248 4,824 
Shares issued pursuant to vesting of share-based compensation granted on business acquisition622,420 1,966 — — 
Exercise of stock options— — 52,632 178 
Shares purchased for cancellation(30,345)(103)— — 
Shares purchased for settlement of RSUs(78,486)(266)— — 
Delivery of shares upon settlement of RSUs78,486 188 — — 
Ending balance as at September 30, 2025 (a)
92,622,927 313,646 7,326,880 5,002 
(a) Includes 1,724,553 Subordinate Voting Shares issued as part of the XRM Acquisition subject to forfeitures which are not considered as outstanding as per IFRS.
During the six months ended September 30, 2025, the following transactions occurred:
•As part of the acquisition of Datum Consulting Group, LLC and its international affiliates (the “Datum Acquisition’’), 622,420 Subordinate Voting Shares, with a total value of $1,966,000 (US$1,438,000), reclassified from contributed surplus, were issued as settlement of the third anniversary share consideration.
•52,632 stock options were exercised and 52,632 Multiple Voting Shares were issued with a carrying value of $178,000, for cash consideration of $100,000, with $78,000 reclassified from contributed surplus.
•30,345 Subordinate Voting Shares were purchased for cancellation under the Company's normal course issuer bid for a total cash consideration of $50,000 and a carrying value of $103,000. The excess of the carrying value over the purchase price in the amount of $53,000 was recorded as a reduction to deficit.
•78,486 Subordinate Voting Shares were purchased on the open market in connection with the settlement of RSUs for a total cash consideration of $195,000 and a carrying value of $266,000. The excess of the carrying value over the purchase price in the amount of $71,000 was recorded as a reduction to deficit. A total of 103,749 RSUs were settled net of withholding tax and 78,486 Subordinate Voting Shares were delivered with a carrying value of $188,000, which was reclassified from contributed surplus. The purchase and delivery of Subordinate Voting Shares upon settlement of RSUs were completed by the administrative agent of the Share Unit Plan (“SUP”), in accordance with the terms of the SUP and the Services Agreement entered into between the Company and the administrative agent.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 15
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
8. SHARE CAPITAL (CONT’D)
Normal Course Issuer Bid ("NCIB")
On September 9, 2025, the Company’s Board of Directors authorized and subsequently the TSX approved the implementation of a NCIB. Under the NCIB, the Company is allowed to purchase for cancellation up to 5,939,183 Subordinate Voting Shares, representing 10% of the Company’s public float as of the close of markets on September 2, 2025.
The NCIB plan commenced on September 12, 2025 and will end on the earlier of September 11, 2026 and the date on which the Company will have acquired the maximum number of Subordinate Voting Shares allowable under the NCIB or will otherwise have decided not to make any further purchases. All purchases of Subordinate Voting Shares are made by means of open market transactions at their market price at the time of acquisition. Concurrently, the Company entered into an automatic share purchase plan (“ASPP”) with a designated broker in connection with its NCIB. The ASPP allows for the designated broker to purchase for cancellation Subordinate Voting Shares, on behalf of the Company, subject to certain trading parameters established, from time to time, by the Company.
9. SHARE-BASED COMPENSATION
Stock options
The following table presents information concerning outstanding stock options for the period:
Number of stock options
Weighted average exercise price (a)
$
Beginning balance as at April 1, 20253,547,141 3.29 
Forfeited(4,500)3.25 
Expired(197,500)3.13 
Exercised(52,632)1.90 
Ending balance as at September 30, 20253,292,509 3.32 
Exercisable at period end2,941,626 3.33 
(a) Following the delisting from Nasdaq, the Company converted the U.S. dollar exercise prices in Canadian dollars.
Included in the 2,941,626 stock options exercisable issued, 200,000 stock options are available to purchase Multiple Voting Shares at a weighted average exercise price of $3.38 with a weighted average exercise period of 1.1 year as at September 30, 2025.
Deferred Share Units (“DSUs”)
The following table presents information concerning the outstanding number of DSUs for the period:
Number of DSUs
Beginning balance as at April 1, 20251,471,139 
Granted to non-employee directors190,006 
Granted to employees251,967 
Ending balance as at September 30, 20251,913,112 
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 16
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
9. SHARE-BASED COMPENSATION (CONT’D)
During the six months ended September 30, 2025, 190,006 fully vested DSUs, in aggregate, were granted under the Long Term Incentive Plan (“LTIP”) to non-employee directors of the Company at an average grant date fair value of $2.06, per DSU, for an aggregate fair value of $391,000.
During the six months ended September 30, 2025, 251,967 DSUs, in aggregate, were granted under the SUP at a grant date fair value of $1.91, per DSU, for an aggregate fair value of $481,000. The expense was recorded as at March 31, 2025 as the related services were performed and the performance conditions were met at that date.
As at September 30, 2025, included in the 1,913,112 DSUs are 1,464,094 DSUs issued under the LTIP and 449,018 DSUs issued under the SUP.
Restricted Share Units (“RSUs”)
The following table presents information concerning the outstanding number of RSUs for the period:
Number of RSUs
Beginning balance as at April 1, 20252,155,231 
Granted1,701,230 
Forfeited(293,655)
Settled(103,749)
Ending balance as at September 30, 20253,459,057 
RSUs issued under the SUP are settled in Subordinate Voting Shares purchased on the open market through the SUP’s administrative agent, and to the extent that the Company has an obligation under tax laws to withhold an amount for an employee’s tax obligation associated with the settlement, the Company settles RSUs on a net basis.
During the six months ended September 30, 2025, 1,701,230 RSUs, in aggregate, vesting in June 2028, were granted under the SUP at an average grant date fair value of $2.31, per RSU, for an aggregate fair value of $3,930,000.
During the six months ended September 30, 2025, 103,749 RSUs issued under the SUP with a carrying value of $248,000, were settled on a net basis. 78,486 Subordinate Voting Shares were purchased on the open market and delivered, with an amount of $188,000 previously credited to contributed surplus transferred to share capital. The balance of 25,263 RSUs, representing an amount of $60,000, were surrendered for cancellation to satisfy the employee’s statutory withholding tax requirements.
As at September 30, 2025, all 3,459,057 RSUs were issued under the SUP.
Performance Share Units (“PSUs”)
The following table presents information concerning the outstanding number of PSUs for the period:
Number of PSUs
Beginning balance as at April 1, 20253,072,867 
Granted1,509,310 
Forfeited(588,560)
Ending balance as at September 30, 20253,993,617 
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 17
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
9. SHARE-BASED COMPENSATION (CONT’D)
During the six months ended September 30, 2025, 1,509,310 PSUs, in aggregate, vesting in June 2028, were granted under the SUP at an average grant date fair value of $2.31, per PSU, for an aggregate fair value of $3,487,000.
As at September 30, 2025, included in the 3,993,617 PSUs are 2,492,548 PSUs issued under the LTIP and 1,501,069 PSUs under the SUP.
Share-Based Compensation expense
Total share-based compensation expense for the period is summarized as follows:
For the three months ended September 30,For the six months ended September 30,
2025202420252024
$$$$
Stock options(8)19 50 69 
Share purchase plan – employer contribution342 343 670 687 
Share-based compensation granted on business acquisitions185 163 928 573 
DSUs178 182 391 364 
RSUs428 253 982 560 
PSUs179 79 655 471 
1,304 1,039 3,676 2,724 
10. LOSS PER SHARE
For the three months ended September 30,For the six months ended September 30,
2025202420252024
$$$$
Net loss(30,961)(270)(30,776)(3,032)
Weighted average number of Shares outstanding - basic and diluted (a) (b)
98,255,26995,909,89897,920,90295,649,381
Basic and diluted loss per share(0.32)(0.00)(0.31)(0.03)
(a) "Shares" include the Subordinate Voting Shares and Multiple Voting Shares.
(b) The weighted average number of basic Shares calculation for the three and six months ended September 30, 2025 excludes the impact of 1,724,553 Subordinate Voting Shares issued as part of the XRM Acquisition as they were subject to forfeitures.
For the three and six months ended September 30, 2025 and 2024, the potentially dilutive outstanding equity instruments, which are the DSUs, PSUs and options mentioned in Note 9 granted under the LTIP, certain shares to be issued as part of anniversary payments related to business acquisition, and the Subordinate Voting Shares issued as part of the XRM acquisition subject to forfeiture, were not included in the calculation of diluted earnings per share since the Company incurred losses and the inclusion of these equity instruments would have an antidilutive effect.

Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 18
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
11. ADDITIONAL INFORMATION ON CONSOLIDATED LOSS
The following table provides additional information on the consolidated loss:
For the three months ended September 30,For the six months ended September 30,
2025202420252024
$$$$
Expenses by Nature
Employee compensation and subcontractor costs105,523 97,067 213,084 204,293 
Tax credits (a)
(1,579)(1,935)(3,060)(3,889)
Licenses and telecommunications3,392 3,280 6,699 6,577 
Professional fees2,766 1,690 5,370 3,737 
Other expenses2,706 3,153 5,616 6,541 
Loss on disposal of property and equipment and intangible— — 37 — 
Depreciation of property and equipment503 505 963 995 
Depreciation of right-of-use assets475 597 1,080 1,202 
113,786 104,357 229,789 219,456 
Expenses by Function
Cost of revenues81,512 77,386 165,877 159,731 
Selling, general and administrative expenses (b)
31,296 25,869 61,869 57,528 
Depreciation978 1,102 2,043 2,197 
113,786 104,357 229,789 219,456 
(a) Tax credits are included in cost of revenues.
(b) For the three and six months ended September 30, 2025, selling, general and administrative expenses include termination and benefit costs for management personnel of nil (2024 - $1,502,000) and nil (2024 - $246,000) of reversal of share-based compensation expense for forfeited equity instruments.
Deferred income tax recovery
During the six months ended September 30, 2025, the Company recognized a deferred tax asset in the amount of $1,948,000 that was probable of being realized as a result of the deferred tax liability pursuant to the eVerge Acquisition (note 3). The recognized deferred tax asset relates to previous years' net operating losses of the Company in the U.S. available for carryforwards in the amount of approximately $7,319,000 that was previously not recognized.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 19
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
12. BUSINESS ACQUISITION, INTEGRATION AND REORGANIZATION COSTS (RECOVERY)
The following table summarizes business acquisition, integration and reorganization costs (recovery):
For the three months ended September 30,For the six months ended September 30,
2025202420252024
$$$$
Acquisition costs (a)
23 — 924 — 
Integration costs (b)
264 512 950 636 
Reorganization costs (c)
— — 423 566 
Employee compensation on business acquisition (d)
—3737130
Change in fair value of contingent consideration (e)
(4,172)— (4,172)— 
(3,885)549(1,838)1,332
(a) The acquisition costs consisted mainly of professional fees incurred in relation to business acquisition (note 3).
(b) For the three months ended September 30, 2025, integration costs consisted mainly of common area expenses on vacated premises in relation to business acquisitions. For the six months ended September 30, 2025, integration costs consisted mainly of loss on terminated lease previously acquired as part of business combinations, transition costs related to system integrations and common area expenses on vacated premises in relation to business acquisitions. For the three and six months ended September 30, 2024 , integration costs consisted mainly of transition costs related to system integrations.
(c) Reorganization costs consisted of employee termination and benefits costs.
(d) Employee compensation on business acquisition included deferred cash consideration from acquisition.
(e) Change in fair value of contingent consideration, as a result of changes in estimate of profitability targets and weighting of scenarios, consisted of $4,444,000 of unrealized gain related to the XRM Acquisition (note 16) net of $272,000 of unrealized loss related to the eVerge Acquisition (note 3). The contingent consideration is presented within Level 3 of the fair value hierarchy.
13. NET FINANCIAL EXPENSES
The following table summarizes net financial expenses:
For the three months ended September 30,For the six months ended September 30,
2025202420252024
$$$$
Interest on long-term debt1,491 1,315 3,607 3,452 
Interest on lease liabilities89 113 186 237 
Amortization of finance costs57 55 114 132 
Interest accretion on balances of purchase price payable333 44 588 132 
Financing fees219 75 602 183 
Interest income(63)(100)(131)(262)
2,1261,5024,9663,874
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 20
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
14. SUPPLEMENTARY CASH FLOW INFORMATION
Changes in non-cash working capital items are as follows:
For the three months ended September 30,For the six months ended September 30,
2025202420252024
$$$$
Accounts receivable and other receivables(4,181)(8,581)7,283 6,487 
Unbilled revenues(2,509)7,624 (10,482)130 
Tax credits receivable(1,579)(1,926)(2,800)5,934 
Prepaids253 913 589 (3)
Other assets71 783 141 783 
Accounts payable and accrued liabilities(4,798)(3,901)(13,858)(7,574)
Deferred revenues2,113 109 (4,408)(1,382)
(10,630)(4,979)(23,535)4,375
During the three and six months ended September 30, 2025, non-cash investing and financing activities included additions to right-of-use assets and lease liabilities in the amount of $330,000 and $409,000, respectively (2024 - nil and $183,000, respectively).
15. SEGMENT INFORMATION
The following tables present the Company's operations based on reportable segments:
For the three months ended September 30, 2025
CanadaU.S.InternationalTotal
$$$$
Revenues55,243 63,115 5,934 124,292 
Cost of revenues and operating expenses
Employee compensation and subcontractor costs47,021 45,737 4,995 97,753 
Tax credits(1,579)— — (1,579)
Licenses and telecommunication1,008 1,781 175 2,964 
Other expenses1,175 1,769 243 3,187 
47,625 49,287 5,413 102,325 
Operating income by segment7,618 13,828 521 21,967 
Head office general and administrative expenses10,483 
Business acquisition, integration and reorganization costs recovery (a)
(3,885)
Foreign exchange gain(469)
Operating income before depreciation, amortization and impairment15,838 
Depreciation and amortization6,295 
Impairment of goodwill and intangibles (b)
38,028 
Operating loss(28,485)
(a) The change in fair value of the contingent consideration of $4,172,000 included in business acquisition, integration and reorganization costs recovery relate mostly to the Canada segment.
(b) Impairment of goodwill in the amount of $26,500,000 relates to the Canada segment and impairment of goodwill and intangibles in the amount of $9,723,000 and $1,805,000, respectively, relate to the U.S. segment.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 21
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
15. SEGMENT INFORMATION (CONT’D)
For the three months ended September 30, 2024
CanadaU.S.InternationalTotal
$$$$
Revenues59,642 46,808 5,064 111,514 
Cost of revenues and operating expenses
Employee compensation and subcontractor costs50,879 36,123 4,236 91,238 
Tax credits(1,928)— (7)(1,935)
Licenses and telecommunication857 1,482 105 2,444 
Other expenses1,144 1,667 216 3,027 
50,952 39,272 4,550 94,774 
Operating income by segment8,690 7,536 514 16,740 
Head office general and administrative expenses8,481 
Business acquisition, integration and reorganization costs549 
Foreign exchange loss259 
Operating income before depreciation and amortization7,451 
Depreciation and amortization5,737 
Operating income1,714 
For the six months ended September 30, 2025
CanadaU.S.InternationalTotal
$$$$
Revenues114,849 122,601 11,000 248,450 
Cost of revenues and operating expenses
Employee compensation and subcontractor costs99,920 87,828 9,560 197,308 
Tax credits(2,974)— (86)(3,060)
Licenses and telecommunication2,026 3,414 351 5,791 
Other expenses2,361 3,316 455 6,132 
101,333 94,558 10,280 206,171 
Operating income by segment13,516 28,043 720 42,279 
Head office general and administrative expenses21,575 
Business acquisition, integration and reorganization costs recovery (a)
(1,838)
Foreign exchange loss697 
Operating income before depreciation, amortization and impairment21,845 
Depreciation and amortization12,315 
Impairment of goodwill and intangibles (b)
38,028 
Operating loss(28,498)
(a) The change in fair value of the contingent consideration of $4,172,000 and the reorganization costs included in business acquisition, integration and reorganization costs recovery relate mostly to the Canada segment.
b) Impairment of goodwill in the amount of $26,500,000 relates to the Canada segment and impairment of goodwill and intangibles in the amount of $9,723,000 and $1,805,000, respectively, relate to the U.S. segment.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 22
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
15. SEGMENT INFORMATION (CONT’D)
For the six months ended September 30, 2024
CanadaU.S.InternationalTotal
$$$$
Revenues124,777 97,516 10,096 232,389 
Cost of revenues and operating expenses
Employee compensation and subcontractor costs106,108 74,783 8,820 189,711 
Tax credits(3,875)— (14)(3,889)
Licenses and telecommunication1,658 2,964 203 4,825 
Other expenses2,319 3,394 451 6,164 
106,210 81,141 9,460 196,811 
Operating income by segment18,567 16,375 636 35,578 
Head office general and administrative expenses20,448 
Business acquisition, integration and reorganization costs (a)
1,332 
Foreign exchange loss242 
Operating income before depreciation and amortization13,556 
Depreciation and amortization11,476 
Operating income2,080 
(a) The reorganization costs included in business acquisition, integration and reorganization costs mostly relate to the Canada segment.
Information about revenues
An analysis of the Company’s revenues from customers for each major service category is as follows:
For the three months ended September 30, 2025
CanadaU.S.InternationalTotal
$$$$
Strategic consulting and enterprise transformation services - time and materials arrangements (a)
44,847 35,559 5,376 85,782 
Enterprise transformation services - fixed-fee arrangements7,215 12,727 385 20,327 
Business enablement services (b)
3,181 14,829 173 18,183 
55,243 63,115 5,934 124,292 
For the three months ended September 30, 2024
CanadaU.S.InternationalTotal
$$$$
Strategic consulting and enterprise transformation services - time and materials arrangements (a)
49,776 25,889 4,523 80,188 
Enterprise transformation services - fixed-fee arrangements6,401 7,037 481 13,919 
Business enablement services (b)
3,465 13,882 60 17,407 
59,642 46,808 5,064 111,514 
(a) Including $36,178,000 (2024 - $29,925,000) of time and materials arrangements applying the Input Method for the three months ended September 30, 2025.
(b) Including support revenues of $2,040,000 (2024 - $2,572,000) for Canada, $9,260,000 (2024 - $8,153,000) for U.S. and $114,000 (2024 -nil) for the International operating segment for a total of $11,414,000 (2024 - $10,725,000) for the three months ended September 30, 2025.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 23
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
15. SEGMENT INFORMATION (CONT’D)
For the six months ended September 30, 2025
CanadaU.S.InternationalTotal
$$$$
Strategic consulting and enterprise transformation services - time and materials arrangements (c)
95,741 66,158 9,955 171,854 
Enterprise transformation services - fixed-fee arrangements12,119 25,474 726 38,319 
Business enablement services (d)
6,989 30,969 319 38,277 
114,849 122,601 11,000 248,450 
For the six months ended September 30, 2024
CanadaU.S.InternationalTotal
$$$$
Strategic consulting and enterprise transformation services - time and materials arrangements (c)
105,637 52,890 9,177 167,704 
Enterprise transformation services - fixed-fee arrangements12,208 16,191 860 29,259 
Business enablement services (d)
6,932 28,435 59 35,426 
124,777 97,516 10,096 232,389 
(c) Including $70,278,000 (2024 - $61,873,000) of time and materials arrangements applying the Input Method for the six months ended September 30, 2025.
(d) Including support revenues of $4,907,000 (2024 - $5,204,000) for Canada, $20,547,000 (2024 - $15,744,000) for U.S. and $218,000 (2024 - nil) for the International operating segment for a total of $25,672,000 (2024 - $20,948,000) for the six months ended September 30, 2025.
Major customer
During the three months ended September 30, 2025, no customer generated more than 10% of total revenues (September 30, 2024 - One Canadian customer generated more than 10% of total revenues for $12,972,000).
During the six months ended September 30, 2025, no customer generated more than 10% of total revenues (September 30, 2024 - One Canadian customer generated more than 10% of total revenues for $28,620,000).
As at September 30, 2025, no customer represented more than 10% of total accounts receivable and other receivables (March 31, 2025 - one Canadian customer represented more than 10% of total accounts receivable and other receivables for $10,210,000 or 11%).
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 24
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
16. FINANCIAL INSTRUMENTS
Fair Value of Financial Instruments
The carrying amount of cash, accounts receivable and other receivables, other assets, accounts payable and accrued liabilities and long-term debt bearing interest at variable rates is a reasonable approximation of fair value.
The fair value of the long-term debt bearing interest at fixed rates is estimated by discounting expected cash flows at rates that would be currently offered to the Company for debts of the same remaining maturities and conditions (Level 2). For both September 30, 2025 and March 31, 2025, the Company has determined that the fair value of the Credit Facility, the subordinated unsecured loans and the balances of purchase price payable are not significantly different than their carrying amount.
The contingent consideration related to the XRM Acquisition is payable based on the achievement of growth in excess of the trailing twelve months gross margin over a consecutive 12 months period within the 18 months following the acquisition date and is included in Level 3 of the fair value hierarchy. The fair value was determined using a scenario-based method, under which the Company identifies multiple outcomes, probability-weights the contingent consideration payoff under each outcome, and discounts the result to arrive at the expected present value of the contingent consideration. The actual earn-out payout can range from nil to $10,500,000. The maximum potential impact on the results can be an increase of $914,000 or a decrease of $9,586,000 in earnings.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended September 30, 2025 and 2024
| 25