Alithya Group inc

8.7 Segment Reporting

Operating income by segment refers to operating income before head office general and administrative expenses, business acquisition, integration and reorganization costs, depreciation and amortization and foreign exchange loss (gain), which are not considered when assessing the underlying financial performance of the reportable segments as they are not directly related to the segment’s operations. Head office general and administrative expenses are expenses and salaries related to centralized functions, such as global finance, legal, human capital, and technology teams, which are not allocated to segments.

The following tables present the Company's operations based on reportable segments:

For a discussion of revenue variances by segment, refer to section 8.1 titled “Revenues”.

Operating income by segment in Canada decreased by $4.0 million, or 40.6%, to $5.9 million for the three months ended June 30, 2025, from $9.9 million for the three months ended June 30, 2024, due to decreased revenues and tax credits, partially offset by decreased employee compensation and subcontractor costs, and a positive margin contribution from XRM Vision since its acquisition, compared to the same quarter last year.

Operating income by segment in the U.S. increased by $5.4 million, or 60.8%, to $14.2 million for the three months ended June 30, 2025, from $8.8 million for the three months ended June 30, 2024, primarily due to increased revenues and decreased other expenses, partially offset by increased employee compensation and subcontractor costs and increased licenses and telecommunication costs.

Operating income for the international segment increased by $0.1 million, or 63.6%, to $0.2 million for the three months ended June 30, 2025, from $0.1 million for the three months ended June 30, 2024.