Alithya Group inc
For the period ended Dec 31, 2025. Filed Feb 13, 2026.
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Dec 31, 2025 · Filed Feb 13, 2026
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Contents
EX-99.2 · Segment Reporting
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 (recovery), depreciation and amortization, foreign exchange loss (gain) and impairment of goodwill and intangibles, 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:
| (in $ thousands) | U.S. | Canada | International | Total |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| Revenues | 54,953 | 54,024 | 6,185 | 115,162 |
| Cost of revenues and operating expenses | ||||
| Employee compensation and subcontractor costs | 42,591 | 44,460 | 4,951 | 92,002 |
| Tax credits | — | (1,432) | — | (1,432) |
| Licenses and telecommunication | 2,050 | 1,100 | 162 | 3,312 |
| Other expenses | 1,817 | 1,406 | 244 | 3,467 |
| 46,458 | 45,534 | 5,357 | 97,349 | |
| Operating income by segment | 8,495 | 8,490 | 828 | 17,813 |
| Head office general and administrative expenses | 9,759 | |||
| Business acquisition, integration and reorganization costs recovery (a) | (372) | |||
| Foreign exchange loss | 581 | |||
| Operating income before depreciation and amortization | 7,845 | |||
| Depreciation and amortization | 4,793 | |||
| Operating income | 3,052 | |||
(a)The change in fair value of the contingent consideration, representing a gain of $914,000 included in business acquisition, integration and reorganization costs recovery, relates to the Canada segment.
| Management’s Discussion and Analysis | |
|---|---|
| For the three and nine months ended December 31, 2025 | | 24 |
| (in $ thousands) | U.S. | Canada | International | Total |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| Revenues | 48,848 | 61,695 | 5,218 | 115,761 |
| Cost of revenues and operating expenses | ||||
| Employee compensation and subcontractor costs | 36,409 | 52,576 | 4,216 | 93,201 |
| Tax credits | — | (1,795) | — | (1,795) |
| Licenses and telecommunication | 1,445 | 813 | 110 | 2,368 |
| Other expenses | 1,499 | 1,272 | 223 | 2,994 |
| 39,353 | 52,866 | 4,549 | 96,768 | |
| Operating income by segment | 9,495 | 8,829 | 669 | 18,993 |
| Head office general and administrative expenses | 10,422 | |||
| Business acquisition, integration and reorganization costs recovery (a) | (1,244) | |||
| Foreign exchange gain | (687) | |||
| Operating income before depreciation, amortization and impairment | 10,502 | |||
| Depreciation and amortization | 5,978 | |||
| Impairment of goodwill (a) | 5,144 | |||
| Operating loss | (620) | |||
(a)The recovery of $2,738,000 included in business acquisition, integration and reorganization costs recovery and the impairment of goodwill relate to the U.S. segment.
| (in $ thousands) | U.S. | Canada | International | Total |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| Revenues | 177,554 | 168,873 | 17,185 | 363,612 |
| Cost of revenues and operating expenses | ||||
| Employee compensation and subcontractor costs | 130,419 | 144,383 | 14,511 | 289,313 |
| Tax credits | — | (4,406) | (86) | (4,492) |
| Licenses and telecommunication | 5,464 | 3,127 | 512 | 9,103 |
| Other expenses | 5,133 | 3,767 | 699 | 9,599 |
| 141,016 | 146,871 | 15,636 | 303,523 | |
| Operating income by segment | 36,538 | 22,002 | 1,549 | 60,089 |
| Head office general and administrative expenses | 31,331 | |||
| Business acquisition, integration and reorganization costs recovery (a) | (2,210) | |||
| Foreign exchange loss | 1,278 | |||
| Operating income before depreciation, amortization and impairment | 29,690 | |||
| Depreciation and amortization | 17,108 | |||
| Impairment of goodwill and intangibles (b) | 38,028 | |||
| Operating loss | (25,446) | |||
(a)The change in fair value of the contingent consideration, representing a net gain of $5,086,000 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.
| Management’s Discussion and Analysis | |
|---|---|
| For the three and nine months ended December 31, 2025 | | 25 |
| (in $ thousands) | U.S. | Canada | International | Total |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| Revenues | 146,364 | 186,472 | 15,314 | 348,150 |
| Cost of revenues and operating expenses | ||||
| Employee compensation and subcontractor costs | 111,194 | 158,682 | 13,035 | 282,911 |
| Tax credits | — | (5,669) | (15) | (5,684) |
| Licenses and telecommunication | 4,407 | 2,472 | 313 | 7,192 |
| Other expenses | 4,893 | 3,591 | 676 | 9,160 |
| 120,494 | 159,076 | 14,009 | 293,579 | |
| Operating income by segment | 25,870 | 27,396 | 1,305 | 54,571 |
| Head office general and administrative expenses | 30,870 | |||
| Business acquisition, integration and reorganization costs (a) | 88 | |||
| Foreign exchange gain | (445) | |||
| Operating income before depreciation, amortization and impairment | 24,058 | |||
| Depreciation and amortization | 17,454 | |||
| Impairment of goodwill (a) | 5,144 | |||
| Operating income | 1,460 | |||
(a)The recovery of $2,738,000 included in business acquisition, integration and reorganization costs and the impairment of goodwill relate to the U.S. segment.
For a discussion of revenue variances by segment, refer to section 8.1 titled “Revenues”.
Operating income by segment in the U.S. decreased by $1.0 million, or 10.5%, to $8.5 million for the three months ended December 31, 2025, from $9.5 million for the three months ended December 31, 2024, primarily due to increased employee compensation and subcontractor costs and increased licenses and telecommunication costs, partially offset by increased revenues and a positive margin contribution from eVerge.
Operating income by segment in Canada decreased by $0.3 million, or 3.8%, to $8.5 million for the three months ended December 31, 2025, from $8.8 million for the three months ended December 31, 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.
Operating income for the international segment increased by $0.1 million, or 23.8% to $0.8 million for the three months ended December 31, 2025, from $0.7 million for the three months ended December 31, 2024, primarily due to increased revenues, partially offset by increased employee compensation and subcontractor costs.
Operating income by segment in the U.S. increased by $10.6 million, or 41.2%, to $36.5 million for the nine months ended December 31, 2025, from $25.9 million for the nine months ended December 31, 2024, primarily due to increased revenues and a positive margin contribution from eVerge since its acquisition on May 31, 2025, partially offset by increased employee compensation and subcontractor costs and increased licenses and telecommunication costs.
Operating income by segment in Canada decreased by $5.4 million, or 19.7%, to $22.0 million for the nine months ended December 31, 2025, from $27.4 million for the nine months ended December 31, 2024, primarily
| Management’s Discussion and Analysis | |
|---|---|
| For the three and nine months ended December 31, 2025 | | 26 |
due to decreased revenues and tax credits, partially offset by decreased employee compensation and subcontractor costs and a positive margin contribution from XRM Vision.
Operating income for the international segment increased by $0.2 million, or 18.7%, to $1.5 million for the nine months ended December 31, 2025, from $1.3 million for the nine months ended December 31, 2024, primarily due to increased revenues and tax credits, partially offset by increased employee compensation and subcontractor costs and licenses and telecommunication costs.
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