Alithya Group inc

7.7 Segment Reporting

During the first quarter ended June 30, 2026, the Company began reporting its financial results under a new segment structure designed to better reflect the Company’s operational structure. The new structure includes two reportable segments based on two primary areas of service: Enterprise Transformation and Industry Services and Solutions. Operating segments that have met the aggregation criteria have been combined into the two reportable segments.

Enterprise Transformation helps organizations modernize core business systems and adopt AI technologies across the enterprise. Alithya delivers consulting, solution design, implementation, integration, and managed services across leading AI, cloud, and enterprise platforms, including Microsoft, Oracle, and Salesforce. Our expertise spans Enterprise Resource Planning (ERP), Enterprise Performance Management (EPM), Customer Relationship Management (CRM), Human Capital Management (HCM), and Supply Chain Management (SCM), helping clients optimize operations, automate processes, improve decision-making, and support technology adoption and business transformation.

Industry Services and Solutions helps organizations address industry-specific business challenges and achieve broader business transformation through AI, cloud, and digital innovation. Combining sector expertise with strategic consulting, advisory services, business enablement, and hyperscaler cloud migration services across AWS and Microsoft Azure, Alithya guides clients from strategy and planning through implementation, organizational change, and sustained value realization. The emphasis is not on a specific technology platform, but on delivering measurable business outcomes, improving performance, and helping organizations adapt and compete in a rapidly changing market.

Operating income by segment refers to operating income before head office general and administrative expenses, business acquisition, integration and reorganization costs, depreciation and amortization, foreign exchange (gain) loss 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:

(a)Comparatives were adjusted to reflect the new segment structure.

(b)The reorganization costs included in Business acquisition, integration and reorganization costs relate to the Industry Services and Solutions segment.

For a discussion of revenue variances by segment, refer to section 7.1 titled “Revenues”. For additional discussion on business acquisition, integration and reorganization costs refer to section 7.3.3 titled accordingly.

Operating income by segment from Enterprise Transformation decreased by $4.6 million, or 31.1%, to $10.2 million for the three months ended June 30, 2026, from $14.8 million for the three months ended June 30, 2025, primarily due to decreased revenues and increased employee compensation and subcontractor costs, mainly due to a full quarter of expenses from eVerge.

Operating income by segment from Industry Services and Solutions decreased by $1.8 million, or 35.0%, to $3.4 million for the three months ended June 30, 2026, from $5.2 million for the three months ended June 30, 2025, due to decreased revenues and tax credits, partially offset by decreased employee compensation and subcontractor costs.

Datum Services was divested on March 31, 2026 as part of the Datum Transaction. Accordingly, this resulted in a $0.4 million operating income decrease for the three months ended June 30, 2026.