Alithya Group Inc. reported second‑quarter 2026 revenue of $124.3 million, an 11.5% year‑over‑year increase that was largely driven by a 34.8% jump in U.S. operations to $63.1 million. The U.S. growth was supported by strong demand for enterprise‑application transformation and Microsoft‑based services, while Canadian revenue fell 7.4% as government contracts contracted and several long‑term client projects reached maturity.
Gross margin expanded to 34.4% from 30.6% in the same quarter last year. The improvement reflects a deliberate shift toward higher‑value services and greater utilization of Alithya’s smart‑shoring model in Morocco and India, which has lowered delivery costs and increased billable utilization rates.
Adjusted earnings per share rose to $0.10 from $0.05, and adjusted EBITDA reached $12.8 million, a margin of 10.3% versus 8.3% previously. The beat in adjusted EPS is attributable to disciplined cost management, a higher mix of high‑margin projects, and pricing power in the U.S. market, all of which offset the modest decline in Canadian revenue.
Net loss for the quarter was $31.0 million, driven almost entirely by a $38.0 million impairment charge. The charge reflects a write‑down of certain assets and does not reflect ongoing operating performance, which is why adjusted metrics remain positive.
Bookings for the quarter totaled $90.9 million, giving a book‑to‑bill ratio of 0.73. The lower ratio indicates slower sales cycles and a more cautious pipeline, which is consistent with the company’s focus on high‑margin, long‑term engagements. Net cash from operating activities was $1.1 million, reflecting the company’s ability to generate cash despite the impairment hit.
Management emphasized that the company is accelerating the transformation of its Canadian operations to mirror the high‑margin U.S. model, investing in AI and digital‑transformation services, and maintaining a goal of doubling the business over the next 3‑5 years. While the company did not provide new quarterly guidance, the strategic focus and the continued margin expansion signal confidence in sustained growth.
Investors reacted cautiously to the results, with concerns focused on the sizable net loss and impairment charge, even as revenue and margin expansion underscored the company’s operational improvements.
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