First-quarter results weakened significantly: Revenue fell 15.4% year over year to CAD 105.1 million, while adjusted EBITDA declined to CAD 5.4 million and the company posted a CAD 2.4 million net loss. Delayed project starts, lower utilization, salary increases and reduced tax credits pressured margins. Bookings and late-stage opportunities provided some support: Q1 bookings totaled CAD 89 million, with more than 70% from new business, although the book-to-bill ratio was 0.85.
Management highlighted an expanding pipeline, an $11.7 million Oracle HCM contract and continued demand for AI, cloud and enterprise transformation services. Alithya has begun a strategic review: The board hired Scotiabank to evaluate options including a merger, privatization, sale, recapitalization, strategic investment or remaining public. The company said its public-market valuation may not reflect its intrinsic value or future growth potential.
Alithya Group (TSE:ALYA) reported lower first-quarter revenue and profitability as longer client decision-making and project conversion cycles reduced utilization, while management said its pipeline of late-stage opportunities continued to build. Revenue for the quarter totaled CAD 105.1 million, down 15.4% from a year earlier. Adjusted EBITDA fell to CAD 5.4 million, or 5.2% of revenue, from CAD 11.6 million, or 9.4% of revenue, in the prior-year period.
The company recorded a net loss of CAD 2.4 million, or CAD 0.03 per share, compared with net earnings of CAD 0.2 million a year earlier. → Lumentum Just Delivered the AI Growth Investors Wanted Management said the quarter's primary issue was utilization, as some larger projects took longer than expected to begin while the company continued to carry personnel costs. The company also cited lower tax credits and salary increases that took effect at the start of the fiscal year as factors weighing on gross margin. Beginning April 1, 2026, Alithya adopted a new reporting structure following the integration of recent acquisitions and a business divestiture.
The company now reports two segments: Enterprise Transformation and Industry Services and Solutions. → Ryman Checks Into a $1.38B Hospitality Upgrade According to CFO Pierre Blanchette, Enterprise Transformation includes consulting, implementation, integration and managed services for enterprise platforms including Microsoft, Oracle and Salesforce. The segment covers areas such as ERP, EPM, CRM, HCM, SCM and AI-enabled business transformation. Industry Services and Solutions combines sector expertise, consulting, advisory services, business enablement and cloud migration work across AWS and Microsoft Azure.
Blanchette said the business supports clients from planning and implementation through organizational change and value realization. → Joby's Defense Pivot Accelerates With $500M Resonant Sciences Deal Comparative figures also include a third segment associated with Datum, which was sold on March 31, 2026. Enterprise Transformation revenue was CAD 62.6 million, down CAD 3.2 million, or 4.9%, year over year. Blanchette said the decline reflected client projects reaching maturity and lower billable hours, partly offset by a full quarter of eVerge.
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