Constellation Software Inc. Announces Results for the Second Quarter Ended June 30, 2026 and Declares Quarterly Dividend

TORONTO, Aug. 11, 2026 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the second quarter ended June 30, 2026 and declared a $1.00 per share dividend payable on October 9, 2026 to all common shareholders of record at close of business on September 18, 2026. This dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada). Please note that all dollar amounts referred to in this press release are in U.S. Dollars unless otherwise stated.

The following press release should be read in conjunction with the Company’s Unaudited Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2026 and the accompanying notes, our Management Discussion and Analysis for the three and six months ended June 30, 2026 and with our annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and our annual Management’s Discussion and Analysis for the year ended December 31, 2025, which can be found on SEDAR+ at www.sedarplus.com and on the Company’s website www.csisoftware.com. Additional information about the Company is also available on SEDAR+ at www.sedarplus.com.

Q2 2026 and Subsequent Headlines:

• Revenue grew 17% (3% organic growth, 1% after adjusting for changes in foreign exchange rates) to $3,335 million compared to $2,844 million in Q2 2025.  
• Net income attributable to common shareholders increased 386% to $274 million ($12.93 on a diluted per share basis) from $56 million ($2.66 on a diluted per share basis) in Q2 2025. Excluding the impacts of foreign exchange and the IRGA liability revaluation the increase was 8%.
• A number of acquisitions were completed for aggregate cash consideration of $732 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $160 million resulting in total consideration of $893 million.
• Cash flows from operations (“CFO”) were $477 million, an increase of 10%, or $44 million, compared to $433 million for the comparable period in 2025.
• Free cash flow available to shareholders¹ (“FCFA2S”) increased $125 million to $345 million compared to $220 million for the same period in 2025 representing an increase of 57%.
• Subsequent to June 30, 2026, the Company completed or has open commitments to acquire a number of businesses for aggregate cash consideration of $669 million on closing plus total estimated deferred payments of $149 million for total consideration of $818 million.

Total revenue for the quarter ended June 30, 2026 was $3,335 million, an increase of 17%, or $491 million, compared to $2,844 million for the comparable period in 2025. For the first six months of 2026 total revenues were $6,516 million, an increase of 19%, or $1,018 million, compared to $5,498 million for the comparable period in 2025. The increase for both the three and six month periods compared to the same periods in the prior year is primarily attributable to growth from acquisitions as the Company experienced organic growth of 3% and 4% respectively, 1% for both periods after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.

Net income attributable to common shareholders of CSI for the quarter ended June 30, 2026 was $274 million compared to $56 million for the same period in 2025. On a per share basis this translated into a net income per diluted share of $12.93 in the quarter ended June 30, 2026 compared to net income per diluted share of $2.66 for the same period in 2025. For the six months ended June 30, 2026, net income attributable to common shareholders of CSI was $641 million or $30.25 per diluted share compared to $192 million or $9.07 per diluted share for the same period in 2025.

For the quarter ended June 30, 2026, CFO increased $44 million to $477 million compared to $433 million for the same period in 2025 representing an increase of 10%. For the first six months of 2026, CFO increased $115 million to $1,374 million compared to $1,260 million during the same period in 2025, representing an increase of 9%.

For the quarter ended June 30, 2026, FCFA2S increased $125 million to $345 million compared to $220 million for the same period in 2025 representing an increase of 57%. For the six months ended June 30, 2026, FCFA2S increased $348 million to $1,078 million compared to $730 million for the same period in 2025 representing an increase of 48%.  

Forward Looking Statements

Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Constellation or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Constellation assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.   

Non-IFRS Measures
Free cash flow available to shareholders ‘‘FCFA2S’’ refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on debt, debt transaction costs, payments of lease obligations, the IRGA / TSS membership liability revaluation charge, and property and equipment purchased, and includes interest and dividends received, and the proceeds from sale of interest rate caps. The portion of this amount applicable to non-controlling interests is then deducted. We believe that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if we do not make any acquisitions, or investments, and do not repay any debts. While we could use the FCFA2S to pay dividends or repurchase shares, our objective is to invest all of our FCFA2S in acquisitions which meet our hurdle rate.

FCFA2S is not a recognized measure under IFRS and, accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities.

The following table reconciles FCFA2S to net cash flows from operating activities:

			Three months ended June 30,							Six months ended June 30,
			2026		2025					2026		2025
		($ in millions)							($ in millions)
Net cash flows from operating activities			477		433					1,374		1,260
Adjusted for:
Interest paid on lease obligations			(5	)	(4	)				(9	)	(8	)
Interest paid on debt			(43	)	(32	)				(104	)	(94	)
Debt transaction costs			(4	)	(4	)				(5	)	(4	)
Payments of lease obligations			(38	)	(33	)				(76	)	(63	)
IRGA / TSS membership liability revaluation charge			(64	)	(126	)				13		(220	)
Property and equipment purchased			(22	)	(16	)				(40	)	(31	)
Interest and dividends received			80		20					92		32
			383		239					1,246		871
Less amount attributable to
Non-controlling interests			(38	)	(19	)				(168	)	(140	)
Free cash flow available to shareholders			345		220					1,078		730
Due to rounding, certain totals may not foot.

About Constellation Software Inc.

Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation acquires, manages and builds vertical market software businesses.

For further information:

Jamal Baksh
Chief Financial Officer
(416) 861-9677
info@csisoftware.com
www.csisoftware.com

SOURCE: CONSTELLATION SOFTWARE INC.

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Financial Position
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
	June 30, 2026			December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	2,886		$	3,089
Accounts receivable		1,613			1,465
Unbilled revenue		498			452
Inventories		77			66
Other assets		850			727
		5,925			5,798
Non-current assets:
Property and equipment		242			240
Right of use assets		388			384
Deferred income taxes		438			355
Investments in associates		626			655
Other assets		473			345
Intangible assets		9,522			8,392
		11,690			10,373
Total assets	$	17,615		$	16,171
Liabilities and Shareholders' Equity
Current liabilities:
Debt with recourse to Constellation Software Inc.	$	-		$	-
Liability of CSI under the IRGA		678			775
Debt without recourse to Constellation Software Inc.		658			591
Accounts payable and accrued liabilities		1,889			1,941
Dividends payable		21			21
Deferred revenue		2,654			2,219
Provisions		25			17
Acquisition holdback payables		310			216
Lease obligations		150			143
Income taxes payable		174			150
		6,559			6,073
Non-current liabilities:
Debt with recourse to Constellation Software Inc.		1,472			1,489
Liability of CSI under the IRGA		508			458
Debt without recourse to Constellation Software Inc.		2,066			2,051
Deferred income taxes		1,024			886
Acquisition holdback payables		243			208
Lease obligations		295			280
Other liabilities		573			457
		6,182			5,830
Total liabilities		12,741			11,904
Shareholders' equity:
Capital stock		99			99
Accumulated other comprehensive income (loss)		87			130
Retained earnings		3,945			3,347
Non-controlling interests		744			692
		4,875			4,267
Total liabilities and shareholders' equity	$	17,615		$	16,171

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Income (loss)
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
	Three months ended June 30,								Six months ended June 30,
	2026				2025				2026				2025
Revenue
License	$	92			$	87			$	183			$	183
Professional services		573				532				1,119				1,019
Hardware and other		116				80				216				155
Maintenance and other recurring		2,554				2,144				4,998				4,141
		3,335				2,844				6,516				5,498
Expenses
Staff		1,696				1,457				3,383				2,869
Hardware		66				43				123				83
Third party license, maintenance and professional services		331				268				643				522
Travel, telecommunications, supplies, software and equipment		181				144				340				275
Professional fees		69				55				133				102
Other, net		97				73				184				143
Depreciation		56				50				111				96
Amortization of intangible assets		348				286				673				558
		2,844				2,375				5,589				4,647
Foreign exchange loss (gain)		(14	)			118				(58	)			150
IRGA/TSS Membership liability revaluation charge		64				126				(13	)			220
Finance and other expense (income)		(45	)			(28	)			(61	)			(108	)
Share in net (income) loss of equity investee		(11	)			(0	)			(22	)			(0	)
Bargain purchase gain		(11	)			(5	)			(11	)			(5	)
Impairment of intangible and other non-financial assets		9				9				16				11
Finance costs		83				71				164				142
		74				290				16				409
Income (loss) before income taxes		417				179				910				441
Current income tax expense (recovery)		164				155				335				292
Deferred income tax expense (recovery)		(50	)			(60	)			(128	)			(109	)
Income tax expense (recovery)		114				95				207				183
Net income (loss)		303				85				703				258
Net income (loss) attributable to:
Common shareholders of Constellation Software Inc.		274				56				641				192
Non-controlling interests		29				28				62				66
Net income (loss)		303				85				703				258
Earnings per common share of Constellation Software Inc.
Basic and diluted	$	12.93			$	2.66			$	30.25			$	9.07

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Comprehensive Income (loss)
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
	Three months ended June 30,								Six months ended June 30,
	2026				2025				2026				2025
Net income (loss)	$	303			$	85			$	703			$	258
Items that are or may be reclassified subsequently to net income (loss):
Foreign currency translation differences from foreign operations and other, net of tax		(15	)			185				(52	)			264
Items that will not be reclassified to net income (loss):
Changes in the fair value of equity investments at FVOCI		-				95				-				215
Other comprehensive income (loss), net of income tax		(15	)			280				(52	)			479
Total comprehensive income (loss)	$	288			$	364			$	651			$	737
Total other comprehensive income (loss) attributable to:
Common shareholders of Constellation Software Inc.		(11	)			213				(42	)			353
Non-controlling interests		(4	)			66				(10	)			126
Total other comprehensive income (loss)	$	(15	)		$	280			$	(52	)		$	479
Total comprehensive income (loss) attributable to:
Common shareholders of Constellation Software Inc.		264				270				599				545
Non-controlling interests		24				95				52				192
Total comprehensive income (loss)	$	288			$	364			$	651			$	737

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statement of Changes in Equity
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
Six months ended June 30, 2026
	Equity Attributable to Common Shareholders of CSI
	Capital stock			Accumulated other comprehensive income (loss)			Retained earnings			Total			Non-controlling interests			Total equity
Balance at January 1, 2026	$	99		$	130		$	3,347		$	3,576		$	692		$	4,267
Total comprehensive income (loss):
Net income (loss)		-			-			641			641			62			703
Other comprehensive income (loss)
Foreign currency translation differences from foreign operations and other, net of tax and changes in the fair value of equity investments at FVOCI		-			(42	)		-			(42	)		(10	)		(52	)
Total other comprehensive income (loss)		-			(42	)		-			(42	)		(10	)		(52	)
Total comprehensive income (loss)		-			(42	)		641			599			52			651
Transactions with owners, recorded directly in equity
Other movements in non-controlling interests		-			-			(1	)		(1	)		(0	)		(1	)
Dividends paid to non-controlling interests		-			-			-			-			-			-
Dividends to shareholders of the Company		-			-			(42	)		(42	)		-			(42	)
Balance at June 30, 2026	$	99		$	87		$	3,945		$	4,131		$	744		$	4,875

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statement of Changes in Equity
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
Six months ended June 30, 2025
	Equity Attributable to Common Shareholders of CSI
	Capital stock			Accumulated other comprehensive income (loss)			Retained earnings			Total			Non-controlling interests			Total equity
Balance at January 1, 2025	$	99		$	(224	)	$	2,919		$	2,795		$	493		$	3,288
Total comprehensive income (loss):
Net income (loss)		-			-			192			192			66			258
Other comprehensive income (loss)
Foreign currency translation differences from foreign operations and other, net of tax		-			353			-			353			126			479
Total other comprehensive income (loss)		-			353			-			353			126			479
Total comprehensive income (loss)		-			353			192			545			192			737
Transactions with owners, recorded directly in equity
Other movements in non-controlling interests		-			-			(1	)		(1	)		1			(0	)
Dividends paid to non-controlling interests		-			-			-			-			(0	)		(0	)
Dividends to shareholders of the Company					-			(42	)		(42	)		-			(42	)
Balance at June 30, 2025	$	99		$	129		$	3,068		$	3,296		$	686		$	3,982

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Cash Flows
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
	Three months ended June 30,								Six months ended June 30,
	2026				2025				2026				2025
Cash flows from (used in) operating activities:
Net income (loss)		303				85				703				258
Adjustments for:
Depreciation		56				50				111				96
Amortization of intangible assets		348				286				673				558
IRGA/TSS Membership liability revaluation charge		64				126				(13	)			220
Finance and other expense (income)		(45	)			(28	)			(61	)			(108	)
Share in net (income) loss of equity investee		(11	)			(0	)			(22	)			(0	)
Bargain purchase (gain)		(11	)			(5	)			(11	)			(5	)
Impairment of intangible and other non-financial assets		9				9				16				11
Finance costs		83				71				164				142
Income tax expense (recovery)		114				95				207				183
Foreign exchange loss (gain)		(14	)			118				(58	)			150
Depreciation of third party costs		4				4				8				9
Change in non-cash operating assets and liabilities exclusive of effects of business combinations		(203	)			(185	)			(18	)			46
Transaction costs associated with equity securities classified as FVOCI		-				-				-				(2	)
Income taxes paid		(218	)			(192	)			(325	)			(299	)
Net cash flows from (used in) operating activities		477				433				1,374				1,260
Cash flows from (used in) financing activities:
Interest paid on lease obligations		(5	)			(4	)			(9	)			(8	)
Interest paid on debt		(43	)			(32	)			(104	)			(94	)
Increase (decrease) in Topicus revolving credit debt facility without recourse to CSI		24				(135	)			(262	)			(104	)
Proceeds from issuance of debt facilities without recourse to CSI		354				341				598				368
Repayments of debt facilities without recourse to CSI		(156	)			(69	)			(228	)			(99	)
Other financing activities		(12	)			1				(8	)			(0	)
Dividends paid to non-controlling interests		-				-				-				(0	)
Debt transaction costs		(4	)			(4	)			(5	)			(4	)
Payments of lease obligations, net of sublease receipts		(38	)			(33	)			(76	)			(63	)
Dividends paid to common shareholders of the Company		(21	)			(21	)			(42	)			(42	)
Net cash flows from (used in) in financing activities		100				43				(137	)			(48	)
Cash flows from (used in) investing activities:
Acquisition of businesses		(732	)			(380	)			(1,429	)			(474	)
Cash obtained with acquired businesses		79				45				156				56
Post-acquisition settlement payments, net of receipts		(94	)			(114	)			(163	)			(130	)
Purchases of investments and other assets		(15	)			(14	)			(47	)			(189	)
Proceeds from sales of other investments and other assets		0				15				0				15
Decrease (increase) in restricted cash		(0	)			(3	)			1				5
Interest, dividends and other proceeds received		80				20				92				32
Property and equipment purchased		(22	)			(16	)			(40	)			(31	)
Net cash flows from (used in) investing activities		(703	)			(446	)			(1,429	)			(717	)
Effect of foreign currency on cash and cash equivalents		1				68				(11	)			101
Increase (decrease) in cash and cash equivalents		(124	)			98				(202	)			596
Cash and cash equivalents, beginning of period	$	3,010			$	2,477			$	3,089			$	1,980
Cash and cash equivalents, end of period	$	2,886			$	2,575			$	2,886			$	2,575