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

TORONTO, Nov. 06, 2026 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the third quarter ended September 30, 2026 and declared a $1.00 per share dividend payable on January 12, 2027 to all common shareholders of record at close of business on December 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 nine months ended September 30, 2026 and the accompanying notes, our Management Discussion and Analysis for the three and nine months ended September 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.

Q3 2026 and Subsequent Headlines:

• Revenue grew 19% (2% organic growth, 2% after adjusting for changes in foreign exchange rates) to $3,512 million compared to $2,948 million in Q3 2025.  
• Net income attributable to common shareholders was $212 million ($10.01 on a diluted per share basis) compared to $210 million ($9.89 on a diluted per share basis) in Q3 2025.
• A number of acquisitions were completed for aggregate cash consideration of $484 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $125 million resulting in total consideration of $609 million.
• Cash flows from operations (“CFO”) were $717 million, an increase of 5%, or $33 million, compared to $685 million for the comparable period in 2025.
• Free cash flow available to shareholders¹ (“FCFA2S”) decreased $86 million to $443 million compared to $529 million for the same period in 2025 representing an decrease of 16%.
• Subsequent to September 30, 2026, the Company completed or has open commitments to acquire a number of businesses for aggregate cash consideration of $526 million on closing plus total estimated deferred payments of $148 million for total consideration of $673 million.

Total revenue for the quarter ended September 30, 2026 was $3,512 million, an increase of 19%, or $564 million, compared to $2,948 million for the comparable period in 2025. For the first nine months of 2026 total revenues were $10,027 million, an increase of 19%, or $1,582 million, compared to $8,446 million for the comparable period in 2025. The increase for both the three and nine 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 2% and 4% respectively, 2% and 1% 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 September 30, 2026 was $212 million compared to $210 million for the same period in 2025. On a per share basis this translated into a net income per diluted share of $10.01 in the quarter ended September 30, 2026 compared to net income per diluted share of $9.89 for the same period in 2025. For the nine months ended September 30, 2026, net income attributable to common shareholders of CSI was $853 million or $40.26 per diluted share compared to $402 million or $18.96 per diluted share for the same period in 2025.

For the quarter ended September 30, 2026, CFO increased $33 million to $717 million compared to $685 million for the same period in 2025 representing an increase of 5%. For the first nine months of 2026, CFO increased $148 million to $2,092 million compared to $1,944 million during the same period in 2025, representing an increase of 8%.

For the quarter ended September 30, 2026, FCFA2S decreased $86 million to $443 million compared to $529 million for the same period in 2025 representing an decrease of 16%. For the nine months ended September 30, 2026, FCFA2S increased $262 million to $1,522 million compared to $1,259 million for the same period in 2025 representing an increase of 21%.   The IRGA / TSS membership liability revaluation charge relating to the investment in equity securities of Sygnity and Asseco was $77 million for the three months ended September 30, 2026 as compared to negative $25 million for the same period in 2025. The charge for the nine months ended September 30, 2026 was negative $36 million as compared to $172 million for the same period in 2025. The fair value of these investments for purposes of calculating the revaluation charge is determined by their respective share prices at the end of each reporting period.

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 September 30,							Nine months ended September 30,
		2026		2025					2026		2025
		($ in millions)							($ in millions)
Net cash flows from operating activities		717		685					2,092		1,944
Adjusted for:
Interest paid on lease obligations		(5	)	(4	)				(14	)	(12	)
Interest paid on debt		(66	)	(59	)				(170	)	(153	)
Debt transaction costs		(2	)	(4	)				(7	)	(8	)
Payments of lease obligations		(39	)	(34	)				(115	)	(97	)
IRGA / TSS membership liability revaluation charge		(117	)	(16	)				(105	)	(236	)
Property and equipment purchased		(20	)	(16	)				(60	)	(47	)
Interest and dividends received		16		13					108		44
		484		565					1,729		1,435
Less amount attributable to
Non-controlling interests		(40	)	(36	)				(208	)	(176	)
Free cash flow available to shareholders		443		529					1,522		1,259
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
	September 30, 2026			December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	2,693		$	3,089
Accounts receivable		1,699			1,466
Unbilled revenue		546			451
Inventories		98			66
Other assets		887			729
		5,923			5,800
Non-current assets:
Property and equipment		253			240
Right of use assets		396			386
Deferred income taxes		485			355
Investments in associates		637			655
Other assets		497			345
Intangible assets		9,753			8,392
		12,021			10,373
Total assets	$	17,944		$	16,173
Liabilities and Shareholders' Equity
Current liabilities:
Debt with recourse to Constellation Software Inc.	$	-		$	-
Liability of CSI under the IRGA		741			775
Debt without recourse to Constellation Software Inc.		433			591
Accounts payable and accrued liabilities		2,064			1,941
Dividends payable		21			21
Deferred revenue		2,543			2,219
Provisions		22			18
Acquisition holdback payables		314			216
Lease obligations		152			143
Income taxes payable		228			150
		6,517			6,074
Non-current liabilities:
Debt with recourse to Constellation Software Inc.		1,472			1,489
Liability of CSI under the IRGA		554			458
Debt without recourse to Constellation Software Inc.		2,094			2,051
Deferred income taxes		1,048			886
Acquisition holdback payables		277			208
Lease obligations		299			282
Other liabilities		603			457
		6,347			5,832
Total liabilities		12,864			11,906
Shareholders' equity:
Capital stock		99			99
Accumulated other comprehensive income (loss)		72			130
Retained earnings		4,136			3,347
Non-controlling interests		772			692
		5,080			4,267
Total liabilities and shareholders' equity	$	17,944		$	16,173

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 September 30,								Nine months ended September 30,
	2026				2025				2026				2025
Revenue
License	$	97			$	107			$	280			$	290
Professional services		569				538				1,688				1,558
Hardware and other		131				89				347				244
Maintenance and other recurring		2,715				2,213				7,712				6,354
		3,512				2,948				10,027				8,446
Expenses
Staff		1,735				1,487				5,118				4,356
Hardware		77				51				200				134
Third party license, maintenance and professional services		361				285				1,004				807
Travel, telecommunications, supplies, software and equipment		192				149				531				424
Professional fees		74				55				207				157
Other, net		77				62				261				205
Depreciation		57				52				167				148
Amortization of intangible assets		376				307				1,049				865
		2,948				2,448				8,537				7,095
Foreign exchange loss (gain)		(7	)			(17	)			(65	)			132
IRGA/TSS Membership liability revaluation charge		117				16				105				236
Finance and other expense (income)		(4	)			(83	)			(64	)			(191	)
Share in net (income) loss of equity investees		(5	)			0				(27	)			0
Bargain purchase gain		(7	)			(1	)			(17	)			(6	)
Impairment of intangible and other non-financial assets		6				12				22				23
Revaluation of investment accounted for using the equity method to cost		-				260				-				260
Finance costs		84				74				248				216
		184				261				200				670
Income (loss) before income taxes		380				239				1,290				681
Current income tax expense (recovery)		194				153				529				445
Deferred income tax expense (recovery)		(57	)			(76	)			(185	)			(185	)
Income tax expense (recovery)		137				77				344				261
Net income (loss)		243				162				946				420
Net income (loss) attributable to:
Common shareholders of Constellation Software Inc.		212				210				853				402
Non-controlling interests		31				(48	)			93				18
Net income (loss)		243				162				946				420
Earnings per common share of Constellation Software Inc.
Basic and diluted	$	10.01			$	9.89			$	40.26			$	18.96

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 September 30,								Nine months ended September 30,
	2026				2025				2026				2025
Net income (loss)	$	243			$	162			$	946			$	420
Items that are or may be reclassified subsequently to net income (loss):
Foreign currency translation differences from foreign operations and other, net of tax		(17	)			(14	)			(69	)			250
Items that will not be reclassified to net income (loss):
Changes in the fair value of equity investments at FVOCI		-				(5	)			-				209
Other comprehensive income (loss), net of income tax		(17	)			(19	)			(69	)			459
Total comprehensive income (loss)	$	226			$	142			$	877			$	879
Total other comprehensive income (loss) attributable to:
Common shareholders of Constellation Software Inc.		(15	)			(17	)			(57	)			336
Non-controlling interests		(2	)			(3	)			(12	)			123
Total other comprehensive income (loss)	$	(17	)		$	(19	)		$	(69	)		$	459
Total comprehensive income (loss) attributable to:
Common shareholders of Constellation Software Inc.		197				193				796				738
Non-controlling interests		29				(51	)			81				141
Total comprehensive income (loss)	$	226			$	142			$	877			$	879

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
Nine months ended September 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)		-			-			853			853			93			946
Other comprehensive income (loss)
Foreign currency translation differences from
foreign operations and other, net of tax and		-			(57	)		-			(57	)		(12	)		(69	)
Total other comprehensive income (loss)		-			(57	)		-			(57	)		(12	)		(69	)
Total comprehensive income (loss)		-			(57	)		853			796			81			877
Transactions with owners, recorded directly in equity
Other movements in non-controlling interests		-			-			(0	)		(0	)		(0	)		(1	)
Dividends to shareholders of the Company		-			-			(64	)		(64	)		-			(64	)
Balance at September 30, 2026	$	99		$	72		$	4,136		$	4,307		$	772		$	5,080

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
Nine months ended September 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)		-			-			402			402			18			420
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		-			336			-			336			123			459
Total other comprehensive income (loss)		-			336			-			336			123			459
Total comprehensive income (loss)		-			336			402			738			141			879
Transactions with owners, recorded directly in equity
Other movements in non-controlling interests		-			0			0			0			(1	)		(0	)
Dividends paid to non-controlling interests		-			-			-			-			(0	)		(0	)
Dividends to shareholders of the Company					-			(64	)		(64	)		-			(64	)
Balance at September 30, 2025	$	99		$	112		$	3,258		$	3,469		$	634		$	4,103

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 September 30,								Nine months ended September 30,
	2026				2025				2026				2025
Cash flows from (used in) operating activities:
Net income (loss)		243				162				946				420
Adjustments for:
Depreciation		57				52				167				148
Amortization of intangible assets		376				307				1,049				865
IRGA/TSS Membership liability revaluation charge		117				16				105				236
Finance and other expense (income)		(4	)			(83	)			(64	)			(191	)
Share in net (income) loss of equity investees		(5	)			0				(27	)			0
Bargain purchase (gain)		(7	)			(1	)			(17	)			(6	)
Impairment of intangible and other non-financial assets		6				12				22				23
Revaluation of investment accounted for using the equity method to cost		-				260				-				260
Finance costs		84				74				248				216
Income tax expense (recovery)		137				77				344				261
Foreign exchange loss (gain)		(7	)			(17	)			(65	)			132
Depreciation of third party costs		4				5				11				14
Change in non-cash operating assets and liabilities
exclusive of effects of business combinations		(157	)			(47	)			(175	)			(2	)
Transaction costs associated with equity securities classified as FVOCI		-				-				-				(2	)
Income taxes paid		(126	)			(131	)			(451	)			(430	)
Net cash flows from (used in) operating activities		717				685				2,092				1,944
Cash flows from (used in) financing activities:
Interest paid on lease obligations		(5	)			(4	)			(14	)			(12	)
Interest paid on debt		(66	)			(59	)			(170	)			(153	)
Increase (decrease) in Topicus revolving credit debt facility without recourse to CSI		12				301				(251	)			197
Proceeds from issuance of debt facilities without recourse to CSI		102				77				700				445
Repayments of debt facilities without recourse to CSI		(307	)			(108	)			(536	)			(207	)
Other financing activities		33				(1	)			24				(1	)
Dividends paid to non-controlling interests		-				-				-				(0	)
Debt transaction costs		(2	)			(4	)			(7	)			(8	)
Payments of lease obligations, net of sublease receipts		(39	)			(34	)			(115	)			(97	)
Dividends paid to common shareholders of the Company		(21	)			(21	)			(64	)			(64	)
Net cash flows from (used in) financing activities		(294	)			147				(431	)			100
Cash flows from (used in) investing activities:
Acquisition of businesses		(484	)			(281	)			(1,913	)			(755	)
Cash obtained with acquired businesses		33				44				189				100
Post-acquisition settlement payments, net of receipts		(99	)			(70	)			(262	)			(200	)
Purchases of investments and other assets		(25	)			(36	)			(72	)			(225	)
Proceeds from sales of other investments and other assets		0				0				1				16
Decrease (increase) in restricted cash		(28	)			(289	)			(26	)			(284	)
Interest, dividends and other proceeds received		16				13				108				44
Property and equipment purchased		(20	)			(16	)			(60	)			(47	)
Net cash flows from (used in) investing activities		(608	)			(634	)			(2,037	)			(1,351	)
Effect of foreign currency on
cash and cash equivalents		(8	)			(3	)			(20	)			97
Increase (decrease) in cash and cash equivalents		(193	)			195				(395	)			790
Cash and cash equivalents, beginning of period	$	2,886			$	2,575			$	3,089			$	1,980
Cash and cash equivalents, end of period	$	2,693			$	2,770			$	2,693			$	2,770