Alithya Group Reports Revenue Decline but Gross Margin Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Source: Yahoo Finance
- Revenue Performance: Alithya Group reported Q4 revenue of $113.8 million, a 9.2% year-over-year decline, primarily due to tough comparisons with a strong Q4 in fiscal 2025, although the U.S. segment grew 2.6% to $55.6 million, indicating ongoing demand for enterprise transformation services.
- Gross Margin Improvement: The company's gross margin increased to 37.8%, up from 36.8% last year, supported by the recognition of non-refundable tax credits, which not only enhanced overall profitability but also laid a foundation for future financial stability.
- International Market Growth: International revenue surged 49.1% year-over-year to $8.5 million, reflecting strong demand for enterprise transformation services and indicating that Alithya's global expansion strategy is yielding positive results.
- Widening Net Loss: Despite the gross margin increase, Alithya recorded a net loss of $8.7 million in the quarter compared to a net profit of $8 million last year, primarily due to rising SG&A expenses and declining revenue, highlighting challenges in cost control.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
