Q2/1H 2025 - Constellation Software & Its Spin-Outs - Full Analysis
Truly impressive EBITA growth of 31% for CSI standalone (excl. Altera), highest since Q1 2024
Yesterday, Constellation Software Inc. (CSI) published its Q2 2025 report, and, as always, it’s worthwhile digging deeper into the performance of its spins (TOI and LMN), CSI on a standalone basis, cash flows, margins, M&A activity et al.
We published our deep dive on Constellation Software last December.
To us, Q2 shot the lights out on EBITA growth, margin expansion, and operating cash flow. Q1 seemed somewhat disappointing when comparing to prior quarters. We don’t find it useful to make short-term comparisons, but hey, that’s what quarterly reports tell us.
CSI standalone excluding the spin-out companies and Altera managed to grow EBITA by 31% at reported currency (slight tailwind from FX), truly impressive considering the past years’ and decades’ growth.
Significance of CSI Standalone
Remember that the numbers in the press release above are on a fully-consolidated basis. Given that roughly 88% of total NOPAT destined/attributable to CSI shareholders comes from CSI standalone (that is: CSI excl. the consolidated numbers of Lumine and Topicus), we believe a breakdown of its performance is necessary to gauge underlying momentum.
Let’s take a closer look.
The headline numbers warrant further analysis/explanation, as some of the percentages could seem (and most of the time are) odd.
CSI’s Press Release
