Constellation Software Inc. and Topicus.Com Inc. Announce Results for Topicus.com Inc. for the First Quarter Ended March 31, 2026

TORONTO, May 05, 2026 (GLOBE NEWSWIRE) -- Topicus.com Inc. (TSXV:TOI) in a joint release with Constellation Software Inc. (TSX:CSU) today announced financial results for Topicus.com Inc. (“Topicus” or the “Company”) for the first quarter ended March 31, 2026. Please note that all amounts referred to in this press release are in Euros 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 months ended March 31, 2026 and the accompanying notes, our Management’s Discussion and Analysis for the three months ended March 31, 2026 and the Annual Consolidated Financial Statements of Topicus.com Inc. for the year ended December 31, 2025, which we prepared in accordance with International Financial Reporting Standards (“IFRS”) and the Company’s 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 Topicus.com Inc.’s website www.topicus.com. Additional information about Topicus.com Inc. is also available on SEDAR+ at www.sedarplus.com.

Q1 2026 Headlines:

• Revenue increased 23% (5% organic growth) to €435.7 million compared to €355.6 million in Q1 2025.
• Net income decreased to €55.1 million (€0.41 on a diluted per share basis) from €70.1 million (€0.54 on a diluted per share basis).
• Acquisitions were completed for aggregate cash consideration of €15.0 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of €7.5 million resulting in total consideration of €22.5 million.
• Cash flows from operations (“CFO”) increased €9.0 million to €280.5 million compared to €271.4 million in Q1 2025 representing an increase of 3%.
• Free cash flow available to shareholders¹ (“FCFA2S”) increased €3.7 million to €165.4 million compared to €161.7 million in Q1 2025 representing an increase of 2%.
  

Total revenue for the quarter ended March 31, 2026 was €435.7 million, an increase of 23%, or €80.1 million, compared to €355.6 million for the comparable period in 2025. The increase is primarily attributable to growth from acquisitions as the Company experienced organic growth of 5% in the quarter. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.

Net income for the quarter ended March 31, 2026 decreased €15.1 million to €55.1 million compared to €70.1 million for the same period in 2025. On a per share basis, this translated into net income per basic and diluted share of €0.41 in the quarter ended March 31, 2026 compared to €0.54 for the same period in 2025.

For the quarter ended March 31, 2026, CFO increased €9.0 million to €280.5 million compared to €271.4 million for the same period in 2025 representing an increase of 3%.

For the quarter ended March 31, 2026, FCFA2S increased €3.7 million to €165.4 million compared to €161.7 million for the same period in 2025 representing an increase of 2%.

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 Topicus 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 Topicus 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 other facilities, credit facility transaction costs, repayments of lease obligations, 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. Topicus believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Topicus does not make any acquisitions, or investments, and does not repay any debts. While Topicus could use the FCFA2S to pay dividends or repurchase shares, Topicus’ objective is to invest all of our FCFA2S in acquisitions which meet Topicus’ 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 March 31,
			2026		2025
		(€ in millions)
Net cash flows from operating activities			280.5		271.4
Adjusted for:
Interest paid on lease obligations			(0.9	)	(0.7	)
Interest paid on other facilities			(3.7	)	(4.7	)
Credit facility transaction costs			(0.3	)	(0.1	)
Payments of lease obligations			(8.4	)	(6.8	)
Property and equipment purchased			(3.2	)	(2.9	)
Interest and dividends received			0.6		0.3
			264.5		256.5
Less amount attributable to
non-controlling interests			(99.1	)	(94.8	)
Free cash flow available to shareholders			165.4		161.7
Due to rounding, certain totals may not foot.

About Topicus.com Inc.

Topicus’ subordinate voting shares are listed on the Toronto Venture Stock Exchange under the symbol "TOI". Topicus acquires, manages and builds vertical market software businesses.

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@topicus.com
www.topicus.com

SOURCE: TOPICUS.COM INC.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Topicus.com Inc.
Condensed Consolidated Interim Statements of Financial Position
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
				March 31, 2026	December 31, 2025
Assets
Current assets:
	Cash			331,173	326,686
	Accounts receivable			210,486	175,613
	Unbilled revenue			70,315	53,909
	Inventories			7,870	7,057
	Other assets			84,856	67,969
				704,700	631,234
Non-current assets:
	Property and equipment			28,273	27,343
	Right of use assets			95,766	96,656
	Deferred income taxes			24,223	23,494
	Investments in associates			527,439	515,368
	Other assets			18,456	17,790
	Intangible assets			1,190,258	1,201,287
				1,884,415	1,881,939
Total assets				2,589,115	2,513,173
Liabilities and Shareholders' Equity
Current liabilities:
	Topicus Revolving Credit Facility and current portion of Term and other loans			96,065	345,324
	Accounts payable and accrued liabilities			380,113	365,229
	Deferred revenue			453,789	207,140
	Provisions			3,091	3,548
	Acquisition holdback payables			24,077	23,740
	Lease obligations			32,134	30,915
	Income taxes payable			40,128	39,201
				1,029,396	1,015,098
Non-current liabilities:
	Term and other loans			352,579	347,218
	Deferred income taxes			183,948	188,313
	Acquisition holdback payables			39,414	40,133
	Lease obligations			65,425	67,436
	Other liabilities			81,126	73,166
				722,492	716,266
Total liabilities				1,751,888	1,731,363
Shareholders' Equity:
	Capital stock			39,412	39,412
	Accumulated other comprehensive income (loss)			127,327	124,611
	Retained earnings			343,910	309,801
	Non-controlling interests			326,577	307,985
				837,227	781,810
Total liabilities and shareholders' equity				2,589,115	2,513,173

Topicus.com Inc.
Condensed Consolidated Interim Statements of Income (Loss)
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
				Three months ended March 31,
				2026			2025
Revenue
License				11,518			9,396
Professional services				98,221			82,305
Hardware and other				9,885			7,319
Maintenance and other recurring				316,064			256,575
				435,688			355,595
Expenses
Staff				237,594			197,889
Hardware				5,312			4,125
Third party license, maintenance and professional services				36,951			28,422
Travel, telecommunications, supplies, software and equipment				17,938			14,592
Professional fees				7,085			7,608
Other, net				7,033			8,584
Depreciation				11,655			9,376
Amortization of intangible assets				44,420			36,852
				367,988			307,448
Impairment of intangible and other non-financial assets				-			-
Finance and other (income) expenses				2,593			(5,243	)
Share in net (income) loss of equity investee				(9,096	)		(15	)
(Increase) decrease in the fair value of equity securities				-			(32,789	)
Finance costs				9,808			6,189
				3,306			(31,858	)
Income (loss) before income taxes				64,395			80,005
Current income tax expense (recovery)				20,568			18,747
Deferred income tax expense (recovery)				(11,236	)		(8,871	)
Income tax expense (recovery)				9,332			9,877
Net income (loss)				55,062			70,129
Net income (loss) attributable to:
Equity holders of Topicus				34,209			44,811
Non-controlling interests				20,854			25,317
Net income (loss)				55,062			70,129
Weighted average shares
	Basic shares outstanding			83,338,874			83,068,874
	Diluted shares outstanding			129,841,819			129,841,819
Earnings (loss) per common share of Topicus
	Basic			0.41			0.54
	Diluted			0.41			0.54

Topicus.com Inc.
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
					Three months ended March 31,
					2026		2025
Net income (loss)					55,062		70,129
Items that are or may be reclassified subsequently to net income (loss):
Foreign currency translation differences from foreign operations and other					3,961		1,296
Items that will not be reclassified to net income (loss):
Changes in the fair value of equity investments at FVOCI					-		111,097
Other comprehensive (loss) income for the period, net of income tax					3,961		112,393
Total comprehensive income (loss) for the period					59,023		182,521
Total other comprehensive income (loss) attributable to:
Equity holders of Topicus					2,716		72,219
Non-controlling interests					1,245		40,173
Total other comprehensive income (loss)					3,961		112,393
Total comprehensive income (loss) attributable to:
Equity holders of Topicus					36,924		117,030
Non-controlling interests					22,099		65,491
Total comprehensive income (loss)					59,023		182,521

Topicus.com Inc.
Condensed Consolidated Interim Statement of Changes in Shareholders' Equity (Deficiency)
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
Three months ended March 31, 2026
				Capital Stock		Accumulated other comprehensive (loss) income		Retained earnings			Total			Non-controlling interests			Total equity
Balance at January 1, 2026				39,412		124,611		309,801			473,825			307,985			781,810
Total comprehensive income (loss) for the period:
Net income (loss)				-		-		34,209			34,209			20,854			55,062
Foreign currency translation differences from
	foreign operations and other, net of income tax and
	changes in the fair value of equity investments at FVOCI			-		2,716		-			2,716			1,245			3,961
Total other comprehensive income (loss)
	for the period			-		2,716		-			2,716			1,245			3,961
Total comprehensive income (loss) for the period				-		2,716		34,209			36,924			22,099			59,023
Transactions with owners, recorded directly in equity
	Other movements in non-controlling interests and equity			-		-		(100	)		(100	)		(56	)		(155	)
	Dividends paid to non-controlling interests			-		-		-			-			(3,451	)		(3,451	)
Balance at March 31, 2026				39,412		127,327		343,910			510,650			326,577			837,227

Topicus.com Inc.
Condensed Consolidated Interim Statement of Changes in Shareholders' Equity (Deficiency)
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
Three months ended March 31, 2025
				Capital Stock		Accumulated other comprehensive (loss) income			Retained earnings			Total		Non-controlling interests			Total equity
Balance at January 1, 2025				39,412		5,584			266,281			311,277		220,119			531,396
Total comprehensive income (loss) for the period:
Net income (loss)				-		-			44,811			44,811		25,317			70,129
Other comprehensive income (loss)
Foreign currency translation differences from
	foreign operations and other, net of income tax			-		72,219			-			72,219		40,173			112,393
Total other comprehensive income (loss) for the period				-		72,219			-			72,219		40,173			112,393
Total comprehensive income (loss) for the period				-		72,219			44,811			117,030		65,491			182,521
Transactions with owners, recorded directly in equity
	Other movements in non-controlling interests and equity			-		(0	)		37			37		19			55
	Dividends paid to non-controlling interests			-		-			-			-		(38	)		(38	)
Balance at March 31, 2025				39,412		77,803			311,129			428,344		285,591			713,935

Topicus.com Inc.
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
					Three months ended March 31,
					2026			2025
Cash flows from (used in) operating activities:
	Net income (loss)				55,062			70,129
	Adjustments for:
		Depreciation			11,655			9,376
		Amortization of intangible assets			44,420			36,852
		Impairment of intangible and other non-financial assets			-			-
		Finance and other expenses (income)			2,593			(5,243	)
		Share in net (income) loss of equity investee			(9,096	)		(15	)
		(Increase) decrease in the fair value of equity securities			-			(32,789	)
		Finance costs			9,808			6,189
		Income tax expense (recovery)			9,332			9,877
	Change in non-cash operating assets and liabilities
		exclusive of effects of business combinations			174,015			190,533
	Transaction costs associated with equity securities classified as FVOCI				-			(1,659	)
	Income taxes (paid) received				(17,301	)		(11,803	)
	Net cash flows from (used in) operating activities				280,490			271,446
Cash flows from (used in) financing activities:
	Interest paid on lease obligations				(872	)		(663	)
	Interest paid on other facilities				(3,736	)		(4,708	)
	Net increase (decrease) in Topicus Revolving Credit Facility				(245,000	)		30,000
	Proceeds from issuance of term and other loans				7,500			18,010
	Increase (decrease) in bank indebtedness				5,663			-
	Repayments of term and other loans				(7,429	)		(10,585	)
	Credit facility transaction costs				(312	)		(91	)
	Payments of lease obligations				(8,374	)		(6,828	)
	Dividends paid to non-controlling interests				(3,451	)		(38	)
	Net cash flows from (used in) in financing activities				(256,010	)		25,098
Cash flows from (used in) investing activities:
	Acquisition of businesses				(15,028	)		(39,413	)
	Cash obtained with acquired businesses				2,936			7,934
	Post-acquisition settlement payments, net of receipts				(5,814	)		(6,299	)
	Purchase of equity securities of Asseco Poland S.A.				-			(167,977	)
	(Increase) decrease in restricted cash				(1,342	)		(425	)
	Interest, dividends and other proceeds received, net of income taxes paid				572			255
	Property and equipment purchased				(3,236	)		(2,898	)
	Net cash flows from (used in) investing activities				(21,913	)		(208,822	)
Effect of foreign currency on
	cash and cash equivalents				1,920			2,428
Increase (decrease) in cash					4,487			90,150
Cash, beginning of period					326,686			206,157
Cash, end of period					331,173			296,307

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