Constellation Software Inc. Announces Results for the Third Quarter Ended September 30, 2025 and Declares Quarterly Dividend

TORONTO, Nov. 07, 2025 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the third quarter ended September 30, 2025 and declared a $1.00 per share dividend payable on January 12, 2026 to all common shareholders of record at close of business on December 19, 2025. 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, 2025 and the accompanying notes, our Management Discussion and Analysis for the three and nine months ended September 30, 2025 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, 2024, 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 2025 and Subsequent Headlines:

Revenue grew 16% (5% organic growth, 3% after adjusting for changes in foreign exchange rates) to $2,948 million compared to $2,541 million in Q3 2024. Net income attributable to common shareholders increased 28% to $210 million ($9.89 on a diluted per share basis) from $164 million ($7.74 on a diluted per share basis) in Q3 2024.A number of acquisitions were completed for aggregate cash consideration of $281 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $134 million resulting in total consideration of $415 million.Cash flows from operations (“CFO”) were $685 million, an increase of 33%, or $168 million, compared to $517 million for the comparable period in 2024.Free cash flow available to shareholders1 (“FCFA2S”) was $529 million, an increase of 46%, or $167 million, compared to $362 million for the comparable period in 2024.

Total revenue for the quarter ended September 30, 2025 was $2,948 million, an increase of 16%, or $407 million, compared to $2,541 million for the comparable period in 2024. For the first nine months of 2025 total revenues were $8,446 million, an increase of 15%, or $1,083 million, compared to $7,363 million for the comparable period in 2024. 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 5% and 3% respectively, 3% and 3% respectively 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 September 30, 2025 was $210 million compared to $164 million for the same period in 2024. On a per share basis this translated into a net income per diluted share of $9.89 in the quarter ended September 30, 2025 compared to net income per diluted share of $7.74 for the same period in 2024. For the nine months ended September 30, 2025, net income attributable to common shareholders of CSI was $402 million or $18.96 per diluted share compared to $446 million or $21.04 per diluted share for the same period in 2024.

For the quarter ended September 30, 2025, CFO increased $168 million to $685 million compared to $517 million for the same period in 2024 representing an increase of 33%. For the first nine months of 2025, CFO increased $426 million to $1,944 million compared to $1,518 million during the same period in 2024, representing an increase of 28%.

For the quarter ended September 30, 2025, FCFA2S increased $167 million to $529 million compared to $362 million for the same period in 2024 representing an increase of 46%. For the nine months ended September 30, 2025, FCFA2S increased $269 million to $1,259 million compared to $990 million for the same period in 2024 representing an increase of 27%.

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, 2025 2024 2025 2024 ($ in millions) ($ in millions) Net cash flows from operating activities 685 517 1,944 1,518 Adjusted for: Interest paid on lease obligations (4)(4) (12)(10) Interest paid on debt (59)(63) (153)(141) Debt transaction costs (4)(1) (8)(13) Payments of lease obligations (34)(31) (97)(89) IRGA / TSS membership liability revaluation charge (16)(33) (236)(122) Property and equipment purchased (16)(19) (47)(42) Interest and dividends received 13 10 44 25 565 376 1,435 1,125 Less amount attributable to Non-controlling interests (36)(14) (176)(135) Free cash flow available to shareholders 529 362 1,259 990 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
[email protected]
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, 2025December 31, 2024September 30, 2024 Assets Current assets: Cash $2,770$1,980 $2,069 Restricted cash 299 18 17 Accounts receivable 1,286 1,290 1,149 Unbilled revenue 498 369 426 Inventories 74 56 66 Derivatives 119 - - Other assets 739 577 624 5,786 4,290 4,351 Non-current assets: Property and equipment 231 222 224 Right of use assets 388 329 331 Deferred income taxes 288 219 206 Investments accounted for using the equity method 258 14 9 Other assets 330 314 322 Intangible assets 8,045 7,459 7,128 9,540 8,559 8,220 Total assets $15,326$12,849 $12,571 Liabilities and Shareholders' Equity Current liabilities: Debt with recourse to Constellation Software Inc.$565$303 $294 Debt without recourse to Constellation Software Inc. 578 319 414 Accounts payable and accrued liabilities 1,714 1,591 1,422 Dividends payable 21 21 21 Deferred revenue 2,304 1,965 2,020 Provisions 13 22 10 Acquisition holdback payables 223 215 276 Lease obligations 136 115 115 Income taxes payable 142 110 116 5,695 4,661 4,690 Non-current liabilities: Debt with recourse to Constellation Software Inc. 1,948 1,855 1,881 Debt without recourse to Constellation Software Inc. 1,924 1,689 1,560 Deferred income taxes 785 671 641 Acquisition holdback payables 193 131 121 Lease obligations 291 252 256 Other liabilities 386 300 285 5,527 4,899 4,745 Total liabilities 11,222 9,561 9,435 Shareholders' equity: Capital stock 99 99 99 Accumulated other comprehensive income (loss) 112 (224) (98) Retained earnings 3,258 2,919 2,657 Non-controlling interests 634 493 478 4,103 3,288 3,136 Total liabilities and shareholders' equity $15,326$12,849 $12,571

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, 2025 2024 2025 2024 Revenue License $107 $84 $290 $259 Professional services 538 487 1,558 1,451 Hardware and other 89 78 244 204 Maintenance and other recurring 2,213 1,893 6,354 5,449 2,948 2,541 8,446 7,363 Expenses Staff 1,487 1,336 4,356 3,956 Hardware 51 43 134 114 Third party license, maintenance and professional services 285 243 807 701 Occupancy 17 18 51 48 Travel, telecommunications, supplies, software and equipment 149 120 424 365 Professional fees 55 43 157 126 Other, net 45 34 154 134 Depreciation 52 46 148 135 Amortization of intangible assets 307 271 865 771 2,448 2,152 7,095 6,349 Foreign exchange loss (gain) (17) 30 132 16 IRGA/TSS Membership liability revaluation charge 16 33 236 122 Finance and other expense (income) (83) (18) (191) (50)Bargain purchase gain (1) 1 (6) (4)Impairment of intangible and other non-financial assets 12 2 23 17 Redeemable preferred securities expense (income) - - - 58 Revaluation of investment accounted for using the equity method to cost 260 - 260 - Finance costs 74 72 216 207 261 119 670 366 Income (loss) before income taxes 239 270 681 648 Current income tax expense (recovery) 153 126 445 396 Deferred income tax expense (recovery) (76) (43) (185) (196)Income tax expense (recovery) 77 83 261 200 Net income (loss) 162 187 420 448 Net income (loss) attributable to: Common shareholders of Constellation Software Inc. 210 164 402 446 Non-controlling interests (48) 23 18 2 Net income (loss) 162 187 420 448 Earnings per common share of Constellation Software Inc. Basic and diluted $9.89 $7.74 $18.96 $21.04

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, 2025 2024 2025 2024 Net income (loss) $162 $187 $420 $448 Items that are or may be reclassified subsequently to net income (loss): Foreign currency translation differences from foreign operations and other, net of tax (14) 71 250 8 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 (19) 71 459 8 Total comprehensive income (loss)$142 $258 $879 $456 Total other comprehensive income (loss) attributable to: Common shareholders of Constellation Software Inc. (17) 60 336 7 Non-controlling interests (3) 11 123 2 Total other comprehensive income (loss) $(19) $71 $459 $8 Total comprehensive income (loss) attributable to: Common shareholders of Constellation Software Inc. 193 224 738 453 Non-controlling interests (51) 34 141 3 Total comprehensive income (loss) $142 $258 $879 $456

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 stockAccumulated other comprehensive income (loss)Retained earningsTotalNon-controlling interestsTotal 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 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, 2024 Equity Attributable to Common Shareholders of CSI Capital stockAccumulated other comprehensive income (loss)Retained earningsTotalNon-controlling interestsTotal equity Balance at January 1, 2024$ 99$ (99)$ 1,876 $ 1,877 $ 85 $ 1,961 Total comprehensive income (loss): Net income (loss) - - 446 446 2 448 Other comprehensive income (loss) Foreign currency translation differences from foreign operations and other, net of tax - 7 - 7 2 8 Total other comprehensive income (loss) - 7 - 7 2 8 Total comprehensive income (loss) - 7 446 453 3 456 Transactions with owners, recorded directly in equity Non-controlling interests arising from business combinations - - - - (0) (0) Conversion of Lumine Special Shares to subordinate voting shares of Lumine and settlement of accrued dividend on Lumine Special Shares through the issuance of subordinate voting shares of Lumine - - - - 872 872 Conversion of Lumine Preferred Shares to subordinate voting shares of Lumine and settlement of accrued dividend on Lumine Preferred Shares through the issuance of subordinate voting shares of Lumine - (6) 400 394 (394) - Other movements in non-controlling interests - - (1) (1) (3) (4) Dividends paid to non-controlling interests - - - - (86) (86) Dividends to shareholders of the Company - (64) (64) - (64) Balance at September 30, 2024$ 99$ (98)$ 2,657 $ 2,658 $ 478 $ 3,136

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, 2025 2024 2025 2024 Cash flows from (used in) operating activities: Net income (loss) 162 $187 $420 $448 Adjustments for: Depreciation 52 46 148 135 Amortization of intangible assets 307 271 865 771 IRGA/TSS Membership liability revaluation charge 16 33 236 122 Finance and other expense (income) (83) (18) (191) (50) Bargain purchase (gain) (1) 1 (6) (4) Impairment of intangible and other non-financial assets 12 2 23 17 Redeemable preferred securities expense (income) - - - 58 Revaluation of investment accounted for using the equity method to cost 260 - 260 - Finance costs 74 72 216 207 Income tax expense (recovery) 77 83 261 200 Foreign exchange loss (gain) (17) 30 132 16 Depreciation of third party costs 5 - 14 - Change in non-cash operating assets and liabilities exclusive of effects of business combinations (47) (72) (2) (38) Transaction costs associated with equity securities classified as FVOCI - - (2) - Income taxes paid (131) (118) (430) (363) Net cash flows from (used in) operating activities 685 517 1,944 1,518 Cash flows from (used in) financing activities: Interest paid on lease obligations (4) (4) (12) (10) Interest paid on debt (59) (63) (153) (141) Increase (decrease) in CSI facility - - - (578) Increase (decrease) in Topicus revolving credit debt facility without recourse to CSI 301 55 197 147 Proceeds from issuance of Senior Notes - - - 1,000 Proceeds from issuance of debt facilities without recourse to CSI 77 37 445 313 Repayments of debt facilities without recourse to CSI (108) (81) (207) (113) Other financing activities (1) (4) (1) (31) Dividends paid to non-controlling interests - - (0) (86) Debt transaction costs (4) (1) (8) (13) Payments of lease obligations, net of sublease receipts (34) (31) (97) (89) Distribution to the Joday Group - - - (64) Principal repayments to the Joday Group pursuant to the Call Notice - - - (22) Dividends paid to common shareholders of the Company (21) (21) (64) (64) Net cash flows from (used in) in financing activities 147 (113) 100 250 Cash flows from (used in) investing activities: Acquisition of businesses (281) (196) (755) (871) Cash obtained with acquired businesses 44 23 100 89 Post-acquisition settlement payments, net of receipts (70) (53) (200) (183) Purchases of investments and other assets (36) (4) (225) (5) Proceeds from sales of other investments and other assets 0 2 16 7 Decrease (increase) in restricted cash (289) (4) (284) (13) Interest, dividends and other proceeds received 13 12 44 25 Property and equipment purchased (16) (19) (47) (42) Net cash flows from (used in) investing activities (634) (240) (1,351) (993) Effect of foreign currency on cash (3) 33 97 11 Increase (decrease) in cash 195 195 790 785 Cash, beginning of period$2,575 $1,873 $1,980 $1,284 Cash, end of period$2,770 $2,069 $2,770 $2,069

See Non-IFRS measures.