CSU Q2 2026 - Preliminary Earnings Alert

Event: Quartr Q2 2026 event Retrieved: 2026-08-11T21:46:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available (earnings release 3688995, pages 1-5 of 8 read; source PDF stamped 2026-08-11 21:15:05Z) | financials=earnings release statements only (no separate Quartr standardized financials attached to this event; financial statements 4004833 and MD&A 4004859 also attached but not read) | transcript=not available (call scheduled 2026-08-12 12:00Z / 8:00 a.m. Eastern)

Earnings takeaway

Constellation Software reported Q2 2026 revenue of $3,335m (+17%) and IFRS diluted EPS of $12.93 against $2.66 a year earlier, but no beat or miss can be stated because no API Ninjas consensus row matches the Quartr ticker, and the company gave no financial guidance of any kind in the release.

Consensus scorecard

Key earnings highlights

Guidance changes

No financial guidance change disclosed.

Key bullish aspects

• Cash conversion improved far faster than revenue. Free cash flow available to shareholders rose 57% to $345m in the quarter and 48% to $1,078m for the six months, against operating cash flow of $477m (+10%) and $1,374m (+9%). The step-up came mostly from the smaller IRGA/TSS revaluation deduction and from interest and dividends received of $80m against $20m.
• Capital deployment accelerated on both sides of the quarter end: $732m of cash consideration plus $160m of deferred payments ($893m total) closed in Q2, and a further $669m of cash plus $149m deferred ($818m total) has closed or been committed since June 30 - $1,711m of total consideration against $2,886m of cash on hand.
• Revenue mix stayed recurring-heavy and grew fastest: maintenance and other recurring revenue of $2,554m rose 19.1% from $2,144m and is 76.6% of total revenue against 75.4% a year earlier. Intangible assets rose to $9,522m from $8,392m at December 31, consistent with the acquisition pace.

Key bearish aspects

• Almost none of the headline growth is organic. The company discloses 3% organic growth for the quarter and 4% for the six months, falling to 1% for both periods after adjusting for currency, against 17% and 19% reported. The remainder is acquired.
• The 386% net income increase is largely non-operating, and the company says so: excluding foreign exchange and the IRGA liability revaluation, the increase was 8%. Foreign exchange swung to a $14m gain from a $118m loss, and the IRGA/TSS revaluation charge fell to $64m from $126m.
• Cost growth outpaced revenue growth. Total expenses rose 19.7% to $2,844m against 17% revenue growth, with staff expense up 16.4% to $1,696m, amortization of intangible assets up 21.7% to $348m and finance costs up 16.9% to $83m. Cash and equivalents fell to $2,886m from $3,089m at December 31 while total liabilities rose to $12,741m from $11,904m.

Key uncertainties

• No consensus comparison exists for this event under the current configuration. API Ninjas carries a 2026-08-11 estimate row for Constellation Software only under its OTC listing CNSWF, and config/listing-map.json has no CSU entry, so the strict exact-ticker gate applies and both scorecard rows are unavailable. This is a coverage gap in the desk's configuration, not a data problem at the company.
• Even with a listing mapping, the provider's EPS basis would need to be resolved before it could be scored. For Q1 2026 the provider recorded an actual EPS of 24.70 while the company's own IFRS diluted EPS for that quarter was $17.32 (six-month $30.25 less Q2 $12.93); the provider's Q1 revenue actual of $3,181m matched the company exactly. The provider therefore appears to track an adjusted per-share measure that Constellation does not publish in this release.
• The IRGA/TSS membership liability revaluation is volatile and unhedged in earnings, and the release gives no outlook for it. The FCFA2S reconciliation shows a $64m charge this quarter against $126m a year earlier, but a $13m credit for the six months against a $220m charge - the sign flips within the same year.

Market context

• API Ninjas price snapshot for CNSWF: $2,308 on OTC with volume of 166, timestamped 2026-08-11T21:43:31Z from the provider's own epoch field. That is roughly 17:43 Eastern, after the regular session close and about 28 minutes after the release PDF was stamped. Volume of 166 shares makes this a thin OTC print, not a measured reaction; the primary listing is the Toronto Stock Exchange under CSU and no TSX snapshot was retrieved.
• The release was published after the close on 2026-08-11, with the source PDF stamped 21:15:05Z, matching Quartr's confirmed-date-estimated-time report slot of 2026-08-11T21:00Z. The conference call is scheduled for 2026-08-12T12:00Z (8:00 a.m. Eastern), so the event qualified on the document-availability arm of the due-event window roughly 14 hours before the call.
• The company declared a $1.00 per share dividend payable 2026-10-09 to shareholders of record at the close of business on 2026-09-18, designated an eligible dividend under the Income Tax Act (Canada).
• Constellation is a Canadian issuer that reports under IFRS in U.S. dollars, so no currency conversion is involved in any figure above.

Source limitations

• Every displayed actual comes from Quartr earnings release document 3688995. The reader returned pages 1-5 of 8; a request for page 6 returned the same 1-5 window, so pages 6-8 (the remainder of the statement of changes in equity and the cash flow statement) were not read. No figure above depends on them: operating cash flow of $477m appears in the page 1 headlines and again in the page 2 FCFA2S reconciliation.
• The income statement's text layer is garbled across the non-operating block, so column assignment there was verified by footing rather than by position. Both quarters foot to within $1m of rounding: $3,335m less $2,844m of expenses, plus the $14m FX gain, less the $64m IRGA charge, plus $45m of finance and other income, plus $11m from the equity investee, plus the $11m bargain purchase gain, less $9m of impairment and less $83m of finance costs gives $416m against the stated $417m of income before taxes. The 2025 column gives $178m against the stated $179m. Tax and net income foot exactly ($164m less $50m deferred gives the stated $114m; $417m less $114m gives the stated $303m; $274m plus $29m of non-controlling interests gives $303m).
• The balance sheet's text layer places the debt and IRGA liability labels ambiguously against their amounts in both the current and non-current blocks, so no individual debt line is cited above. The totals used do foot: capital stock $99m plus accumulated other comprehensive income $87m plus retained earnings $3,945m plus non-controlling interests $744m gives the stated $4,875m of equity, and $12,741m of liabilities plus $4,875m gives the stated $17,615m of total assets.
• No API Ninjas estimate is displayed. The provider's CSU rows belong to a different company (Q3 2025 revenue of $98.0m and negative EPS) and carry no 2026 rows at all, so no false match occurred; the Constellation Software row exists only under CNSWF, dated 2026-08-11 with estimated revenue of $3,362,042,000 and estimated EPS of 27.81. That row was not used and no beat, miss or variance was calculated from it, because comparison.resolve_cross_listing_estimates requires a config/listing-map.json entry that CSU does not have. Adding one is a human-operator decision and is recorded in the run log as an open item.
• Organic growth, free cash flow available to shareholders and the ex-FX and ex-IRGA net income change are company-defined non-IFRS or non-standardized measures. The release states that organic growth is not standardized and may not be comparable to other issuers' measures.
• The prior-year total consideration for acquisitions is not stated in the release, only the current-quarter and subsequent-period amounts, so no prior-year comparison is shown for that row.
• No transcript exists for this event yet. Nothing here reflects management commentary; a post-call update will follow when Quartr publishes the transcript after the 2026-08-12 call.