The strategic review with Scotiabank introduces a material M&A premium possibility that could drive the stock higher, but the underlying business deterioration (revenue -15.4%, net loss, EBITDA -53.4%) is severe. Traders should watch for any definitive transaction announcement or third-party interest; absent a deal, the weak fundamentals suggest downside risk.
Price Chart
Executive Summary
Alithya reported Q1 FY2027 results with a 15.4% revenue decline to $105.1M, a net loss of $2.4M vs. a $0.2M profit last year, and Adjusted EBITDA down 53.4% to $5.4M. The company has retained Scotiabank as financial advisor for a strategic review process exploring a sale, merger, or other alternatives, which provides a potential upside catalyst that partially offsets the weak operating performance.
Key Facts
- Revenues decreased 15.4% to $105.1M from $124.2M YoY.
- Net loss of $2.4M vs. net earnings of $0.2M in the prior year.
- Adjusted EBITDA fell 53.4% to $5.4M, with margin contracting to 5.2% from 9.4%.
- Company retained Scotiabank as financial advisor for a strategic review process announced July 27, 2026.
- Drawings on credit facility were $100.9M with $55.2M in additional available resources.
- 3,328,472 shares purchased and cancelled under NCIB, including 2,489,682 shares for $3.97M related to Datum Transaction.
Financial Impact
Revenue down $19.1M (15.4%), net income swung from +$0.2M to -$2.4M, Adjusted EBITDA down $6.2M (53.4%).
Risk Factors
- Strategic review may not result in any transaction, leaving the company with declining revenue and profitability.
- High leverage with $100.9M drawn on credit facility against declining EBITDA could pressure liquidity.
- Book-to-bill ratio of 0.85 indicates future revenue headwinds from insufficient new business.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001734520-26-000062 |
| Document: alithyaform6-kpressrelease.htm | 0001734520-26-000062 |
| Document: 0001734520-26-000062-index-headers.html | 0001734520-26-000062 |
| Document: 0001734520-26-000062-index.html | 0001734520-26-000062 |
| Document: 0001734520-26-000062.txt | 0001734520-26-000062 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 13, 2026 10w ago | 6-K | $0.7800 | awaiting T+60 | — | $0.7968 (+2.15%) |
Jul 27, 2026 13w ago | 6-K | $0.7400 $0.8000 | ▲ +8.11% | ▲ +3.63% | $0.7968 (+7.68%) |
Jun 30, 2026 16w ago | 6-K | $0.7100 $0.7600 | ▲ +7.04% | ▲ +3.08% | $0.7968 (+12.23%) |
US Market Status
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