Constellation Software Reports 16% Revenue Increase in Q3 2025 Earnings

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Constellation Software Reports 16% Revenue Increase in Q3 2025 Earnings

Constellation Software Inc. (TSX:CSU) revealed impressive financial results for the third quarter of 2025, showcasing a significant revenue increase of 16%. This growth brought total revenue for the quarter to C$2.95 billion.

Q3 Revenue Highlights

The company reported a rise from C$2.54 billion in Q3 2024, marking an increase of C$407 million. For the year-to-date, revenue reached C$8.45 billion, up 15% compared to the C$7.36 billion recorded in the same period of 2024.

  • Revenue Increase: 16% in Q3 2025.
  • Total Q3 Revenue: C$2.95 billion.
  • Year-to-Date Revenue: C$8.45 billion.

Driving Factors

The growth was attributed mainly to strategic acquisitions, complemented by an organic growth rate of 5% during the quarter and 3% year-to-date. These figures take into account adjustments for currency fluctuations.

Earnings Performance

Net income for the third quarter amounted to C$210 million, an increase from C$164 million in the previous year. Diluted earnings per share improved to C$9.89 from C$7.74 year-over-year.

  • Net Income for Q3: C$210 million.
  • Net Income Year-to-Date: C$402 million.
  • Diluted Earnings per Share: C$9.89.

Cash Flow Insights

Constellation Software’s operations boosted cash flow significantly, with a 33% increase in the quarter, reaching C$685 million. Free cash flow available to shareholders skyrocketed by 46%, amounting to C$529 million.

  • Q3 Cash Flow from Operations: C$685 million.
  • Free Cash Flow Available to Shareholders: C$529 million.

Dividends and Stock Performance

The company also declared a quarterly dividend of C$1.00 per share. As of the latest trading session, Constellation Software’s stock price stood at C$3,385.76, reflecting a decline of 23.83% since the beginning of 2025.

In summary, Constellation Software’s third quarter results indicate strong revenue growth and improved profitability, establishing a solid financial foundation moving forward in 2025.