Key Highlights

● Second-quarter revenue rose 17% to $3,335 million, mainly through acquisitions.

● Organic growth was 3%, or 1% after adjusting for foreign exchange.

● Free cash flow available to shareholders rose 57% to $345 million.

● Recourse debt rose to $1,489 million while cash fell to $2,886 million.

Latest verified development

Constellation Software Inc. (OTC:CNSWF), whose primary listing is on the Toronto Stock Exchange under CSU, reported results for the second quarter ended 30 June on 11 August 2026 and declared a quarterly dividend of $1.00 per share, payable on 9 October 2026 to holders of record on 18 September. All figures in the release are in US dollars.

The quarter's headline was acquisition-led growth. Revenue rose 17% to $3,335 million from $2,844 million, but the company said the increase was primarily attributable to acquisitions. Organic growth was 3%, or 1% after adjusting for foreign exchange.

Maintenance and other recurring revenue was $2,554 million, against $2,144 million, about 77% of the total. License revenue was $92 million, professional services $573 million and hardware and other $116 million. For six months, revenue was $6,516 million, up 19%, and net income was $641 million, or $30.25 per diluted share.

Profit and cash flow

Net income attributable to common shareholders was $274 million, against $56 million, equal to $12.93 per diluted share against $2.66. The comparison is distorted by two items: a $64 million charge from revaluing a membership liability, against a $13 million gain a year earlier, and a $14 million foreign-exchange gain, against $58 million. Excluding both, the company said net income rose 8%.

Cash flow from operations was $477 million, up 10%. Free cash flow available to shareholders, a non-IFRS measure defined in the release, was $345 million, up 57% from $220 million. The company states that its objective is to invest all of that free cash flow in acquisitions meeting its hurdle rate.

The free cash flow measure deducts lease and debt interest, lease payments and capital expenditure from operating cash flow, among other items, so it is more conservative than operating cash flow alone.

Acquisitions and balance sheet

Aggregate cash consideration for acquisitions in the quarter was $732 million, including acquired cash, with estimated deferred payments of $160 million, for total consideration of $893 million. After 30 June, a further $669 million of cash consideration was paid at closing, plus estimated deferred payments of $149 million, for $818 million in total, covering completed deals and open commitments.

Cash and equivalents were $2,886 million, against $3,089 million at the end of 2025. Non-current debt with recourse to the company was $1,489 million, up from $472 million. A further $658 million current and $2,066 million non-current debt is without recourse. Recourse debt rose while cash fell, in a period of heavy acquisition spending.

Listing structure

CNSWF is the US over-the-counter line for a company whose primary listing is the Toronto Stock Exchange under CSU. The company reports in US dollars.

Acquisition spending against free cash flow

The next quarterly report will show how much of the $818 million of post-quarter commitments closed and what they cost. The release gives no formal earnings guidance, so results and filings are the main evidence, and revaluation charges and currency can swing reported earnings sharply between quarters.

Against that, the picture is one of a company funding purchases faster than its organic engine alone would deliver: growth of 1% after foreign exchange sits beside $345 million of free cash flow that management intends to put to work in full, while recourse debt has climbed from $472 million to $1,489 million.