Key Highlights

  • Second-quarter 2026 Revenue was $3,335 million, up 17 per cent, with organic growth of 3 per cent.
  • Free Cash Flow available to shareholders was $345 million, up 57 per cent from $220 million.
  • Acquisition consideration in the quarter and the period after it totalled roughly $1.7 billion.

Security status and latest results

Constellation Software Inc. (OTC:CNSWF) is a Canadian acquirer and operator of vertical-market software businesses. Its primary listing is on the Toronto Stock Exchange under the symbol CSU, while the US over-the-counter ticker CNSWF refers to the same ordinary shares. The company reported second-quarter 2026 results, for the quarter ended 30 June 2026, on 11 August 2026, with all amounts in US dollars unless stated otherwise.

Revenue was $3,335 million, up 17 per cent from $2,844 million a year earlier. Organic growth was 3 per cent, or 1 per cent after adjusting for foreign exchange. Much of the headline increase therefore came from acquisitions and currency movements rather than from existing businesses.

Earnings and cash flow

Net income attributable to common shareholders was $274 million, compared with $56 million, and diluted Earnings per share were $12.93, against $2.66. The release notes that, excluding foreign-exchange effects and the Revaluation of the IRGA liability, the increase was 8 per cent. That caveat matters, because the reported near-fivefold jump in earnings per share is not a measure of operating improvement.

Free cash flow available to shareholders, which the company calls FCFA2S, was $345 million, up 57 per cent, or $125 million, from $220 million. That is equivalent to about 10.3 per cent of revenue. The release did not report adjusted EBITA, so that measure is not discussed here.

Acquisitions and dividend

Constellation's model depends on buying software businesses, and the release quantifies the pace. In the second quarter it spent $732 million in cash, including acquired cash, with an estimated further $160 million in deferred payments, for total consideration of $893 million. After the quarter end it completed further acquisitions for $669 million in cash on closing and an estimated $149 million deferred, a total of $818 million.

Together, the quarter and the subsequent period come to roughly $1.7 billion of total consideration. The quarterly Dividend was $1.00 per share, payable on 9 October 2026 to shareholders of record on 18 September 2026, and is designated an eligible dividend for Canadian tax purposes. Those dates have passed. Quarterly Acquisition consideration of $893 million was about 2.6 times free cash flow available to shareholders, so other funding sources were involved, which the release does not detail.

Why it matters, and the caveats

The combination of 3 per cent organic growth and acquisitions of this size shows that Constellation's headline growth depends heavily on continuing deal flow. That is the stated model rather than a flaw, but it means the return on acquisition Capital is the key judgement. The release does not report returns on those acquisitions, so they cannot be assessed from this document alone.

Currency also matters. The gap between 3 per cent organic growth and 1 per cent after foreign-exchange adjustment indicates that exchange rates added to the reported figures during the quarter.

What to watch

Several items are worth watching in the next report: whether organic growth moves above 3 per cent, whether free cash flow available to shareholders stays near $345 million, and how the post-quarter acquisitions affect revenue.