Alithya Group Inc.

The business

Alithya is an information technology services provider based in Montréal and founded in 1992. It operates in Canada, the United States and internationally, with about 2,600 employees. Its offerings include strategic consulting (such as digital strategy, cybersecurity and enterprise architecture) and enterprise transformation services (such as ERP, supply chain and CRM).

In the first quarter of fiscal 2027 (quarter ended June 30, 2026), revenue fell 15.4% to C$105.1M from C$124.2M a year earlier, with 77.4% coming from clients it also had in the same quarter last year. Gross margin was C$31.9M, or 30.4% of revenue versus 32.1%. The company reported a net loss of C$2.4M (C$0.03 per share) and said the quarter did not meet its expectations.

On July 27, 2026 Alithya announced a strategic review to evaluate alternatives for unlocking shareholder value, including a potential sale, merger or recapitalization, and retained Scotiabank as financial advisor. It also announced a new segment reporting structure with its first-quarter results.

The moat

Long-standing enterprise relationships and a specialization in ERP and enterprise-transformation work.

Partner credentials with major platforms; for example, in April 2026 it achieved AWS Migration and Modernization Competency status.

The moat is thin: IT consulting is labour-intensive and highly competitive, with demand tied to client budgets, and Alithya's trailing revenue and margins are under pressure.

Financial snapshot

Most recent reported period : Q1 fiscal 2027 (quarter ended June 30, 2026). Figures reflect the review date — confirm current numbers before acting.

Free cash flow yield & sustainable growth

StockAnalysis shows trailing free cash flow of C$23.9M, a 5.2% margin, which is about 22% of the market cap. Free cash flow is positive even though the trailing net result is a loss, but we did not source a multi-year history, so we do not show a trend.

Trailing revenue of C$458.3M is down 3.9%, while the latest quarter fell 15.4% year over year. Adjusted net earnings in Q1 fiscal 2027 fell 56.0% to C$2.9M from C$6.5M. The share count rose about 0.5% year over year to 96.8M shares. Net debt of C$122.6M is roughly 5 times trailing free cash flow, which leaves less room for buybacks or other uses of cash.

See the full free-cash-flow yield ranking →

Valuation & what to watch

At C$1.13 (October 28, 2026), Alithya has a market cap of about C$109M and an enterprise value of about C$232M, or about 0.51 times trailing sales, about 7.1 times EBITDA and 0.77 times book value. The trailing P/E is not meaningful because of the net loss (EPS of -C$0.42); StockAnalysis lists a forward P/E of 7.4. The 52-week range is C$0.94 to C$1.92, and the market cap is down about 41% over the year.

The discount to book value and to sales reflects falling revenue, a trailing loss and C$135.8M of total debt against C$13.2M of cash. The consensus rating is Hold (6 analysts) with an average target of C$1.26. The outcome of the strategic review could move the stock either way, and the company has not said what it will conclude.

Dividend

Alithya does not pay a dividend; StockAnalysis lists no dividend or yield.

Risks & the bear case

• Revenue is falling (-15.4% in Q1 fiscal 2027), and management said the quarter did not meet its expectations.
• Net debt of C$122.6M is large relative to the C$109M market cap and to trailing free cash flow.
• The strategic review may end without a transaction, or in a deal or recapitalization that is not favourable to current shareholders; no outcome or timeline has been given.
• IT consulting depends on client budgets and billable hours, and project decisions can be delayed.
• Two analyst downgrades followed Q1 results (Desjardins to Hold and Barrington to Market Perform), and the trailing result is a net loss.

Recent developments

2026-06-11: Reported fourth-quarter and fiscal 2026 results.

2026-07-27: Announced a strategic review of alternatives, including a potential sale, merger or recapitalization, and retained Scotiabank as financial advisor.

2026-08-13: Reported Q1 fiscal 2027 revenue of C$105.1M (-15.4%), a net loss of C$2.4M and adjusted net earnings of C$2.9M; announced a new segment reporting structure.

Verdict

Alithya is a small Québec IT-services company priced at about half of sales and below book value, with positive trailing free cash flow but falling revenue, a trailing loss and meaningful net debt. The ongoing strategic review adds a possible catalyst, but also uncertainty, since no outcome has been announced. It suits patient, risk-tolerant investors who are comfortable with turnaround and event risk in a small cap, rather than those looking for income, stability or a clear earnings recovery.