“Our first quarter results reflect the strength of our recurring revenue model and the progress we’re making to build a more focused, higher-margin data analytics business,” said Mike Gordon, CEO and Chair of Altus Group. “Growing demand for our flagship offerings drove steady ARR growth, while our disciplined cost actions contributed to meaningful margin expansion, with additional benefits expected to flow through in coming quarters. Recent innovations on the ARGUS Intelligence platform, such as the addition of ARGUS Assist – our agentic AI layer, should further increase engagement and expand cross-sell and upsell opportunities. Our ongoing portfolio rationalization is translating into a simpler continuing operations profile, while at the same time improving the quality of earnings and strengthening cash generation which has enabled us to return approximately $400 million to shareholders year to date.”
Selected Q1 2026 Information
All revenue, Adjusted EBITDA* and Adjusted EBITDA margin results are for consolidated continuing operations1.
|
C$M |
Q1 2026 |
Q1 2025 |
% change |
% change currency |
|
Revenues |
$108.2 |
$104.4 |
6.2% |
Constant Currency* |
|
Recurring Revenue* |
$102.8 |
$98.8 |
6.5% |
Constant Currency |
|
Software Revenue |
$51.3 |
$46.4 |
11.7% |
Constant Currency |
|
Software Annual Recurring Revenue* |
$202.9 |
$183.7 |
10.5% |
As Reported |
|
Valuation Management Solutions (“VMS”) Revenue |
$42.0 |
$41.0 |
6.0% |
Constant Currency |
|
VMS Annual Recurring Revenue* |
$169.4 |
$161.6 |
4.8% |
As Reported |
|
Profit (Loss) from continuing operations |
$(6.5) |
$(7.3) |
10.8% |
As Reported |
|
Adjusted EBITDA* |
$23.7 |
$17.1 |
46.8% |
Constant Currency |
|
Adjusted EBITDA margin* |
21.9% |
16.3% |
620 bps |
Constant Currency |
|
Net cash provided by operating activities |
$21.0 |
$0.7 |
2,873.8% |
As Reported |
|
Free Cash Flow*2 |
$19.7 |
$(0.6) |
3,329.5% |
As Reported |
|
Free Cash Flow per Share*2 |
$0.48 |
$(0.01) |
4,900.0% |
As Reported |
|
Funded debt to EBITDA ratio |
1.33 |
1.44 |
n/a |
n/a |
*Denotes non-GAAP financial measure, non-GAAP ratio, capital management measure, and/or supplementary and other financial measures as defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”). Please refer to the “Non-GAAP and Other Measures” section of this press release for further information.
1. All revenue, Adjusted EBITDA and Adjusted EBITDA margin figures are for consolidated continuing operations, which excludes the Appraisals business that was sold and the reclassification of the Development Advisory business as discontinued operations in Q1 2026.
2. Net cash provided by operating activities, Free Cash Flow and Free Cash Flow per Share still includes contribution from assets that are held for sale, and the prior year comparative figures include contribution from assets that were a part of Altus until the date they were sold.
Business Outlook
Management’s expectations for fiscal 2026 have been updated for continuing operations to account for the move of the Development Advisory business under discontinued operations. The implied As Reported ranges have been updated for more current foreign exchange rates.
Additionally, with Recurring Revenue now representing approximately 95% of total Revenues for continuing operations, the Company will no longer be including Recurring Revenue as a standalone metric in its business outlook. Accordingly, the Company is withdrawing its previously disclosed fiscal 2026 Recurring Revenue guidance. The Company’s total Revenue guidance, which is set out below, effectively captures the Recurring Revenue line item given its proportion of total Revenues. This change does not represent a substitution of the Recurring Revenue metric with another measure achieving the same objective.
|
C$M |
2026 Guidance CC growth rate |
Implied Range** As Reported |
Q2 2026 Guidance CC growth rate |
Implied Range** As Reported |
|
Revenues |
5 – 7% Increased from 4–6% |
$448 – $454M |
5 – 7% |
$110 – $112M |
|
Adjusted EBITDA margin |
450 – 550 bps Increased from 350 – 450 bps |
26 – 27% |
450 – 550 bps |
25 – 26% |
**Implied ranges are based on average March 2026 foreign exchange rates. Currency fluctuations may cause reported results to differ. The Constant Currency (CC) growth rates represent the Company’s official guidance expectations.
The Company expects its Recurring Revenue growth to be based on its target growth algorithm, which expects ~80% of the growth to be driven by volume and pricing, and ~20% by new logos. The projected Adjusted EBITDA margin expansion is expected to be driven primarily by improved operating efficiencies and expense management.
The FY2026 guidance has also been updated to reflect the partial contribution from the One11 Managed Services (“One11”) business up to the time of sale (April 30, 2026). For comparative purposes, One11 contributed ~$5.2 million to Analytics revenues in FY2025 (including $3.9 million to Recurring Revenue) and will remain in the comparative period as it does not qualify for discontinued operations accounting treatment. The loss of One11 partial revenues is offset by increased Analytics growth expectations.
The Company’s mid-term financial target is to exit 2027 as a Rule of 40 company at the consolidated level, as defined by the sum of revenue growth and Adjusted EBITDA margin, and assumes the completion of the divestiture of the Development Advisory business.
Q2 2026 Dividend Payment
The Board approved the payment of a cash dividend of $0.15 per common share for the second quarter ending June 30, 2026. Payment will be made on July 15, 2026 to common shareholders of record as at June 30, 2026.
Altus Group confirms that all dividends paid or deemed to be paid to its common shareholders qualify as ʺeligible dividendsʺ for purposes of subsection 89 (14) of the Income Tax Act (Canada) and similar provincial and territorial legislation, unless indicated otherwise.
The Board of Directors has also approved the termination of the Company’s Dividend Reinvestment Plan (the “DRIP”), effective with the payment of the Company’s third quarter dividend. Given the immaterial level of participation in the DRIP, the Board determined that the administrative costs of maintaining it are no longer justified. Following the termination, all shareholders, including those currently enrolled in the DRIP, will receive future dividends in cash. Shareholders currently enrolled in the DRIP are not required to take any action and will automatically begin receiving cash dividends commencing with the expected third quarter dividend payment. Additional details regarding the termination of the DRIP will be provided to participants in due course.
Amendment of Credit Facilities
On April 21, 2026, the Company amended its bank credit facilities to, among other things, extend the maturity date and expand the permitted uses of borrowings. Pursuant to the amendment, the maturity date of the credit facilities was extended from March 24, 2027, to March 24, 2029, for all lenders other than one lender that elected not to extend, for which the maturity date remains March 24, 2027. The Company’s borrowing capacity remains at $550.0 million with certain provisions that allow it to further increase the limit to $650.0 million and maintain the existing maximum Funded debt to EBITDA financial covenant ratio of 4.5 with provisions that allow for a short-term increase up to 5.0 following certain business acquisitions. The amendment also expanded the permitted use of borrowings under the bank credit facilities to include the funding of share buybacks, subject to compliance with certain financial ratio tests and other conditions and limitations set out in the amended agreement. Overall, the amended credit facilities strengthen liquidity, preserve flexibility, and reflect continued lender confidence in the business.
Q1 2026 Results Conference Call & Webcast
Date: Thursday, May 7, 2026
Time: 5:00 p.m. (ET)
Webcast: https://events.q4inc.com/attendee/537816604
Live Call: 1-833-461-5787 (toll-free) (Conference ID: 537816604)