Constellation Software Reports Strong Q3 Growth and Boosts Dividend

Constellation Software Reports Strong Q3 Growth and Boosts Dividend

Constellation Software Reports Strong Q3 Growth and Boosts Dividend

Hey everyone, here’s a breakdown of the latest update from Constellation Software Inc., ticker symbol CSU, and it’s looking like a solid quarter for the company. For the third quarter ending September 30, 2025, Constellation reported revenue of $2.948 billion, which represents a 16% increase compared to the same period last year. This growth was driven by both acquisitions and a healthy 5% organic growth, with foreign exchange adjustments contributing an additional 3%. For the first nine months of the year, total revenue climbed 15% to $8.446 billion, again showing that both strategic acquisitions and steady organic expansion are paying off.

Net income for the quarter was $210 million, up 28% from $164 million in Q3 2024. On a per-share basis, this translated to $9.89 per diluted share, up from $7.74 last year. While the nine-month net income fell slightly to $402 million from $446 million in 2024, the overall trend for the quarter shows strong profitability and operational efficiency.

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Cash flow from operations also showed impressive growth, jumping 33% to $685 million for the quarter. Free cash flow available to shareholders, which is a key measure of uncommitted cash that can be reinvested or returned to shareholders, surged 46% to $529 million. These increases suggest that Constellation not only generated more revenue but also managed its operations and cash very effectively.

Acquisitions continued to be a focus, with a number of deals completed at a total cash consideration of $281 million, and deferred payments valued at $134 million, bringing total acquisition consideration to $415 million. The company has clearly continued its strategy of expanding through carefully selected acquisitions, while still generating strong organic growth.

In terms of shareholder returns, Constellation declared a quarterly dividend of $1.00 per share, payable on January 12, 2026, to shareholders of record as of December 19, 2025. This dividend is designated as an eligible dividend under Canadian tax law, adding another positive note for investors.

Overall, Constellation Software’s Q3 results show solid growth in revenue, profits, and cash generation, alongside continued investment in acquisitions. The company’s balance sheet remains strong, with cash on hand of $2.77 billion and total assets exceeding $15 billion, giving it flexibility to pursue further opportunities. CSU’s stock was last trading at around C$3,385, reflecting investor confidence in the company’s ongoing strategy.

So, in short, Constellation Software is riding a wave of strong operational performance, strategic acquisitions, and shareholder-friendly returns—definitely a company to keep an eye on in the software sector.

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