JB

Not investment advice. Personal opinions only. I may hold positions I discuss.

[JB @DomumCapital]

Profiled several companies this year. More to come in 2026!
✅Tantalus (utility software & grid intelligence)
✅Greenland Resources (molybdenum junior minor)
✅Rumbu Holdings (funeral home roll-up)
✅Cybeats (SBOM & cyber compliance)
✅ALUULA (advanced composite materials)
✅Renoworks (vertical SaaS for home reno)
✅Freightos (digital freight infrastructure)
✅Kneat (enterprise validation for life sciences)

$GRID.TO $MOLY $RMB.V $CYBT.CN $AUUA.V $RW.V $CRGO $KSI.TO

Link to each write-up 👇

[C.J. @CJ0pp3l]

CSI businesses family photo
$CSU.TO $TOI.V $LMN.V $SGN.WA

[C.J. @CJ0pp3l]

Lumine LTM revenues = $795.3 million

Synchronoss acquisition (closed in Feb) and Synamedia carve-out (closing soon) adds approximately $274 million in LTM revenues

$LMN.V $CSU.TO

[Varun Malhotra @varuninvesting]

We are approaching the end of the exploratory phase where you need to use as much AI as possible just to explore and see what's going on.

Companies are looking at real costs and ROI now, so we're in the next stage.

This will also prove that a lot of B2B SaaS is more protected than people think, because you do need the best reasoning models to extract value on top of them & right now the cost is high

[Jerry Capital @JerryCap]

"Q2-to-date brings TTM capital deployed on acquisitions (and the equity investment in Asseco) to $2.835B, nearly double $1.50B in the previous TTM period." $CSU

[Trevor Scott @TidefallCapital]

$CSU.to
"With Conduent, Q2-to-date brings TTM capital deployed to $2.835b, nearly double the $1.5b in the previous TTM period... Constellation's businss model is scaling and taking advantage of the dislocation in public software valuations." - RBC

[Jerry Capital @JerryCap]

$CSU Feasting

[C.J. @CJ0pp3l]

$CSU US$164 million $CNDT Public Transit business carve-out = 0.4x sales multiple

[Trevor Scott @TidefallCapital]

Record deployments this year for $CSU.to.
If this was ever listed on the Nasdaq.... (it never will be thankfully)

[Jerry Capital @JerryCap]

$CSU feasting on this carcus for the second time?!

From 2023:

https://t.co/VRe2ySahr5

[Michael Gielkens @MichaelGielkens]

Big acquisition for $CSU.TO! https://t.co/J2GfQKmkis

[Braden Dennis 📊 @BradoCapital]

Turned this into a 30 years of $CSU.TO poster with these newly disclosed figures.

[Steve Grasso @grassosteve]

Software sold off on AI replacement fears. That fear turbocharged the semi rally. Next move funds rotate semi profits into oversold software names to outperform. Markets always overshoot.
Rinse and repeat

[Paul Andreola 🇨🇦 @PaulAndreola]

https://t.co/F0QJUaVW26

[Jerry Capital @JerryCap]

🐐🐐🐐 $CSU

[Trevor Scott @TidefallCapital]

When a university student realized AI won't displace all software leaders. Software is more than code. $CSU.to

[JB @DomumCapital]

@TidefallCapital 😂😂😂😂

[PG Capital @_PGCapital]

Constellation Software (CSU) Q1’26 deep dive 👇
$CSU $CSU.TO

IMPORTANT FRAMING (because CSU consolidates TOI + LMN)
CSU consolidates 100% of both Topicus and Lumine (control via super voting). So CSU’s reported revenue / opex / cash / M&A includes TOI + LMN fully, and economics are then split via NCI (and FCFA2S deducts NCI).

1) Growth: strong headline; “maintenance organic” is the clean signal
Revenue grew +20% YoY to $3,181m. Organic growth was +6% (or +2% FX-adjusted).

Cleanest read is maintenance & other recurring:
Maintenance +22% YoY and +9% organic (FX-adjusted +4%).
Licenses were -9% organic and hardware slightly negative organically, so don’t over-read those.

2) M&A: remember LMN + TOI are inside CSU’s numbers
Total consideration for acquisitions in Q1 was $809m (cash at close $697m):
- Synchronoss (inside Lumine): total consideration $309m (contributed $22m revenue and ~$(2)m net loss in the partial quarter)
- “Additional acquisitions”: total consideration $500m = cash $388m + holdbacks $91m + contingent $21m

Cash flow bridge (to reconcile optics):
Cash paid at close was $697m, and then there was another ~$69m of post-acq settlement / holdback payments → “cash used in acquisitions” shows up as $766m.
CSU also acquired $77m of cash with the businesses.

Standalone CSU deployment (“ex TOI + LMN” lens):
Topicus did €22.5m of total consideration in Q1 (~$25–26m), so standalone CSU consideration is roughly:
$809m – $309m – ~$26m ≈ ~$473m in Q1’26 (similar to Q4’25). TTM standalone consideration is ~ ~$1.5b → CSU is still chugging along on acquisitions.

Bonus: post-quarter pipeline
Subsequent to Mar 31, CSU completed / committed to $786m of acquisitions (cash $627m + deferred $159m).

3) Operating leverage: roughly steady (Q1 staff is seasonally optically heavy)
Expenses grew +21% vs revenue +20% (expense ratio 75% → 76%).
Staff grew +19% YoY. CSU reminds Q1 staff % is seasonally higher due to payroll taxes tied to annual bonus payments in March.

Lumine had acquisition-related costs this quarter (not quantified at CSU level), so some staff-line noise is possible.

4) Below EBIT: lots of noise (don’t anchor on EPS without context)
- FX swung hard: +$45m gain vs -$32m loss last year.
- IRGA liability revaluation swung from a +$94m charge last year to a -$76m gain this year (non-cash).
Important nuance: the IRGA liability fell mainly because Topicus’ listed stakes (Asseco + Sygnity) were lower, offset by Topicus’ trailing maintenance/recurring growth + net profits.
- Asseco now shows up via equity-method income (~$10–11m this quarter, lagged).
- Finance costs were higher due to higher average debt outstanding.

5) Cash: CFO +9%;

my FCFAA math
My FCFAA variant: start from CFO, subtract interest/leases/capex, add acquired cash, deduct post-acq settlement cash.

In Q1’26:
CFO 897
less interest / leases / capex: 111
+ cash obtained from businesses: 77
– post-acq settlement payments: 69
FCFAA: ~795m in Q1 (up ~11% YoY)

On TTM basis (my calc):
OCF: 2,807m
less interest / leases / capex: 377m
FCF: 2,430m
+ cash obtained from businesses: 239m
– post-acq settlement payments: 339m
FCFAA: ~2,330m TTM

(Note: this includes 100% of Topicus + Lumine, so be careful with valuation.)

6) Balance sheet / dry powder
Cash ~$3.01bn and total debt ~$3.99bn → net debt ~$0.98bn (ex leases).
Lease obligations are ~0.44bn → “incl leases” net debt ~1.44bn (~0.4x net debt / TTM EBITDA).

CSI Facility is $1.085bn and was undrawn at quarter-end (only ~$13m letters of credit).

Net-net: good organic (especially maintenance), steady M&A machine, and strong Q1 cash generation.

[Daniel Pronk @PronkDaniel]

If you owned this business privately and removed the stock price movements, you'd be very, very happy with it's continued results.

$CSU

[Max Katzenstein @max_katzenstein]

$CSU $CSU.TO revenue from 2000-2009

[Trevor Scott @TidefallCapital]

$CSU.to went on an acquisition tear:
Q1 2025: $133m
Q4 2025: $571m
Q1 2026: $809m
In 2025 they acquired $1.58b
Including Q1 subsequent commitments they have already surpassed all of 2025 deployment
...And this ignores PEMS deployment.
🔥