Altus Group Ltd
TSX:AIF
Altus Group Ltd
Altus Group Ltd. stands at the intersection of real estate and technology, carving a niche as a leading provider of software, data solutions, and independent advisory services to the global commercial real estate industry. With roots tracing back to land and property consulting services, the company has evolved significantly. Today, Altus Group is a trusted ally in helping stakeholders navigate the complexities of property valuations, asset management, and investment decision-making. At the core of its operations is ARGUS Enterprise, a powerful software suite that enables real estate professionals to model and forecast asset and portfolio performance effectively. With a global footprint, Altus Group leverages its comprehensive data analytics capabilities, combined with deep industry expertise, to address the challenges of valuation, tax, cost insights, and related advisory services.
The company's business model thrives on its ability to blend technology with specialization, generating revenue from both its robust software subscription model and its consulting and advisory services. By providing critical tools and insights, Altus supports real estate professionals in enhancing decision-making and optimizing their investment portfolios. A focus on innovation keeps Altus at the forefront, continually integrating advanced technologies like artificial intelligence and machine learning into its service offerings. This not only strengthens client relationships but also ensures a steady stream of recurring revenue. Through strategic acquisitions and partnerships, Altus Group extends its reach and enhances its comprehensive solutions portfolio, underscoring its commitment to fostering growth and efficiency within the real estate sector.
Altus Group Ltd. stands at the intersection of real estate and technology, carving a niche as a leading provider of software, data solutions, and independent advisory services to the global commercial real estate industry. With roots tracing back to land and property consulting services, the company has evolved significantly. Today, Altus Group is a trusted ally in helping stakeholders navigate the complexities of property valuations, asset management, and investment decision-making. At the core of its operations is ARGUS Enterprise, a powerful software suite that enables real estate professionals to model and forecast asset and portfolio performance effectively. With a global footprint, Altus Group leverages its comprehensive data analytics capabilities, combined with deep industry expertise, to address the challenges of valuation, tax, cost insights, and related advisory services.
The company's business model thrives on its ability to blend technology with specialization, generating revenue from both its robust software subscription model and its consulting and advisory services. By providing critical tools and insights, Altus supports real estate professionals in enhancing decision-making and optimizing their investment portfolios. A focus on innovation keeps Altus at the forefront, continually integrating advanced technologies like artificial intelligence and machine learning into its service offerings. This not only strengthens client relationships but also ensures a steady stream of recurring revenue. Through strategic acquisitions and partnerships, Altus Group extends its reach and enhances its comprehensive solutions portfolio, underscoring its commitment to fostering growth and efficiency within the real estate sector.
Leadership Change: CEO Jim Hannon has left Altus Group, with former CEO Mike Gordon returning as Executive Chair and set to become CEO in Q1 2026.
Strategic Review: After evaluating multiple proposals and alternatives, the Board decided to keep Altus Group independent to pursue its value creation plan.
Revenue & Margins: Q3 consolidated revenue grew 2.2%, and margins expanded by 230 basis points to 19.2%, with year-to-date margin up 440 basis points.
Recurring Revenue: Recurring revenue increased 5.2%, led by double-digit growth from ARGUS Intelligence for the second consecutive quarter.
Profit & Cash Flow: Adjusted EBITDA rose 16.1% and adjusted EPS doubled to $0.38; free cash flow per share surged 45.7%.
Guidance Trim: Full-year 2025 revenue and margin guidance was lowered due to continued softness in Appraisals and Development Advisory and slower VMS momentum.
ARGUS Intelligence: Migration is 56% complete, with about a 16% blended price increase and strong client retention.
Investor Day: Management will present new disclosures and midterm goals on November 20, highlighting growth and profitability plans.
