Constellation Software, a Canadian company focused on acquiring smaller software firms, reported a second-quarter profit of $274 million, or $12.93 per share, compared with $56 million, or $2.66 per share, in the same period last year. The sharp increase reflects the company’s ongoing strategy of buying and integrating software businesses.\n\nRevenue rose 17% to $3.34 billion from $2.84 billion in the prior-year quarter, driven primarily by contributions from recent acquisitions. Organic growth, which excludes the impact of acquisitions, was a modest 3%.

The results highlight how Constellation Software continues to rely on deal-making to boost its top and bottom lines.\n\nThe company’s business model involves acquiring small to mid-sized software firms, often as bolt-on additions to its existing portfolio. This approach has allowed it to compound revenue and profit over time, even as organic expansion remains slow. The latest earnings report underscores the effectiveness of this strategy in the current quarter.\n\nWrite to Elias Schisgall at [email protected].

The Wall Street Journal reported on the earnings release, noting the significant swing in profitability year-over-year.