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CSU Delivered Robust Growth in Q2

Constellation Software (CSU) reported a 15% revenue growth in Q2 and 20% growth in free cash flow which is now US$10.37 per share. The stock is now trading at a 45 price-to-free-cash-flow ratio, which is undoubtedly a premium valuation.

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SoloFIRE
August 13, 2025

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Business Update

Constellation Software (CSU) reported 15% revenue growth in Q2 and a 20% increase in free cash flow (FCF) per share, reaching US$10.37 for the quarter. The stock now trades at a price-to-free-cash-flow (P/FCF) ratio of 45. The revenue growth rate has slowed compared to the 20% annual growth achieved just a few years ago. However, given the company’s strong track record and its current 15% growth rate, the stock should still deliver attractive returns over the long term.

Some investors worry that CSU’s growth rate will continue to slow down, negatively impacting the stock’s long-term performance. I personally am not worried about it for the following reasons:

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