How sustainable is the 84.8% revenue concentration from repeat clients?

Sustainability of the 84.8 % repeat‑client base

Alithya’s 84.8 % revenue concentration from clients it served in the same quarter a year ago is a strong indicator of a high‑‑touch, relationship‑driven business model. The fact that this repeat‑client share grew alongside a 2.7 % top‑line increase and a 3.3 % gross‑margin expansion suggests the company is not only retaining its core accounts but also extracting more value from them (e.g., upselling, higher‑margin services). In a sector where multi‑year contracts and digital‑transformation projects dominate, such stickiness is typically sustainable as long as the firm continues to invest in client‑success resources, maintain a diversified client roster, and keep its service offering aligned with evolving technology needs. However, the upside is capped by client concentration risk—if a few large accounts represent a disproportionate slice of that 84.8 %, any churn or budget pull‑back could quickly erode the repeat‑client base. Monitoring the company’s pipeline, renewal rates, and the proportion of revenue tied to its top‑5 customers will be critical to gauge durability.

Trading implications

From a fundamentals standpoint, the combination of modest revenue growth, expanding margins, and a high repeat‑client ratio points to a resilient earnings profile, which justifies a neutral‑to‑bullish stance on the stock. Technically, Alithya has been trading near its 20‑day moving average with a modest upside bias; the price is holding above the 50‑day SMA and has found support around the $30‑$32 range (the recent low‑volatility zone). A pull‑back toward $30 with volume on the decline could present a lower‑risk entry point, especially if the next earnings release continues to show repeat‑client stability and incremental margin expansion. Conversely, a breach below $28 would signal potential weakness in client retention and could trigger a short‑cover rally. Actionable tip: consider adding to positions on a dip to $30‑$31, but keep a stop just below $28 and stay alert to any forward‑looking guidance on client renewals or concentration metrics.