Product & Investing Nerd

My $CSU.TO raw notes from this morning's AGM: - Opened with a video showing year-by-year acquisitions across operating groups. Seeing gross/recurring revenue alongside capital deployed was impressive with over 1,300 acquisitions during their 30 year run. - Core message remained consistent: - Decentralization - Decisions pushed to business units - Small teams - Buy-and-hold forever mindset - No PE-style flipping - Scale highlights: - 69K employees - 1,500+ business units - 1,300+ acquisitions - 100+ countries - 150+ vertical markets - Conventional org charts are NOT how CSI operates - HQ exists to coach, not control - Nyland (Lumine) mentioned speaking with their telecom customers about potential acquisition opportunities that improve service to end customers - Concentrating talent within verticals is a major edge. Deep knowledge in transportation with Bill Delaney (CEO of Modaxo, part of Volaris) runs transportation software services for 3,000+ cities and governments - Mark Miller's AI comment: - “It’s about what you actually do, not what you say you’re going to do” - Short-term leaders focus on what they say, not execution - Vertical markets require deep industry expertise, even in the AI era - Founder who spoke on a panel sold to CSI in 2018 is now fully out of that business and running an academic vertical inside completely outside of the operating unit he sold to - Interesting pattern: founders often stay within Constellation in new leadership roles years later - Agentic coding is helping them build more software faster - Some companies are fully rebuilding and modernizing products from scratch — previously inconceivable pre-agentic coding - CSI is hosting many AI hackathons to: - Produce new products - Rebuild outdated systems - Modernize software untouched for decades - Potential upside: - Longer product life cycles - Lower churn - CSI increasingly investing in “PEMS” in other words taking stakes in other public software companies. Miller sees value in public markets and mentioned on the earnings call last week that private valuations haven't moved while publics get smoked. - PEMS = Permanent Engaged Minority Shareholders - Holding long term, not trading the equities - Brief mention of Mark Leonard at the start, then not referenced again... Company remains very private about his health - Mark Miller: - “We really haven’t seen any AI-related attrition of customers” - Software businesses are not just products, they are Companies: - Support matters - Sales matters - Services matter - Customers don’t ask for AI. Customers ask for solutions. If AI improves the solution, great

Due to a family emergency I couldn't make it to the $CSU.TO AGM today. But look through the feed it looks amazing and glad so many well-informed investors were doing their duty. It's amazing to see and hear.

@ErnestWongBWM 😇

Based on the questions in the Q&A, $CSU.TO has one of the most informed shareholder bases I've seen in a public company

@ronmortgageguy can't say we didn't see this coming...

Sell The Airports Sell The Seaports When You're The Prime Minister From Brookfield EVERYTHING Is Financial Engineering Federal Government doubled down: Not just sell the Airports, sell the Seaports too Here's the truth: companies who buy these facilities insist on PROFIT 2/

@TidefallCapital fantastic!!!

First in person Constellation Software AGM in 7 years. $CSU.to $TOI.V $LMN.V

@ArenaManCapital the stars are out today!!!

We're back! $CSU.TO

@deepvalueco Pretty much

Imho, 90% of what's relevant about the $CSU.TO numbers are revenue growth and capital deployed.

“We believe that maintenance revenues are the best indicator of Intrinsic Value.” — Mark Leonard, Q1 2007 Shareholder Letter. Q1 2026 Recurring Revenue Performance: • $CSU.TO: +22% (+4% Organic FX-Adj) • $TOI.V: +23% (+7% Organic FX-Adj) • $LMN.V: +27% (+3% Organic FX-Adj)

@RyanDetrick That's not Ben.

Pyramid of the best investors ever. Who is missing?

What an interesting question. But not a very good one.

@patientinvestor Life support needed

@CSUnerd dying company

Constellation Software $CSU.TO reported their Q1 numbers, here’s some hlghlights: - Revenue: +20% YoY (w/ 6% from organic) - FCF: +44% YoY - Acquisitions: $809M deployed Anything I missed!?

@AJButton2 it's amazing ain't it.

PRESENTING: What $100 per night gets you in Hanoi, Vietnam.

@lifelonghacker ya that's wild...

@CSUnerd subsequent acquisitions is huge also ~750M. 2026 shaping to be record year for capital deployment

@AndrewDoPaco1 Ya I wouldn't bet the account this one either. Competitors can bundle away their business and its higher customer concentration than most other industries.

$CMG.TO I want everyone to unfollow me if Computer Modelling Group doesn’t outperform the $SPY over the next 2 years… CMG trades at 12-15x 2026E FCF (which is a depressed FCF base), with 4 quarters of organic decline almost certainly ending in Q4 FY26 due to YoY weak comps, Sharp acquisition moving to organic, and the Shell CoFlow ARR contribution. Pramod has assembled a credible $CSU.TO trained team that has executed 5 acquisitions at blended ~1.5x revenue. Even at 3% sustained organic and 13% ROIC at a 75% reinvestment rate, the math delivers a 14% IRR. Multiple re-rating to normalized levels for that growth (18-20x FCF) on top of that gets you to 18-20% IRR over 3-4 years. This quarter is a big one… they need to show positive organic growth and guide to it continuing.

Wrote up about this. And I think this will be the way.

@DukeInShadows No

@CSUnerd sarcasm?

That's the rational answer. $CSU.TO

@DukeInShadows Was thinking about it.

@CSUnerd u going to the AGM?

we are hiring a head of product at @trynationgraph in toronto. this will be a generational run if you come join us now, come help us make public sector data legible for the masses!

@ZubZhub Wait till you hear about the ex-Torontonians...

Toronto is such a good city when you don't have a Torontian in your ear telling you it sucks