Topicus Remains Exposed To AI, But Its Discount Is Compelling

TOITF is a European vertical-market software compounder within Constellation's ecosystem. Their Q1 2026 revenue increased 22.5%, but organic growth was only 5.0%. This is why their M&A execution continues to be crucial for them. Unfortunately, TOITF stock has continued to decline, and I think this is clearly partly due to a broader VMS de-rating caused by AI concerns.