Constellation Software: A Business Built To Compound
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Rowan Street Capital394 FollowersFollow5ShareSavePlay(12min)CommentsSummaryWe initiated a position in Constellation Software, reflecting our effort to allocate capital toward what we believe are the highest-quality long-term compounders available to us.The company acquires small, mission-critical software businesses that serve specific industries, providing essential systems that customers rely on to run their daily operations.In 2025, revenue grew approximately 15%, cash flow from operations increased by 24%, and free cash flow available to shareholders grew by 14%.Sentiment toward software companies has turned negative, driven by the belief that AI will commoditize development, lowering barriers to entry and enabling customers to build their own solutions.Its decentralized structure, deep bench of operators, and disciplined capital allocation framework were built precisely to function independently of any single individual, including its founder. BlackJack3D/iStock via Getty Images The following segment was excerpted from the Rowan Street Q1 2026 Letter. During the quarter, we initiated a position in Constellation Software (CNSWF) (CNSWY) (CSU:CA). This decision reflects our continuedThis article was written byRowan Street Capital394 FollowersFollowOn a mission to become unreasonably good at identifying, owning, and holding exceptional businesses — letting time do the heavy lifting.