CALGARY, Alberta, Nov. 12, 2026 (GLOBE NEWSWIRE) --
SECOND QUARTER 2027 CONSOLIDATED HIGHLIGHTS
Select financial highlights
- Total revenue decreased by 3% (10% Organic decline(1) and 7% growth from acquisitions) to $29.3 million;
- Recurring revenue(2) increased by 7% (nil Organic growth and 7% growth from acquisitions) to $22.1 million;
- Adjusted EBITDA(1) decreased by 16% to $6.4 million;
- Adjusted EBITDA Margin(1) was 22%, compared to 25% in the comparative period;
- Earnings per share was $0.01, a 67% decrease;
- Free Cash Flow(1) increased by 33% to $2.6 million; Free Cash Flow per share increased to $0.03 from $0.02
SECOND QUARTER YEAR TO DATE 2027 CONSOLIDATED HIGHLIGHTS
Select financial highlights
- Total revenue decreased by 5% (12% Organic decline and 7% growth from acquisitions) to $57.1 million;
- Recurring revenue increased by 2% (6% Organic decline and 8% growth from acquisitions) to $42.4 million;
- Adjusted EBITDA decreased by 13% to $12.8 million;
- Adjusted EBITDA Margin was 22%, compared to 24% in the comparative period;
- Earnings per share was $0.03, a 57% decrease;
- Free Cash Flow decreased by 5% to $6.1 million; Free Cash Flow per share remained flat at $0.08.
(1) Organic growth/decline, Adjusted EBITDA, Adjusted EBITDA Margin, Recurring revenue and Free Cash Flow are not standardized financial measures and might not be comparable to measures disclosed by other issuers. For more description see under “Non-IFRS Financial Measures and Reconciliation of Non-IFRS Measures” heading.
(2) Recurring revenue includes Annuity/maintenance licenses and Annuity license fee, and excludes Perpetual licenses and Professional Services.
OVERVIEW
Recurring revenue increased 7% to $22.1 million, which was due to 7% growth from acquisitions. Organic Recurring revenue was flat year over year, an improvement compared with a 12% organic decrease in the first quarter. Year-over-year comparisons normalized following the final quarter lapping the previously announced customer contract loss.
Perpetual license revenue increased to $1.3 million compared to $0.9 million in the prior year period.
Total revenue decreased 3% to $29.3 million, as 7% growth from acquisitions was offset by a 10% organic decrease driven by professional services.
Professional services revenue decreased 31% to $5.9 million, reflecting the absence of CoFlow related development funding, which concluded at the end of calendar 2025, and the completion of the wind down of non-core professional services at Bluware.
Professional services revenue decreased both sequentially and year over year, as expected. However, revenue in the quarter benefited from stronger than expected customer demand. As a result, we now expect professional services revenue in the third quarter to be similar to the second quarter. We previously expected the second quarter to be the lowest quarter of the fiscal year.
Adjusted EBITDA decreased 16% to $6.4 million, and Adjusted EBITDA Margin was 22% compared to 25% in the comparative period. The decrease reflects lower professional services revenue, partially offset by growth in software license revenue. Adjusted EBITDA was essentially unchanged from the first quarter, despite prior expectations of a sequential decline. Adjusted EBITDA in the current quarter was supported by an increase in perpetual licenses and stronger than expected demand for professional services.
Free Cash Flow increased 33% to $2.6 million, driven by lower capital expenditures. Free Cash Flow per share increased to $0.03 from $0.02. Year to date, Free Cash Flow decreased 5% to $6.1 million.
On November 12, 2026, the Company announced the renewal of a Normal Course Issuer Bid (“NCIB”) for its common shares as the Board of Directors of the Company believes that, from time to time, the market price of the common shares may not fully reflect the underlying value of the business.
The NCIB announced on November 11, 2025, and which will expire on November 13, 2026, resulted in a total of 4,760,700 shares being repurchased and cancelled.
The substantial issuer bid (SIB) announced on August 11, 2026 expired on September 21, 2026. Under the SIB, the Company repurchased and cancelled 4,444,444 common shares at $4.50 per share, for aggregate consideration of $20.0 million. The repurchase was funded from the Company’s credit facility. At September 30, 2026, $29.9 million was drawn on the $100 million revolving credit facility, with $70.1 million undrawn.
On October 9, 2026, the Company amended its revolving credit facility, increasing the total committed borrowing capacity from $100 million to $150 million, while also adding a second lender.
In the third quarter, Recurring revenue is expected to increase sequentially from the second quarter driven by a higher renewal cycle in the third quarter relative to the second quarter. Professional services revenue in the third quarter is expected to be similar to the second quarter.
Adjusted EBITDA and Adjusted EBITDA margins are expected to increase sequentially but decrease compared with the third quarter of fiscal 2026, primarily due to lower professional services revenue.
The fourth quarter is expected to be the Company’s largest renewal quarter and is expected to deliver the Recurring revenue growth and Adjusted EBITDA required to achieve the full-year outlook.
For fiscal 2027, we continue to expect a decline in professional services revenue of between $6-7 million relative to fiscal 2026.
For fiscal 2027, relative to the prior year and excluding the impact of future acquisitions, we continue to expect Organic Recurring revenue to be stable, no decline in Adjusted EBITDA, and improved Free Cash Flow.
Q2 2027 Dividend
Computer Modelling Group’s Board approved a cash dividend of $0.01 per Common Share. The dividend will be paid on December 15, 2026, to shareholders of record at the close of business on December 5, 2026.
All dividends paid by Computer Modelling Group Ltd. to holders of Common Shares in the capital of the Company will be treated as eligible dividends within the meaning of such term in section 89(1) of the Income Tax Act (Canada), unless otherwise indicated.
SUMMARY OF FINANCIAL PERFORMANCE
| Three months ended September 30, | Six months ended September 30, | |||||||||||
| ($ thousands, except per share data) | 2026 | 2025 | % change | 2026 | 2025 | % change | ||||||
| Annuity/maintenance licenses | 19,712 | 19,067 | 3 | % | 38,960 | 39,401 | (1 | )% | ||||
| Annuity license fee | 2,408 | 1,650 | 46 | % | 3,449 | 2,168 | 59 | % | ||||
| Recurring revenue(1)(2) | 22,120 | 20,717 | 7 | % | 42,409 | 41,569 | 2 | % | ||||
| Perpetual license | 1,269 | 945 | 34 | % | 1,766 | 1,323 | 33 | % | ||||
| Total software revenue | 23,389 | 21,662 | 8 | % | 44,175 | 42,892 | 3 | % | ||||
| Professional services | 5,879 | 8,539 | (31 | )% | 12,938 | 16,942 | (24 | )% | ||||
| Total Revenue | 29,268 | 30,201 | (3 | )% | 57,113 | 59,834 | (5 | )% | ||||
| Cost of revenue | 5,941 | 5,542 | 7 | % | 11,602 | 11,500 | 1 | % | ||||
| Operating expenses | ||||||||||||
| Sales & marketing | 6,025 | 5,992 | 1 | % | 10,544 | 10,602 | (1 | )% | ||||
| Research and development | 7,751 | 7,360 | 5 | % | 15,531 | 15,393 | 1 | % | ||||
| General & administrative | 6,458 | 6,126 | 5 | % | 12,078 | 11,865 | 2 | % | ||||
| Operating expenses | 20,234 | 19,478 | 4 | % | 38,153 | 37,860 | 1 | % | ||||
| Operating profit | 3,093 | 5,181 | (40 | )% | 7,358 | 10,474 | (30 | )% | ||||
| Net income | 711 | 2,716 | (74 | )% | 2,036 | 6,025 | (66 | )% | ||||
| Adjusted EBITDA (1) | 6,378 | 7,558 | (16 | )% | 12,767 | 14,628 | (13 | )% | ||||
| Adjusted EBITDA Margin (1) | 22 | % | 25 | % | (3 | )% | 22 | % | 24 | % | (2 | )% |
| Earnings per share — basic & diluted | 0.01 | 0.03 | (67 | )% | 0.03 | 0.07 | (57 | )% | ||||
| Funds flow from operations per share - basic | 0.04 | 0.04 | — | % | 0.10 | 0.11 | (9 | )% | ||||
| Free Cash Flow per share — basic (1) | 0.03 | 0.02 | 50 | % | 0.08 | 0.08 | — | % | ||||
(1) Non-IFRS financial measures are defined in the “Non-IFRS Financial Measures and Reconciliation of Non-IFRS Measures” section.
(2) Included in the number is a reduction of $0.2 million and $0.5 million for the three months and six months ended September 30, 2026, respectively ($0.1 million and $0.2 million for the three months and six months ended September 30, 2025, respectively), attributed to the amortization of a deferred revenue fair value reduction recognized on acquisition.
NON-IFRS FINANCIAL MEASURES AND RECONCILIATION OF NON-IFRS MEASURES
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA Margin refers to net income adjusted for depreciation and amortization expense, interest income, interest expense, deferred-revenue fair-value adjustment, income and other taxes, stock-based compensation, retirement allowance for senior management, restructuring cost, foreign exchange gains and losses, repayment of lease obligations, asset impairments, other non-recurring expense, acquisition related costs and other expenses directly related to business combinations, including compensation expenses and gains or losses on contingent consideration. Adjusted EBITDA is most directly comparable to IFRS measures operating income, net income, or liquidity but should not be construed as an alternative to such financial measures. Adjusted EBITDA Margin is most directly comparable to IFRS measure net income divided by revenue but should not be construed as an alternative thereof. The Company believes that Adjusted EBITDA and Adjusted EBITDA Margin are useful supplemental measures as they provide an indication of the results generated by the Company’s main business activities prior to consideration of how those activities are amortized, financed or taxed. In addition, management has determined that Adjusted EBITDA and Adjusted EBITDA Margin is a more accurate measurement of the Company’s operating performance and our ability to generate earnings as compared to EBITDA and EBITDA Margin.
| Three months ended September 30, | Six months ended September 30, | |||||||
| ($ thousands) | 2026 | 2025 | 2026 | 2025 | ||||
| Net income | 711 | 2,716 | 2,036 | 6,025 | ||||
| Add (deduct): | ||||||||
| Depreciation and amortization | 3,065 | 2,552 | 5,790 | 4,967 | ||||
| Acquisition costs | 89 | 433 | 171 | 469 | ||||
| Stock-based compensation | 130 | 314 | 212 | 490 | ||||
| (Gain) Loss on contingent consideration | — | (126) | — | (126) | ||||
| Deferred revenue amortization on acquisition fair value reduction | 229 | 85 | 499 | 235 | ||||
| Other non-recurring expense (2) | 790 | — | 790 | — | ||||
| Income and other tax expense | 1,492 | 1,648 | 3,041 | 2,565 | ||||
| Interest /other income | (243) | (214) | (282) | (528) | ||||
| Interest expense | 355 | — | 560 | — | ||||
| Foreign exchange loss | 346 | 691 | 1,119 | 1,598 | ||||
| Repayment of lease liabilities | (586) | (541) | (1,169) | (1,067) | ||||
| Adjusted EBITDA (1) | 6,378 | 7,558 | 12,767 | 14,628 | ||||
| Adjusted EBITDA Margin (1) | 22% | 25 % | 22% | 24 % | ||||
(1) This is a non-IFRS financial measure. Refer to definition of the measures above.
(2) During the second quarter, the Company experienced a social-engineering fraud that resulted in unauthorized payments totaling $1.0 million. The Company promptly notified the relevant financial institutions, law enforcement authorities, insurers and advisers. To date, the Company has incurred $0.1 million in legal fees related to recovery efforts and has received $0.3 million in insurance proceeds.
Adjusted EBITDA decreased by 16% and 13% for the three and six months ended September 30, 2026 respectively compared to the same periods of the previous year. The decrease was primarily driven by lower net income during the quarter.
Free Cash Flow Reconciliation to Funds Flow from Operations
Free Cash Flow is a non-IFRS financial measure that is calculated as funds flow from operations less capital expenditures and repayment of lease liabilities. Free Cash Flow’s most directly comparable IFRS measure is funds flow from operations. Free Cash Flow per share is calculated by dividing Free Cash Flow by the number of weighted average outstanding shares during the period. Management believes that this measure provides useful supplemental information about operating performance and liquidity, as it represents cash generated during the period, regardless of the timing of collection of receivables and payment of payables, which may reduce comparability between periods. Management uses Free Cash Flow and Free Cash Flow per share to help measure the capacity of the Company to pay dividends and invest in business growth opportunities.
| Fiscal 2025 | Fiscal 2026 | Fiscal 2027 | ||||||||||||||
| ($ thousands, unless otherwise stated) | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||
| Funds flow from operations | 9,937 | 8,227 | 5,524 | 3,588 | 7,068 | 9,701 | 4,336 | 3,352 | ||||||||
| Capital expenditures | (432 | ) | (661 | ) | (542 | ) | (1,080 | ) | (723 | ) | (215 | ) | (280 | ) | (151 | ) |
| Repayment of lease liabilities | (689 | ) | (549 | ) | (526 | ) | (541 | ) | (539 | ) | (736 | ) | (583 | ) | (586 | ) |
| Free Cash Flow | 8,816 | 7,017 | 4,456 | 1,967 | 5,806 | 8,750 | 3,473 | 2,615 | ||||||||
| Weighted average shares – basic (thousands) | 82,753 | 83,064 | 83,090 | 84,058 | 82,957 | 80,511 | 78,013 | 75,641 | ||||||||
| Free Cash Flow per share – basic | 0.11 | 0.08 | 0.05 | 0.02 | 0.07 | 0.11 | 0.04 | 0.03 | ||||||||
| Funds flow from operations per share – basic | 0.12 | 0.10 | 0.07 | 0.04 | 0.09 | 0.12 | 0.06 | 0.04 | ||||||||
Free Cash Flow increased by 33% for the three months ended September 30, 2026 compared to the same period of the previous fiscal year primarily due to lower capital expenditure in the quarter.
Free Cash Flow decreased by 5%, for the six months ended September 30, 2026 from the same periods of the previous fiscal year, primarily due to lower funds flow in the period.
Organic Growth
Organic growth and organic decline are not standardized financial measures and might not be comparable to measures disclosed by other issuers. Organic growth/decline on a quarterly and year-to-date basis is most directly comparable to the IFRS measures revenue and net income. Organic growth/decline includes only businesses under CMG Group’s ownership for a year or longer beginning from the first full quarter in the current and comparative period. The Company measures Organic growth/ organic decline on a quarterly and year-to-date basis at the revenue and Adjusted EBITDA levels and includes revenue and Adjusted EBITDA under CMG Group’s ownership for a year or longer, beginning from the first full quarter of CMG Group’s ownership in the current and comparative period(s). For example, BHV was acquired on September 25, 2023 (Q2 2024). September 25, 2024, marked one full year of ownership under CMG Group and on October 1, 2024 (Q3 2025), which is the first full quarter under CMG Group’s ownership in the current and comparative period, started being tracked under Organic growth. Any revenue and Adjusted EBITDA generated by BHV prior to October 1, 2024, would not be included in Organic growth/ organic decline. Sharp was acquired on November 12, 2024 (Q3 2025) and has marked one full year of ownership under CMG Group and hence is included in organic growth/decline from January 1, 2026 (Q4 2026).
SeisWare was acquired on July 30, 2025 and will start contributing to Organic revenue on October 1, 2026. Rose was acquired on March 24, 2026 and will start contributing to Organic revenue on April 1, 2027.
For further clarity, current statements include Organic growth from the following:
- CMG, BHV and Sharp revenue and Adjusted EBITDA
Recurring Revenue
Recurring revenue represents the revenue recognized during the period from contracts that are recurring in nature and includes revenue recognized as “Annuity/maintenance licenses” and “Annuity license fee”. We believe that Recurring revenue is an indicator of business expansion and provides management with visibility into our ability to generate predictable cash flows.
The table under “Revenue” heading reconciles Recurring revenue to total revenue for the periods indicated.
REVENUE
| Three months ended September 30, | Six months ended September 30, | |||||||||||
| ($ thousands) | 2026 | 2025 | % change | 2026 | 2025 | % change | ||||||
| Annuity/maintenance licenses | 19,712 | 19,067 | 3 % | 38,960 | 39,401 | (1) % | ||||||
| Annuity license fee | 2,408 | 1,650 | 46 % | 3,449 | 2,168 | 59 % | ||||||
| Recurring revenue(1) (2) | 22,120 | 20,717 | 7 % | 42,409 | 41,569 | 2 % | ||||||
| Perpetual licenses | 1,269 | 945 | 34 % | 1,766 | 1,323 | 33 % | ||||||
| Total software revenue | 23,389 | 21,662 | 8 % | 44,175 | 42,892 | 3 % | ||||||
| Professional services | 5,879 | 8,539 | (31) % | 12,938 | 16,942 | (24) % | ||||||
| Total revenue | 29,268 | 30,201 | (3) % | 57,113 | 59,834 | (5) % | ||||||
(1) This is a non-IFRS financial measure.
(2) Included in the number is a reduction of $0.2 million and $0.5 million for the three months and six months ended September 30, 2026, respectively ($0.1 million and $0.2 million for the three months and six months ended September 30, 2025, respectively), attributed to the amortization of a deferred revenue fair value reduction recognized on acquisition.
Condensed Consolidated Statements of Financial Position
| September 30, 2026 | March 31, 2026 | |||
| UNAUDITED (thousands of Canadian $) | ||||
| Assets | ||||
| Current assets: | ||||
| Cash | 9,289 | 24,100 | ||
| Restricted cash | 148 | 146 | ||
| Short-term investment | 3,700 | 3,700 | ||
| Trade and other receivables | 29,399 | 29,159 | ||
| Prepaid expenses | 4,517 | 3,659 | ||
| Prepaid income taxes | 3,463 | 3,671 | ||
| 50,516 | 64,435 | |||
| Other long-term asset | 1,573 | 1,324 | ||
| Intangible assets | 65,914 | 68,876 | ||
| Right-of-use assets | 24,847 | 26,252 | ||
| Property and equipment | 10,673 | 11,175 | ||
| Goodwill | 25,298 | 25,032 | ||
| Deferred tax asset | 263 | 212 | ||
| Total assets | 179,084 | 197,306 | ||
| Liabilities and shareholders’ equity | ||||
| Current liabilities: | ||||
| Trade payables and accrued liabilities | 9,987 | 16,749 | ||
| Income taxes payable | 2,963 | 2,280 | ||
| Acquisition holdback payable | 734 | 3,008 | ||
| Deferred revenue | 33,459 | 39,294 | ||
| Lease liabilities | 2,666 | 2,549 | ||
| Government loan | 322 | 320 | ||
| 50,131 | 64,200 | |||
| Lease liabilities | 31,425 | 32,656 | ||
| Revolving credit facility | 29,900 | 6,628 | ||
| Government loan | 966 | 1,119 | ||
| Other long-term liabilities | 604 | 838 | ||
| Deferred tax liabilities | 12,719 | 13,534 | ||
| Total liabilities | 125,745 | 118,975 | ||
| Shareholders’ equity: | ||||
| Share capital | 80,926 | 91,453 | ||
| Contributed surplus | 16,085 | 15,922 | ||
| Cumulative translation adjustment | 7,212 | 5,386 | ||
| Deficit | (50,884) | (34,430) | ||
| Total shareholders’ equity | 53,339 | 78,331 | ||
| Total liabilities and shareholders' equity | 179,084 | 197,306 | ||
Condensed Consolidated Statements of Operations and Comprehensive Income
| Three months ended September 30, | Six months ended September 30, | |||||||
| UNAUDITED (thousands of Canadian $ except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||
| Revenue | 29,268 | 30,201 | 57,113 | 59,834 | ||||
| Cost of revenue | 5,941 | 5,542 | 11,602 | 11,500 | ||||
| Gross profit | 23,327 | 24,659 | 45,511 | 48,334 | ||||
| Operating expenses | ||||||||
| Sales and marketing | 6,025 | 5,992 | 10,544 | 10,602 | ||||
| Research and development | 7,751 | 7,360 | 15,531 | 15,393 | ||||
| General and administrative | 6,458 | 6,126 | 12,078 | 11,865 | ||||
| 20,234 | 19,478 | 38,153 | 37,860 | |||||
| Operating profit | 3,093 | 5,181 | 7,358 | 10,474 | ||||
| Finance income | 32 | 214 | 71 | 528 | ||||
| Finance costs | (1,133) | (1,157) | (2,563) | (2,538) | ||||
| Other income | 211 | — | 211 | — | ||||
| Change in fair value of contingent consideration | — | 126 | — | 126 | ||||
| Profit before income and other taxes | 2,203 | 4,364 | 5,077 | 8,590 | ||||
| Income and other taxes | 1,492 | 1,648 | 3,041 | 2,565 | ||||
| Net income | 711 | 2,716 | 2,036 | 6,025 | ||||
Other comprehensive income: | ||||||||
| Foreign currency translation adjustment | 36 | 2,333 | 1,826 | 1,320 | ||||
| Other comprehensive income | 36 | 2,333 | 1,826 | 1,320 | ||||
| Total comprehensive income | 747 | 5,049 | 3,862 | 7,345 | ||||
| Net income per share – basic & diluted | 0.01 | 0.03 | 0.03 | 0.07 | ||||
Condensed Consolidated Statements of Cash Flows
| Three months ended September 30, | Six months ended September 30, | |||||||
| UNAUDITED (thousands of Canadian $) | 2026 | 2025 | 2026 | 2025 | ||||
| Operating activities | ||||||||
| Net income | 711 | 2,716 | 2,036 | 6,025 | ||||
| Adjustments for: | ||||||||
| Depreciation and amortization of property, equipment, right-of-use assets | 1,228 | 1,093 | 2,363 | 2,155 | ||||
| Amortization of intangible assets | 1,837 | 1,458 | 3,427 | 2,812 | ||||
| Deferred income tax expense (recovery) | (614) | (152) | (943) | (535) | ||||
| Stock-based compensation | 130 | (1,185) | 212 | (1,036) | ||||
| Foreign exchange and other non-cash items | 60 | (342) | 593 | (309) | ||||
| Funds flow from operations | 3,352 | 3,588 | 7,688 | 9,112 | ||||
| Movement in non-cash working capital: | ||||||||
| Trade and other receivables | (5,906) | (1,117) | (241) | 11,032 | ||||
| Trade payables and accrued liabilities | 364 | (3,716) | (6,597) | (5,983) | ||||
| Prepaid expenses and other assets | (1,259) | 233 | (1,092) | (316) | ||||
| Income taxes receivable (payable) | 507 | (1,707) | 745 | (2,675) | ||||
| Deferred revenue | 1,855 | 662 | (5,835) | (6,628) | ||||
| Change in non-cash working capital | (4,439) | (5,645) | (13,020) | (4,570) | ||||
| Net cash (used)/provided by operating activities | (1,087) | (2,057) | (5,332) | 4,542 | ||||
| Financing activities | ||||||||
| Repayment of government loan | — | (78) | (162) | (158) | ||||
| Proceeds from issuance of common shares | 118 | 616 | 118 | 828 | ||||
| Repurchase of shares | (20,393) | — | (22,271) | — | ||||
| Treasury shares purchased for stock-based compensation | (5,421) | — | (5,421) | — | ||||
| Repayment of lease liabilities | (586) | (541) | (1,169) | (1,067) | ||||
| Proceeds from credit facility | 28,100 | — | 33,200 | — | ||||
| Repayment of credit facility | (6,000) | — | (9,869) | — | ||||
| Dividends paid | (769) | (825) | (1,548) | (4,960) | ||||
| Credit facility issuance cost | (15) | (170) | (15) | (170) | ||||
| Net cash used in financing activities | (4,966) | (998) | (7,137) | (5,527) | ||||
| Investing activities | ||||||||
| Corporate acquisitions, net of cash acquired | — | (5,174) | — | (5,174) | ||||
| Repayment of acquisition holdback payable | (2,087) | — | (2,087) | — | ||||
| Settlement of contingent consideration | — | (3,582) | — | (3,582) | ||||
| Property and equipment additions, net of disposals | (151) | (1,080) | (431) | (1,622) | ||||
| Net cash used in investing activities | (2,238) | (9,836) | (2,518) | (10,378) | ||||
| (Decrease) in cash | (8,291) | (12,891) | (14,987) | (11,363) | ||||
| Effect of foreign exchange on cash | (89) | 1,704 | 176 | 318 | ||||
| Cash, beginning of the period | 17,669 | 44,026 | 24,100 | 43,884 | ||||
| Cash, end of the period | 9,289 | 32,839 | 9,289 | 32,839 | ||||
| Supplementary cash flow information | ||||||||
| Interest received | 32 | 214 | 71 | 528 | ||||
| Interest paid | 185 | 466 | 234 | 940 | ||||
| Income taxes paid | 961 | 3,190 | 2,240 | 4,969 | ||||
CORPORATE PROFILE
CMG Group (TSX:CMG) is a global software and consulting company that combines science and technology with deep industry expertise to solve complex subsurface and surface challenges for the energy industry around the world. The Company is headquartered in Calgary, AB, with offices in Houston, Oslo, Stavanger, Kaiserslautern, Oxford, Dubai, Bogota, Rio de Janeiro, Bengaluru, and Kuala Lumpur. For more information, please visit www.cmgl.ca.
QUARTERLY FILINGS AND RELATED QUARTERLY FINANCIAL INFORMATION
Management’s Discussion and Analysis (“MD&A”) and condensed consolidated interim financial statements and the notes thereto for the three and six months ended September 30, 2026, can be obtained from our website www.cmgl.ca. The documents will also be available under CMG Group’s SEDAR+ profile www.sedarplus.ca.
Cautionary Note Regarding Forward-Looking Statements
Certain information in this press release may constitute "forward-looking information" within the meaning of applicable securities legislation. All information contained in this press release, other than statements of current and historical fact, is forward-looking information, including statements regarding the Company's expectations with respect to the fourth quarter being the Company’s largest renewal quarter and delivering the Recurring revenue growth and Adjusted EBITDA required to achieve the full-year outlook, Recurring revenue increasing sequentially from the second quarter driven by a higher renewal cycle in the third quarter relative to the second quarter, Adjusted EBITDA and Adjusted EBITDA margins in the third quarter increasing sequentially (but decreasing compared with the third quarter of fiscal 2026, primarily due to lower professional services revenue), professional services revenue in the third quarter being similar to those incurred during the second quarter, Rose contributing to Organic growth in the first quarter of fiscal 2028, SeisWare’s Adjusted EBITDA margin growing to 20% by the end of fiscal 2027 with strong revenue growth in the fourth quarter of fiscal 2027, and a dividend being paid on December 15, 2026, to shareholders of record at the close of business on December 5, 2026 (collectively, "Forward-Looking Information") and expectations for fiscal 2027, relative to the prior year and excluding the impact of future acquisitions, in respect of Organic Recurring revenue being stable, Adjusted EBITDA not declining and Free Cash Flow improving.
Forward-Looking Information is necessarily based on a number of opinions, estimates, and assumptions that the Company considered appropriate and reasonable as of the date such statements are made. Although the Forward-Looking Information contained herein is based upon what the Company believes are reasonable assumptions, actual results may vary from the Forward-Looking Information contained herein. Certain assumptions made in preparing the Forward-Looking Information contained herein include, without limitation: the Company’s future growth, cash flow generation, results of operations, trends in software licence sales, development plans and the status of the Company’s software development projects, future capital and other expenditures (including the amount, nature and sources of funding thereof), availability of government grants, competitive advantages, plans for and results of research and development activity, the availability of qualified personnel and general business strategies, prospects and opportunities. Additional assumptions include sufficient liquidity and free cash flow to fund potential dividends and share repurchases; favorable market conditions; continued compliance with applicable solvency tests and debt covenants; and the absence of changes to applicable laws, regulations or policies affecting issuer bids, or capital return programs.
Inherent in the Forward-Looking Information are known and unknown risks, uncertainties and other factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such Forward-Looking Information. Those risks include, but are not limited to: economic conditions in the energy industry; reliance on key customers; lack of availability of qualified personnel or management; foreign exchange; commodity price risk; geopolitical risk, including the war in Ukraine and the conflict in the Middle East; tariff risk; tax liability; sales variability; mix of revenues and potential variances from period to period; economic and political risks in countries where the Company currently does or proposes to do business; demand for the Company’s software; increased competition from other industry participants; domestic and international governmental regulation; general state of the economy; reliance on employees with specialized skills or knowledge; protection of intellectual property and other proprietary rights; interest rate risk on variable rate indebtedness; artificial intelligence risk; credit and liquidity; non-compliance with anti-corruptions and anti-bribery laws; information security breaches or other cyber-security threats; ability to successfully execute on acquisitions and to integrate acquired businesses and assets; unanticipated acquisition-related expenses; potential restrictions around asset ownership and control in foreign jurisdictions; litigation; significant obligations on CMG as a publicly traded company; price volatility of the Shares; and fraudulent and illegal activities by employees, contractors and consultants, as well as those described in the Company’s annual publicly filed documents. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that any Forward-Looking Information in this press release will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on Forward-Looking Information as a prediction of actual results.
The Forward-Looking Information reflects management’s current expectations and beliefs regarding future events and operating performance and is based on information currently available to management. Although the Company has attempted to identify important factors that could cause actual results to differ materially from the Forward-Looking Information contained herein, there are other factors that could cause results not to be as anticipated, estimated or intended. The Forward-Looking Information contained herein is current as of the date hereof and, except as required under applicable law, the Company does not undertake to update or revise it to reflect new events or circumstances. Additionally, the Company undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of CMG, its financial or operating results, or its securities.
This press release should be read in conjunction with the Management Discussion & Analysis and condensed consolidated financial statements and notes thereto as at and for the three and six months ended September 30, 2026. Readers should also refer to the section “Non-IFRS Financial Measures and Reconciliation of Non-IFRS Measures” in this press release. Additional information about CMG is available on the Company’s profile on SEDAR+ at www.sedarplus.ca, including the Company’s Annual Information Form for the year ended March 31, 2026 and dated May 21, 2026.
CONTACT: For further information, please contact: Pramod Jain Chief Executive Officer (403) 531-1300 pramod.jain@cmgl.ca or Vipin Khullar Executive Vice President, and Chief Financial Officer (403) 531-1300 vipin.khullar@cmgl.ca For investor inquiries, please contact: Kim MacEachern Director, Investor Relations cmg-investors@cmgl.ca For media inquiries, please contact: marketing@cmgl.ca
Source: GlobeNewswire
Leave a comment
Comments are closed on this post.