CALGARY, Alberta, Aug. 06, 2025 (GLOBE NEWSWIRE) — Computer Modelling Group Ltd. (“CMG Group” or the “Company”) announces its financial results for the three months ended June 30, 2025, and the approval by its Board of Directors (the “Board”) of the payment of a cash dividend of $0.01 per Common Share for the first quarter ended June 30, 2025. FIRST QUARTER 2026 CONSOLIDATED HIGHLIGHTSSelect financial highlights
Total revenue decreased by 3% (15% Organic decline(1) and 12% growth from acquisitions) to $29.6 million;Recurring revenue(2) increased by 7% (6% Organic decline and 13% growth from acquisitions) to $20.9 million;Adjusted EBITDA(1) decreased by 26% to $7.1 million;Adjusted EBITDA Margin(1) was 24%, compared to 31% in the comparative period;Earnings per share was $0.04, a 20% decrease;Free Cash Flow(1) decreased by 22% to $4.5 million; Free Cash flow per share decreased to $0.05 from $0.07. OVERVIEW Market uncertainty, in energy and energy transition, continues to impact the business by extending sales cycles, lengthening procurement processes, and slowing the pace of closing new opportunities. The impact of the organic recurring revenue decline in reservoir and production solutions in the fourth quarter carried over, leading to a similar organic recurring revenue decline this quarter when compared to the prior year. This decline partially offset strong recurring revenue growth from acquisitions. Adjusted EBITDA and Free Cash Flow decreased during the quarter primarily due to the organic decline in recurring revenue and lower professional services revenue. In the second quarter, we expect a mid-single-digit decline in recurring revenue compared to Q1, the impact of which is also expected to be felt in Adjusted EBITDA. This is due to a contract for our reservoir and production solutions that was not renewed. As a result, Adjusted EBITDA for the year (excluding SeisWare and any future acquisitions) may be lower than Fiscal 2025. Despite the headwind, higher revenue and margin in the second half of the year compared to the first half of the year, is expected to be driven by seasonal contract renewals, revenue recognition timing, and continued strong performance in our seismic solutions. Q1 2026 Dividend To reinforce the durability of our business, we continue to pursue disciplined acquisitions that expand our capabilities and enhance our ability to navigate market volatility. To support this strategy and retain capital for future acquisitions, the quarterly dividend was reduced to $0.01/share. The dividend of $0.01/share will be paid on September 15, 2025, to shareholders of record at the close of business on September 5, 2025. All dividends paid by Computer Modelling Group Ltd. to holders of Common Shares in the capital of the Company will be treated as eligible dividends within the meaning of such term in section 89(1) of the Income Tax Act (Canada), unless otherwise indicated. SUMMARY OF FINANCIAL PERFORMANCE Three months ended June 30, ($ thousands, except per share data)20252024% change Annuity/maintenance licenses20,33419,3355% Annuity license fee518178191% Recurring revenue(1) (2)20,85219,5137% Perpetual licenses3782,110(82%) Total software license revenue21,23021,623(2%) Professional services8,4038,900(6%) Total revenue29,63330,523(3%) Cost of revenue5,9586,192(4%) Operating expenses Sales & marketing4,6104,931(7%) Research and development8,0338,245(3%) General & administrative5,7395,4895% Operating expenses18,38218,665(2%) Operating profit5,2935,666(7%) Netincome 3,3093,964(17%) Adjusted EBITDA (1)7,0749,526(26%) AdjustedEBITDAMargin(1)24%(7%) Earnings per share – basic & diluted0.040.05(20%) Funds flow from operations per share – basic0.070.08(13%) Free Cash Flow per share – basic (1)0.050.07(29%) (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 $0.15 million for the three months ended June 30, 2025, ($0.09 million for the three months June 30, 2024), attributed to the amortization of a deferred revenue fair value reduction recognized on acquisition. NON-IFRS FINANCIAL MEASURES AND RECONCILIATION OF NON-IFRS MEASURESFree Cash Flow Reconciliation to Funds Flow from Operations Free Cash Flow is a non-IFRS financial measure that is calculated as funds flow from operations less capital expenditures and repayment of lease liabilities. Free Cash Flow per share is calculated by dividing Free Cash Flow by the number of weighted average outstanding shares during the period. Management believes that this measure provides useful supplemental information about operating performance and liquidity, as it represents cash generated during the period, regardless of the timing of collection of receivables and payment of payables, which may reduce comparability between periods. Management uses Free Cash Flow and Free Cash Flow per share to help measure the capacity of the Company to pay dividends and invest in business growth opportunities. Fiscal 2024Fiscal 2025Fiscal 2026($ thousands, unless otherwise stated)Q2Q3Q4Q1Q2Q3Q4Q1 Funds flow from operations11,4918,47710,3676,5157,1019,9378,2275,524Capital expenditures(51)(459)(95)(93)(236)(432)(661)(542)Repayment of lease liabilities(412)(728)(803)(743)(769)(689)(549)(526)Free Cash Flow11,0287,2909,4695,6796,0968,8167,0174,456Weighted average shares – basic (thousands) 80,834 81,067 81,314 81,476 81,887 82,753 83,064 83,090Free Cash Flow per share – basic0.140.090.120.070.070.110.080.05Funds flow from operations per share- basic0.140.100.130.080.090.120.100.07 Free Cash Flow decreased by 22% for the three months ended June 30, 2025 from the same period of the previous fiscal year. This decrease is primarily due to lower funds flow from operations. Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA and Adjusted EBITDA Margin refers to net income before adjusting for depreciation and amortization expense, interest income, income and other taxes, stock-based compensation, restructuring charges, foreign exchange gains and losses, repayment of lease obligations, asset impairments, acquisition related costs and other expenses directly related to business combinations, including compensation expenses and gains or losses on contingent consideration. Adjusted EBITDA should not be construed as an alternative to operating income, net income or liquidity as determined by IFRS. 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. ThreemonthsendedJune 30, ($ thousands)2025 2024 Net income (loss) 3,309 3,964Add (deduct): Depreciation and amortization2,4151,883Acquisition costs36188Stock-based compensation1772,906Gain/(Loss) on contingent consideration-(199)Deferred revenue amortization on acquisition fair value reduction15089Income/(Loss) and other tax expense9172,488Interest (income)/loss(314)(878)Foreign exchange loss/(gain)911(172)Repayment of lease liabilities(526)(743)Adjusted EBITDA (1)7,0749,526Adjusted EBITDA Margin (1)24% (1) This is a non-IFRS financial measure. Refer to definition of the measures above. Adjusted EBITDA decreased by 26% during the three months ended June 30, 2025, compared to the same period of the previous year of which 2% was growth from acquisitions, offset by an Organic decline of 28%, primarily attributable to lower revenue in the quarter partially offset by lower expenses. Organic Growth/ Organic Decline Organic growth and organic decline are not a standardized financial measures and might not be comparable to measures disclosed by other issuers. 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, 2025 (Q3 2025) and will start contributing to Organic growth/ organic decline on January 1, 2026 (Q4 2026). For further clarity, current statements include Organic growth/ organic decline from the following: CMG and BHV 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 June 30, 20252024% change($ thousands) Annuity/maintenance licenses20,33419,3355%Annuity license fee518178191%Recurring revenue(1) (2)20,85219,5137%Perpetual licenses3782,110(82%)Total software license revenue21,23021,623(2%)Professional services8,4038,900(6%)Total revenue29,63330,523(3%) (1) This is a non-IFRS financial measure. (2) Included in the number is a reduction of $0.2 million for the three months ended June 30, 2025, ($0.1 million for the three months ended June 30, 2024), attributed to the amortization of a deferred revenue fair value reduction recognized on acquisition. Condensed Consolidated Statements of Financial Position UNAUDITED (thousands of Canadian $)June 30, 2025March 31, 2025 Assets Current assets: Cash44,02643,884Restricted cash369362Trade and other receivables29,30841,457Prepaid expenses3,1212,572Prepaid income taxes2,2621,641 79,08689,916Intangible assets59,48459,955Right-of-use assets27,65528,443Property and equipment10,30510,157Goodwill15,95815,814Deferred tax asset274471Total assets192,762204,756 Liabilities and shareholders’ equity Current liabilities: Trade payables and accrued liabilities16,07818,452Income taxes payable2,1892,667Acquisition holdback payable1,405188Acquisition earnout payable3,6823,864Deferred revenue (note 4)33,13640,276Lease liabilities (note 5)2,3192,278Government loan321310 59,13068,035Lease liabilities (note 5)34,23334,668Government loan1,2831,319Other long-term liabilities5991,725Deferred tax liabilities13,02413,102Total liabilities108,269118,849 Shareholders’ equity: Share capital95,10494,849Contributed surplus15,63015,460Cumulative translation adjustment3,3134,326Deficit(29,554)(28,728)Total shareholders’ equity84,49385,907Total liabilities and shareholders’ equity192,762204,756 Condensed ConsolidatedStatementsofOperationsandComprehensive IncomeThree months ended June 30, UNAUDITED (thousands of Canadian $ except per share amounts)2025 2024 Revenue (note 6)29,63330,523Cost of revenue 5,9586,192Gross profit 23,67524,331 Operating expenses Sales and marketing4,6104,931Research and development (note 7)8,0338,245General and administrative5,7395,489 18,38218,665Operating profit5,2935,666 Finance income (note 8)3141,050Finance costs (note 8)(1,381)(463)Change in fair value of contingent consideration-199Profit before income and other taxes4,2266,452Income and other taxes (note 9)9172,488 Net income for the period3,3093,964 Other comprehensive income: Foreign currency translation adjustment(1,013)899Other comprehensive income/(loss) (1,013)899Total comprehensive income 2,2964,863 Net income per share – basic (note10(d))0.040.05Net income per share – diluted (note 10(d))0.04
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