CMG Group Reports Financial Highlights and Dividend Announcement
CMG Group Announces Financial Results
CALGARY, Alberta — Computer Modelling Group Ltd. (CMG Group) has reported its financial outcomes for the quarter ending June 30, 2025, along with a dividend approval for shareholders.
Key Financial Highlights
First Quarter 2026 Consolidated Highlights
The results reflect a 3% decrease in total revenue to $29.6 million. This decline stems from a 15% organic decline while acquisitions contributed to 12% growth. In contrast, recurring revenue rose by 7%, amounting to $20.9 million. However, the adjusted EBITDA decreased significantly by 26%, totaling $7.1 million.
Key metrics from the first quarter include:
- Earnings per share (EPS) dropped by 20% to $0.04.
- Free cash flow decreased by 22% to $4.5 million, with a per-share decrease from $0.07 to $0.05.
- The adjusted EBITDA margin fell to 24%, down from 31% in the previous year.
Market Overview and Challenges
Ongoing market uncertainties in the energy sector have extended sales cycles, complicating the closing of new opportunities and impacting procurement processes. The persistent decline in organic recurring revenue in reservoir and production solutions from prior quarters has continued into this quarter.
The company anticipates a mid-single-digit decline in recurring revenue compared to Q1, likely affecting the adjusted EBITDA as a significant contract for reservoir and production solutions was not renewed. Despite these challenges, CMG Group expects stronger revenue and margin performance in the latter half of the year, driven by seasonal contract renewals and effective revenue recognition processes.
Quarterly Dividend Notification
The Board has declared a dividend of $0.01 per share to support capital for future acquisitions amidst a commitment to navigate through market volatility. This dividend will be payable on September 15, 2025, to those shareholders recorded by September 5, 2025.
Financial Performance Summary
Recent challenges have led to a noticeable decrease in free cash flow and adjusted EBITDA. Adjusted EBITDA for Q1 reflected a 26% decrease compared to the previous fiscal year, primarily resulting from lower revenue, offset by reductions in expenses. The company continues to measure organic growth and decline consistently on a quarterly and annual basis, indicating potential strategic adjustments in operations.
CMG Group's performance insights played a role in structuring financial strategies moving forward to bolster long-term growth and stability.
Frequently Asked Questions
What were CMG Group's total revenues for Q1 2026?
The total revenues reported for the first quarter of 2026 were $29.6 million.
What is the declared dividend per share?
The Board has declared a dividend of $0.01 per common share.
How did recurring revenue perform compared to the prior year?
Recurring revenue increased by 7% to $20.9 million compared to the previous year.
What were the significant challenges CMG Group faced in this quarter?
The company encountered market uncertainties that prolonged sales cycles and complicated new procurement processes.
How does CMG Group plan to improve its financial performance?
CMG Group aims to enhance its performance by focusing on disciplined acquisitions, maintaining cash flow, and addressing the delays in contract renewals.
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