CMG Group Shares Q4 & Fiscal Year-End Financial Highlights
CMG Group Reports Fiscal Year-End Results
In a significant announcement, Computer Modelling Group Ltd. (“CMG Group” or the “Company”) revealed its financial results for the year ending March 31, 2025. In light of these results, the Board of Directors has approved a cash dividend of $0.05 per Common Share for the fourth quarter.
Fourth Quarter 2025 Financial Highlights
The fourth quarter showcased a blend of growth and challenges for CMG Group, with highlighted achievements:
- Total revenue reached $33.7 million, marking a 4% increase, driven by a 17% growth from acquisitions.
- Recurring revenue climbed to $24.2 million, indicating a 16% rise, with 23% attributed to acquisitions.
- Adjusted EBITDA stood at $10.5 million, reflecting a 2% growth.
- The Adjusted EBITDA Margin was consistent at 31% compared to the previous year.
- However, earnings per share (EPS) showed a decline of 33%, settling at $0.06.
- Free Cash Flow saw a significant decrease of 26%, totaling $7.0 million.
Fiscal 2025 Overview
Throughout the entire fiscal year, CMG Group experienced both challenges and strides in its revenue performance. Highlights for the fiscal year included:
- Total revenue increased to $129.4 million, driven by a 19% growth overall, supported by a significant contribution from acquisitions.
- Recurring revenue reached $86.8 million, indicating a solid 13% increase.
- Adjusted EBITDA was reported at $44 million, a modest increase of 2% from the prior year.
- The Adjusted EBITDA Margin, however, decreased to 34% from 40% over the same period last year.
- EPS decreased by 16%, now reporting at $0.27.
- Free Cash Flow registered at $27.6 million, down 22% from the last year. Free Cash Flow per share fell to $0.33 compared to $0.44.
Challenges Faced and Future Outlook
This year, the Company faced various macroeconomic pressures, including political instability and lower oil prices, which impacted organic growth. The demand for reservoir and production solutions faced challenges due to lengthened deal cycles and cautious spending from customers. Despite these obstacles, CMG Group successfully executed its strategic M&A roadmap, bolstered by revenue growth primarily from acquisitions.
Looking ahead to fiscal 2026, CMG anticipates a potential decrease of $6 to $7 million in professional services revenue compared to fiscal 2025. This indicates a strategic shift in revenue mix toward a higher percentage of software revenue. Anticipated adjustments in cost-saving measures may yield limited growth in Adjusted EBITDA and Margin for the upcoming fiscal year.
Strategic Acquisitions and Maintaining Liquidity
CMG Group remains committed to its evolution through targeted acquisitions, which have effectively expanded its operational capabilities. The Company generated substantial Free Cash Flow of $27.6 million throughout fiscal 2025, which secures continued liquidity for investment in strategic growth initiatives.
Q4 Dividend Announcement
As noted, the Board declared a cash dividend of $0.05 per Common Share, scheduled for payment on an established date to shareholders on record, further highlighting the Company's commitment to returning value to its shareholders.
Corporate Profile of CMG Group
CMG Group (TSX: CMG) is renowned for its global software and consulting services, fusing advanced technology with industry expertise to tackle significant energy sector challenges. The Company, headquartered in Calgary, operates globally, striving to enhance its services and remain a pivotal player in the energy industry.
Frequently Asked Questions
What were the total revenues for CMG Group in Q4 2025?
Total revenue for Q4 2025 was reported at $33.7 million.
What is the new cash dividend declared by CMG Group?
The cash dividend declared is $0.05 per Common Share.
How did CMG Group's Adjusted EBITDA fare in FY 2025?
Adjusted EBITDA for FY 2025 increased to $44 million, reflecting a 2% growth.
What challenges did CMG Group face during FY 2025?
CMG faced challenges including macroeconomic pressures, political instability, and low oil prices that affected organic growth.
How is CMG Group planning to improve its revenue mix?
CMG Group aims to shift towards a higher percentage of software revenue while reducing its dependency on professional services.
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