Lumine Group Inc. Announces Results for the Three Months Ended March 31, 2026

TORONTO, May 05, 2026 (GLOBE NEWSWIRE) -- Lumine Group Inc. (“Lumine Group” or “the Company”) (TSXV:LMN) announces financial results for the three months ended March 31, 2026. All amounts referred to in this press release are in US dollars unless otherwise stated. The following press release should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements for the three months ended March 31, 2026, and management’s discussion and analysis (“MD&A”) for the three months ended March 31, 2026, which can be found on SEDAR+ at www.sedarplus.ca. Additional information about Lumine Group is also available on SEDAR+ and on Lumine Group’s website www.luminegroup.com. Q1 2026 Headlines: Revenue increased 17% to $208.3 million compared to $178.7 million in Q1 2025 (including -2% organic growth after adjusting for foreign exchange impacts). The Company generated operating income of $57.9 million during the quarter, a 3% decrease from $59.5 million in Q1 2025. The Company generated net income of $19.0 million during the quarter, a 9% decrease from net income of $20.8 million in Q1 2025. Cash flows from operations (“CFO”) decreased $20.3 million to $19.8 million compared to $40.1 million in Q1 2025, representing an decrease of 51%. Free cash flow available to shareholders (“FCFA2S”) decreased $19.7 million to $15.3 million compared to $35.0 million in Q1 2025, representing a decrease of 56%. On February 13, 2026, the Company acquired 100% of the outstanding shares of Synchronoss Technologies, Inc. for aggregate cash consideration of $309.3 million. Total revenue for the three months ended March 31, 2026 was $208.3 million, an increase of 17%, or $29.6 million, compared to $178.7 million for the comparable period in 2025. The increase for the three months compared to the same period in 2025 is primarily attributable to revenues from new acquisitions in the current and preceding year. The Company experienced organic growth of 0% for the three months ended March 31, 2026 or -2% after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business. For acquired companies, organic growth is calculated as the difference between actual revenues achieved by each business in the financial period following acquisition, compared to the estimated revenues they achieved in the corresponding financial period preceding the date of acquisition by the Company. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers. Operating income for the three months ended March 31, 2026 was $57.9 million, a decrease of 3%, or $1.5 million, compared to $59.4 million for the same period in 2025. The decrease is primarily attributable to non-recurring costs incurred from acquisitions in the current and preceding years. Operating income is not a standardized financial measure and might not be comparable to measures disclosed by other issuers. See “Non-IFRS Measures”. Net income for the three months ended March 31, 2026 was $19.0 million compared to net income of $20.8 million for the same period in 2025. The decrease in net income is primarily attributable to non-recurring costs incurred from acquisitions in the current and preceding years. For the three months ended March 31, 2026, CFO decreased $20.3 million to $19.8 million compared to $40.1 million for the same period in 2025 representing a decrease of 51%. The decrease is driven by a change in non-cash operating working capital of $14.5 million, higher income taxes paid of $4.4 million, and a lower operating income of $1.5 million. For the three months ended March 31, 2026, FCFA2S decreased $19.7 million to $15.3 million compared to $35.0 million for the same period in 2025 representing an decrease of 56%. The decrease in the three months ended March 31, 2026 is driven by lower CFO compared to the same period in 2025, which is partially offset by higher interest received on bank deposits and lower interest paid on bank indebtedness. FCFA2S is a non-IFRS Measure. See “Non-IFRS Measures”. Non-IFRS Measures Operating income refers to net income (loss) before income tax expense, amortization of intangible assets, gain on bargain purchase net of any reductions, and finance costs and other expenses (income). The Company believes that operating income is useful supplemental information as it provides an indication of the profitability of Lumine Group related to its core operations. Operating income is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that operating income should not be construed as an alternative to net income (loss). The following table reconciles operating income to net income: Unaudited Three months ended March 31,   2026 2025   ($ in millions)       Net income 19.0 20.8 Adjusted for:     Amortization of intangible assets 31.1 26.0 Reduction of gain on bargain purchase 0.8 — Finance costs and other expenses 3.3 5.1 Income tax expense 3.8 7.6 Operating income 57.9 59.5 Free cash flow available to shareholders ‘‘FCFA2S’’ refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on bank indebtedness, transaction costs on bank indebtedness, repayments of lease obligations, interest, dividends and other proceeds received, and property and equipment purchased net of proceeds from disposal. The Company believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Lumine Group does not make any acquisitions, or investments, and does not repay any bank indebtedness. While the Company could use the FCFA2S to pay dividends or repurchase shares, the Company’s objective is to invest all of its FCFA2S in acquisitions which meet the Company’s hurdle rate. FCFA2S and FCFA2S per share are not recognized measures or ratios under IFRS and may not be comparable to similar financial measures or ratios disclosed by other issuers. Accordingly, readers are cautioned that FCFA2S and FCFA2S per share should not be construed as an alternative to net cash flows from operating activities, including on a per-share basis. The following table reconciles FCFA2S to net cash flows from operating activities: Unaudited Three months ended March 31,   2026   2025     ($ in millions) Net cash flows from operating activities: 19.8   40.1   Adjusted for:     Interest paid on lease obligations (0.1 ) (0.1 ) Interest paid on bank indebtedness (2.7 ) (3.8 ) Repayments of lease obligations (1.7 ) (1.6 ) Interest, dividends and other proceeds received 1.3   0.7   Property and equipment purchased, net of proceeds from disposal (1.2 ) (0.3 ) Free cash flow available to shareholders 15.3   35.0   Forward Looking Statements Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Lumine Group or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Lumine Group assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances. About Lumine Group Inc. Lumine Group acquires, strengthens, and grows, businesses in the communications and media industry. Learn more at www.luminegroup.com. For further information: David Nyland Chief Executive Officer Lumine Group [email protected] +1-437-353-4910 Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Lumine Group Inc. Condensed Consolidated Interim Statements of Financial Position (In thousands of USD. Due to rounding, numbers presented may not foot.)   March 31, 2026   December 31, 2025           Assets       Current assets:       Cash $ 248,192   $ 352,441   Accounts receivable, net   200,728     163,174   Unbilled revenue   50,985     47,547   Inventories   559     557   Other assets   58,642     51,808       559,106     615,527   Non-current assets:       Property and equipment   9,841     8,325   Right of use assets   8,515     5,779   Deferred income taxes   16,157     15,503   Other assets   15,733     13,752   Intangible assets and goodwill   1,007,500     728,384       1,057,746     771,743   Total assets $ 1,616,852   $ 1,387,270           Liabilities and Equity       Current liabilities:       Accounts payable and accrued liabilities $ 113,785   $ 123,835   Due to related parties, net   967     860   Current portion of bank indebtedness   211,100     1,992   Deferred revenue   121,764     94,776   Provisions   1,636     —   Acquisition holdback payables   4,394     6,604   Lease obligations   9,817     3,149   Income taxes payable   8,393     9,044       471,856     240,260   Non-current liabilities:       Deferred income taxes   133,901     108,565   Bank indebtedness   159,014     207,956   Lease obligations   10,408     3,631   Other liabilities   11,717     7,716       315,040     327,868   Total liabilities   786,896     568,128           Equity:       Capital stock   490,669     490,669   Contributed surplus   185,142     185,142   Accumulated other comprehensive (loss) income   (151 )   8,042   Retained earnings   154,296     135,289       829,956     819,142           Total liabilities and equity $ 1,616,852   $ 1,387,270   Lumine Group Inc. Condensed Consolidated Interim Statements of Income (In thousands of USD, except share and per share amounts. Due to rounding, numbers presented may not foot.)   Three months ended March 31,     2026     2025         Revenue     License $ 11,373   $ 12,327   Professional services   32,914     31,277   Hardware and other   3,853     9,070   Maintenance and other recurring   160,207     126,018       208,347     178,692   Expenses     Staff   115,154     83,904   Hardware   1,994     4,659   Third party license, maintenance and professional services   13,482     11,203   Occupancy   946     996   Travel, telecommunications, supplies, software and equipment   10,134     9,022   Professional fees   4,200     3,840   Other, net   2,363     3,295   Depreciation   2,139     2,270   Amortization of intangible assets   31,084     26,014       181,496     145,203         Reduction of gain on bargain purchase   804     —   Finance costs and other expenses   3,289     5,134       4,093     5,134         Income before income taxes   22,758     28,355         Current income tax expense   7,377     14,570   Deferred income tax recovery   (3,626 )   (6,994 ) Income tax expense   3,751     7,576         Net income $ 19,007   $ 20,779         Weighted average shares outstanding:     Basic and diluted   256,620,388     256,620,388         Earnings per share:     Basic and diluted $ 0.07   $ 0.08         Lumine Group Inc. Condensed Consolidated Interim Statements of Comprehensive Income (In thousands of USD. Due to rounding, numbers presented may not foot.)   Three months ended March 31,       2026     2025           Net income $ 19,007   $ 20,779           Items that are or may be reclassified subsequently to net income:               Foreign currency translation differences from foreign operations and other   (8,193 )   4,132           Other comprehensive (loss) income for the period, net of income tax   (8,193 )   4,132           Total comprehensive income for the period $ 10,814   $ 24,911   Lumine Group Inc. Condensed Consolidated Interim Statement of Changes in Equity (In thousands of USD. Due to rounding, numbers presented may not foot.) Three months ended March 31, 2026             Capital stock Contributed surplus Accumulated other comprehensive income (loss) Retained earnings Total equity             Balance at January 1, 2026 $ 490,669 $ 185,142 $ 8,042   $ 135,289 $ 819,142               Total comprehensive income for the period:           Net income   —   —   —     19,007   19,007               Other comprehensive loss:           Foreign currency translation differences from foreign operations and other   —   —   (8,193 )   —   (8,193 ) Total other comprehensive loss for the period   —   —   (8,193 )   —   (8,193 )             Total comprehensive (loss) income for the period   —   —   (8,193 )   19,007   10,814               Balance at March 31, 2026 $ 490,669 $ 185,142 $ (151 ) $ 154,296 $ 829,956   Lumine Group Inc. Condensed Consolidated Interim Statement of Changes in Equity (In thousands of USD. Due to rounding, numbers presented may not foot.) Three months ended March 31, 2025             Capital stock Contributed surplus Accumulated other comprehensive loss Retained earnings Total equity             Balance at January 1, 2025 $ 490,669 $ 185,142 $ (13,612 ) $ 16,523 $ 678,722             Total comprehensive income (loss) for the period:           Net (loss) income   —   —   —     20,779   20,779             Other comprehensive income:           Foreign currency translation differences from foreign operations and other   —   —   4,132     —   4,132 Total other comprehensive income for the period   —   —   4,132     —   4,132             Total comprehensive income for the period   —   —   4,132     20,779   24,911             Balance at March 31, 2025 $ 490,669 $ 185,142 $ (9,480 ) $ 37,302 $ 703,633 Lumine Group Inc. Condensed Consolidated Interim Statements of Cash Flows (In thousands of USD. Due to rounding, numbers presented may not foot.)   Three months ended March 31,     2026     2025         Cash flows from operating activities:     Net income $ 19,007   $ 20,779   Adjustments for:     Depreciation   2,139     2,310   Amortization of intangible assets   31,084     26,014   Contingent consideration adjustments   (554 )   (113 ) Reduction of gain on bargain purchase   804     —   Finance costs and other expenses   4,609     5,828   Income tax expense   3,751     7,576   Change in non-cash operating assets and liabilities exclusive of effects of business combinations   (31,928 )   (17,414 ) Income taxes paid   (9,153 )   (4,809 ) Net cash flows from operating activities   19,759     40,171         Cash flows from (used in) financing activities:     Interest paid on lease obligations   (143 )   (105 ) Interest paid on bank indebtedness   (2,732 )   (3,813 ) Proceeds from issuance of bank indebtedness   160,000     —   Repayments of bank indebtedness   —     (243 ) Transaction costs on bank indebtedness   (19 )   (19 ) Payments of lease obligations   (1,695 )   (1,583 ) Net cash flows from (used in) financing activities   155,411     (5,763 )       Cash flows (used in) from investing activities:     Acquisition of businesses   (309,284 )   —   Cash obtained with acquired businesses   34,325     —   Post-acquisition settlement payments, net of receipts   (2,185 )   (937 ) Interest, dividends and other proceeds received   1,320     694   Property and equipment purchased   (1,156 )   (254 ) Decrease in restricted cash, and other investing activities   45     4,337   Net cash flows (used in) from investing activities   (276,935 )   3,840         Effect of foreign currency on cash and cash equivalents   (2,484 )   2,865   (decrease) Increase in cash   (104,249 )   41,113         Cash, beginning of period   352,441     210,983   Cash, end of period $ 248,192   $ 252,096