Lumine Group Inc. Announces Results for the Three and Six Months Ended June 30, 2025

Executive Summary

• Lumine Group Inc. reported strong financial results for the three and six months ended June 30, 2025, driven by revenue growth from new acquisitions and improved operational efficiency.
• For Q2 2025, the Company achieved $184.0 million in revenue (up 13% year-over-year) and turned a net profit of $23.6 million, compared to a net loss of $2.2 million in the prior year period.
• Cash flow metrics improved significantly, with Cash Flow from Operations (CFO) increasing 705% to $78.4 million in Q2 2025, and Free Cash Flow Available to Shareholders (FCFA2S) rising to $72.4 million.

Key Details

• Q2 2025 Revenue: $184.0 million, an increase of 13% ($21.1 million) compared to $162.8 million in Q2 2024. This includes 6% organic growth after adjusting for foreign exchange impacts.
• Q2 2025 Operating Income: $62.7 million, a 71% increase from $36.6 million in Q2 2024.
• Q2 2025 Net Income: $23.6 million, compared to a net loss of $2.2 million in Q2 2024.
• Q2 2025 Cash Flow from Operations (CFO): $78.4 million, a 705% increase from $9.7 million in Q2 2024.
• Q2 2025 Free Cash Flow Available to Shareholders (FCFA2S): $72.4 million, an increase of $69.6 million from $2.8 million in Q2 2024.
• Year-to-Date (Six Months) Revenue: $362.6 million, an increase of 19% ($58.7 million) compared to $303.9 million in the same period of 2024. Organic growth was 1% after adjusting for foreign exchange.
• Year-to-Date Operating Income: $122.2 million, a 51% increase from $81.1 million in the prior year period.
• Year-to-Date Net Income: $44.3 million, compared to a net loss of $306.6 million in the prior year period. The improvement is attributed to acquisition growth and the absence of preferred and special securities expense following the mandatory conversion on March 25, 2024.
• Year-to-Date CFO: $118.5 million, a 165% increase from $44.7 million in the prior year.
• Year-to-Date FCFA2S: $107.4 million, a 240% increase from $31.5 million in the prior year.
• Balance Sheet Highlights (June 30, 2025):
  • Total Assets: $1,334.7 million (Cash: $289.7 million).
  • Total Liabilities: $591.4 million.
  • Total Equity: $743.3 million.
• Income Statement Breakdown (Q2 2025):
  • License Revenue: $11.7 million.
  • Professional Services Revenue: $36.2 million.
  • Hardware and Other Revenue: $2.9 million.
  • Maintenance and Other Recurring Revenue: $133.1 million.
  • Total Expenses: $147.6 million.
  • Gain on Bargain Purchase: $(2.5) million.
  • Income Tax Expense: $7.9 million.
• Non-IFRS Measures:
  • Operating Income is defined as income before income taxes, amortization of intangible assets, redeemable Preferred and Special Share expense, gain on bargain purchase, and finance/other expenses.
  • FCFA2S is defined as net cash flows from operating activities less interest paid on lease obligations, interest paid on bank debt, transaction costs on bank debt, repayments of lease obligations, interest, dividends, other proceeds received, and property/equipment purchased net of disposal proceeds.