Lumine Group Inc. Announces Results for the Three And Nine Months Ended September 30, 2025

TORONTO, Nov. 03, 2025 (GLOBE NEWSWIRE) -- Lumine Group Inc. (“Lumine Group” or “the Company”) (TSXV:LMN) announces financial results for the three and nine months ended September 30, 2025. 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 and nine months ended September 30, 2025, and management’s discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2025, 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. Q3 2025 Headlines: Revenue increased 5% to $186.7 million compared to $177.3 million in the same quarter prior year (including -1% organic growth after adjusting for foreign exchange impacts). The Company generated operating income of $65.1 million during the quarter, a 7% increase from $60.7 million in the same quarter prior year. The Company generated net income of $24.8 million during the quarter, a 36% increase from net income of $18.3 million in the same quarter prior year. Cash flows from operations (“CFO”) increased $27.4 million to $46.5 million compared to $19.1 million in Q3 2024, representing an increase of 143%. Free cash flow available to shareholders (“FCFA2S”) increased $31.8 million to $42.5 million compared to $10.7 million in Q3 2024, representing an increase of 297%. Year-to-Date Q3 2025 Headlines: Revenue increased 14% to $549.4 million compared to $481.3 million in the nine months ended September 30, 2024 (including 0% organic growth after adjusting for foreign exchange impacts). The Company generated operating income of $187.3 million in the nine months ended September 30, 2025, an increase of 32% from $141.7 million in the same period prior year. The Company generated net income of $69.2 million during the nine months ended September 30, 2025, from net loss of $288.3 million in the same period prior year. CFO increased $103.3 million to $165.0 million compared to $61.7 million in the nine months ended September 30, 2024, representing an increase of 167%. FCFA2S increased $109.7 million to $150.0 million compared to $40.3 million in the nine months ended September 30, 2024, representing an increase of 272%. Total revenue for the three months ended September 30, 2025 is $186.7 million, an increase of 5%, or $9.4 million, compared to $177.3 million for the comparable period in 2024. For the nine months ended September 30, 2025, total revenue was $549.4 million, an increase of 14%, or $68.1 million, compared to $481.3 million for the comparable period in 2024. The increase for the three and nine months ended September 30, 2025 compared to the same periods in the prior year is primarily attributable to revenues from new acquisitions. The Company experienced organic growth of 1% and 1%, respectively, for the three and nine months ended September 30, 2025 or -1% and 0% 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 September 30, 2025 was $65.1 million, an increase of 7%, or $4.4 million, compared to $60.7 million for the same period in 2024. Operating income for the nine months ended September 30, 2025 was $187.3 million, an increase of 32%, or $45.6 million, compared to $141.7 million for the same period in 2024. The increase for the three and nine month periods is primarily attributable to improved profitability from strengthening activities of recent acquisitions. 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 September 30, 2025 was $24.8 million, an increase of 36%, or $6.5 million, compared to net income of $18.3 million for the same period in 2024. Net income for the nine months ended September 30, 2025 was $69.2 million compared to net loss of $288.3 million for the same period in 2024. The increase in net income for the three month period is primarily attributable to improved profitability from strengthening activities of recent acquisitions. The increase in net income for the nine months ended is primarily attributable to the mandatory conversion of preferred and special securities on March 25, 2024 such that no further preferred and special securities expense was booked in the current period. For the three months ended September 30, 2025, CFO increased $27.4 million to $46.5 million compared to $19.1 million for the same period in 2024 representing an increase of 143%. The increase for the three months is mainly driven by lower non-cash operating working capital of $20.9 million and higher operating income of $4.4 million. For the nine months ended September 30, 2025, CFO increased $103.3 million to $165.0 million compared to $61.7 million for the same period in 2024 representing an increase of 167%. The increase for the nine months is mainly driven by lower non-cash operating working capital of $69.2 million and higher operating income of $45.6 million, partly offset by $14.9 million higher income taxes paid. For the three months ended September 30, 2025, FCFA2S increased $31.8 million to $42.5 million compared to $10.7 million for the same period in 2024 representing an increase of 297%. The increase in the three months ended September 30, 2025 is driven by higher CFO compared to the same periods in 2024 and lower interest paid on bank indebtedness. For the nine months ended September 30, 2025, FCFA2S increased $109.7 million to $150.0 million compared to $40.3 million for the same period in 2024 representing an increase of 272%. The increase in the nine months ended September 30, 2025 is driven by higher CFO compared to the same period in 2024, higher interests received on bank deposits, and lower interest paid on bank indebtedness. FCFA2S is a non-IFRS Measure. See “Non-IFRS Measures”. Non-IFRS Measures Operating income (loss) refers to net income (loss) before income tax expense, amortization of intangible assets, redeemable preferred and special securities expense, gain on bargain purchase, and finance costs and other expenses (income). The Company believes that operating income is useful supplemental information as it provides an indication of the profitability of Lumine Group related to its core operations. Operating income (loss) is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that operating income (loss) should not be construed as an alternative to net income (loss). The following table reconciles operating income to net income: (Unaudited) Three months ended September 30, Nine months ended September 30,   2025   2024   2025   2024     ($ in millions) ($ in millions)               Net income (loss) 24.8   18.3   69.2   (288.3 ) Adjusted for:             Amortization of intangible assets 27.6   29.6   79.9   81.6   Redeemable preferred and special securities expense 0.0   0.0   0.0   317.4   Gain on bargain purchase 0.0   0.0   (2.5 ) 0.0   Finance costs and other expenses 2.0   8.9   14.5   18.9   Income tax expense 10.7   3.9   26.2   12.1   Operating income 65.1   60.7   187.3   141.7   Free cash flow available to shareholders ‘‘FCFA2S’’ refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on other facilities, credit facility transaction costs, payment 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 debts. 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 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 FCFA2S should not be construed as an alternative to net cash flows from operating activities. The following table reconciles FCFA2S to net cash flows from operating activities: (Unaudited) Three months ended September 30, Nine months ended September 30,   2025   2024   2025   2024     ($ in millions) ($ in millions) Net cash flows from operating activities: 46.5   19.1   165.0   61.7   Adjusted for:         Interest paid on lease obligations (0.1 ) (0.1 ) (0.3 ) (0.4 ) Interest paid on other facilities (3.7 ) (5.7 ) (11.4 ) (13.3 ) Credit facility transaction costs (0.1 ) 0.0   (0.2 ) (1.9 ) Payment of lease obligations (0.9 ) (1.6 ) (4.1 ) (4.6 ) Interest, dividends and other proceeds received 1.3   0.1   3.1   0.5   Property and equipment purchased, net of proceeds from disposal (0.6 ) (1.1 ) (2.2 ) (1.7 ) Free cash flow available to shareholders 42.5   10.7   150.0   40.3   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, vertical market software 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. Condensed Consolidated Interim Statements of Financial Position (In thousands of USD) Unaudited         September 30, 2025   December 31, 2024           Assets       Current assets:       Cash $ 232,469   $ 210,983   Accounts receivable, net   142,943     158,048   Unbilled revenue   52,546     35,982   Inventories   654     693   Other assets   61,969     47,183       490,581     452,889   Non-current assets:       Property and equipment   7,476     7,457   Right of use assets   6,301     6,949   Deferred income taxes   11,033     9,536   Other assets   13,568     12,467   Intangible assets and goodwill   754,632     797,888       793,010     834,297   Total assets $ 1,283,591   $ 1,287,186           Liabilities and Equity       Current liabilities:       Accounts payable and accrued liabilities $ 106,473   $ 107,861   Due to related parties, net   1,160     2,972   Current portion of bank indebtedness   1,192     3,190   Deferred revenue   106,987     88,442   Provisions   34     156   Acquisition holdback payables   10,016     17   Lease obligations   3,156     4,249   Income taxes payable   10,982     10,278       240,000     217,165   Non-current liabilities:       Deferred income taxes   109,195     107,044   Bank indebtedness   156,089     275,443   Lease obligations   4,233     3,621   Other liabilities   7,187     5,191       276,704     391,299   Total liabilities   516,704     608,464           Equity:       Capital stock   490,669     490,669   Contributed surplus   185,142     185,142   Accumulated other comprehensive income (loss)   5,389     (13,612 ) Retained earnings (deficit)   85,687     16,523       766,887     678,722           Total liabilities and equity $ 1,283,591   $ 1,287,186   Condensed Consolidated Interim Statements of Income (loss) (In thousands of USD, except per share amounts) Unaudited             Three months ended September 30, Nine months ended September 30,     2025     2024     2025     2024               Revenue           License $ 16,984   $ 12,798   $ 41,027   $ 36,205   Professional services   31,851     32,780     99,295     86,622   Hardware and other   2,637     6,589     14,654     11,332   Maintenance and other recurring   135,233     125,167     394,376     347,099       186,705     177,334     549,352     481,258   Expenses           Staff   90,072     89,929     261,472     250,662   Hardware   1,488     3,657     7,889     6,595   Third party license, maintenance and professional services   10,047     8,575     31,847     28,981   Occupancy   1,008     2,246     2,976     4,117   Travel, telecommunications, supplies, software and equipment   9,480     4,152     27,397     23,660   Professional fees   4,553     2,637     12,076     11,124   Other, net   3,354     3,011     12,139     7,467   Depreciation   1,615     2,473     6,305     6,925   Amortization of intangible assets   27,605     29,616     79,941     81,648       149,222     146,296     442,042     421,179               Redeemable Preferred and Special Securities expense   —     —     —     317,362   Gain on bargain purchase   —     —     (2,494 )   —   Finance and other expenses   1,959     8,898     14,481     18,868       1,959     8,898     11,987     336,230               Income (loss) before income taxes   35,524     22,140     95,323     (276,151 )             Current income tax expense   2,519     13,572     29,780     31,127   Deferred income tax expense (recovery)   8,173     (9,710 )   (3,621 )   (18,982 ) Income tax expense   10,692     3,862     26,159     12,145               Net income (loss) $ 24,832   $ 18,278   $ 69,164   $ (288,296 )             Weighted average shares outstanding:           Basic   256,620,388     256,620,388     256,620,388     199,991,663   Diluted   256,620,388     256,620,388     256,620,388     255,529,839               Earnings (loss) per share:           Basic and diluted $ 0.10   $ 0.07   $ 0.27   $ (1.44 )             Condensed Consolidated Interim Statements of Comprehensive Income (loss) (In thousands of USD) Unaudited               Three months ended September 30,   Nine months ended September 30,     2025     2024     2025     2024                 Net income (loss) $ 24,832   $ 18,278   $ 69,164   $ (288,296 )               Items that are or may be reclassified subsequently to net income (loss):                           Foreign currency translation differences from foreign operations and other   (1,226 )   7,082     19,001     2,482                 Other comprehensive (loss) income for the period, net of income tax   (1,226 )   7,082     19,001     2,482                 Total comprehensive income (loss) for the period $ 23,606   $ 25,360   $ 88,165   $ (285,814 ) Condensed Consolidated Interim Statement of Changes in Equity (In thousands of USD) Unaudited                   Nine months ended September 30, 2025                     Capital stock   Contributed surplus   Accumulated other comprehensive (loss) income   Retained earnings   Total equity                       Balance at January 1, 2025 $ 490,669   $ 185,142   $ (13,612 ) $ 16,523   $ 678,722                       Total comprehensive income for the period:                   Net income   —     —     —     69,164     69,164                       Other comprehensive income:                   Foreign currency translation differences from foreign operations and other   —     —     19,001     —     19,001   Total other comprehensive income for the period   —     —     19,001     —     19,001                       Total comprehensive income for the period   —     —     19,001     69,164     88,165                       Balance at September 30, 2025 $ 490,669   $ 185,142   $ 5,389   $ 85,687   $ 766,887   Condensed Consolidated Interim Statement of Changes in Equity (In thousands of USD) Unaudited             Nine months ended September 30, 2024               Capital stock   Contributed surplus   Accumulated other comprehensive loss   Retained deficit   Total equity                 Balance at January 1, 2024 $ —   $ (1,015,661 ) $ (6,296 ) $ (2,820,478 ) $ (3,842,435 )               Total comprehensive income (loss) for the period:             Net loss   —     —     —     (288,296 )   (288,296 )               Other comprehensive income:             Foreign currency translation differences from foreign operations and other   —     —     2,482     —     2,482   Total other comprehensive income for the period   —     —     2,482     —     2,482                 Total comprehensive income (loss) for the period   —     —     2,482     (288,296 )   (285,814 )               Settlement of Preferred and Special Share Dividends in Subordinate Voting Shares   87,368     —     —     —     87,368   Mandatory Conversion of Preferred and Special Shares   403,301     1,200,803     —     3,095,910     4,700,014                 Balance at September 30, 2024 $ 490,669   $ 185,142   $ (3,814 ) $ (12,864 ) $ 659,133   Condensed Consolidated Interim Statements of Cash Flows (In thousands of USD) Unaudited           Three months ended September 30, Nine months ended September 30,     2025     2024     2025     2024             Cash flows from operating activities:         Net income (loss) $ 24,832   $ 18,278   $ 69,164   $ (288,296 ) Adjustments for:         Depreciation   1,615     2,473     6,305     6,925   Amortization of intangible assets   27,605     29,616     79,941     81,648   Contingent consideration adjustments   750     (1,357 )   1,225     (399 ) Preferred and Special Securities expense   —     —     —     317,362   Gain on bargain purchase   —     —     (2,494 )   —   Finance and other expense   3,270     9,022     17,591     19,392   Income tax expense   10,692     3,862     26,159     12,145   Change in non-cash operating assets and liabilities exclusive of effects of business combinations   (13,316 )   (34,203 )   (1,932 )   (71,121 ) Income taxes paid   (8,953 )   (8,641 )   (30,944 )   (15,957 ) Net cash flows from operating activities   46,495     19,050     165,015     61,699             Cash flows (used in) from financing activities:         Interest paid on lease obligations   (70 )   (105 )   (272 )   (388 ) Interest paid on bank indebtedness   (3,688 )   (5,702 )   (11,387 )   (13,304 ) Proceeds from issuance of bank indebtedness   —     15,000     —     155,500   Repayments of bank indebtedness   (87,000 )   (17,976 )   (123,319 )   (18,464 ) Transaction costs on bank indebtedness   (114 )   (25 )   (160 )   (1,874 ) Payments of lease obligations   (919 )   (1,560 )   (4,145 )   (4,594 ) Net cash flows (used in) from financing activities   (91,791 )   (10,368 )   (139,283 )   116,876             Cash flows (used in) from investing activities:         Acquisition of businesses   (13,654 )   —     (20,461 )   (144,325 ) Cash obtained with acquired businesses   6,331     —     6,331     —   Post-acquisition settlement payments, net of receipts   (4,136 )   5,685     (2,560 )   4,706   Interest, dividends and other proceeds received   1,311     124     3,110     524   Proceeds from sale of property and equipment   52     —     123     —   Property and equipment purchased   (602 )   (1,058 )   (2,311 )   (1,689 ) Other investing activities   (48 )   (720 )   4,209     (984 ) Net cash flows (used in) from investing activities   (10,746 )   4,031     (11,559 )   (141,768 )           Effect of foreign currency on cash and cash equivalents   (1,162 )   72     7,313     (2,959 ) (decrease) Increase in cash   (57,204 )   12,785     21,486     33,848             Cash, beginning of period   289,673     167,572     210,983     146,509   Cash, end of period   232,469     180,357     232,469     180,357