Computer Modelling Group Announces Second Quarter Results and Quarterly Dividend

Executive Summary

• CMG Group reported Q2 2026 results (three‑month period ended Sept 30, 2025) showing total revenue of C$30.2 M (+2% YoY) and adjusted EBITDA of C$7.6 M (‑25% YoY).
• The Board approved a cash dividend of $0.01 per common share payable Dec 15, 2025.
• Post‑quarter activities include the acquisition of SeisWare International Inc., a multi‑year simulation software licensing agreement with Shell, and closing of a $100 M credit facility on Nov 7, 2025.

Key Details

• Revenue: C$30.2 M (Q2) vs. C$29.5 M prior year; recurring revenue up 13% to C$20.7 M.
• Adjusted EBITDA: C$7.6 M, down 25% YoY; margin fell to 25% from 34%.
• EPS: Basic & diluted $0.03 (‑40% YoY).
• Free Cash Flow: C$2.0 M for the quarter, down 68% YoY; per‑share FCF $0.02 vs. $0.07 prior year.
• Acquisition: Closed acquisition of SeisWare International Inc., expanding seismic solutions portfolio.
• New Contract: Multi‑year simulation software licensing agreement with Shell covering the CoFlow™ suite, announced Nov 10, 2025.
• Financing: Secured a $100 M revolving credit facility on Nov 7, 2025 to support acquisitions and cash needs.
• Dividend: Cash dividend of $0.01 per common share; record date Dec 5, 2025; payable Dec 15, 2025.
• Guidance Highlights: Expect higher revenue in H2 2026 due to seasonal contract renewals; organic recurring‑revenue growth projected positive in Q4 2026 and FY 2027. Adjusted EBITDA and free cash flow anticipated to improve in the second half despite full‑year decline relative to FY 2025.

Notable Quotes

• “Our acquisition of SeisWare strengthens our seismic solutions offering, and the Shell licensing agreement underscores confidence in our simulation technology,” – Pramod Jain, CEO.

All non‑material boilerplate, forward‑looking disclaimer text, and corporate profile sections have been omitted for brevity.