Lumine Group Inc. Announces Results for the Three Months And Year Ended December 31, 2025

Lumine Group Inc. Announces Results for the Three Months And Year Ended December 31, 2025 Canada NewsWire TORONTO, March 4, 2026 TORONTO, March 4, 2026 /CNW/ - Lumine Group Inc. ("Lumine Group" or "the Company") (TSXV: LMN) announces financial results for the three months and year ended December 31, 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 annual consolidated financial statements for the year ended December 31, 2025, and management's discussion and analysis ("MD&A") for the year ended December 31, 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. Q4 2025 Headlines: Revenue increased 16% to $216.3 million compared to $187.1 million in Q4 2024 (including 1% organic growth after adjusting for foreign exchange impacts). The Company generated operating income of $88.4 million during the quarter, a 29% increase from $68.7 million in Q4 2024. The Company generated net income of $49.6 million during the quarter, a 69% increase from net income of $29.4 million in Q4 2024. Cash flows from operations ("CFO") increased $18.1 million to $71.4 million compared to $53.3 million in Q4 2024, representing an increase of 34%. Free cash flow available to shareholders ("FCFA2S") increased $21.8 million to $67.1 million compared to $45.3 million in Q4 2024, representing an increase of 48%. 2025 Headlines: Revenue increased 15% to $765.7 million compared to $668.4 million in 2024 (including 1% organic growth after adjusting for foreign exchange impacts). The Company generated operating income of $275.7 million, an increase of 31% from $210.3 million in 2024. The Company generated net income of $118.8 million, compared to net loss of $258.9 million for 2024. CFO increased $121.5 million to $236.5 million, compared to $115.0 million in 2024, representing an increase of 106%. FCFA2S increased $131.3 million to $217.0 million compared to $85.7 million in 2024, representing an increase of 153%. Total revenue for the three months ended December 31, 2025 is $216.3 million, an increase of 16%, or $29.2 million, compared to $187.1 million for the comparable period in 2024. For the year ended December 31, 2025, total revenue was $765.7 million, an increase of 15%, or $97.3 million, compared to $668.4 million for the comparable period in 2024. The increase for the three months and year ended December 31, 2025 compared to the same periods in 2024 is primarily attributable to revenues from new acquisitions in the current and preceding years. The Company experienced organic growth of 3% and 2%, respectively, for the three months and year ended December 31, 2025 or 1% and 1% 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 December 31, 2025 was $88.4 million, an increase of 29%, or $19.7 million, compared to $68.7 million for the same period in 2024. Operating income for the year ended December 31, 2025 was $275.7 million, an increase of 31%, or $65.4 million, compared to $210.3 million for the same period in 2024. The increase for the three months and year ended was attributable to improved profitability in our existing businesses, as well as contributions from recent acquisitions following strengthening activities. 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 December 31, 2025 was $49.6 million, an increase of 69%, or $20.2 million, compared to net income of $29.4 million for the same period in 2024. Net income for the year ended December 31, 2025 was $118.8 million compared to net loss of $258.9 million for the same period in 2024. The increase in net income for the three month period was attributable to improved profitability in our existing businesses, as well as contributions from recent acquisitions following strengthening activities. The increase in net income for the year 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 year. For the three months ended December 31, 2025, CFO increased $18.1 million to $71.4 million compared to $53.3 million for the same period in 2024 representing an increase of 34%. The increase for the three months is mainly driven by higher operating income of $19.7 million. For the year ended December 31, 2025, CFO increased $121.5 million to $236.5 million compared to $115.0 million for the same period in 2024 representing an increase of 106%. The increase for the year is mainly driven by lower non-cash operating working capital of $59.4 million and higher operating income of $65.4 million, partly offset by $8.8 million higher income taxes paid. For the three months ended December 31, 2025, FCFA2S increased $21.8 million to $67.1 million compared to $45.3 million for the same period in 2024 representing an increase of 48%. The increase in the three months ended December 31, 2025 is driven by higher CFO compared to the same periods in 2024 and lower interest paid on bank indebtedness. For the year ended December 31, 2025, FCFA2S increased $131.3 million to $217.0 million compared to $85.7 million for the same period in 2024 representing an increase of 153%. The increase in the year ended December 31, 2025 is driven by higher CFO compared to the same period in 2024, higher interest received on bank deposits, and lower interest paid on bank indebtedness. FCFA2S is a non-IFRS Measure. See "Non-IFRS Measures". Non-IFRS Measures Operating income refers to net income (loss) before income tax expense, amortization of intangible assets, redeemable preferred and special securities expense, gain on bargain purchase, and finance costs and other expenses (income). The Company believes that operating income is useful supplemental information as it provides an indication of the profitability of Lumine Group related to its core operations. Operating income is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that operating income should not be construed as an alternative to net income (loss). The following table reconciles operating income to net income (loss): Unaudited Three months ended December 31, Years ended December 31, 2025 2024 2025 2024 ($ in millions) ($ in millions) Net income (loss) 49.6 29.4 118.8 (258.9) Adjusted for: Amortization of intangible assets 28.4 26.4 108.4 108.1 Redeemable preferred and special securities expense -- -- -- 317.4 Gain on bargain purchase 0.3 -- (2.2) 0.0 Finance costs and other expenses 4.4 5.3 18.9 24.2 Income tax expense 5.7 7.5 31.8 19.7 Operating income 88.4 68.7 275.7 210.4 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 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 December 31, Years ended December 31, 2025 2024 2025 2024 ($ in millions) ($ in millions) Net cash flows from operating activities: 71.4 53.3 236.5 115.0 Adjusted for: Interest paid on lease obligations (0.1) (0.1) (0.4) (0.5) Interest paid on bank indebtedness (2.6) (5.4) (14.0) (18.7) Transaction costs on bank indebtedness (0.4) (0.3) (0.6) (2.2) Repayments of lease obligations (0.5) (1.5) (4.7) (6.1) Interest, dividends and other proceeds received 1.1 0.5 4.2 1.1 Property and equipment purchased, net of proceeds from disposal (1.8) (1.2) (4.0) (2.9) Free cash flow available to shareholders 67.1 45.3 217.0 85.7 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.  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 Consolidated Statements of Financial Position (In thousands of USD. Due to rounding, numbers presented may not foot.) December 31, 2025 December 31, 2024 Assets Current assets: Cash $                    352,441 $                    210,983 Accounts receivable, net 163,174 158,048 Unbilled revenue 47,547 35,982 Inventories 557 693 Other assets 51,808 47,183 615,527 452,889 Non-current assets: Property and equipment 8,325 7,457 Right of use assets 5,779 6,949 Deferred income taxes 15,503 9,536 Other assets 13,752 12,467 Intangible assets and goodwill 728,384 797,888 771,743 834,297 Total assets $                 1,387,270 $                 1,287,186 Liabilities and Equity Current liabilities: Accounts payable and accrued liabilities $                    123,835 $                    107,861 Due to related parties, net 860 2,972 Current portion of bank indebtedness 1,992 3,190 Deferred revenue 94,776 88,442 Provisions -- 156 Acquisition holdback payables 6,604 17 Lease obligations 3,149 4,249 Income taxes payable 9,044 10,278 240,260 217,165 Non-current liabilities: Deferred income taxes 108,565 107,044 Bank indebtedness 207,956 275,443 Lease obligations 3,631 3,621 Other liabilities 7,716 5,191 327,868 391,299 Total liabilities 568,128 608,464 Equity: Capital stock 490,669 490,669 Contributed surplus 185,142 185,142 Accumulated other comprehensive income (loss) 8,042 (13,612) Retained earnings (deficit) 135,289 16,523 819,142 678,722 Total liabilities and equity $                 1,387,270 $                 1,287,186 Lumine Group Consolidated Statements of Income (loss) (In thousands of USD, except share and per share amounts. Due to rounding, numbers presented may not foot.) Years ended December 31, 2025 2024 Revenue License $                72,643 $                51,360 Professional services 135,044 113,851 Hardware and other 20,301 18,216 Maintenance and other recurring 537,672 484,943 765,660 668,370 Expenses Staff 352,915 333,278 Hardware 11,092 10,872 Third party license, maintenance and professional services 46,210 41,189 Occupancy 4,069 6,248 Travel, telecommunications, supplies, software and equipment 36,326 32,488 Professional fees 16,854 15,624 Other, net 14,434 9,192 Depreciation 8,099 9,091 Amortization of intangible assets 108,369 108,058 598,368 566,040 Redeemable Preferred and Special Securities expense -- 317,362 Gain on bargain purchase (2,165) -- Finance costs and other expenses 18,871 24,187 16,706 341,549 Income (loss) before income taxes 150,586 (239,219) Current income tax expense 36,686 39,952 Deferred income tax recovery (4,866) (20,262) Income tax expense 31,820 19,690 Net income (loss) $              118,766 $            (258,909) Weighted average shares outstanding: Basic 256,620,388 214,226,206 Diluted 256,620,388 255,803,966 Earnings (loss) per share: Basic and diluted $                    0.46 $                  (1.21) Lumine Group Consolidated Statements of Comprehensive Income (loss) (In thousands of USD. Due to rounding, numbers presented may not foot.) Years ended December 31, 2025 2024 Net income (loss) $              118,766 $            (258,909) Items that are or may be reclassified subsequently to net income (loss): Foreign currency translation differences from foreign operations and other 21,654 (7,316) Other comprehensive income (loss) for the year, net of income tax 21,654 (7,316) Total comprehensive income (loss) for the year $              140,420 $            (266,225) Lumine Group Consolidated Statement of Changes in Equity (In thousands of USD. Due to rounding, numbers presented may not foot.) Year ended December 31, 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 year: Net income -- -- -- 118,766 118,766 Other comprehensive income: Foreign currency translation differences from foreign operations and other -- -- 21,654 -- 21,654 Total other comprehensive income for the year -- -- 21,654 -- 21,654 Total comprehensive income for the year -- -- 21,654 118,766 140,420 Balance at December 31, 2025 $                    490,669 $                    185,142 $                        8,042 $                    135,289 $                    819,142 Lumine Group Consolidated Statement of Changes in Equity (In thousands of USD. Due to rounding, numbers presented may not foot.) Year ended December 31, 2024 Capital stock Contributed surplus Accumulated other comprehensive loss Retained (deficit) earnings Total equity Balance at January 1, 2024 $                             -- $                (1,015,661) $                       (6,296) $                (2,820,478) $                (3,842,435) Total comprehensive income (loss) for the year: Net loss -- -- -- (258,909) (258,909) Other comprehensive loss: Foreign currency translation differences from foreign operations and other -- -- (7,316) -- (7,316) Total other comprehensive loss for the year -- -- (7,316) -- (7,316) Total comprehensive loss for the year -- -- (7,316) (258,909) (266,225) 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 December 31, 2024 $                    490,669 $                    185,142 $                     (13,612) $                      16,523 $                    678,722 Lumine Group Consolidated Statements of Cash Flows (In thousands of USD. Due to rounding, numbers presented may not foot.) Years ended December 31, 2025 2024 Cash flows from operating activities: Net income (loss) $              118,766 $            (258,909) Adjustments for: Depreciation 8,099 9,245 Amortization of intangible assets 108,369 108,058 Contingent consideration adjustments 2,966 (713) Preferred and Special Securities expense -- 317,362 Gain on bargain purchase (2,165) -- Finance costs and other expenses 23,034 25,241 Income tax expense 31,820 19,690 Change in non-cash operating assets and liabilities exclusive of effects of business combinations (18,466) (77,852) Income taxes paid (35,963) (27,158) Net cash flows from operating activities 236,460 114,964 Cash flows (used in) from financing activities: Interest paid on lease obligations (357) (505) Interest paid on bank indebtedness (14,008) (18,724) Proceeds from issuance of bank indebtedness 55,000 155,500 Repayments of bank indebtedness (125,667) (27,790) Transaction costs on bank indebtedness (574) (2,207) Payments of lease obligations (4,653) (6,103) Net cash flows (used in) from financing activities (90,259) 100,171 Cash flows used in investing activities: Acquisition of businesses (20,461) (145,271) Cash obtained with acquired businesses 6,331 -- Post-acquisition settlement payments, net of receipts (2,632) 4,706 Interest, dividends and other proceeds received 4,163 1,054 Proceeds from sale of property and equipment 169 -- Property and equipment purchased (4,158) (2,934) Decrease (increase) in restricted cash, and other investing activities 4,182 (5,187) Net cash flows used in investing activities (12,406) (147,632) Effect of foreign currency on cash and cash equivalents 7,663 (3,029) Increase in cash 141,458 64,474 Cash, beginning of year 210,983 146,509 Cash, end of year 352,441 210,983 SOURCE Lumine Group Inc View original content: http://www.newswire.ca/en/releases/archive/March2026/04/c5620.html Contact: For further information: David Nyland, Chief Executive Officer, Lumine Group, [email protected], +1-437-353-4910