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
investors@luminegroup.com
+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 | |
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