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 $40.3 million for the same period in 2024 representing an increase of 272%. The increase in the nine months ended September 30, 2025 is driven by higher CFO compared to the same period in 2024, higher interests received on bank deposits, and lower interest paid on bank indebtedness. FCFA2S is a non-IFRS Measure. See "Non-IFRS Measures".
Non-IFRS Measures
Operating income (loss) refers to net income (loss) before income tax expense, amortization of intangible assets, redeemable preferred and special securities expense, gain on bargain purchase, and finance costs and other expenses (income). The Company believes that operating income is useful supplemental information as it provides an indication of the profitability of Lumine Group related to its core operations. Operating income (loss) is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that operating income (loss) should not be construed as an alternative to net income (loss).
The following table reconciles operating income to net income:
(Unaudited)
Three months endedSeptember 30,
Nine months endedSeptember 30,
2025
2024
2025
2024
($ 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 endedSeptember 30,
Nine months endedSeptember 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 NylandChief Executive Officer Lumine Group
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
