CALGARY, Alberta — February 10, 2026 — Leads & Copy — Computer Modelling Group Ltd. (TSX:CMG) has announced its financial results for the three and nine months ended December 31, 2025. The Board of Directors also approved a cash dividend of $0.01 per Common Share for the third quarter ended December 31, 2025.
Total revenue decreased by 9% to $32.7 million, which includes a 17% organic decline and 8% growth from acquisitions. Recurring revenue decreased by 4% to $23.7 million, including a 14% organic decline and 10% growth from acquisitions. Adjusted EBITDA decreased by 30% to $9.7 million, with an Adjusted EBITDA Margin of 30%, compared to 39% in the comparative period. Earnings per share was $0.07, a 42% decrease. Free Cash Flow decreased by 34% to $5.8 million, and Free Cash Flow per share decreased to $0.07 from $0.11.
For the nine months ended December 31, 2025, total revenue decreased by 3% to $92.5 million, including a 16% organic decline and 13% growth from acquisitions. Recurring revenue increased by 4% to $65.3 million, which includes a 10% organic decline and 14% growth from acquisitions. Adjusted EBITDA decreased by 27% to $24.3 million, with an Adjusted EBITDA Margin of 26%, compared to 35% in the comparative period. Earnings per share was $0.14, a 33% decrease. Free Cash Flow decreased by 41% to $12.2 million, and Free Cash Flow per share decreased to $0.15 from $0.25.
Market conditions remain challenging, with cautious customer outlooks leading to conservative spending. This is extending sales cycles for new software contracts. CMG Group is focused on long-term success, including profitability with CoFlow, enhancements to its reservoir simulation software, and sales and growth alignment within acquired companies.
The company continues to develop its acquisition strategy. The past quarter saw the highest level of activity to date in identifying and evaluating potential acquisitions, with advanced stage discussions underway.
Organic Recurring revenue declined due to the previously disclosed contract loss, which began in the second quarter. This decline offset revenue growth from acquisitions.
Adjusted EBITDA and Free Cash Flow decreased due to lower contributions from higher-margin reservoir and production solutions, as well as the decline in professional services revenue. Contributions from acquired businesses partially mitigated these impacts.
Acquisition growth offset a portion of organic declines for the year-to-date period; however, overall Adjusted EBITDA and Free Cash Flow remain lower than the prior year, due to revenue mix changes and lower organic revenue.
Recurring revenue in the fourth quarter is expected to be higher than in the third quarter, reflecting seasonal contract renewals and revenue recognition. Organic Recurring revenue is expected to return to positive year-over-year growth in the fourth quarter. While contract renewal and revenue recognition seasonality is expected to result in quarterly volatility, organic recurring revenue growth is expected to be positive on an annual basis in fiscal 2027.
For the current fiscal year (excluding future acquisitions), Adjusted EBITDA is expected to be lower than the prior year due to the decline in organic revenue and professional services activity.
The Board approved a cash dividend of $0.01 per Common Share, payable on March 13, 2026, to shareholders of record on March 5, 2026.
CMG Group is a global software and consulting company solving subsurface and surface challenges for the new energy industry. The company is headquartered in Calgary, AB, with offices in Houston, Oslo, Stavanger, Kaiserslautern, Oxford, Dubai, Bogota, Rio de Janeiro, Bengaluru, and Kuala Lumpur.
Management’s Discussion and Analysis and condensed consolidated interim financial statements for the three and nine months ended December 31, 2025, are available on the company website and on SEDAR+.
Source: Computer Modelling Group Ltd.
