Lumine Group Inc. Announces Results for the Three and Six Months Ended June 30, 2025
TORONTO, Aug. 01, 2025 (GLOBE NEWSWIRE) -- Lumine Group Inc. ("Lumine Group" or "the Company") (TSXV:LMN) announces financial results for the three and six months ended June 30, 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 unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2025, and management's discussion and analysis ("MD&A") for the three and six months ended June 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.
Q2 2025 Headlines:
Revenue grew 13% to $184.0 million compared to $162.8 million in the same quarter prior year (including 6% organic growth after adjusting for foreign exchange impacts).
The Company generated operating income1 of $62.7 million during the quarter, a 71% increase from $36.6 million in the same quarter prior year.
The Company generated net income of $23.6 million during the quarter, from net loss of $2.2 million in the same quarter prior year.
Cash flows from operations ("CFO") increased $68.7 million to $78.4 million compared to $9.7 million in Q2 2024, representing an increase of 705%.
Free cash flow available to shareholders1 ("FCFA2S") increased $69.6 million to $72.4 million compared to $2.8 million in Q2 2024.
Year-to-Date Q2 2025 Headlines:
Revenue grew 19% to $362.6 million compared to $303.9 million in the same six-month period prior year (including 1% organic growth after adjusting for foreign exchange impacts).
The Company generated operating income of $122.2 million in the six-month period ended June 30, 2025, an increase of 51% from $81.1 million in the same period prior year.
The Company generated net income of $44.3 million during the six-month period ended June 30, 2025, from net loss of $306.6 million in the same period prior year.
CFO increased $73.8 million to $118.5 million compared to $44.7 million in the six-month period ended June 30, 2024, representing an increase of 165%.
FCFA2S increased $75.8 million to $107.4 million compared to $31.5 million in the six-month period ended June 30, 2024, representing an increase of 240%.
Total revenue for the three months ended June 30, 2025 is $184.0 million, an increase of 13% or $21.1 million, compared to $162.8 million for the same period in 2024. For the six months ended June 30, 2025, total revenue was $362.6 million, an increase of 19%, or $58.7 million, compared to $303.9 million for the same period in 2024. The increase for the three and six months compared to the same period in the prior year is attributable to revenues from new acquisitions. The Company experienced organic growth of 9% and 2%, respectively, for the three and six months ended June 30, 2025, or 6% 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 June 30, 2025 was $62.7 million, an increase of 71%, or $26.1 million, compared to $36.6 million for the same period in 2024. Operating income for the six months ended June 30, 2025 was $122.2 million, an increase of 51%, or $41.1 million, compared to $81.1 million for the same period in 2024. The increase for the three and six month periods is primarily attributable to growth from 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 June 30, 2025 was $23.6 million compared to net loss of $2.2 million for the same period in 2024. Net income for the six months ended June 30, 2025 was $44.3 million compared to net loss of $306.6 million for the same period in 2024. The increase in net income for the three and six months is primarily attributable to growth from acquisitions and 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 subsequent quarters.
For the three months ended June 30, 2025, CFO increased $68.7 million to $78.4 million compared to $9.7 million for the same period in 2024 representing an increase of 705%. For the six months ended June 30, 2025, CFO increased $73.8 million to $118.5 million compared to $44.7 million for the same period in 2024 representing an increase of 165%. The primary reason for the increase is that CFO includes the impact of changes in non-cash operating assets and liabilities exclusive of effects of business combinations or changes in non-cash operating working capital ("NCOWC") which improved during the three and six months ended June 30, 2025 compared to the same period prior year, as well as higher operating income.
For the three months ended June 30, 2025, FCFA2S increased $69.6 million to $72.4 million compared to $2.8 million for the same period in 2024. For the six months ended June 30, 2025, FCFA2S increased $75.8 million to $107.4 million compared to $31.5 million for the same period in 2024. The increase in the three and six months ended June 30, 2025 is driven by higher CFO compared to the same periods in 2024. FCFA2S is a non-IFRS Measure. See "Non-IFRS Measures".
Non-IFRS Measures
Operating income (loss) refers to income (loss) before income taxes, amortization of intangible assets, redeemable Preferred and Special Share expense, gain on bargain purchase, and finance and other expenses (income). We believe that operating income is useful supplemental information as it provides an indication of the profitability of the Company 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:
Three months endedJune 30,
Six months endedJune 30,
2025
2024
2025
2024
Net income (loss)
23.6
(2.2
)
44.3
(306.6
)
Adjusted for:
Amortization of intangible assets
26.3
29.2
52.3
52.0
Redeemable preferred and special securities expense
-
-
-
317.4
Gain on bargain purchase
(2.5
)
-
(2.5
)
-
Finance and other expense (income)
7.4
5.7
12.5
10.0
Income tax expense (recovery)
7.9
3.9
15.5
8.3
Operating income (loss)
62.7
36.6
122.2
81.1
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 debt, transaction costs on bank debt, 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 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:
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Net cash flows from operating activities:
78.4
9.7
118.5
44.7
Adjusted for:
Interest paid on lease obligations
(0.1
)
(0.1
)
(0.2
)
(0.3
)
Interest paid on other facilities
(3.9
)
(5.1
)
(7.7
)
(7.6
)
Credit facility transaction costs
(0.0
)
(0.2
)
(0.0
)
(1.8
)
Payment of lease obligations
(1.6
)
(1.5
)
(3.2
)
(3.0
)
Interest, dividends and other proceeds received
1.1
0.3
1.8
0.4
Property and equipment purchased, net of proceeds from disposal
(1.5
)
(0.4
)
(1.8
)
(0.7
)
Free cash flow available to shareholders
72.4
2.8
107.4
31.5
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 Nyland
Chief 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. Due to rounding, numbers presented may not foot.)
Unaudited
June 30, 2025
December 31, 2024
Assets
Current assets:
Cash
$
289,673
$
210,983
Accounts receivable, net
143,794
158,048
Unbilled revenue
51,891
35,982
Inventories
611
693
Other assets
45,501
47,183
531,470
452,889
Non-current assets:
Property and equipment
7,547
7,457
Right of use assets
6,198
6,949
Deferred income taxes
11,071
9,536
Other assets
12,970
12,467
Intangible assets and goodwill
765,455
797,888
803,241
834,297
Total assets
$
1,334,711
$
1,287,186
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities
$
98,130
$
107,861
Due to related parties, net
4,433
2,972
Current portion of bank debt
1,247
3,190
Deferred revenue
115,866
88,442
Provisions
5
156
Acquisition holdback payables
5,416
17
Lease obligations
3,146
4,249
Income taxes payable
11,128
10,278
239,371
217,165
Non-current liabilities:
Deferred income taxes
99,210
107,044
Bank debt
242,848
275,443
Lease obligations
4,404
3,621
Other liabilities
5,597
5,191
352,059
391,299
Total liabilities
591,430
608,464
Equity:
Capital stock
490,669
490,669
Contributed surplus
185,142
185,142
Accumulated other comprehensive income (loss)
6,615
(13,612
)
Retained earnings
60,855
