(MENAFN- GlobeNewsWire - Nasdaq) 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 Additional information about Lumine Group is also available on SEDAR+ and on Lumine Group's website

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 ended June 30,	Six months ended June 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 .

For further information:

David Nyland

Chief Executive Officer

Lumine Group

...
+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.

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				16,523
		743,281				678,722
Subsequent events
Total liabilities and equity	$	1,334,711			$	1,287,186

Condensed Consolidated Interim Statements of Income (Loss)
(In thousands of USD, except per share amounts. Due to rounding, numbers presented may not foot.)

Unaudited
	Three months ended June 30,		Six months ended June 30,
	2025		2024		2025		2024
Revenue
License	$	11,716		$	11,687		$	24,043		$	23,407
Professional services		36,167			28,909			67,444			53,842
Hardware and other		2,947			2,326			12,017			4,743
Maintenance and other recurring		133,125			119,903			259,143			221,932
		183,955			162,825			362,647			303,924
Expenses
Staff		87,496			87,704			171,400			160,733
Hardware		1,742			1,418			6,401			2,938
Third party license, maintenance and professional services		10,597			11,867			21,800			20,406
Occupancy		972			975			1,968			1,871
Travel, telecommunications, supplies, software and equipment		8,935			12,751			17,917			19,508
Professional fees		3,683			5,655			7,523			8,487
Other, net		5,490			3,509			8,785			4,455
Depreciation		2,380			2,337			4,690			4,452
Amortization of intangible assets		26,322			29,211			52,336			52,032
		147,617			155,427			292,820			274,882
Redeemable Preferred and Special Securities expense		-			-			-			317,362
Gain on bargain purchase		(2,494	)		-			(2,494	)		-
Finance and other expenses (income)		7,388			5,698			12,522			9,970
		4,894			5,698			10,028			327,332
Income (loss) before income taxes		31,444			1,700			59,799			(298,290	)
Current income tax expense (recovery)		12,691			9,209			27,261			17,555
Deferred income tax expense (recovery)		(4,800	)		(5,274	)		(11,794	)		(9,272	)
Income tax expense		7,891			3,935			15,467			8,283
Net income (loss)	$	23,553		$	(2,235	)	$	44,332		$	(306,573	)
Weighted average shares outstanding:
Basic		256,620,388			256,620,388			256,620,388				171,366,154
Diluted		256,620,388			256,620,388			256,620,388				254,978,572
Earnings (loss) per share:
Basic and diluted	$	0.09		$	(0.01	)	$	0.17			$	(1.79	)

Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
(In thousands of USD. Due to rounding, numbers presented may not foot.)

Unaudited
	Three months ended June 30,		Six months ended June 30,
		2025		2024			2025	2024
Net income (loss)	$	23,553	$	(2,235	)	$	44,332	$	(306,573	)
Items that are or may be reclassified subsequently to net income (loss):
Foreign currency translation differences from foreign operations and other		16,095		(975	)		20,227		(4,600	)
Other comprehensive income (loss) for the year, net of income tax		16,095		(975	)		20,227		(4,600	)
Total comprehensive income (loss) for the year	$	39,648	$	(3,210	)	$	64,559	$	(311,173	)

Condensed Consolidated Interim Statement of Changes in Equity
(In thousands of USD. Due to rounding, numbers presented may not foot.)

Unaudited
Six months ended June 30, 2025
	Capital stock	Contributed surplus	Accumulated other comprehensive (loss) income	Retained earnings (deficit)	Total equity
Balance at January 1, 2025	$	490,669	$	185,142	$	(13,612	)	$	16,523	$	678,722
Total comprehensive income (loss) for the period:		-		-		-			44,332		44,332
Net income (loss)
Other comprehensive income (loss):
Foreign currency translation differences from foreign operations and other		-		-		20,227			-		20,227
Total other comprehensive income (loss) for the period		-		-		20,227			-		20,227
Total comprehensive income (loss) for the period		-		-		20,227			44,332		64,559
Balance at June 30, 2025	$	490,669	$	185,142	$	6,615		$	60,855	$	743,281

Condensed Consolidated Interim Statement of Changes in Equity
(In thousands of USD. Due to rounding, numbers presented may not foot.)

Unaudited
Six months ended June 30, 2024
	Capital stock	Contributed surplus	Accumulated other comprehensive (loss) income	Retained earnings (deficit)	Total equity
Balance at January 1, 2024	$	-	$	(1,015,661	)	$	(6,296	)	$	(2,820,478	)	$	(3,842,435	)
Total comprehensive income (loss) for the period:
Net income (loss)		-		-			-			(306,573	)		(306,573	)
Other comprehensive income (loss):
Foreign currency translation differences from foreign operations and other		-		-			(4,600	)		-			(4,600	)
Total other comprehensive income (loss) for the period		-		-			(4,600	)		-			(4,600	)
Total comprehensive income (loss) for the period		-		-			(4,600	)		(306,573	)		(311,173	)
Mandatory Conversion of Special and Preferred Shares		403,301		1,200,803			-			3,095,910			4,700,014
Settlement of Preferred and Special Share Dividends in Subordinate Voting Shares		87,368		-			-			-			87,368
Balance at June 30, 2024	$	490,669	$	185,142		$	(10,896	)	$	(31,141	)	$	633,774

Condensed Consolidated Interim Statements of Cash Flows
(In thousands of USD. Due to rounding, numbers presented may not foot.)

Unaudited
	Three months ended June 30,	Six months ended June 30,
		2025			2024			2025			2024
Cash flows from (used in) operating activities:
Net income (loss)	$	23,553		$	(2,235	)	$	44,332		$	(306,573	)
Adjustments for:
Depreciation		2,380			2,337			4,690			4,452
Amortization of intangible assets		26,322			29,211			52,336			52,032
Contingent consideration adjustments		587			915			475			958
Preferred and Special Securities expense (income)		-			-			-			317,362
Gain on bargain purchase		(2,494	)		-			(2,494	)		-
Finance and other expenses (income)		8,493			5,998			14,321			10,336
Income tax expense (recovery)		7,891			3,935			15,467			8,283
Change in non-cash operating assets and liabilities exclusive of effects of business combinations		28,885			(26,734	)		11,370			(34,859	)
Income taxes (paid) received		(17,182	)		(3,680	)		(21,991	)		(7,317	)
Net cash flows from operating activities		78,434			9,747			118,506			44,674
Cash flows from (used in) financing activities:
Interest paid on lease obligations		(97	)		(130	)		(202	)		(284	)
Interest paid on bank debt		(3,886	)		(5,130	)		(7,699	)		(7,602	)
Cash transferred from (to) Parent		(85	)		118			14			(1,990	)
Proceeds from issuance of bank debt		-			50,500			-			140,500
Repayments of bank debt		(36,076	)		(244	)		(36,319	)		(488	)
Transaction costs on bank debt		(27	)		(194	)		(46	)		(1,849	)
Payments of lease obligations		(1,643	)		(1,468	)		(3,226	)		(3,034	)
Net cash flows from (used in) in financing activities		(41,815	)		43,452			(47,478	)		125,253
Cash flows from (used in) investing activities:
Acquisition of businesses		(6,807	)		(144,325	)		(6,807	)		(144,325	)
Post-acquisition settlement payments, net of receipts		2,513			-			1,576			(685	)
Interest, dividends and other proceeds received		1,105			300			1,799			366
Proceeds from sale of property and equipment		71			-			71			-
Property and equipment purchased		(1,455	)		(363	)		(1,709	)		(724	)
Other investing activities		(80	)		(271	)		4,257			(265	)
Net cash flows (used in) investing activities		(4,653	)		(144,659	)		(813	)		(145,633	)
Effect of foreign currency on cash and cash equivalents		5,610			(554	)		8,475			(3,030	)
Increase (decrease) in cash		37,577			(92,014	)		78,690			21,264
Cash, beginning of period		252,096			259,787			210,983			146,509
Cash, end of period	$	289,673		$	167,773		$	289,673		$	167,773

¹ See“Non-IFRS Measures”.

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