Lumine Group Inc. Announces Results for the Three Months Ended March 31, 2026

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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