Lumine Group Inc. Announces Results for the Third Quarter Ended September 30, 2026
- Revenue increased 55% year-over-year to $289.9 million.
- Operating income grew 31% year-over-year to $85.5 million.
- During the quarter, the Company completed two acquisitions for total estimated consideration of $231.5 million.
TORONTO, Nov. 04, 2026 (GLOBE NEWSWIRE) -- Lumine Group Inc. (“Lumine Group” or “the Company”) (TSXV:LMN) announces financial results for the third quarter ended September 30, 2026. All amounts referred to in this press release are in US dollars unless otherwise stated.
“Our third quarter results reflect our proven ability to deploy capital, with more than $500 million deployed year to date. Revenue grew 55%, fueled by three in-year acquisitions as well as solid organic growth of 3% across the portfolio. Operating income grew 31%, reflecting strong profitability of our base businesses despite the dilutive effect of the margins of Quortex and Imagine Communications, which are in the beginning stages of strengthening,” said David Nyland, Lumine Group CEO. “Our decentralized operating model allows our core businesses to keep delivering results while we onboard new acquisitions, strengthen them using our domain-optimized playbook, and advance our M&A pipeline.”
Q3 2026 Headlines:
- Revenue increased 55% to $289.9 million compared to $186.7 million in Q3 2025 (organic growth was 3% after adjusting for foreign exchange impacts).
- The Company generated operating income of $85.5 million during the quarter, a 31% increase from $65.1 million in Q3 2025.
- The Company generated net income of $25.5 million during the quarter, a 3% increase from net income of $24.8 million in Q3 2025.
- Cash flows from operations (“CFO”) was $66.9 million, compared to $46.5 million in Q3 2025, representing an increase of $20.4 million or 44%.
- Free cash flow available to shareholders (“FCFA2S”) was $53.9 million compared to $42.5 million in Q3 2025, representing an increase of $11.4 million or 27%.
- On July 1, 2026, the Company completed acquisitions of Synamedia Vividtec Holdings (Guernsey) Limited and acquired select assets of the Synamedia Video Network business (collectively, "Quortex"), and Imagine Communications Holdings Inc. ("Imagine Communications") for aggregate cash consideration of $218.5 million on closing plus total estimated deferred payments of $13.0 million, for total consideration of $231.5 million.
Total revenue for the three months ended September 30, 2026 was $289.9 million, an increase of 55%, or $103.2 million, compared to $186.7 million for the comparable period in 2025. For the nine months ended September 30, 2026, total revenue was $733.3 million, an increase of 33%, or $183.9 million, compared to $549.4 million for the comparable period in 2025. The increase for the three and nine months ended September 30, 2026 compared to the same periods in 2025 is primarily attributable to revenues from acquisitions in the current and preceding years. The Company experienced organic growth of 3% before and 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, 2026 was $85.5 million, an increase of 31%, or $20.4 million, compared to $65.1 million for the same period in 2025. Operating income for the nine months ended September 30, 2026 was $218.7 million, an increase of 17%, or $31.4 million, compared to $187.3 million for the same period in 2025. The increase for the three and nine months ended was attributable to improved profitability in our existing businesses, as well as contributions from recent acquisitions following strengthening activities. 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, 2026 was $25.5 million, an increase of 3%, or $0.7 million, compared to net income of $24.8 million for the same period in 2025. The increase in net income for the three months ended September 30, 2026 was attributable to improved profitability in our existing businesses, contributions from recent acquisitions following strengthening activities, and a gain on purchase recognized in connection with the acquisition of Quortex. Net income for the nine months ended September 30, 2026 was $60.0 million, a decrease of 13%, or $9.2 million, compared to net income of $69.2 million for the same period in 2025. The decrease in net income for the nine months September 30, 2026 was attributable to non-recurring costs incurred from acquisitions in the current year as well as higher amortization of intangible assets and financing costs during the period.
For the three months ended September 30, 2026, CFO increased $20.4 million to $66.9 million compared to $46.5 million for the same period in 2025 representing an increase of 44%. The increase for the three months is mainly driven by higher operating income of $20.4 million, partly offset by lower non-cash operating working capital of $0.3 million. For the nine months ended September 30, 2026, CFO decreased $9.8 million to $155.2 million compared to $165.0 million for the same period in 2025 representing a decrease of 6%. The decrease for the nine months is mainly driven by higher non-cash operating working capital of $34.6 million and higher income taxes paid of $6.0 million, partly offset by higher operating income of $31.4 million.
For the three months ended September 30, 2026, FCFA2S increased $11.4 million to $53.9 million compared to $42.5 million for the same period in 2025 representing an increase of 27%. The increase for the three months ended September 30, 2026 is driven by higher CFO, partly offset by higher interest paid on bank indebtedness, and higher payments against outstanding lease obligations, compared to the same periods in 2025. For the nine months ended September 30, 2026, FCFA2S decreased $20.3 million to $129.7 million compared to $150.0 million for the same period in 2025 representing a decrease of 14%. The decrease for the nine months ended September 30, 2026 is driven by lower CFO, higher interest paid on bank indebtedness, higher payments against outstanding lease obligations, and higher transaction costs incurred to secure bank indebtedness, compared to the same periods in 2025. See “Non-IFRS Measures”.
Non-IFRS Measures
Operating income refers to net income (loss) before income tax expense, amortization of intangible assets, gain on bargain purchase net of any reductions, and finance costs and other expenses (income). The Company believes that operating income is useful supplemental information as it provides an indication of the profitability of Lumine Group related to its core operations. Operating income is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that operating income should not be construed as an alternative to net income (loss).
The following table reconciles operating income to net income:
| Unaudited | Three months ended September 30, | Nine months ended September 30, | ||||||
| 2026 | 2025 | 2026 | 2025 | |||||
| ($ in millions) | ($ in millions) | |||||||
| Net income | 25.5 | 24.8 | 60.0 | 69.2 | ||||
| Adjusted for: | ||||||||
| Amortization of intangible assets | 44.4 | 27.6 | 112.0 | 79.9 | ||||
| Gain on bargain purchase | (4.9 | ) | — | (4.1 | ) | (2.5 | ) | |
| Finance costs and other expenses | 9.3 | 2.0 | 23.4 | 14.5 | ||||
| Income tax expense | 11.2 | 10.7 | 27.3 | 26.2 | ||||
| Operating income | 85.5 | 65.1 | 218.7 | 187.3 | ||||
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 September 30, | Nine months ended September 30, | ||||||
| 2026 | 2025 | 2026 | 2025 | |||||
| ($ in millions) | ($ in millions) | |||||||
| Net cash flows from operating activities: | 66.9 | 46.5 | 155.2 | 165.0 | ||||
| Adjusted for: | ||||||||
| Interest paid on lease obligations | (0.4 | ) | (0.1 | ) | (0.8 | ) | (0.3 | ) |
| Interest paid on bank indebtedness | (7.7 | ) | (3.7 | ) | (14.6 | ) | (11.4 | ) |
| Transaction costs on bank indebtedness | (0.1 | ) | (0.1 | ) | (2.0 | ) | (0.2 | ) |
| Repayments of lease obligations | (3.3 | ) | (0.9 | ) | (7.1 | ) | (4.1 | ) |
| Interest received | 0.7 | 1.3 | 3.0 | 3.1 | ||||
| Property and equipment purchased, net of proceeds from disposal | (2.2 | ) | (0.6 | ) | (4.1 | ) | (2.2 | ) |
| Free cash flow available to shareholders | 53.9 | 42.5 | 129.7 | 150.0 | ||||
This 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, 2026, and management’s discussion and analysis (“MD&A”) for the three and nine months ended September 30, 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.
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
investor@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.)
| Unaudited | |||||
| September 30, 2026 | December 31, 2025 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash | $ | 202,400 | $ | 352,441 | |
| Accounts receivable, net | 213,128 | 163,174 | |||
| Unbilled revenue | 63,808 | 47,547 | |||
| Inventories | 12,473 | 557 | |||
| Other assets | 68,065 | 51,808 | |||
| 559,874 | 615,527 | ||||
| Non-current assets: | |||||
| Property and equipment | 16,505 | 8,325 | |||
| Right of use assets | 24,027 | 5,779 | |||
| Deferred income taxes | 31,595 | 15,503 | |||
| Other assets | 24,757 | 13,752 | |||
| Intangible assets and goodwill | 1,144,457 | 727,694 | |||
| 1,241,341 | 771,053 | ||||
| Total assets | $ | 1,801,215 | $ | 1,386,580 | |
| Liabilities and Equity | |||||
| Current liabilities: | |||||
| Accounts payable and accrued liabilities | $ | 170,766 | $ | 123,835 | |
| Due to related parties, net | 994 | 860 | |||
| Current portion of bank indebtedness | 5,500 | 1,992 | |||
| Deferred revenue | 143,396 | 94,776 | |||
| Provisions | 1,762 | — | |||
| Acquisition holdback payables | 7,673 | 5,914 | |||
| Lease obligations | 13,466 | 3,149 | |||
| Income taxes payable | 12,701 | 9,044 | |||
| 356,258 | 239,570 | ||||
| Non-current liabilities: | |||||
| Deferred income taxes | 115,108 | 108,565 | |||
| Acquisition holdback payables | 4,595 | — | |||
| Bank indebtedness | 417,026 | 207,956 | |||
| Lease obligations | 21,060 | 3,631 | |||
| Other liabilities | 15,046 | 7,716 | |||
| 572,835 | 327,868 | ||||
| Total liabilities | 929,093 | 567,438 | |||
| Equity: | |||||
| Capital stock | 490,669 | 490,669 | |||
| Contributed surplus | 185,142 | 185,142 | |||
| Accumulated other comprehensive income | 1,059 | 8,042 | |||
| Retained earnings | 195,252 | 135,289 | |||
| 872,122 | 819,142 | ||||
| Total liabilities and equity | $ | 1,801,215 | $ | 1,386,580 | |
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 September 30, | Nine months ended September 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Revenue | ||||||||||||
| License | $ | 20,072 | $ | 16,984 | $ | 45,963 | $ | 41,027 | ||||
| Professional services | 36,819 | 31,851 | 103,370 | 99,295 | ||||||||
| Hardware and other | 14,854 | 2,637 | 27,121 | 14,654 | ||||||||
| Maintenance and other recurring | 218,187 | 135,233 | 556,884 | 394,376 | ||||||||
| 289,932 | 186,705 | 733,338 | 549,352 | |||||||||
| Expenses | ||||||||||||
| Staff | 139,096 | 90,072 | 369,644 | 261,472 | ||||||||
| Hardware | 9,885 | 1,488 | 17,227 | 7,889 | ||||||||
| Third party license, maintenance and professional services | 22,355 | 10,047 | 50,797 | 31,847 | ||||||||
| Occupancy | 1,680 | 1,008 | 3,548 | 2,976 | ||||||||
| Travel, telecommunications, supplies, software and equipment | 15,706 | 9,480 | 36,630 | 27,397 | ||||||||
| Professional fees | 8,323 | 4,553 | 18,857 | 12,076 | ||||||||
| Other, net | 3,465 | 3,354 | 9,624 | 12,139 | ||||||||
| Depreciation | 3,949 | 1,615 | 8,349 | 6,305 | ||||||||
| Amortization of intangible assets | 44,394 | 27,605 | 112,037 | 79,941 | ||||||||
| 248,853 | 149,222 | 626,713 | 442,042 | |||||||||
| Gain on bargain purchase | (4,904 | ) | — | (4,100 | ) | (2,494 | ) | |||||
| Finance costs and other expenses | 9,304 | 1,959 | 23,440 | 14,481 | ||||||||
| 4,400 | 1,959 | 19,340 | 11,987 | |||||||||
| Income before income taxes | 36,679 | 35,524 | 87,285 | 95,323 | ||||||||
| Current income tax expense | 18,319 | 2,519 | 45,808 | 29,780 | ||||||||
| Deferred income tax (recovery) expense | (7,157 | ) | 8,173 | (18,486 | ) | (3,621 | ) | |||||
| Income tax expense | 11,162 | 10,692 | 27,322 | 26,159 | ||||||||
| Net income | $ | 25,517 | $ | 24,832 | $ | 59,963 | $ | 69,164 | ||||
| Weighted average shares outstanding: | ||||||||||||
| Basic and diluted | 256,620,389 | 256,620,389 | 256,620,389 | 256,620,389 | ||||||||
| Earnings per share: | ||||||||||||
| Basic and diluted | $ | 0.10 | $ | 0.10 | $ | 0.23 | $ | 0.27 | ||||
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 September 30, | Nine months ended September 30, | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| Net income | $ | 25,517 | $ | 24,832 | $ | 59,963 | $ | 69,164 | |||
| Items that are or may be reclassified subsequently to net income: | |||||||||||
| Foreign currency translation differences from foreign operations and other | (1,397 | ) | (1,226 | ) | (6,983 | ) | 19,001 | ||||
| Other comprehensive (loss) income for the period, net of income tax | (1,397 | ) | (1,226 | ) | (6,983 | ) | 19,001 | ||||
| Total comprehensive income for the period | $ | 24,120 | $ | 23,606 | $ | 52,980 | $ | 88,165 | |||
Lumine Group Inc.
Condensed Consolidated Interim Statement of Changes in Equity
(In thousands of USD. Due to rounding, numbers presented may not foot.)
| Nine months ended September 30, 2026 | ||||||||||||
| Capital stock | Contributed surplus | Accumulated other comprehensive income | 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 | — | — | — | 59,963 | 59,963 | |||||||
| Other comprehensive loss: | ||||||||||||
| Foreign currency translation differences from foreign operations and other | — | — | (6,983 | ) | — | (6,983 | ) | |||||
| Total other comprehensive loss for the period | — | — | (6,983 | ) | — | (6,983 | ) | |||||
| Total comprehensive (loss) income for the period | — | — | (6,983 | ) | 59,963 | 52,980 | ||||||
| Balance at September 30, 2026 | $ | 490,669 | $ | 185,142 | $ | 1,059 | $ | 195,252 | $ | 872,122 | ||
Lumine Group Inc.
Condensed Consolidated Interim Statement of Changes in Equity
(In thousands of USD. Due to rounding, numbers presented may not foot.)
| Nine months ended September 30, 2025 | |||||||||||
| Capital stock | Contributed surplus | Accumulated other comprehensive (loss) income | 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 | — | — | — | 69,164 | 69,164 | ||||||
| Other comprehensive income: | |||||||||||
| Foreign currency translation differences from foreign operations and other | — | — | 19,001 | — | 19,001 | ||||||
| Total other comprehensive income for the period | — | — | 19,001 | — | 19,001 | ||||||
| Total comprehensive income for the period | — | — | 19,001 | 69,164 | 88,165 | ||||||
| Balance at September 30, 2025 | $ | 490,669 | $ | 185,142 | $ | 5,389 | $ | 85,687 | $ | 766,887 | |
Lumine Group Inc.
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of USD. Due to rounding, numbers presented may not foot.)
| Unaudited | ||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income | $ | 25,517 | $ | 24,832 | $ | 59,963 | $ | 69,164 | ||||
| Adjustments for: | ||||||||||||
| Depreciation | 3,949 | 1,615 | 8,349 | 6,305 | ||||||||
| Amortization of intangible assets | 44,394 | 27,605 | 112,037 | 79,941 | ||||||||
| Contingent consideration adjustments | (933 | ) | 750 | (1,487 | ) | 1,225 | ||||||
| Gain on bargain purchase | (4,904 | ) | — | (4,100 | ) | (2,494 | ) | |||||
| Finance costs and other expenses | 10,053 | 3,270 | 26,463 | 17,591 | ||||||||
| Income tax expense | 11,162 | 10,692 | 27,322 | 26,159 | ||||||||
| Change in non-cash operating assets and liabilities exclusive of effects of business combinations | (13,025 | ) | (13,316 | ) | (36,461 | ) | (1,932 | ) | ||||
| Income taxes paid | (9,298 | ) | (8,953 | ) | (36,913 | ) | (30,944 | ) | ||||
| Net cash flows from operating activities | 66,915 | 46,495 | 155,173 | 165,015 | ||||||||
| Cash flows (used in) from financing activities: | ||||||||||||
| Interest paid on lease obligations | (412 | ) | (70 | ) | (768 | ) | (272 | ) | ||||
| Interest paid on bank indebtedness | (7,718 | ) | (3,688 | ) | (14,625 | ) | (11,387 | ) | ||||
| Proceeds from issuance of bank indebtedness | — | — | 380,000 | — | ||||||||
| Repayments of bank indebtedness | (59,375 | ) | (87,000 | ) | (166,219 | ) | (123,319 | ) | ||||
| Transaction costs on bank indebtedness | (73 | ) | (114 | ) | (1,994 | ) | (160 | ) | ||||
| Payments of lease obligations | (3,328 | ) | (919 | ) | (7,061 | ) | (4,145 | ) | ||||
| Net cash flows (used in) from financing activities | (70,906 | ) | (91,791 | ) | 189,333 | (139,283 | ) | |||||
| Cash flows used in investing activities: | ||||||||||||
| Acquisition of businesses | (218,467 | ) | (13,654 | ) | (527,751 | ) | (20,461 | ) | ||||
| Cash obtained with acquired businesses | 9,155 | 6,331 | 43,480 | 6,331 | ||||||||
| Post-acquisition settlement payments, net of receipts | (3,514 | ) | (4,136 | ) | (5,699 | ) | (2,560 | ) | ||||
| Interest, dividends and other proceeds received | 749 | 1,311 | 3,023 | 3,110 | ||||||||
| Property and equipment purchased, net of proceeds received | (2,230 | ) | (550 | ) | (4,072 | ) | (2,188 | ) | ||||
| Decrease in restricted cash, and other investing activities | (512 | ) | (48 | ) | (488 | ) | 4,209 | |||||
| Net cash flows used in investing activities | (214,819 | ) | (10,746 | ) | (491,507 | ) | (11,559 | ) | ||||
| Effect of foreign currency on cash | (441 | ) | (1,162 | ) | (3,040 | ) | 7,313 | |||||
| (decrease) Increase in cash | (219,251 | ) | (57,204 | ) | (150,041 | ) | 21,486 | |||||
| Cash, beginning of period | 421,651 | 289,673 | 352,441 | 210,983 | ||||||||
| Cash, end of period | $ | 202,400 | $ | 232,469 | $ | 202,400 | $ | 232,469 | ||||