Earnings release
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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. November 4, 2026 - 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.
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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 $150.0 million for the same period in 2025 representing a decrease of 14%. The decrease for the nine months ended September 30, 2026 is driven by lower CFO, higher interest paid on bank indebtedness, higher payments against outstanding lease obligations, and higher transaction costs incurred to secure bank indebtedness , compared to the same periods in 2025. See “Non-IFRS Measures”.
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Non-IFRS Measures Operating income refers to net income (loss) before income tax expense, amortization of intangible assets, gain on bargain purchase net of any reductions, and finance costs and other expenses (income). The Company believes that operating income is useful supplemental information as it provides an indication of the profitability of Lumine Group related to its core operations. Operating income is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that operating income should not be construed as an alternative to net income (loss). The following table reconciles operating income to net income: Unaudited Three months ended September 30, Nine months ended September 30, 2026 2025 2026 2025 ($ 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.
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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 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.
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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.
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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.
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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.
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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.
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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.
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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 Lumine Group Inc.