Computer Modelling Group (CMG) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 declined 3% year-over-year to $29.6 million, with a 15% organic decline offset by 12% growth from acquisitions.

• Recurring revenue rose 7% to $20.9 million, driven by 13% growth from acquisitions despite a 6% organic decline.

• Adjusted EBITDA dropped 26% to $7.1 million, with margin falling to 24% from 31% year-over-year.

• Net income decreased 17% to $3.3 million; EPS was $0.04, down 20% from the prior year.

• Free cash flow fell 22% to $4.5 million, with free cash flow per share at $0.05.

Financial highlights

• Total revenue: $29.6 million, down from $30.5 million year-over-year.

• Recurring revenue: $20.9 million, up from $19.5 million year-over-year.

• Professional services revenue declined 6% to $8.4 million.

• Gross profit: $23.7 million, down from $24.3 million year-over-year.

• Operating profit: $5.3 million, down 7% year-over-year.

Outlook and guidance

• Q2 2026 recurring revenue expected to decline mid-single digits sequentially due to a non-renewed contract.

• Adjusted EBITDA for the year (excluding SeisWare and future acquisitions) may be lower than Fiscal 2025.

• Higher revenue and margin anticipated in the second half of the year, driven by seasonal renewals and seismic solutions.