Computer Modelling Group (CMG) Q4 2025 earnings summary

Executive summary

• Total revenue for Q4 2025 rose 4% to $33.7M, with 17% growth from acquisitions offsetting a 13% organic decline.

• Fiscal 2025 revenue increased 19% to $129.4M, driven by 20% growth from acquisitions and a 1% organic decline.

• Recurring revenue for Q4 2025 grew 16% to $24.2M, with 23% from acquisitions and a 7% organic decline.

• Adjusted EBITDA for Q4 2025 increased 2% to $10.5M; full-year Adjusted EBITDA up 2% to $44.0M.

• Board approved a Q4 2025 cash dividend of $0.05 per share, payable June 13, 2025.

Financial highlights

• Q4 2025 EPS was $0.06, down 33% year-over-year; full-year EPS was $0.27, down 16%.

• Free Cash Flow for Q4 2025 decreased 26% to $7.0M; full-year Free Cash Flow down 22% to $27.6M.

• Adjusted EBITDA margin for Q4 2025 was 31% (vs. 32% prior year); full-year margin was 34% (vs. 40%).

• Professional services revenue for the year rose 41% to $37.0M; perpetual licenses revenue fell 2% to $5.6M.

• Cost of revenue increased 45% year-over-year to $24.9M for fiscal 2025.

Outlook and guidance

• Fiscal 2026 is expected to see a $6–$7M reduction in professional services revenue, challenging total revenue growth.

• Company aims to shift revenue mix toward higher software revenue; professional services reduction is part of this strategy.

• Adjusted EBITDA and margin may show limited growth in fiscal 2026 due to delayed cost-saving measures.