Computer Modelling Group (CMG) Q4 2026 earnings summary

Executive summary

• FY 2026 total revenue was $126.2M, with 73% from recurring streams; four acquisitions completed in 32 months, deploying over $90M in capital.

• Q4 2026 revenue was $33.7M, flat year-over-year, with 5% organic decline offset by 5% growth from acquisitions; recurring revenue in Q4 rose 11% to $26.9M, driven by licensing and acquisitions.

• Adjusted EBITDA for FY 2026 was $36.1M (29% margin), down 18% year-over-year; Q4 Adjusted EBITDA increased 12% to $11.8M.

• Free cash flow for FY 2026 was $21.0M; Q4 free cash flow rose 25% to $8.7M.

• Annual recurring revenue reached $92.2M, with organic recurring revenue growth of 5% in Q4.

Financial highlights

• FY 2026 recurring revenue grew 6% year-over-year to $92.2M; total revenue decreased 3% to $126.2M.

• Adjusted EBITDA margin declined from 34% to 29% year-over-year; Q4 margin improved to 35% from 31%.

• Professional services revenue declined 15% for the year and 32% in Q4.

• Free cash flow per share for FY 2026 was $0.25; annual EPS was $0.21, down 22%.

• Cash at year-end was $24.1M, down from $43.9M a year earlier.

Outlook and guidance

• Organic recurring revenue growth expected to stabilize and improve in FY27; Q1 FY27 anticipated as last quarter impacted by prior contract loss.

• Recurring revenue mix targeted to return to 80% as acquisitions mature; professional services revenue faces a $6M headwind in FY27.

• Free cash flow expected to improve in FY27 as capital expenditures normalize.

• Management expanded share buyback program and plans targeted investments in M&A and product initiatives.