Q1 2027 Computer Modelling Group Ltd Earnings Call Transcript

Aug 12, 2026 / 01:00 PM GMT

Release Date Price: C$4 (+6.67%)

Transcript

Key Points

Positve

Computer Modelling Group Ltd (CMDXF) reaffirmed its expectation for stable organic recurring revenue growth for the full year, with Q1 being the final quarter of headwind from a lost contract last year.
The company's acquisition strategy is delivering, with 9% recurring revenue growth from acquisitions and both fiscal 2026 acquisitions (Sizew and Rose) contributing positively to adjusted EBITDA in the quarter.
Management sees a positive macro trend with increased customer focus on energy security and enhanced oil recovery (EOR) technologies, which plays to the company's core strengths in reservoir simulation.
The company is leveraging AI to enhance product offerings, such as the AI-assisted seismic interpretation tool now in its 6th release, and to improve R&D productivity through AI-assisted coding.
Computer Modelling Group Ltd (CMDXF) announced a substantial issuer bid (SIB) of up to $20 million, funded by its credit facility, to repurchase shares at a price management believes is below intrinsic value, while maintaining capital for its M&A pipeline.
The company is seeing renewed interest from international operators in regions like Venezuela, Mexico, and Africa, which are markets where its complex reservoir and heavy oil simulation expertise is highly valued.

Negative

Total revenue declined year-over-year to $27.8 million, with a 16% organic decline offsetting the 10% growth from acquisitions.
Organic recurring revenue declined by 1% in the quarter, continuing a challenging trend from previous quarters, though this was the final quarter of the specific contract loss headwind.
Professional services revenue saw a significant organic decline due to the conclusion of cold flow development funding and the faster-than-expected wind-down of non-core services at Bluework.
Adjusted EBITDA and adjusted EBITDA margin declined in the quarter, impacted by lower organic recurring revenue and lower professional services revenue.
Free cash flow declined to $3.5 million in the quarter, partly due to higher income taxes, which included a $400,000 prior-period adjustment.
The company revised its full-year professional services decline guidance to a range of $6-7 million, trending to the higher end of the range, due to the faster wind-down of Bluework's non-core services.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CMG.TO - Computer Modelling Group Ltd
Q1 2027 Computer Modelling Group Ltd Earnings Call
Aug 12, 2026 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and thank you for standing by.

Welcome to the Computer modeling Group first quarter 2027 earnings call.

At this time, all participants are in a listen-only mode at the speaker's presentation, there will be a question-and-answer session.

To ask a question during the session, you'll need to press 11 on your telephone.

And is ready to withdraw your question, please press star 11 again.

Please be advised that today's conference is being recorded.

I'd now like to hand the conference over to Kim McEkran, director of investor relations.

Please go ahead.

Thank you, operator.

Good morning and welcome to Computer Modeling Group's

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