Core Insights - Computer Modelling Group Ltd. (CMG Group) reported financial results for the three months ended June 30, 2025, including a cash dividend approval of $0.01 per Common Share for the first quarter [1][7]. Financial Performance - Total revenue decreased by 3% to $29.6 million, with a 15% organic decline and a 12% growth from acquisitions [10]. - Recurring revenue increased by 7% to $20.9 million, with a 6% organic decline and a 13% growth from acquisitions [10]. - Adjusted EBITDA decreased by 26% to $7.1 million, with an Adjusted EBITDA margin of 24%, down from 31% in the previous year [10][15]. - Earnings per share decreased by 20% to $0.04, while Free Cash Flow decreased by 22% to $4.5 million [10][12]. Revenue Breakdown - Annuity/maintenance licenses revenue increased by 5% to $20.3 million [9]. - Annuity license fee revenue surged by 191% to $0.5 million [11]. - Perpetual licenses revenue fell by 82% to $0.4 million [11]. - Professional services revenue decreased by 6% to $8.4 million [11]. Market Conditions - Market uncertainty in energy and energy transition is impacting business operations, leading to extended sales cycles and slower procurement processes [3]. - A mid-single-digit decline in recurring revenue is expected in the second quarter due to a non-renewed contract for reservoir and production solutions [5]. Strategic Outlook - The company aims to pursue disciplined acquisitions to enhance capabilities and navigate market volatility, which has led to a reduction in the quarterly dividend to $0.01 per share [7][10]. - Despite current challenges, higher revenue and margin are anticipated in the second half of the year, driven by seasonal contract renewals and strong performance in seismic solutions [6].