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Computer Modelling Group Hit by Organic Revenue Slide but Pins Hopes on Acquisitions and Recurring Growth

Tipranks - Tipranks - Wed Feb 11, 4:50PM CST

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An update from Computer Modelling ( (TSE:CMG) ) is now available.

Computer Modelling Group reported a 9% drop in third-quarter revenue to $32.7 million, driven by a 17% organic decline partly offset by 8% growth from acquisitions. Recurring revenue fell 4%, adjusted EBITDA slid 30% with margin compressing to 30%, earnings per share dropped 42% to $0.07, and free cash flow declined 34% to $5.8 million, as weaker high-margin reservoir and production solutions and lower professional services weighed on results.

For the first nine months, total revenue fell 3% to $92.5 million, with acquisitions largely offsetting double‑digit organic erosion, while recurring revenue edged up 4% on the back of acquired businesses. Management says challenging market conditions and elongated sales cycles persist but expects recurring revenue to improve in the fourth quarter and return to positive organic growth in fiscal 2027, even as adjusted EBITDA for the current year is set to remain below last year’s level.

The most recent analyst rating on (TSE:CMG) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Computer Modelling stock, see the TSE:CMG Stock Forecast page.

Spark’s Take on TSE:CMG Stock

According to Spark, TipRanks’ AI Analyst, TSE:CMG is a Neutral.

The overall stock score of 69 reflects strong financial performance, with robust revenue growth and profitability. Technical analysis indicates a bearish trend, but potential stabilization is suggested by neutral RSI and positive stochastic indicators. Valuation is reasonable, though not significantly undervalued. The absence of earnings call and corporate events data limits additional insights.

To see Spark’s full report on TSE:CMG stock, click here.

More about Computer Modelling

Computer Modelling Group Ltd. is a Calgary-based developer of reservoir simulation and production optimization software for the energy sector. The company generates most of its revenue from recurring software licenses, supplemented by professional services, and has recently been using acquisitions to broaden its technology portfolio and support growth amid cautious customer spending.

Average Trading Volume: 260,102

Technical Sentiment Signal: Sell

Current Market Cap: C$378.1M

See more data about CMG stock on TipRanks’ Stock Analysis page.

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