Terago
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Terago (TGO) investor relations material

Terago Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary13 Aug, 2026

Executive summary

  • Achieved year-over-year growth in adjusted EBITDA and ARPA, with improved booking activity and sequential growth in Backlog MRR from Q1 2026.

  • Focused on elevating customer quality, increasing operating efficiency, and targeting large mid-market and enterprise customers.

  • Optimized customer base by discontinuing lower margin and unprofitable accounts, supporting long-term objectives.

  • Regulatory clarity from ISED on mmWave spectrum licensing and auction enhances the strategic value of spectrum holdings.

  • Positioned to capitalize on flexible-use licensing and future 5G and connectivity opportunities.

Financial highlights

  • ARPA increased 4.2% to $1,279 in Q2 2026 from Q2 2025, reflecting a focus on mid-market and large-scale customers.

  • Churn rate was 1.0% in Q2 2026, up from 0.9% year-over-year.

  • Backlog MRR at June 30, 2026, was $78,788, down from $93,279 a year ago, but up sequentially from March 31, 2026.

  • Total revenue for Q2 2026 was $6,210,000, down from $6,344,000 in Q2 2025, mainly due to lower bookings in 2025 and installation delays.

  • Adjusted EBITDA for Q2 2026 increased by 16.8% to $1,055,000, compared to $903,000 last year, driven by lower operating expenses.

  • Net loss for Q2 2026 was $3,823,000, improving from $4,256,000 in Q2 2025.

  • Ended Q2 2026 with $6,588,000 in cash and cash equivalents.

  • Gross profit margin declined slightly to 72.9% in Q2 2026 from 73.8% in Q2 2025.

  • Salaries and related costs decreased by 7.1% in Q2 2026 year-over-year; other operating expenses down 9.8%.

  • Cash from operations in Q2 2026 was $103,000, down from $319,000 in Q2 2025.

Outlook and guidance

  • Priorities for the remainder of 2026 include driving profitable growth, improving customer quality, increasing operational efficiency, and capitalizing on millimeter-wave spectrum opportunities.

  • Management remains focused on sustainable profitable growth and leveraging regulatory developments to drive long-term shareholder value.

  • Expects to benefit from the transition to flexible-use spectrum licensing and upcoming 2027 mmWave auction.

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Frequently asked questions

TeraGo Inc. is a Canadian telecommunications and cloud services provider that offers wireless internet, data connectivity, and cloud infrastructure solutions to businesses. The company focuses on providing enterprise customers with services such as cloud storage, disaster recovery, and data center operations. TeraGo also holds licenses for spectrum in the 24 GHz and 38 GHz ranges, which are used to deliver wireless broadband services. The company is headquartered in Toronto, Canada, and its shares are listed on the TSX.