NTG Clarity Networks (NCI) Q1 2026 earnings summary

Executive summary

• Achieved 20th consecutive quarter of trailing 12-month revenue growth, with Q1 2026 revenue of CAD 21.3 million (or $21.3 million), up 8.1% year-over-year from Q1 2025.

• Seasonal effects from Ramadan and Eid led to lower utilization and compressed margins, but the underlying cost base remained unchanged.

• Net income for Q1 2026 was CAD 979,000 (4.6% margin), and adjusted EBITDA was CAD 757,000 (3.6% margin), both down from the prior year due to lower utilization and absence of prior FX gains.

• Maintained strong collections, with over 99% of Q4 receivables collected in Q1 and minimal aged AR.

• Operating cash flow remained positive at CAD 43,000 for Q1, marking the second consecutive quarter of positive cash flow.

Financial highlights

• Q1 2026 revenue: CAD 21.3 million (or $21.3 million), up 8.1% year-over-year.

• Gross margin for Q1 2026 was 33%, consistent with prior Ramadan-impacted quarters.

• Adjusted EBITDA margin was 3.6%; net income margin was 4.6%.

• Total assets: $46.4 million as of March 31, 2026, up from $45.6 million at year-end 2025.

• Shareholder's equity: $28.5 million, up from $27.4 million at December 31, 2025.

Outlook and guidance

• Full-year 2026 guidance maintained: revenue floor of CAD 90 million (or $90 million) and adjusted EBITDA margin of 13%-16%.

• Q2–Q4 expected to see revenue rebound to an average of CAD 23 million per quarter, with margin recovery as utilization normalizes.

• Backlog of CAD 73 million ($73 million) in purchase orders and contracts provides multi-year visibility.

• Framework agreements signed in Q1 and late Q4 offer potential upside not yet reflected in backlog.

• Management expects operating leverage to improve margins as revenue normalizes through the year.