NTG Clarity Networks (NCI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached CAD 20.1M, up 6.4% year-over-year but down sequentially, with net income at CAD 2.3M, aided by a non-recurring CAD 1.8M tax recovery from Saudi branch conversion.

• Adjusted EBITDA was CAD 5,000 (0% margin), down from Q1 and Q2 2025, reflecting slower revenue growth and a flat cost base.

• Fiscal 2026 guidance, including CAD 90M revenue floor and 13%-16% adjusted EBITDA margin, was withdrawn due to Middle East geopolitical conflict and regional economic uncertainty.

• Revenue was stable through March-May but declined in June as clients slowed project releases and renewals; July saw a rebound in revenue and collections, with Q3 purchase orders exceeding Q2 by a large margin.

Financial highlights

• Q2 2026 revenue: CAD 20.1M, up 6.4% year-over-year from CAD 18.9M in Q2 2025.

• First-half 2026 revenue: CAD 41.4M, up 7.3% year-over-year, a record for the company.

• Gross profit was CAD 6.7M (33.5% margin), down from 37.9% in Q2 2025, as customers pushed for better pricing.

• SG&A expenses increased to CAD 6.9M from CAD 4.5M year-over-year.

• Shareholder equity rose to CAD 30.8M from CAD 27.4M at December 31, 2025.

Outlook and guidance

• No updated guidance issued due to ongoing uncertainty; future profitability depends on revenue trends and client behavior.

• Backlog of purchase orders and contracts increased from CAD 73M in Q1 to CAD 80M in Q2; Q3 2026 purchase orders announced to date total CAD 33.4M.

• Focus areas: accelerating collections, converting order book to revenue, and monitoring cost base against cash flow.