Terago (TGO) Q1 2025 earnings summary

Executive summary

• Q1 2025 performance focused on profitability and efficiency, with growth in Adjusted EBITDA, ARPA, and revenue backlog, supported by improved cost control and a strategic emphasis on the SMB and larger customer segments.

• Regulatory clarity on millimeter wave spectrum from ISED supports long-term strategy for high-capacity, low-latency connectivity and 5G/6G opportunities.

• Net loss for Q1 2025 was $3,536,000 ($0.18/share), nearly flat versus Q1 2024.

Financial highlights

• Q1 2025 total revenue was $6,414,000, down 0.9% from Q1 2024, mainly due to churn from discontinuing unprofitable accounts.

• Adjusted EBITDA increased by 10.9% year-over-year to $1,032,000, driven by higher gross margin and lower operating expenses.

• Gross profit margin improved to 73.9% from 72.9% year-over-year.

• Ended Q1 2025 with $2.1 million in cash and equivalents.

• Cash from operations in Q1 2025 was approximately $1 million, all from business operations.

Outlook and guidance

• Majority of $1.2 million annual revenue backlog expected to be provisioned within the current fiscal year.

• EBITDA expected to increase as the year progresses due to seasonality and operational improvements.

• Confident in securing refinancing for current debt facility and monetizing non-core assets, with announcements expected before Q2 results.

• Regulatory developments expected to support continued expansion in 5G and fixed wireless services.