TeraGo (TSE:TGO) Announces Quarterly Earnings Results

TeraGo (TSE:TGO) posted its quarterly earnings results on Friday. The company reported C($0.09) earnings per share for the quarter, FiscalAI reports. The business had revenue of C$6.20 million during the quarter. TeraGo had a negative net margin of 63.78% and a negative return on equity of 2,436.24%.

Here are the key takeaways from TeraGo’s conference call:

• Revenue declined 3% to CAD 6.2 million, reflecting lower prior-year bookings and Terago’s exit from unprofitable accounts. Management said revenue appears to be bottoming and expects growth as stronger bookings and larger customer installations convert into service.
• Profitability and cash generation improved: adjusted EBITDA rose 3.9% to CAD 1.01 million, operating cash flow increased 49% to CAD 1.7 million, and the quarterly net loss narrowed to CAD 3.7 million.
• ARPA increased 4.6% year over year to CAD 1,298 as Terago focused on larger, multi-location customers and expanded existing accounts. Churn edged up to 1.1% from 1.0%, while backlog MRR fell year over year as customer installations converted to recurring revenue.
• Terago highlighted its millimeter-wave spectrum position and the planned January 2028 auction, saying flexible-use licensing could broaden applications and make the spectrum more valuable. The company did not disclose whether it plans to participate in the auction.

TeraGo Stock Down 10.0%

Shares of TGO traded down C$0.16 during mid-day trading on Friday, reaching C$1.44. The company’s stock had a trading volume of 2,082 shares, compared to its average volume of 22,282. The stock has a market cap of C$56.21 million, a PE ratio of -5.54, a price-to-earnings-growth ratio of -1.00 and a beta of -0.29. TeraGo has a 12-month low of C$0.60 and a 12-month high of C$2.08. The company has a debt-to-equity ratio of -4,868.75, a current ratio of 1.03 and a quick ratio of 0.60. The company’s 50 day moving average is C$1.60 and its 200 day moving average is C$1.24.

About TeraGo

TERAGO provides managed network and security services to businesses across Canada ensuring highly secure, reliable, and redundant connectivity including private 5G wireless networks, Fixed Wireless access, fiber, and cable wireline network connectivity. As Canada’s biggest mmWave spectrum holders, the Company possesses spectrum licenses in the 24 GHz and 38 GHz spectrum bands, which it utilizes to provide secure, dedicated SLA guaranteed enterprise grade performance that is technology diverse from buried cables ensuring high availability connectivity services.