TeraGo (TSE:TGO) Releases Quarterly Earnings Results

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

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 Price Performance

TeraGo stock remained flat at C$1.60 during midday trading on Friday. 1,782 shares of the company traded hands, compared to its average volume of 22,280. The firm has a 50 day moving average price of C$1.60 and a two-hundred day moving average price of C$1.24. TeraGo has a twelve month low of C$0.60 and a twelve month high of C$2.08. The stock has a market capitalization of C$62.46 million, a PE ratio of -6.15, a PEG ratio of -1.00 and a beta of -0.29. 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.

TeraGo Company Profile

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.