NTG Clarity Networks (NCI) Q2 2025 earnings summary

Executive summary

• Achieved 17 consecutive quarters of last 12 months revenue growth, reaching a record $70 million trailing twelve months revenue as of Q2 2025.

• Q2 2025 revenue grew 51% year-over-year to $18.9 million, led by offshore services (up 89-90%) and NTG Apps/NTGapps (up 1,600-1,688%).

• Gross margin expanded by 380 basis points to 38%, with gross profit rising to $7.2 million.

• Net income before taxes and FX was $2.4 million; after FX and taxes, net income declined to $0.4 million (2% of revenue) due to FX headwinds and tax provision.

• Adjusted EBITDA was $2.8 million (15% margin), down from 23% margin last year, impacted by intentional hiring for future contracts.

Financial highlights

• Q2 2025 revenue: $18.9 million, up 51% year-over-year.

• Gross profit: $7.2 million (Q2 2025) vs. $4.3 million (Q2 2024).

• Net income: $0.4 million (Q2 2025) vs. $2.4 million (Q2 2024).

• Adjusted EBITDA: $2.8 million (15% margin) vs. $2.8 million (23% margin) in Q2 2024.

• Free cash flow: $(2.7) million (Q2 2025) vs. $0.07 million (Q2 2024), mainly due to increased accounts receivable from holiday-related collection delays.

Outlook and guidance

• Reaffirmed 2025 revenue guidance of $78 million, representing 39-40% year-over-year growth.

• Adjusted EBITDA margin guidance for 2025 remains at 16-20%.

• Margin improvement anticipated in H2 2025 as new hires become billable and G&A expenses plateau.

• Anticipate stronger collections and improved cash flow in Q3 as holiday impacts subside.

• Strategic focus on expanding client relationships, winning new customers, and increasing NTGapps adoption.