Terago (TGO) Q2 2025 earnings summary

Executive summary

• Focused on disciplined operational and financial management, prioritizing gross margin, ARPA, revenue backlog, and cost control, with a strategic shift toward larger SME and enterprise clients and ongoing 5G initiatives.

• Positioned as a key player in Canadian telecom, owning 91% of millimeter wave spectrum and a national backbone network, and serving major markets.

• Q2 2025 earnings call highlighted operational performance, financial results, and 5G program progress.

Financial highlights

• Q2 2025 total revenue was CAD 6.34 million, down 3.5% year-over-year, mainly due to churn of unprofitable customers; six-month revenue was CAD 12.76 million, down 2.2%.

• Adjusted EBITDA for Q2 2025 was CAD 903,000, a 4% decrease year-over-year; six-month EBITDA rose 3.4% to CAD 1.94 million.

• Net loss widened to CAD 4.2 million for Q2 2025, up from CAD 3.2 million year-over-year; six-month net loss was CAD 7.79 million.

• ARPA rose 2.3% to CAD 1,228 in Q2 2025, reflecting a shift to higher-value customers.

• Churn rate improved to 0.9% from 1% year-over-year.

Outlook and guidance

• Strong sales pipeline with larger deals, though sales cycles are lengthening due to economic uncertainty.

• Expectation to provision most of the CAD 93,000 in monthly recurring revenue backlog within the fiscal year.

• Management confident in refinancing debt maturing at the end of September 2025 and supporting long-term growth.

• Anticipates further value creation from mmWave spectrum as demand for high-capacity, low-latency connectivity grows.