TERAGO Reports Fourth Quarter and Full Year 2025 Financial Results

Announces restatement of Q3 2025 Interim Financial Statements for non-routine, non-cash sale and leaseback transaction accounting adjustment

TORONTO, March 27, 2026 /CNW/ – TERAGO Inc. (“TERAGO” or the “Company”) (TSX:TGO) (https://terago.ca/), Canada’s largest mmWave spectrum holder (91% of spectrum held) and a leading provider of Managed Fixed Wireless Internet, 5G Private Wireless Networks and SD-WAN solutions, today reported financial and operating results for the fourth quarter and full year ended December 31, 2025. All figures reported in this release are in thousands of Canadian dollars.

“In Q4 and throughout 2025, we strengthened our foundation through financing initiatives including new term debt and equity capital that enhanced our financial flexibility. We maintained disciplined investment in fixed wireless access and private 5G while advancing targeted cost optimization. We have recently launched new fixed wireless broadband products to meet growing market demand. We are also encouraged by improving ARPA and lower churn, which reflects the effectiveness of our customer segmentation strategy as lower-margin and unprofitable accounts exit the base, our revenue profile improves. While macroeconomic pressures continue to extend procurement cycles and delay contract signings across the telecom sector, our focus on customer quality, cost discipline and balance sheet strength positions us for sustainable long-term performance. With a strengthened balance sheet and valuable mmWave spectrum holdings, we believe TERAGO is well-positioned to capitalize on rising demand for high-capacity, low-latency connectivity. As we enter 2026, we remain focused on executing this strategy and delivering long-term value for our shareholders,” said Daniel Vucinic, CEO of TERAGO.

Selected Financial Highlights and Key Developments

• Total revenue decreased for the quarter and year ended December 31, 2025 by 5.7% to $6,200 and by 3.1% to $25,356, respectively, compared to $6,572 and $26,165, respectively, for the same periods in 2024. The decrease was primarily driven by a combination of decreased bookings, delays in installations associated with larger multi-site deployments, and  a reduction in one-time revenues. In addition, management continued initiatives to optimize the customer base by discontinuing service to unprofitable accounts. The overall decrease was partially offset by revenue from new customers in the current period.

• Adjusted EBITDA^1,2 for the quarter ended December 31, 2025 decreased by 26.3% to $885 as compared to an Adjusted EBITDA^1,2 of $1,201 for the comparative period in 2024. Adjusted EBITDA^1,2 for the year ended December 31, 2025 decreased by 5.6% to $3,790 as compared to $4,016 for the comparative period in 2024. The decrease was a result of lower revenues in the current period compared to same periods in the prior year.

• Net loss for the quarter ended December 31, 2025 was $4,913 or $(0.20) per share (basic and diluted) compared to a loss of $3,174 or $(0.16) per share (basic and diluted) in the same period in 2024.  For the year ended December 31, 2025, net loss was $16,765 or $(0.47) per share (basic and diluted) compared to a loss of $13,271 or $(0.67) per share (basic and diluted) in the same period in 2024.

• ARPA¹ for the quarter and year ended December 31, 2025, for the connectivity business increased by 4.4% to $1,265 and by 6.3% to $1,258, respectively, compared to $1,212 and $1,184, respectively for the same periods in 2024. The increase in ARPA¹ was a result of the Company’s ongoing focus to attract mid-market and large-scale, predominantly continued multi-location customers.

• Churn¹ for the connectivity business for the quarter ended December 31, 2025, decreased to 0.7% compared to 0.8% for the same period in 2024. For the year ended December 31, 2025, churn¹ for the connectivity business was 0.9% compared to 0.9% for the same period in 2024. The Company continued its execution of the value creation strategy to focus on mid-market and enterprise customers, as well as implementing new strategies in regard to customer renewals and retention. The Company continues to review, modify and improve its customer experience practices with a focus on reducing customer churn¹.

• Backlog MRR¹ in the connectivity business decreased year over year to $71,328 as of December 31, 2025, compared to $111,905 for the same period in 2024. The decrease in backlog MRR¹ was a result of decreased bookings in the current year period.

Restatement of Previously Issued Interim Financial Statements

The Company has restated its previously issued unaudited interim condensed consolidated financial statements for the quarter and nine months ended September 30, 2025 to correct an error related to the accounting for a non-routine sale and leaseback transaction. The restatement reflects revisions to the application of IFRS 16, including the recognition and measurement of the related right-of-use asset and lease liability. The matter was identified during the preparation of the Company’s audited annual consolidated financial statements for the year ended December 31, 2025. The restatement had no impact on the Company’s revenue, Adjusted EBITDA^1,2 or cash flows for the periods presented, but resulted in changes to net loss and certain balance sheet line items in the previously issued unaudited interim condensed consolidated financial statements, primarily reflecting the change from a previously recognized gain on sale of assets to a loss on sale of assets. The Company’s audited annual consolidated financial statements for the year ended December 31, 2025 are not impacted by this restatement.

The Company has determined that this matter resulted from a material weakness in internal control over financial reporting related to non-routine transactions. The Company has implemented enhanced controls over the review of such transactions, including increased involvement of technical accounting expertise and enhanced documentation of key conclusions.

RESULTS OF OPERATIONS

Comparison of the quarter and year ended December 31, 2025 and 2024
(In thousands of dollars, except with respect to gross profit margin¹, earnings per share¹, backlog MRR¹, churn rate,¹ and ARPA¹)

Full story available on Benzinga.com