TERAGO Reports Second Quarter and Six Months Ended 2025 Financial Results
TORONTO, Aug. 12, 2025 /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 second quarter and six months ended June 30, 2025. All figures reported in this release are in thousands of Canadian dollars.
"We continued our momentum in the second quarter across key operational and financial metrics, including gross margin, ARPA, backlog, and cost discipline. Our revenue reflected a strategic decision to allow unprofitable customers to churn as part of our disciplined approach to profitability and long-term value creation. mmWave spectrum is becoming increasingly important as demand for high-capacity, low-latency connectivity continues to rise, and we are encouraged by the progress ISED made in Q2 accepting all respondents' remarks to its mmWave consultation. We look forward to their decision on the mmWave spectrum, including next steps toward a future auction. Our strong fundamentals, valuable spectrum holdings, and consistent execution position us well to create long term value for our stakeholders. With our current debt facility maturing at the end of September, we remain confident in our ability to refinance and position the Company for future growth." said Daniel Vucinic, CEO of TERAGO.
Selected Financial Highlights and Key Developments
Total revenue decreased for quarter and six months ended June 30, 2025 by 3.5% to $6,344 and by 2.2% to $12,758 respectively, compared to $6,577 and $13,049 in the same periods in 2024. The decrease was primarily driven by increased churn1, stemming from management's continued initiatives to optimize the customer base by discontinuing service to unprofitable accounts. This was partially offset by increase in revenue from new customers in the current period.
Adjusted EBITDA1,2 for the quarter ended June 30, 2025 decreased by 4.0% to $903 as compared to an Adjusted EBITDA1,2 of $941 for the comparative period in 2024. The decrease in the quarter was a result of lower revenue partially offset by lower operating expenses. For the six months ended June 30, 2025, Adjusted EBITDA1,2 increased by 3.4% to $1,935 as compared to an Adjusted EBITDA1,2 of $1,871 for the same period in 2024. This increase was a result of higher gross margin1 and lower operating expenses in the current period compared to same period in the prior year.
Net loss for the quarter and six months ended June 30, 2025, was $4,256 or $(0.21) per share (basic and diluted) and $7,792 or $(0.39) per share (basic and diluted) respectively, compared to a loss of $3,212 or $(0.16) per share (basic and diluted) and $6,759 or $(0.34) per share (basic and diluted), respectively in the same period in 2024.
ARPA1 for the quarter ended June 30, 2025 increased by 2.3% to $1,228 compared to $1,200 for the same period in 2024. For the six months ended June 30, 2025, ARPA1 increased by 4.2% to $1,229 compared to $1,179 for the same period in 2024. The increase in ARPA1 was a result of the Company's ongoing focus to attract mid-market and large-scale, predominantly multi-location customers and changes in the product mix.
Churn1 for the quarter ended June 30, 2025 was lower at 0.9% compared to 1.0% for the same period in 2024. The decrease in customer churn1 was due to the continued execution of the Company's value creation strategy to focus on mid-market and enterprise customers, as well as implementing new strategies in regard to customer renewals and retention. For the six months ended June 30, 2025, Churn1 was higher at 1.0% compared to 0.9% for the same period in 2024. The increase in customer churn1 was primarily driven by management's continued initiatives to optimize the customer base by discontinuing service to unprofitable accounts, partially offset by increase in revenue from new customers in the current year period. The Company continues to review, modify and improve its customer experience practices with a focus on reducing customer churn.
Backlog MRR1 in the connectivity business increased year over year to $93,279 as of June 30, 2025, compared to $46,584 for the same period in 2024. The increase in backlog MRR1 was a result of increased sales bookings in fiscal 2024 along with Company's continued focus on larger multi-site customers and on profitable revenue generation.
_____________________________(1) See " Non-IFRS Measures"(2) See "Adjusted EBITDA" for a reconciliation of net loss to Adjusted EBITDA.
RESULTS OF OPERATIONS
Comparison of the quarter and six months ended June 30, 2025 and 2024(In thousands of dollars, except with respect to gross profit margin1, earnings per share1, Backlog MRR1, and ARPA1)
(in thousands of dollars, unaudited)
Quarter ended June 30
Six months ended June 30
2025
2024
% Chg
2025
2024
% Chg
Financial
Total Revenue
$
6,344
6,577
(3.5)
$
12,758
13,049
(2.2)
Cost of Services1
$
1,663
1,776
(6.4)
$
3,335
3,527
(5.4)
Gross Profit Margin1
73.8 %
73.0 %
1.1
73.9 %
73.0 %
1.2
Salaries and Related Costs1
$
2,508
2,574
(2.6)
$
5,232
5,243
(0.2)
Other Operating Expenses1
$
1,270
1,286
(1.3)
$
2,256
