"TERAGO continued to execute with discipline, focusing on our customers, operational efficiency, and positioning the business for the future," said Daniel Vucinic, CEO of TERAGO. "Following quarter-end, we successfully completed a transformative series of financing transactions including new term debt and equity financings that have strengthened our capital structure and provided the flexibility to pursue growth opportunities across 5G private wireless and next generation fixed-wireless connectivity. With this stronger foundation, we remain focused on execution and creating long-term value for our stakeholders."
Selected Financial Highlights and Key Developments
Total revenue decreased for quarter and nine months ended September 30, 2025 by 2.2% to $6,398 and by 2.2% to $19,156 respectively, compared to $6,544 and $19,593 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 September 30, 2025 increased by 2.9% to $971 as compared to an Adjusted EBITDA1,2 of $944 for the comparative period in 2024. For the nine months ended September 30, 2025, Adjusted EBITDA1,2 increased by 3.2% to $2,906 as compared to an Adjusted EBITDA1,2 of $2,815 for the same period in 2024. This increase was a result of higher gross margin1 and lower salaries and operating expenses in the current period compared to same period in the prior year.
Net loss for the quarter and nine months ended September 30, 2025, was $2,368 or $(0.12) per share (basic and diluted) and $10,160 or $(0.51) per share (basic and diluted) respectively, compared to a loss of $3,338 or $(0.17) per share (basic and diluted) and $10,097 or $(0.51) per share (basic and diluted), respectively in the same period in 2024.
ARPA1 for the quarter ended September 30, 2025 increased by1.6% to $1,241 compared to $1,221 for the same period in 2024. For the nine months ended September 30, 2025, ARPA1 increased by 3.3% to $1,233 compared to $1,193 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 and nine months ended September 30, 2025 was higher at 1.0% compared to 0.9% for the same periods in 2024. The increase 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. The marginal 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 churn1.
Backlog MRR1 in the connectivity business decreased year over year to $95,832 as of September 30, 2025, compared to $114,136 for the same period in 2024. The decrease in backlog MRR1 was a result of increased order installations, partially offset by decreased bookings in the current year period.
Subsequent Events
On October 16, 2025, the Company completed a series of recapitalization transactions totaling approximately $46 million, consisting of equity financings and a new 36-month senior secured term-loan facility with Cymbria Corporation as lender and EdgePoint Investment Group Inc. as administrative and collateral agent. Proceeds from the new facility were used to repay the Company's previous credit facility in full, and the concurrent equity financings increased the Company's available cash resources. On October 21, 2025, the facility was syndicated by the administrative agent to additional lenders, and 2,053,411 common-share purchase warrants were issued on a pro rata basis among the participating lenders. These transactions strengthened TERAGO's balance sheet and provide the financial flexibility to support ongoing operations and future growth initiatives.
_____________________________
(1) See " Non-IFRS Measures"
(2) See "Adjusted EBITDA" for a reconciliation of net loss to Adjusted EBITDA.
The Company also announced that Fadi Joseph, Vice President, Sales and Marketing departed TERAGO effective November 7, 2025. The Company thanks Mr. Joseph for his contributions and wishes him continued success in his future endeavors.
RESULTS OF OPERATIONS
Comparison of the quarter and nine months ended September 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 September 30
Nine months ended September 30
2025
2024
% Chg
2025
2024
% Chg
Financial
Total Revenue
$
6,398
6,544
(2.2)
$
19,156
19,593
(2.2)
Cost of Services1
$
1,670
1,751
(4.6)
$
5,005
5,278
(5.2)
Gross Profit Margin1
73.9 %
73.2 %
0.9
73.9 %
73.1 %
1.1
Salaries and Related Costs1
$
2,494
2,652
(6.0)
$
7,726
7,895
