Tantalus Systems Holding Inc. Reports Fourth Quarter and Full Year 2025 Financial Results

Executive Summary

• Tantalus Systems reported record Q4 2025 revenue of $14.9 M (↑19% YoY) and full‑year 2025 revenue of $54.1 M (↑22% YoY), with recurring revenue reaching $13.9 M.
• Adjusted EBITDA grew to $3.4 M for the year (↑156% YoY); loss narrowed to $0.99 M for FY 2025 versus $2.6 M in 2024.
• Completed a CAD 23.0 M bought‑deal financing on Feb 9 2026 and appointed former Ontario Energy Board CEO Susanna Zagar to the board.

Key Details

• Q4 2025 Financial Highlights
• Revenue: $14.9 M (↑19% YoY) – Connected Devices +$1.6 M, Software & Services +$0.7 M.
• Recurring Revenue: $4.1 M (↑38%).
• Gross Profit: $8.3 M (↑27%); Gross Margin: 56% (+350 bps).
• Income for period: $179 k (down from $289 k YoY).
• Adjusted EBITDA: ~$1.3 M (≈in line with prior year).

• Cash flow from operations: $3.3 M.

• 2025 Full‑Year Highlights

• Revenue: $54.1 M (↑22% YoY); Connected Devices $35.3 M (+28%), Software & Services $18.8 M (+13%).
• Recurring Revenue: $13.9 M (↑20%); ARR $14.5 M (↑14%).
• Gross Profit: $29.6 M; Gross Margin ~55%.
• Loss for year: $0.99 M (vs. $2.6 M loss prior year).
• Diluted loss per share: $0.02 (vs. $0.05).
• Adjusted EBITDA: $3.4 M (↑156% YoY); Adjusted EBITDA margin 6%.

• Cash flow from operations: $4.7 M.

• Operational Updates

• Sales order conversion in Q4 2025: $11.0 M, total 2025 orders $64.9 M (↑27% YoY), book‑to‑bill 1.2×.
• Added 5 new utilities in Q4 and 17 for the full year.

• TRUSense Gateway™ interest: 66 utilities submitted orders for trial/pilot/deployment.

• Subsequent Events

• Board Appointment: Susanna Zagar appointed to Board of Directors (effective Jan 26 2026).
• Financing Completion: Bought‑deal offering of 4,299,575 shares at CAD 5.35 per share; gross proceeds ≈CAD 23.0 M. Net proceeds earmarked for sales & marketing, strategic growth, partial term‑loan repayment, capex, R&D, and working capital.

• Tariff Update: US Supreme Court decision on IEEPA; $2.1 M tariffs paid to date; uncertainty over refunds.

• Conference Call

• Date/Time: Thursday, March 19 2026 at 11:00 am ET (call and webcast).

Notable Quotes

“We continue to invest in innovative solutions that deliver cost‑effective and low‑risk paths to improve our customers’ systems and operations… positions us to maintain our growth trajectory heading into 2026.” – Peter Londa, President & CEO

All figures are presented in U.S. dollars unless otherwise noted.