TERAGO Reports Fourth Quarter and Full Year 2025 Financial Results

Executive Summary

• TERAGO reported a decline in total revenue (‑5.7% Q4, ‑3.1% YoY) and Adjusted EBITDA (‑26.3% Q4, ‑5.6% YoY), with net loss widening to $4.9 M for Q4 and $16.8 M for the year.
• ARPA increased modestly (+4.4% Q4, +6.3% YoY) while churn improved slightly (‑0.1 ppt Q4). Backlog MRR fell sharply 40.6 % YoY to $71.3 M.
• The company restated its unaudited interim statements for the nine months ended September 30, 2025 due to an accounting error on a non‑routine sale‑and‑leaseback transaction; the restatement does not affect revenue, Adjusted EBITDA or cash flow but adjusts net loss and balance‑sheet items.

Key Details

• Revenue: Q4 2025 $6.2 M (‑5.7% YoY); FY 2025 $25.356 M (‑3.1% YoY).
• Adjusted EBITDA: Q4 2025 $0.885 M (‑26.3% YoY); FY 2025 $3.790 M (‑5.6% YoY).
• Net Loss: Q4 2025 $4.913 M or $(0.20) per share (‑54.8% vs prior year loss); FY 2025 $16.765 M or $(0.47) per share (‑26.3% vs prior year loss).
• ARPA (Average Revenue Per Account): Q4 2025 $1,265 (+4.4% YoY); FY 2025 $1,258 (+6.3% YoY).
• Churn: Connectivity business Q4 2025 0.7% (‑0.1 ppt YoY); FY 2025 0.9% (flat YoY).
• Backlog MRR: Connectivity business down to $71,328 K as of Dec 31 2025 (‑40.6% YoY).
• Cost of Services: Q4 2025 $1.674 M (‑1.7% YoY); FY 2025 $6.679 M (‑4.3% YoY).
• Salaries & Related Costs: Q4 2025 $2.402 M (‑5.5% YoY); FY 2025 $10.128 M (‑3.0% YoY).
• Other Operating Expenses: Q4 2025 $1.239 M (+10.0% YoY); FY 2025 $4.759 M (+0.6% YoY).

Restatement Details

• Restated unaudited interim condensed consolidated statements for Q3 2025 and nine‑month period to correct IFRS 16 application on a non‑routine sale‑and‑leaseback transaction.
• No impact on revenue, Adjusted EBITDA or cash flows; net loss and certain balance‑sheet line items adjusted (gain on asset sale reclassified as loss).
• Material weakness in internal controls over financial reporting identified; enhanced technical accounting review and documentation implemented.

Conference Call

• Management to discuss results via conference call on Monday, March 30 2026 at 10:00 AM ET (dial‑in details provided).

Notable Quotes

“In Q4 and throughout 2025, we strengthened our foundation through financing initiatives… While macroeconomic pressures continue…, our focus on customer quality, cost discipline and balance sheet strength positions us for sustainable long‑term performance.” – Daniel Vucinic, CEO