NTG Clarity Reports 42% Year-Over-Year Revenue Growth in Q3 2025, Continues Investment in Future Growth

Executive Summary

• NTG Clarity Networks reported Q3 2025 revenue of C$20.9 M, a 42% YoY increase, and reaffirmed FY 2025 revenue guidance of approximately C$78 M.
• Adjusted EBITDA margin was revised down to a range of 12%‑16% (from prior 16%‑20%) due to higher SG&A from new hires and timing of milestone billings.
• The company announced strategic geographic expansions in Egypt, Iraq, UAE, and Saudi Arabia, and highlighted ongoing proof‑of‑concept AI projects in Dubai.

Key Details

• Revenue: C$20,867,138 (↑ 42% YoY) vs. C$14,671,878 in Q3 2024.
• Gross Profit: C$7,277,178 (↑ 32% YoY); gross margin 35% (down from 37%).
• Net Income: C$1,904,562 (≈9% of revenue) vs. C$2,443,374 (≈14%) in Q3 2024; decline driven by first‑year tax expense and a C$595k tax accrual.
• Adjusted EBITDA: C$2,489,962 (12% of revenue) vs. C$3,180,141 (22%) in Q3 2024. Margin pressure from new employee hires awaiting contract deployment.
• Operating Cash Flow: Negative C$3.361 M, primarily due to timing of accounts‑receivable collections on two large project milestones.
• Free Cash Flow: Negative C$4.117 M (vs. +C$291k in Q3 2024) after C$755k capital expenditures.
• Balance Sheet Highlights (30 Sep 2025): Total assets C$44.23 M; total liabilities C$17.26 M; shareholders’ equity C$26.97 M.

Revised FY 2025 Guidance

• Revenue: ~C$78 M (unchanged).
• Adjusted EBITDA Margin: 12%‑16% (down from prior 16%‑20%).

Strategic Geographic Expansions

• Egypt: Expanded Egypt Offshore Centre to nine floors across four Cairo locations.
• Iraq: Established a new branch office in Baghdad, complementing existing Sulaymaniyah presence.
• UAE: Formed corporate entity for business development in Dubai/Abu Dhabi; launched two AI proof‑of‑concept projects in Dubai.
• Saudi Arabia (Madinah): Secured office space and recruited talent for a new Nearshore Centre, leveraging Vision 2030 incentives.

Conference Call

• When: Thursday, 13 Nov 2025 at 9:00 AM ET.
• Where: Live webcast via NTG’s website (link provided in release).

Notable Quotes

“We delivered 42% year‑over‑year revenue growth this quarter… our backlog continues to provide solid visibility into future revenue.” – Adam Zaghloul, Vice President of Strategy & Planning.

“Investments in specialized talent and delivery capacity are directly aligned with our growth strategy and position us for margin expansion as new projects mobilize in Q4 and beyond.” – Adam Zaghloul.