TERAGO Reports First Quarter 2026 Financial Results

• TERAGO reported Q1 2026 financial results showing a 3.8% decrease in total revenue to $6,172K compared to Q1 2025.
• Adjusted EBITDA declined by 9.8% year-over-year to $931K.
• Net loss per share improved significantly to $(0.08) from $(0.18) in the prior year period, though absolute net loss remained at $3,137K.
• Operational metrics showed improvement with ARPA increasing 1.9% to $1,253 and churn rate decreasing to 0.9%.
• Backlog MRR for connectivity decreased to $71,427K, stabilizing near Q4 2025 levels but significantly below the $96,405K seen in Q1 2025.
• Operating expenses saw a reduction in salaries (-11.3%) but an increase in other operating expenses (+20.1%).
• Management cited decreased bookings from 2025 and delays in large multi-site deployment installations as primary drivers for revenue decline.

• The news is categorized as Routine - Negative because the top-line contraction (Revenue and EBITDA) confirms ongoing operational headwinds despite cost-cutting measures.
• While net loss per share improved, this does not offset the 25% reduction in backlog visibility compared to Q1 2025 ($96M vs $71M), indicating a lack of growth momentum.
• The revenue decline is consistent with management's guidance regarding macroeconomic pressures and procurement delays but fails to show the anticipated turnaround in early 2026.
• No material positive surprises were found; the accounting restatement risk from Q4 2025 remains a background concern not explicitly resolved in this release.
• The financing recapitalization completed in late 2025 provided liquidity but has not yet translated into revenue growth, as evidenced by the stagnant backlog.

• TERAGO Inc. is a Canadian telecommunications company providing secure, redundant, high-capacity connectivity solutions.
• Flagship Project involves the ownership of 91% of millimeter wave spectrum in Canada with a national backbone covering 11 million homes.
• The company focuses on fixed wireless, 5G private wireless, and SD-WAN services for enterprise customers.
• Recent strategic partnership with Fortinet aims to integrate secure networking solutions into their managed services portfolio.