NTG receives $14.1M in purchase orders, renewals

Executive Summary

• NTG Clarity Networks Inc. has secured new purchase orders and contract renewals totaling approximately $14.1 million, driven by expansions with existing customers in the software development and NTGapps sectors.
• The company entered into a new 2.5-year multiyear frame agreement with a referred enterprise, expecting to generate in excess of $10 million over the engagement term with gross margins in the 35% to 40% range.
• Significant growth is noted in the Iraqi market, with $1.6 million of the new NTGapps purchase orders attributed to Iraqi customers, alongside continued strong demand in Saudi Arabia and the broader Gulf region.

Key Details

• Total Contract Value: Approximately $14.1 million in new purchase orders, contract renewals, expansions, and upselling.
• Breakdown of $14.1 Million:
  • $2.9 Million: Renewed purchase orders (POs) and contracts for offshore and on-site software development services; several renewals include an increase in contracted resources.
  • $9.2 Million: Purchase orders for offshore and on-site software development services; these billings are against the previously announced $53 million three-year framework contract from August 2024.
  • $2 Million: Purchase orders for NTGapps with existing financial and telecom clients; several represent additional scope to existing implementations.
• New Frame Agreement:
  • Signed a 2.5-year frame agreement with a key customer referred by portfolio companies of a major regional investment entity.
  • No contractually guaranteed minimum spend, but expected to generate in excess of $10 million over the course of the engagement.
  • Expected gross margins: approximately 35% to 40%.
  • Additional frame agreements with other portfolio companies of the same investment entity are in advanced negotiations.
• Geographic Focus:
  • Iraq: Approximately $1.6 million of the NTGapps purchase orders are with Iraqi customers; NTG has served this market for over four years as the country prioritizes digitization.
  • Saudi Arabia/Gulf: Continued aggressive investment by enterprises in digital transformation drives demand for complex implementations with security and reliability.
• Margin Expectations: All new contracts are expected to fall within the company's standard gross margin range.

Notable Quotes

• "Leading enterprises in Saudi Arabia and elsewhere in the Gulf continue to invest aggressively in digital transformation, and the demand for experienced teams who can deliver complex implementations with security and reliability as core differentiators continues to grow," said Adam Zaghloul, vice-president of strategy and planning. "Our clients are actively referring us to their affiliates, which speaks directly to the calibre of work NTG delivers. Having invested deliberately in our team throughout 2025 to meet this growing demand, we are well positioned to deliver for our clients."