NURAN WIRELESS Reports Second Quarter 2025 Financial Results

Executive Summary

• NuRAN Wireless Inc. reported financial results for the six months ended June 30, 2025, showing a 39% increase in revenue to $2,909,754, driven by growth in its Network as a Service (NaaS) model.
• The company reported a net loss of $5,319,261, an increase of 9% from the prior year, largely due to non-operational charges including a loss on debt settlement and a book loss on a DRC contract amendment.
• Management announced the completion of a $1.5M non-brokered private placement and ongoing negotiations to restructure or replace existing debt with new institutional investors and lenders.

Key Details

• Revenue: $2,909,754 for the six months ended June 30, 2025, compared to $2,085,634 in the same period of 2024 (39% increase).
• Gross Profit: $1,677,647 (58% margin) for the six months ended June 30, 2025, compared to $1,232,978 in 2024 (36% increase).
• Total Expenses: $6,501,525 for the six months ended June 30, 2025, compared to $6,892,785 in 2024 (6% decrease). Savings in SG&A were offset by increased financial expenses related to debt service costs.
• Net Loss: $5,319,261 for the six months ended June 30, 2025, compared to $4,882,809 in 2024 (9% increase).
• Operational Adjustments: The 2024 loss was reduced by an $801,670 gain on debt settlement. The 2025 loss includes non-operational charges such as a small loss on debt settlement and a book loss on a DRC contract amendment. Excluding these, the loss before other elements improved by 15%.
• Billing Issue: Management identified a billing error by an MNO client where traffic was incorrectly billed as international due to area code misallocation, leading to overstated revenue calculations. NuRAN adjusted Q1 and Q2 revenue to reflect correct billing information; negotiations for a definitive solution are ongoing.
• Private Placement: On August 26, 2025, the company closed a non-brokered private placement for gross proceeds of $1.5 million, used for working capital and payment of short-term debt. Shares are subject to a statutory hold period expiring December 26, 2025.
• Debt Restructuring: The company initiated negotiations with current debt holders and new potential institutional investors/lenders to restructure or replace outstanding debt. Strategies include replacing debt with longer-term non-convertible/hybrid instruments or swapping debt for equity.
• Operational Updates: Ongoing projects include the Cameroon rollout, relocation of low-traffic sites in the DRC, resumption of operations in Ghana following an MOU, new country deployments, and 3G network expansion.

Notable Quotes

• "As we reflect on our Q2 results, I am pleased with the progress NuRAN has made in expanding our network and delivering strong revenue growth. Despite short-term challenges, our team's dedication and operational achievements have laid a solid foundation for continued momentum. With our Network as a Service model gaining traction and new sites coming online, we are confident in our path to sustainable growth and our mission to connect underserved communities around the world." - Francis Létourneau, President and CEO