Turnium Technology Group Reports 72.5% YoY Revenue Growth for Fiscal Q3 2025

Executive Summary

• Turnium Technology Group Inc. reported Fiscal Q3 2025 financial results, highlighting a 72.5% year-over-year revenue increase to $2.33M, though the company posted a net loss of $1.48M due to elevated integration and expansion costs.
• The company provided Q4 FY2025 guidance, expecting revenue between $2.1M and $2.4M with gross margins between $1.3M and $1.6M, citing a strong pipeline of deferred revenue and expected deal closures.
• Significant corporate developments included the extension of $1.073M in promissory notes with related-party warrants, the grant of 7M RSUs to key management, and a series of strategic product launches and partnership renewals throughout the quarter.

Key Details

• FQ3 Financial Performance:
  • Revenue: $2.33M (up 6.0% QoQ, up 72.5% YoY).
  • Gross Margin: $1.58M (67.8%), up from 58.4% QoQ and 62.2% YoY.
  • Total Expenses: $2.75M (up from $1.37M QoQ and $1.36M YoY), driven by post-acquisition integration costs, severances, and global expansion investments.
  • Net Loss: ($1.48M), compared to ($0.49M) QoQ and ($0.37M) YoY.
  • Adjusted EBITDA: ($1.53M), compared to $0.01M QoQ and ($0.20M) YoY.
  • Deferred Revenue: Increased by $214K QoQ to $292K.
  • Shares Outstanding: 165,122,873 (basic) at quarter-end; 184,757,145 as of August 29, 2025.
• Q4 FY2025 Guidance:
  • Expected Revenue: $2.1M to $2.4M.
  • Expected Gross Margin: $1.3M to $1.6M.
• Promissory Notes & Related Party Transaction:
  • On August 1, 2025, TTGI extended promissory notes totaling $1,073,000 with a maturity date of December 31, 2027.
  • Interest Rate: 1.33% per month, paid quarterly in arrears.
  • Bonus Warrants: TTGI agreed to issue non-transferable common share purchase warrants to lenders, exercisable at $0.10 per share for 36 months. The number of warrants equals 100% of the principal amount divided by $0.10.
  • Director Jim Lovie advanced $218,000 and received 2,180,000 bonus warrants. This is a related-party transaction under MI 61-101.
• Equity Incentives:
  • On August 20, 2025, the company granted 7,000,000 Restricted Share Units (RSUs) to key management personnel, vesting over one- and three-year periods.
• Operational & Strategic Updates:
  • Claratti Integration: Claratti now contributes 45.2% of total revenues, primarily from the Asia Pacific region.
  • Product Launches: Turnium Insight deployed to 750+ instances worldwide on August 14, 2025.
  • Partnerships & Contracts:
    • Seafarer Connect secured a fourth order for C$185,487 TCV over 24 months (July 21, 2025).
    • Comms365 renewed a C$1.16M, 3-year partnership for SD-WAN solutions and launched Turnium Insight in the UK (July 2, 2025).
    • Strategic alliance with Syntheia AI announced June 23, 2025.
    • Upsized convertible debenture offering announced June 13, 2025.
    • First and second tranches of concurrent non-brokered unit and convertible debenture private placements closed in May and June 2025.
    • Two renewable network projects exceeding C$504K secured with Global Power Generation Australia (May 15, 2025).

Notable Quotes

• Doug Childress, Global CEO: "The FQ3 2025 results showed robust year-over-year revenue growth but wider losses due to elevated expenses, some seasonal patterns, and deal delays. Management expects a rebound in FQ4 as deferred deals close and organic expansion continues, with a targeted focus on gross margin stability, increased organic partner growth, and strategic growth through acquisitions."