NTG Clarity Letter to Shareholders: 2025 Wrap-Up

Executive Summary

• NTG Clarity reported >50% YoY revenue growth through Q3 2025, driven by large contracts in Saudi Arabia and strong client retention (Net Revenue Retention ≈150%).
• The company added ~7% net new clients in 2025 and expects a strong Q4 collections cycle to generate positive operating cash flow.
• NTG Clarity entered a research‑services agreement with Atrium Research Corp., paying $6,000 per quarter for twelve months; the engagement is subject to TSXV approval.

Key Details

• Revenue Growth: Over 50% year‑over‑year revenue increase through the first nine months of 2025, including several record‑breaking quarters.
• Net Revenue Retention (NRR): Approximately 150% over the past twelve months; only one customer churned.
• Client Expansion: Net 7% increase in total clients during 2025, reflecting a referral‑driven pipeline of high‑value opportunities.
• NTGapps Adoption: Notable growth in NTGapps revenue, primarily from implementation fees, indicating a scalable recurring‑revenue stream.
• Cash Flow Outlook: Anticipated strong Q4 collections expected to produce positive operating cash flow; cash conversion acceleration highlighted as a 2026 focus.
• Equity Raise Proceeds: Utilization of proceeds from the August 2025 equity raise to fund growth initiatives and support cash‑flow needs.
• Geographic Expansion Plans: Intent to establish offices/legal entities in Iraq, the UAE, and Madinah, Saudi Arabia to capture new market opportunities.
• Strategic Alignment: Growth strategy supported by Saudi Vision 2030 budget allocations toward digital government services, AI platforms, cloud infrastructure, etc.
• Atrium Research Agreement:
• Service: Publication of research reports and two recorded management interviews.
• Compensation: $6,000 per quarter for a 12‑month term starting Jan 15 2026; thereafter continues on a quarter‑to‑quarter basis unless terminated.
• TSXV approval required; Atrium is an arm’s‑length party with no shareholdings or options in NTG Clarity.

Notable Quotes

• “Execution against these strategic priorities delivered over 50% year‑over‑year revenue growth… while maintaining profitability.” – Adam Zaghloul, Vice President, Strategy & Planning
• “We remain focused on disciplined execution of our growth strategy… targeting to improve utilization of reserve staff resources and supporting continued progress toward further profitability.” – Adam Zaghloul

Materiality Assessment: Material – Positive (the release provides substantive performance metrics, strategic initiatives, and forward‑looking guidance that are likely material to investors).