Telecom firm Terago Q3 revenue falls

TeraGo

10/11/2025 23:10

Corrects currency to C$ from $ in Overview

Overview

Terago Q3 revenue declines 2.2% yr/yr due to increased churn from unprofitable accounts

Adjusted EBITDA for Q3 rises 2.9%, driven by higher gross margins and lower expenses

Company completes C$46 mln financing transactions, strengthening capital structure for growth

Outlook

Company did not provide specific financial guidance for future quarters or the full year

Result Drivers

CUSTOMER BASE OPTIMIZATION - Increased churn due to discontinuation of service to unprofitable accounts, partially offset by new customer revenue

ARPA INCREASE - Rise in ARPA driven by focus on mid-market and large-scale customers and changes in product mix

OPERATIONAL EFFICIENCY - Higher gross margin and lower salaries and operating expenses contributed to increased adjusted EBITDA

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
C$6.40 mln
Q3 EPS
-C$0.12
Q3 Net Income
-C$2.37 mln
Q3 Adjusted EBITDA
C$971,000
Q3 Gross Margin
73.90%
Q3 Income from operations
-C$1.48 mln


Analyst Coverage

The one available analyst rating on the shares is "hold"

The average consensus recommendation for the integrated telecommunications services peer group is "buy."

Wall Street's median 12-month price target for Terago Inc is C$0.97, about 15.2% above its November 7 closing price of C$0.82

Press Release: ID:nCNW56R4Wa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)