Terago (TGO) investor relations material

Executive summary

• The business is being reshaped to improve operating efficiency and target higher-value, mid-market, and enterprise customers, moving away from low-margin accounts.

• Revenue for Q1 2026 declined 3.8% year-over-year to $6,172,000, mainly due to lower bookings in 2025 and installation delays for large deployments.

• Adjusted EBITDA dropped 9.8% to $931,000, reflecting the impact of lower revenues.

• Net loss narrowed to $3,137,000 from $3,536,000 year-over-year, mainly due to lower stock compensation expense.

• ARPA increased 1.9% to $1,253, and churn rate improved to 0.9% from 1.2% year-over-year, reflecting enhanced retention efforts and focus on larger customers.

Financial highlights

• Q1 2026 total revenue was $6,172,000, down from $6,414,000 year-over-year, reflecting intentional churn of low-margin customers and lower bookings in 2025.

• Adjusted EBITDA was $931,000, down from $1,032,000 year-over-year, due to revenue decrease partially offset by cost management.

• Net loss narrowed to $3,137,000 from $3,536,000 year-over-year.

• Cash and cash equivalents at quarter-end were $9,762,000.

• Cash from operations in Q1 2026 was negative at $(382,000), compared to $319,000 in Q4 2025.

Outlook and guidance

• Expects revenue growth to resume in the second half of 2026 as the transition to higher-value contracts completes and new multi-site deals are installed.

• Management aims to align cost structure and operations with business scale, focusing on customer experience and operational efficiency.

• Optimistic about long-term demand for enterprise wireless connectivity and continued evolution of network requirements.