Terago (TGO) investor relations material

Executive summary

• Achieved year-over-year growth in adjusted EBITDA and ARPA, with improved booking activity and sequential growth in Backlog MRR from Q1 2026.

• Focused on elevating customer quality, increasing operating efficiency, and targeting large mid-market and enterprise customers.

• Optimized customer base by discontinuing lower margin and unprofitable accounts, supporting long-term objectives.

• Regulatory clarity from ISED on mmWave spectrum licensing and auction enhances the strategic value of spectrum holdings.

• Positioned to capitalize on flexible-use licensing and future 5G and connectivity opportunities.

Financial highlights

• ARPA increased 4.2% to $1,279 in Q2 2026 from Q2 2025, reflecting a focus on mid-market and large-scale customers.

• Churn rate was 1.0% in Q2 2026, up from 0.9% year-over-year.

• Backlog MRR at June 30, 2026, was $78,788, down from $93,279 a year ago, but up sequentially from March 31, 2026.

• Total revenue for Q2 2026 was $6,210,000, down from $6,344,000 in Q2 2025, mainly due to lower bookings in 2025 and installation delays.

• Adjusted EBITDA for Q2 2026 increased by 16.8% to $1,055,000, compared to $903,000 last year, driven by lower operating expenses.

• Net loss for Q2 2026 was $3,823,000, improving from $4,256,000 in Q2 2025.

• Ended Q2 2026 with $6,588,000 in cash and cash equivalents.

• Gross profit margin declined slightly to 72.9% in Q2 2026 from 73.8% in Q2 2025.

• Salaries and related costs decreased by 7.1% in Q2 2026 year-over-year; other operating expenses down 9.8%.

• Cash from operations in Q2 2026 was $103,000, down from $319,000 in Q2 2025.

Outlook and guidance

• Priorities for the remainder of 2026 include driving profitable growth, improving customer quality, increasing operational efficiency, and capitalizing on millimeter-wave spectrum opportunities.

• Management remains focused on sustainable profitable growth and leveraging regulatory developments to drive long-term shareholder value.

• Expects to benefit from the transition to flexible-use spectrum licensing and upcoming 2027 mmWave auction.