TeraGo Inc. (TSE:TGO)
TSX:TGO
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TeraGo Inc.
(TSX:TGO)
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Rating:46Neutral
Price Target:
C$0.82
▲(32.74% Upside)
Action:ReiteratedDate:03/31/26
The score is primarily constrained by weak financial performance (persistent losses, higher leverage, and uneven cash generation with deterioration in 2025). Technical indicators also lean bearish/neutral (negative MACD and trading below key moving averages). Valuation is only modestly supportive because the company is loss-making (negative P/E), while the earnings call provides some offset through improving ARPA/churn and liquidity/financing progress but with continued revenue pressure and higher finance-cost-driven losses.
Positive Factors
Recurring revenue & ARPA improvement
Rising ARPA and sub-1% churn indicate stronger per-customer monetization and improved retention in the core subscription base. That dynamic supports more predictable recurring revenue, better lifetime value, and a firmer platform to upsell cloud/managed services over the next several quarters.
Negative Factors
Worsening net losses
Growing net losses, driven in part by higher finance costs and non-cash adjustments, erode retained capital and limit reinvestment capacity. Persistently negative net income constrains equity rebuilding and increases dependence on external funding for network expansion and working capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue & ARPA improvement
Rising ARPA and sub-1% churn indicate stronger per-customer monetization and improved retention in the core subscription base. That dynamic supports more predictable recurring revenue, better lifetime value, and a firmer platform to upsell cloud/managed services over the next several quarters.
Read all positive factors
TeraGo Inc. (TGO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$34.33M
Dividend YieldN/A
Average Volume (3M)16.54K
Price to Earnings (P/E)―
Beta (1Y)>-0.01
Revenue Growth-1.53%
EPS Growth2.48%
CountryCA
Employees98
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.10
Shares Outstanding39,016,540
10 Day Avg. Volume15,030
30 Day Avg. Volume16,537
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)4.17
Price to Sales (P/S)0.92
P/FCF Ratio-4.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.31
Revenue Forecast (FY)C$26.19M
TeraGo Inc. Business Overview & Revenue Model
Company Description
TeraGo Inc. (TGO) is a Canadian telecommunications provider that specializes in offering high-speed internet, cloud services, and data center solutions to businesses across various sectors. With a focus on delivering reliable connectivity and inno...
How the Company Makes Money
TeraGo makes money primarily by selling subscription-based services to business and institutional customers. Key revenue streams include: (1) Connectivity/network services: recurring monthly fees for internet access, private network connectivity, ...
TeraGo Inc. Earnings Call Summary
Earnings Call Date:Mar 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The call presented a mix of tactical progress and persistent near-term operating challenges. Positive elements include higher ARPA (+4.4%), lower churn (0.7% vs 0.8%), a positive adjusted EBITDA, a strengthened balance sheet with $12.6M cash and new financing that improves flexibility, and a differentiated asset base (majority mmWave spectrum ownership and broad national network). Offsetting these positives are revenue declines (Q4 down ~5.6%, FY down ~3.0%), a meaningful increase in net loss (Q4 +~53%, FY +~26%), lower cash from operations (down ~42%), and delays in bookings/installs driven by macroeconomic and timing factors. Management highlights a strategic choice to exit unprofitable accounts and expects revenue momentum later in the year, while regulatory progress on millimeter-wave spectrum could be a potential catalyst.Positive Updates
ARPA Improvement
Average revenue per account (ARPA) in Connectivity rose 4.4% year-over-year to $1,265 in Q4 2025 (from $1,212), driven by favorable shifts in customer base and product mix.
Negative Updates
Revenue Decline
Total revenue was $6.2M in Q4 2025 versus $6.57M in Q4 2024 (down ~5.6%). Fiscal 2025 revenue was $25.36M versus $26.16M prior year (down ~3.0%). Declines were driven by decreased bookings, delayed multi-site installations, reduced one-time revenues and discontinuation of unprofitable accounts.
Read all updates
Q4-2025 Updates
Positive
Negative
ARPA Improvement
Average revenue per account (ARPA) in Connectivity rose 4.4% year-over-year to $1,265 in Q4 2025 (from $1,212), driven by favorable shifts in customer base and product mix.
Read all positive updates
Company Guidance
Management's guidance emphasized cautious optimism: they expect revenue to start trending upward later this year as bookings and multi-site installations in the sales funnel convert, while continuing disciplined cost management and customer segmentation (including exiting lower‑margin accounts) that has already driven ARPA up 4.4% to $1,265 in Q4 2025 (from $1,212) and reduced churn to 0.7% (from 0.8%). Near‑term results reflect headwinds – Q4 revenue was $6.2M (Q4 2024: $6.57M), fiscal 2025 revenue was $25.36M (FY 2024: $26.16M), Q4 adjusted EBITDA was $885k (Q4 2024: $1.2M) and FY adjusted EBITDA was $3.79M (FY 2024: $4.02M) – and higher finance costs from new term debt and equity financings contributed to a Q4 net loss of $4.9M (Q4 2024: $3.2M) and FY net loss of $16.8M (FY 2024: $13.3M). The company finished Q4 with $12.6M cash and $2.9M cash from operations in FY2025 (FY 2024: $5.0M), highlighted recent financing that brought in new institutional investors, continued investment in fixed wireless and private 5G, and noted its strategic assets (91% of millimetre‑wave spectrum, 400+ wireless hubs, national backbone, covering a 26M population and passing over 11M homes); management is also cautiously optimistic that ISED’s 26/38 GHz flexible‑use decision may arrive this year (unofficially around summer).TeraGo Inc. Financial Statement Overview
Summary
Income Statement
26
Negative
Balance Sheet
18
Very Negative
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 25.36M | 26.16M | 26.05M | 27.62M | 43.30M |
| Gross Profit | 9.41M | 19.18M | 19.10M | 20.18M | 32.16M |
| EBITDA | 2.40M | 2.79M | 496.00K | 603.00K | 3.28M |
| Net Income | -16.77M | -13.27M | -13.19M | -11.57M | -15.17M |
Balance Sheet | |||||
| Total Assets | 58.97M | 53.99M | 53.50M | 55.38M | 93.23M |
| Cash, Cash Equivalents and Short-Term Investments | 12.65M | 4.42M | 4.64M | 7.38M | 5.48M |
| Total Debt | 48.42M | 44.33M | 31.93M | 20.50M | 35.91M |
| Total Liabilities | 53.37M | 49.07M | 36.16M | 25.78M | 52.97M |
| Stockholders Equity | 5.60M | 4.92M | 17.33M | 29.60M | 40.26M |
Cash Flow | |||||
| Free Cash Flow | -5.16M | 1.48M | -5.45M | -4.96M | 1.94M |
| Operating Cash Flow | -1.30M | 5.01M | 501.00K | 1.25M | 9.32M |
| Investing Cash Flow | -2.58M | -3.52M | -5.02M | 18.82M | -7.75M |
| Financing Cash Flow | 12.28M | -1.90M | 2.69M | -19.34M | -1.95M |
TeraGo Inc. Technical Analysis
Positive
0.62
Price Trends
0.88
Negative
0.82
Positive
0.92
Negative
Market Momentum
<0.01
Negative
53.26
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TGO, the sentiment is Positive. The current price of 0.62 is below the 20-day moving average (MA) of 0.86, below the 50-day MA of 0.88, and below the 200-day MA of 0.92, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.26 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TGO.
TeraGo Inc. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$2.88B | 7.99 | 9.79% | 5.69% | -2.22% | -2.36% | |
71 Outperform | C$13.12B | 13.87 | 35.31% | 2.70% | -0.29% | 15.30% | |
69 Neutral | C$25.01B | 4.04 | 43.97% | 3.94% | 2.75% | 342.54% | |
64 Neutral | C$30.93B | 4.71 | 31.99% | 7.42% | 0.11% | 7109.23% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | C$27.22B | 24.88 | 7.68% | 9.49% | 2.42% | 24.37% | |
46 Neutral | C$34.33M | -1.39 | -755.68% | ― | -1.53% | 2.48% |
* Communication Services Sector Average
TSE:TGO
TeraGo Inc.
0.88
-0.10
-10.20%
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TeraGo Inc. Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
TeraGo Revenue Slips in 2025 as It Refocuses on Higher-Value Wireless Customers
Negative
Mar 28, 2026
TeraGo reported weaker fourth-quarter and full-year 2025 results, with revenue down 5.7% in Q4 and 3.1% for the year as lower bookings, installation delays and the deliberate exit of unprofitable accounts weighed on performance. Adjusted EBITDA fe...
Business Operations and StrategyFinancial Disclosures
TeraGo Reschedules Call on 2025 Results, Sets Date for Earnings Release
Neutral
Mar 19, 2026
TeraGo Inc., a Canadian business connectivity and network security provider specializing in private 5G, managed fixed wireless, SD-WAN, and wireline services, leverages its extensive mmWave spectrum holdings in the 24 GHz and 38 GHz bands to deliv...
Business Operations and StrategyFinancial Disclosures
TeraGo Schedules Call to Review 2025 Results and Highlight Spectrum-Backed Wireless Strategy
Neutral
Mar 12, 2026
TeraGo Inc., a leading Canadian managed network and security services provider with extensive mmWave spectrum holdings, focuses on delivering private 5G wireless, fixed wireless access, and diverse connectivity solutions to enterprise customers in...
Business Operations and StrategyExecutive/Board Changes
TERAGO Elevates May Daou to Chief Customer Officer to Drive Next Growth Phase
Positive
Jan 13, 2026
TERAGO Inc. has appointed May Daou as Chief Customer Officer, effective January 1, 2026, elevating a long-time executive who previously led revenue management and helped shape the company’s customer-focused commercial framework. In her new r...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.