TeraGo Inc. (TGO) AI Stock Analysis

• Market Cap: C$32.89M
• Dividend Yield: N/A
• Average Volume (3M): 16.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -1.53%
• EPS Growth: 2.48%
• Country: CA
• Employees: 98
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): >-0.01
• Shares Outstanding: 40,106,823
• 10 Day Avg. Volume: 15,030
• 30 Day Avg. Volume: 16,537
• PEG Ratio: 0.00
• Price to Book (P/B): 4.90
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 16.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: C$0.66 ▲(5.81% Upside)

The score is held down primarily by severe financial weakness (sharp revenue contraction, large losses, negative equity and weak cash-flow trends). Technicals also remain soft with the price below longer-term averages and a negative MACD. The earnings call offers some offset via improved EBITDA/losses and recapitalization, but valuation support is limited given ongoing losses and no dividend data.

Positive Factors

Successful Recapitalization

The recapitalization enhances financial flexibility, allowing TeraGo to pursue growth opportunities in 5G and next-gen connectivity, strengthening its long-term strategic position.

Adjusted EBITDA Growth

Growth in adjusted EBITDA indicates improved operational efficiency, which can support better profitability and financial health over time.

Increased ARPA

Higher ARPA suggests enhanced customer value and pricing power, which can contribute to sustained revenue growth and margin improvement.

Negative Factors

Revenue Decline

Declining revenue, even if slight, indicates challenges in maintaining customer base and market share, which could impact long-term growth prospects.

Financial Distress

Negative equity and high debt levels highlight financial distress, posing risks to solvency and limiting investment in growth initiatives.

Extended Sales Cycle

Longer sales cycles can delay revenue recognition and strain cash flow, challenging the company's ability to scale and compete effectively.

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 innovative technology solutions, TeraGo serves small to medium-sized enterprises as well as larger organizations, enhancing their operational efficiency and digital capabilities. The company's core offerings include dedicated internet access, managed services, and customized cloud solutions, supported by a robust network infrastructure.

How the Company Makes Money

TeraGo generates revenue primarily through its telecommunications services, including high-speed internet and cloud services subscriptions. The company operates on a recurring revenue model, which means that a significant portion of its income is derived from monthly or annual service fees paid by customers. Key revenue streams include dedicated internet access fees, managed IT services, and colocation services within their data centers. Additionally, TeraGo benefits from strategic partnerships with technology and service providers, which enable them to enhance their service offerings and attract a broader customer base. Factors contributing to TeraGo's earnings include the growing demand for cloud services, the shift towards digital transformation among businesses, and the increasing need for reliable telecommunications solutions in a competitive market.

TeraGo Inc. Financial Statement Overview

Summary

TeraGo Inc. faces significant financial challenges, including declining revenues, persistent losses, and a highly leveraged balance sheet. Despite some positive cash flow trends, the overall financial health is under pressure, necessitating strategic adjustments.

Income Statement

TeraGo Inc. has experienced declining revenue over the TTM period with a significant drop of 89.2% compared to the previous year. The company has consistently reported negative net profit margins, indicating ongoing losses. Despite a relatively high gross profit margin, the negative EBIT and EBITDA margins highlight operational inefficiencies and challenges in covering operating expenses.

Balance Sheet

The balance sheet reveals a concerning financial structure with a negative stockholders' equity in the TTM period, leading to an extremely high debt-to-equity ratio of 27.17. This indicates significant leverage and financial risk. The return on equity is also negative, reflecting the company's inability to generate profits from shareholders' investments.

Cash Flow

The cash flow statement shows a positive trend in free cash flow growth, with a substantial increase of 111.3% in the TTM period. However, the operating cash flow to net income ratio is low, suggesting limited cash generation relative to net losses. The free cash flow to net income ratio is positive but indicates that cash flow improvements are not sufficient to cover net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.73M	26.16M	26.05M	27.62M	43.30M	45.45M
Gross Profit	16.73M	19.18M	19.10M	20.18M	32.16M	35.63M
EBITDA	4.41M	2.79M	496.00K	603.00K	3.28M	11.33M
Net Income	-13.33M	-13.27M	-13.19M	-11.57M	-15.17M	-8.26M
Balance Sheet
Total Assets	50.29M	53.99M	53.50M	55.38M	93.23M	103.17M
Cash, Cash Equivalents and Short-Term Investments	1.30M	4.42M	4.64M	7.38M	5.48M	5.86M
Total Debt	49.38M	44.33M	31.93M	20.50M	35.91M	56.16M
Total Liabilities	54.62M	49.07M	36.16M	25.78M	52.97M	62.30M
Stockholders Equity	-4.33M	4.92M	17.33M	29.60M	40.26M	40.87M
Cash Flow
Free Cash Flow	240.00K	1.48M	-5.45M	-4.96M	1.94M	5.72M
Operating Cash Flow	3.96M	5.01M	501.00K	1.25M	9.32M	13.33M
Investing Cash Flow	-2.24M	-3.52M	-5.02M	18.82M	-7.75M	-7.58M
Financing Cash Flow	-6.08M	-1.90M	2.69M	-19.34M	-1.95M	-8.58M

TeraGo Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.62
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TGO, the sentiment is Neutral. The current price of 0.62 is below the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.76, and below the 200-day MA of 0.98, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 91.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TGO.

TeraGo Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCI.B	80 Outperform	C$27.42B	4.04	47.62%	3.94%	2.75%	342.54%
QBR.A	78 Outperform	C$11.69B	14.47	35.34%	2.70%	-0.29%	15.30%
BCE	72 Outperform	$30.79B	4.97	31.28%	7.42%	0.11%	7109.23%
CCA	66 Neutral	$2.87B	8.87	10.26%	5.69%	-2.22%	-2.36%
T	62 Neutral	C$28.82B	23.95	7.30%	9.49%	2.42%	24.37%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TGO	40 Underperform	C$32.89M	-1.23	-755.68%	―	-1.53%	2.48%

TeraGo Inc. Corporate Events

TERAGO Partners with Fortinet to Enhance Secure Networking Solutions

TERAGO Inc. has announced a strategic partnership with Fortinet to enhance its managed networking solutions by integrating advanced security features. This collaboration aims to set new standards for secure business networks in Canada, allowing businesses to benefit from seamless connectivity and robust data protection, thereby optimizing network performance and ensuring uninterrupted operations.

The most recent analyst rating on (TSE:TGO) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on TeraGo Inc. stock, see the TSE:TGO Stock Forecast page.

TeraGo Strengthens Financial Position Amid Revenue Decline

TeraGo Inc. reported a decrease in total revenue for the third quarter and nine months ended September 30, 2025, primarily due to increased churn as part of its strategy to optimize the customer base. Despite the revenue decline, the company saw an increase in Adjusted EBITDA due to higher gross margins and reduced operating expenses. TeraGo also completed a series of recapitalization transactions totaling approximately $46 million, strengthening its capital structure and providing financial flexibility to pursue growth opportunities in 5G private wireless and next-generation fixed-wireless connectivity.

The most recent analyst rating on (TSE:TGO) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on TeraGo Inc. stock, see the TSE:TGO Stock Forecast page.

TERAGO to Host Investor Call for Q3 2025 Financial Results

TERAGO Inc. announced it will hold an investor conference call on November 11, 2025, to discuss its third-quarter financial results, which will be released on November 10, 2025. This announcement underscores TERAGO’s commitment to transparency and engagement with its stakeholders, potentially impacting its market positioning by highlighting its financial health and strategic direction.

The most recent analyst rating on (TSE:TGO) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on TeraGo Inc. stock, see the TSE:TGO Stock Forecast page.

TeraGo Strengthens Financial Position with Successful Recapitalization

TeraGo Inc. has successfully closed its recapitalization transactions, significantly strengthening its financial position. The recapitalization, which includes a rights offering, a concurrent private placement, and a new term debt facility, provides TeraGo with the financial flexibility to advance its strategic priorities and capitalize on its valuable spectrum assets. This move is expected to enhance TeraGo’s ability to address the increasing demand for data-intensive applications, thereby unlocking meaningful value for stakeholders.

The most recent analyst rating on (TSE:TGO) stock is a Sell with a C$1.00 price target. To see the full list of analyst forecasts on TeraGo Inc. stock, see the TSE:TGO Stock Forecast page.