TeraGo Inc. (TSE:TGO)
TSX:TGO
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TeraGo Inc.
(TSX:TGO)
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Rating:48Neutral
Price Target:
C$1.00
▲(61.29% Upside)
Action:Reiterated
Date:05/16/26
The score is held down primarily by weak financial performance—large losses, negative TTM cash flow, and elevated leverage that increases risk. Technicals provide some support with price above key moving averages, while valuation is not compelling due to negative earnings and no dividend. The latest earnings call adds modest support on improving operating KPIs and H2 growth expectations, but near-term cash/revenue pressure and regulatory uncertainty remain notable.
Positive Factors
Recurring subscription revenue model
A subscription-based connectivity and managed-services model drives durable, contractually-backed recurring revenue and predictable billing. This supports stable cash flow profiles, customer lifetime value expansion through upsells, and smoother revenue visibility versus one-off project sellers, aiding strategic planning and long-term margin improvement.
Negative Factors
Elevated leverage and weakened balance sheet
Very high leverage versus a diminished equity base materially reduces financial flexibility. This raises refinancing and covenant risk, limits the firm's ability to invest in network expansion or absorb shocks, and increases dependency on external financing or equity raises—structural constraints that can impair execution over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription revenue model
A subscription-based connectivity and managed-services model drives durable, contractually-backed recurring revenue and predictable billing. This supports stable cash flow profiles, customer lifetime value expansion through upsells, and smoother revenue visibility versus one-off project sellers, aiding strategic planning and long-term margin improvement.
Read all positive factors
TeraGo Inc. (TGO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$51.11M
Dividend YieldN/A
Average Volume (3M)16.54K
Price to Earnings (P/E)―
Beta (1Y)-0.14
Revenue Growth-3.80%
EPS Growth-7.81%
CountryCA
Employees98
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.61
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)-0.44
Revenue Forecast (FY)C$25.02M
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 recurring service subscriptions to business customers for connectivity and managed services. Key revenue streams typically include: (1) Monthly recurring access fees for internet and data connectivity delive...
TeraGo Inc. Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operational and strategic progress (higher ARPA, lower churn, stronger bookings pipeline, disciplined cost control and a solid cash balance) contrasts with near-term financial headwinds (quarterly revenue decline, lower adjusted EBITDA, sharply reduced operating cash flow and continued net losses). Management framed the short-term declines as intentional trade-offs to improve long-term revenue quality and positioned spectrum assets and pipeline momentum as catalysts for later-year recovery. Given meaningful operational improvements but significant near-term cash generation and revenue pressures, the tone is cautiously constructive but tempered by tangible short-term challenges.Positive Updates
ARPA Improvement
Average revenue per account (ARPA) in the connectivity business increased 1.9% year-over-year to $1,253 in Q1 2026 from $1,229 in Q1 2025, driven by a shift toward higher-value customers and improved product mix.
Negative Updates
Quarterly Revenue Decline
Total revenue for Q1 2026 was $6.17 million versus $6.40 million in Q1 2025, a year-over-year decline of approximately 3.7%, driven by earlier lower bookings and intentional churn of low-margin/nonstrategic customers.
Read all updates
Q1-2026 Updates
Positive
Negative
ARPA Improvement
Average revenue per account (ARPA) in the connectivity business increased 1.9% year-over-year to $1,253 in Q1 2026 from $1,229 in Q1 2025, driven by a shift toward higher-value customers and improved product mix.
Read all positive updates
Company Guidance
Management reiterated that they expect revenue to begin growing in the back half of 2026 (Q3–Q4) as they finish decommissioning low‑margin contracts and convert improving sales bookings and a larger multisite pipeline; Q1 2026 results showed ARPA up 1.9% to $1,253 (from $1,229), churn improved to 0.9% (from 1.2% a year earlier), total revenue of $6.17M (vs. $6.4M), adjusted EBITDA of $931K (vs. just over $1.0M), net loss of $3.14M (vs. $3.5M), cash and equivalents of ~$9.8M, and cash from operations of ~$319K (vs. $960K), while average sites per customer has moved up from roughly 2 when management took over to closer to double as enterprise deals scale; management also flagged an anticipated ISED decision on 26GHz/38GHz millimeter‑wave spectrum (potentially this summer) that could increase spectrum value and enable mobile/flex use, but provided no formal numeric full‑year guidance.TeraGo Inc. Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
14
Very Negative
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.11M | 25.36M | 26.16M | 26.05M | 27.62M | 43.30M |
| Gross Profit | 7.01M | 9.41M | 19.18M | 19.10M | 20.18M | 32.16M |
| EBITDA | 2.65M | 2.40M | 2.79M | 496.00K | 603.00K | 3.28M |
| Net Income | -16.37M | -16.77M | -13.27M | -13.19M | -11.57M | -15.17M |
Balance Sheet | ||||||
| Total Assets | 57.06M | 58.97M | 53.99M | 53.50M | 55.38M | 93.23M |
| Cash, Cash Equivalents and Short-Term Investments | 9.76M | 12.65M | 4.42M | 4.64M | 7.38M | 5.48M |
| Total Debt | 49.76M | 48.42M | 44.33M | 31.93M | 20.50M | 35.91M |
| Total Liabilities | 54.69M | 53.37M | 49.07M | 36.16M | 25.78M | 52.97M |
| Stockholders Equity | 2.37M | 5.60M | 4.92M | 17.33M | 29.60M | 40.26M |
Cash Flow | ||||||
| Free Cash Flow | -7.00M | -5.16M | 1.48M | -5.45M | -4.96M | 1.94M |
| Operating Cash Flow | -2.71M | -1.30M | 5.01M | 501.00K | 1.25M | 9.32M |
| Investing Cash Flow | -2.82M | -2.58M | -3.52M | -5.02M | 18.82M | -7.75M |
| Financing Cash Flow | 13.37M | 12.28M | -1.90M | 2.69M | -19.34M | -1.95M |
TeraGo Inc. Technical Analysis
Positive
0.62
Price Trends
0.90
Positive
0.87
Positive
0.87
Positive
Market Momentum
0.08
Negative
76.86
Negative
90.24
Negative
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 0.95, below the 50-day MA of 0.90, and below the 200-day MA of 0.87, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 76.86 is Negative, neither overbought nor oversold. The STOCH value of 90.24 is Negative, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | C$26.83B | 16.49 | 40.28% | 3.94% | 7.44% | 297.46% | |
71 Outperform | C$14.67B | 14.83 | 35.07% | 2.70% | 1.93% | 18.42% | |
67 Neutral | C$31.00B | 12.53 | 29.69% | 7.42% | 1.55% | 1496.64% | |
62 Neutral | C$2.72B | 9.50 | 9.93% | 5.69% | -4.35% | -3.51% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | C$26.65B | 51.31 | 6.41% | 9.49% | 0.13% | -23.84% | |
48 Neutral | C$51.11M | -2.77 | -4295.54% | ― | -3.80% | -7.81% |
* Communication Services Sector Average
TSE:TGO
TeraGo Inc.
1.31
0.20
18.02%
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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...
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.