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TeraGo Inc.
(TSX:TGO)
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Rating:48Neutral
Price Target:
C$1.50
▲(141.94% 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 B2B connectivity & managed services
TeraGo's core business is selling recurring connectivity and managed IT services to enterprises, which creates predictable subscription revenue, higher customer stickiness, and multiple upsell paths (bandwidth, managed services, cloud). This durable model supports stable cash flows if retention and ARPA trends hold.
Negative Factors
Large net losses and negative cash flow
Persistent deep net losses and negative operating/free cash flow indicate the business still consumes capital and cannot self-fund growth or pay down leverage. Over months this constrains reinvestment in network capacity and sales, and increases reliance on external funding or asset sales to sustain operations.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring B2B connectivity & managed services
TeraGo's core business is selling recurring connectivity and managed IT services to enterprises, which creates predictable subscription revenue, higher customer stickiness, and multiple upsell paths (bandwidth, managed services, cloud). This durable model supports stable cash flows if retention and ARPA trends hold.
Read all positive factors
TeraGo Inc. (TGO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$49.58M
Dividend YieldN/A
Average Volume (3M)16.54K
Price to Earnings (P/E)―
Beta (1Y)-0.06
Revenue Growth-3.80%
EPS Growth-7.81%
CountryCA
Employees93
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.61
Shares Outstanding39,035,620
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$25.18M
TeraGo Inc. Business Overview & Revenue Model
Company Description
TeraGo Inc., together with its subsidiaries, provides connectivity services for businesses in Canada. The company owns and operates a carrier-grade multi-protocol label switching enabled wireline and fixed wireless, fiber-based, and Internet proto...
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
1.14
Positive
1.01
Positive
0.91
Positive
Market Momentum
0.03
Positive
50.76
Neutral
30.95
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 1.31, below the 50-day MA of 1.14, and below the 200-day MA of 0.91, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 30.95 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$14.98B | 17.34 | 35.07% | 2.70% | 1.93% | 18.42% | |
69 Neutral | C$26.84B | 3.67 | 40.28% | 3.94% | 7.44% | 297.46% | |
67 Neutral | C$30.34B | 4.67 | 29.69% | 7.42% | 1.55% | 1496.64% | |
62 Neutral | C$2.72B | 8.57 | 9.93% | 5.69% | -4.35% | -3.51% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | C$25.70B | 27.45 | 6.41% | 9.49% | 0.13% | -23.84% | |
48 Neutral | C$49.58M | -2.11 | -4295.54% | ― | -3.80% | -7.81% |
* Communication Services Sector Average
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TeraGo Inc.
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-0.02
-1.53%
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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...
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.