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TeraGo Inc.
(TSX:TGO)
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Rating:53Neutral
Price Target:
C$2.00
▲(35.14% Upside)
Action:Reiterated
Date:10/28/26
The score is held back primarily by weak financial performance (sharp revenue decline, large ongoing losses, negative equity and cash burn). Technicals are a meaningful offset with a strong uptrend and positive momentum, while the earnings call adds moderate support from improving profitability metrics and bookings. Valuation remains a constraint because negative earnings make P/E less informative and no dividend yield is provided.
Positive Factors
EBITDA Improvement
Higher adjusted EBITDA alongside disciplined cost control indicates improving operating efficiency, giving TeraGo a stronger foundation to pursue growth. If sustained, this progress can support better margins and reduce the gap between operating performance and bottom-line profitability.
Negative Factors
Revenue Decline
A sharp TTM revenue decline and multi-year contraction indicate that the current business base has not yet returned to durable growth. Continued top-line weakness can reduce operating leverage, limit reinvestment capacity, and make recovery dependent on stronger future bookings.
Read all positive and negative factors
Positive Factors
Negative Factors
EBITDA Improvement
Higher adjusted EBITDA alongside disciplined cost control indicates improving operating efficiency, giving TeraGo a stronger foundation to pursue growth. If sustained, this progress can support better margins and reduce the gap between operating performance and bottom-line profitability.
Read all positive factors
TeraGo Inc. (TGO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$70.26M
Dividend YieldN/A
Average Volume (3M)12.07K
Price to Earnings (P/E)―
Beta (1Y)-0.12
Revenue Growth-3.46%
EPS Growth27.60%
CountryCA
Employees93
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.50
Shares Outstanding39,035,620
10 Day Avg. Volume19,639
30 Day Avg. Volume12,068
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)-0.39
Revenue Forecast (FY)C$25.20M
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 business connectivity and managed network services and by monetizing its wireless spectrum holdings. A key revenue stream is recurring service revenue from business customers that subscribe to its Internet a...
TeraGo Inc. Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presented a cautiously positive outlook: strong operational improvement in profitability (adjusted EBITDA +16.8%), ARPA growth (+4.2%), reduced net loss (~10.3% improvement), improved sequential backlog and bookings momentum, and a transformative regulatory decision (ISED flexible-use spectrum framework) that materially enhances strategic opportunities. Offsetting these positives were a modest year-over-year revenue decline (-2.05%), a significant year-over-year backlog MRR decrease (~-15.54%) driven by prior-year booking weakness and installation timing, and a small uptick in churn. On balance, the positives (notably margin expansion, ARPA growth, liquidity and the spectrum decision) outweigh the near-term operational headwinds.Positive Updates
Adjusted EBITDA Growth
Adjusted EBITDA increased 16.8% year-over-year to $1.06 million in Q2 2026 (from $903,000), driven primarily by lower operating expenses and disciplined cost management.
Negative Updates
Year-over-Year Revenue Decline
Total revenue for Q2 2026 declined 2.05% year-over-year to $6.21 million (from $6.34 million), reflecting the lingering impact of lower bookings in 2025 and timing/installation delays on some larger multisite deployments.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Growth
Adjusted EBITDA increased 16.8% year-over-year to $1.06 million in Q2 2026 (from $903,000), driven primarily by lower operating expenses and disciplined cost management.
Read all positive updates
Company Guidance
TeraGo’s guidance emphasized driving profitable growth by improving sales bookings, raising customer quality (targeting large mid‑market and multi‑location enterprise accounts), increasing operational efficiency and positioning to capitalize on millimeter‑wave opportunities following ISED’s May 2026 flexible‑use decision and the October 2027 auction timetable; key metrics cited to support that outlook included ARPA up 4.2% to $1,279 (from $1,228), churn of 1.0% (vs. 0.9% LY), backlog MRR of $78,788 at June 30, 2026 (down from $93,279 YoY but up sequentially from March 31), Q2 revenue of $6.21M (vs. $6.34M), adjusted EBITDA up 16.8% to $1.06M (vs. $903k), net loss narrowed to $3.82M (vs. $4.26M), cash of $6.6M, and booking activity in 2026 trending well above 2025 levels.TeraGo Inc. Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
12
Very Negative
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.98M | 25.36M | 26.16M | 26.05M | 27.62M | 43.30M |
| Gross Profit | 4.69M | 9.41M | 19.18M | 19.10M | 20.18M | 32.16M |
| EBITDA | 2.73M | 1.15M | 2.79M | 496.00K | 603.00K | 3.28M |
| Net Income | -15.93M | -16.77M | -13.27M | -13.19M | -11.57M | -15.17M |
Balance Sheet | ||||||
| Total Assets | 53.12M | 58.97M | 53.99M | 53.50M | 55.38M | 93.23M |
| Cash, Cash Equivalents and Short-Term Investments | 6.59M | 12.65M | 4.42M | 4.64M | 7.38M | 5.48M |
| Total Debt | 50.00M | 48.42M | 44.33M | 31.93M | 20.50M | 35.91M |
| Total Liabilities | 54.15M | 53.37M | 49.07M | 36.16M | 25.78M | 52.97M |
| Stockholders Equity | -1.03M | 5.60M | 4.92M | 17.33M | 29.60M | 40.26M |
Cash Flow | ||||||
| Free Cash Flow | -8.64M | -5.16M | 1.48M | -5.45M | -4.96M | 1.94M |
| Operating Cash Flow | -4.65M | -1.30M | 5.01M | 501.00K | 1.25M | 9.32M |
| Investing Cash Flow | -2.22M | -2.58M | -3.52M | -5.02M | 18.82M | -7.75M |
| Financing Cash Flow | 11.73M | 12.28M | -1.90M | 2.69M | -19.34M | -1.95M |
TeraGo Inc. Technical Analysis
Positive
1.48
Price Trends
1.54
Positive
1.44
Positive
1.19
Positive
Market Momentum
0.11
Positive
54.77
Neutral
48.49
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 1.48 is below the 20-day moving average (MA) of 1.73, below the 50-day MA of 1.54, and above the 200-day MA of 1.19, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 48.49 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | C$14.92B | 16.03 | 35.86% | 2.43% | 3.12% | 24.49% | |
67 Neutral | C$26.57B | 4.22 | 27.73% | 6.14% | 1.59% | 1374.54% | |
61 Neutral | C$24.66B | 26.14 | 4.97% | 4.40% | 8.04% | -86.72% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | C$70.26M | -3.61 | -2436.24% | ― | -3.46% | 27.60% | |
52 Neutral | C$2.25B | -2.02 | -43.35% | 7.43% | -4.04% | -443.15% | |
50 Neutral | C$19.66B | -21.59 | -6.56% | 11.66% | -1.06% | -188.85% |
* Communication Services Sector Average
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TeraGo Inc.
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0.94
109.30%
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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.