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TeraGo Inc. (TGO) AI Stock Analysis
TeraGo Inc.
(TSX:TGO)
The score is driven primarily by severe financial weakness, including negative equity, high leverage, ongoing losses, and cash-flow deterioration. Favorable technical momentum and improving operating metrics from the latest earnings call provide meaningful offsets, but the negative P/E and weak underlying financial condition keep the overall score low.
TeraGo Inc. (TGO) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 70.26M
- Dividend Yield
- ―
- Average Volume (3M)
- 15.16K
- Price to Earnings (P/E)
- -3.6
- Beta (1Y)
- -0.12
- Revenue Growth
- -3.46%
- EPS Growth
- 27.60%
- Country
- Canada
- Employees
- 93
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Telecommunications Services
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 protocol...
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 acce...
TeraGo Inc. Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Financial performance is severely constrained by declining revenue, persistent losses, negative equity, extreme leverage, and recently negative operating and free cash flow. Positive EBITDA and a meaningful asset base provide limited support.
Income Statement
22NegativeBalance Sheet
10Very NegativeCash Flow
18Very 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
Price Trends
Market Momentum
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 1.80 is above the 20-day moving average (MA) of 1.74, above the 50-day MA of 1.55, and above the 200-day MA of 1.19, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 54.30 is Neutral, neither overbought nor oversold. The STOCH value of 38.46 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
Overall Rating
TSE:QBR.A78Outperform
TSE:BCE55Neutral
TSE:RCI.B53Neutral
TSE:CCA52Neutral- TSE:TGO49Neutral
TSE:T46Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:QBR.A | 78Outperform | CAD 14.92B | 16.03 | 35.86% | 2.43% | 3.12% | 24.49% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| TSE:BCE | 55Neutral | CAD 26.57B | 4.22 | 27.73% | 6.14% | 1.59% | 1374.54% |
| TSE:RCI.B | 53Neutral | CAD 24.66B | 26.14 | 4.97% | 4.40% | 8.04% | -86.72% |
| TSE:CCA | 52Neutral | CAD 2.25B | -2.02 | -43.35% | 7.43% | -4.04% | -443.15% |
| TSE:TGO | 49Neutral | CAD 70.26M | -3.61 | -2436.24% | ― | -3.46% | 27.60% |
| TSE:T | 46Neutral | CAD 19.66B | -21.59 | -6.56% | 11.66% | -1.06% | -188.85% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:TGO | TeraGo Inc. | 1.80 | 0.90 | 100.00% | |
| TSE:BCE | Bce Inc | 28.49 | -1.76 | -5.83% | |
| TSE:RCI.B | Rogers Communication | 45.48 | -6.55 | -12.60% | |
| TSE:T | Telus Corp | 12.37 | -6.46 | -34.30% | |
| TSE:QBR.A | Quebecor Inc Cl A MV | 66.72 | 22.65 | 51.40% | |
| TSE:CCA | Cogeco Communications | 53.17 | -8.72 | -14.10% |
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.
Date of analysis: Oct 28, 2026