NTG Clarity Reports $83M Revenue, 48.5% Year-Over-Year for Full Year 2025
Toronto, Ontario--(Newsfile Corp. - April 27, 2026) - NTG Clarity Networks Inc. (TSXV: NCI) (OTC Pink: NYWKF);NTG Clarity ("NTG" or the "Company") today reports its fourth quarter and full year results for the year ended December 31, 2025 (all figures in Canadian Dollars).
Full Year Highlights
All comparisons below are to the year ended December 31, 2024, unless otherwise noted
- Revenuegrew 48.5% year over year to $83.4 million, exceeding guidance of $78 million. Growth was driven by expansion from existing customers, with Net Dollar Retention1 of 134.7% and Gross Dollar Retention2 of 99.3%, along with $7.7 million of new customer revenue, primarily sourced through referrals.
- Gross Profitrose 45.3% year-over-year to $30.3 million, representing 36.3% of revenue, compared to $20.8 million and 37.1% in the prior year.
- Net Incomewas $5.3 million, or 6.4% of revenue, compared to $9.9 million or 17.6% in the prior year. The decline primarily reflects $3.3 million of income taxes following the utilization of Canadian tax loss carryforwards, as well as a net $1.5 million unfavorable foreign exchange impact from the weakening U.S. dollar compared to 2024.
- Adjusted EBITDA was $11.9 million, or 14.3% of revenue, compared to $12.3 million, or 21.9%, in the prior year, and within the revised guidance range of 12 to 16%. Margin performance reflects the pace of G&A hiring ahead of anticipated contract deployments, as well as investment in new geographic markets, including Baghdad, Dubai, and Madinah, which operate at lower margins during ramp up.
- Operating Cash Flow was negative $2.8 million for the full year, reflecting working capital investment as accounts receivable and contract assets grew alongside revenue through the first three quarters of 2025. Collections improved materially in Q4, and the Company recorded no bad debt expense for the year.
"Q4 2025 marked our nineteenth consecutive quarter of trailing twelve month revenue growth, reflecting the strength of our customer relationships and continued investment in digital transformation in Saudi Arabia under Vision 2030. Our priority in 2026 is to convert that demand into more consistent margin and cash flow, building on the progress we delivered in Q4," said Adam Zaghloul, Vice President of Strategy & Planning at NTG Clarity.
"Q4 was the strongest revenue quarter in our history and demonstrated the cash flow potential of our business, with $2.8 million generated from operations. Looking ahead to 2026, our guidance is anchored in the existing backlog and expected renewals, with additional upside as new framework agreements convert into purchase orders over the course of the year."
Financial Outlook for 2026
Our 2026 guidance reflects a revenue floor and adjusted EBITDA margin supported by existing backlog expected to convert within 12 months, together with anticipated renewals based on historical trends.
- Revenue: Expected to be above $90 million
- Adjusted EBITDA Margin: 13 - 16%
Conference Call Details
On Tuesday, April 28, 2026, at 9:00 AM ET, management will host a conference call webcast to discuss the Company's financial and operating results.
What: NTG Clarity Full Year and Q4 2025 Earnings Call
When: Tuesday, April 28, 2026, at 9:00 AM ET
Where: Live webcast can be accessed from the Events page of NTG's website:
https://ntgclarity.com/events/q4-and-year-end-2025-earnings-conference-call-ntg-clarity/
Management will be hosting a Q&A at the end of the call; however, to streamline the earnings conference call, we ask any questions to be emailed along with the asker's name and company, if applicable, by the end of the day Monday, April 27, 2026, to:
Adam Zaghloul, Vice President, Strategy & Planning
Email: adam@ntgclarity.com
Income Statement Highlights for the Year Ended December 31, 2025 and 2024
| December 31, 2025 | December 31, 2024 | |||||
| REVENUE | $ | 83,350,725 | $ | 56,126,751 | ||
| COST OF SALES | 53,057,852 | 35,279,794 | ||||
| GROSS PROFIT | $ | 30,292,873 | $ | 20,846,957 | ||
| SG&A | 18,894,686 | 9,068,412 | ||||
| (Gain) loss on foreign exchange | 695,949 | (563,595 | ) | |||
| Other Expenses | 1,925,503 | 1,719,374 | ||||
| Exchange (gain) loss on translation | (179,822 | ) | 43,422 | |||
| Provision for income taxes | 3,252,968 | 810,636 | ||||
| Comprehensive Income | $ | 5,343,945 | $ | 9,812,130 | ||
| per share (basic) | $ | 0.11 | $ | 0.23 | ||
| per share (fully diluted) | $ | 0.10 | $ | 0.20 | ||
Balance Sheet Highlights
| December 31, 2025 | December 31, 2024 | |||||
| Total Assets | $ | 45,593,092 | $ | 28,292,859 | ||
| Total Liabilities | $ | 18,180,961 | $ | 15,691,675 | ||
| Shareholder's Equity | $ | 27,412,131 | $ | 12,601,184 | ||
Non-GAAP Financial Measures
NTG references Adjusted EBITDA, which is a non-IFRS (non-GAAP) measure and Adjusted EBITDA margin, which is a non-GAAP ratio. Adjusted EBITDA means adjusted earnings before interest, taxes, depreciation and amortization. EBITDA is equal to net income (loss) before income taxes plus finance costs plus depreciation. Adjusted EBITDA is equal to EBITDA before other discretionary expenses and expenses outside of the control of NTG. In NTG's case these are other income, share-based payments, and expenses related to foreign exchange. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of total revenue.
Adjusted EBITDA and Adjusted EBITDA margin are not recognized measures under IFRS. Management believes that in addition to net income (loss), Adjusted EBITDA and Adjusted EBITDA margin are useful supplemental measures as they provide an indication of the results generated by the Company's primary business activities prior to consideration of how those activities are financed, amortized, or how the results are taxed and consolidated in various jurisdictions and currencies as well as the cash generated by the Company's primary business activities without consideration of the timing of the monetization of non-cash working capital items.
Readers should be cautioned, however, that Adjusted EBITDA and Adjusted EBITDA margin should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of the Company's performance. The Company's method of calculating Adjusted EBITDA and Adjusted EBITDA margin may differ from other organizations and, accordingly, Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to measures used by other organizations.
The non-IFRS measures referenced in this release reconcile to the IFRS measures reported in the Consolidated Financial Statements as follows, unless reconciled elsewhere:
| For the three months ended | For the twelve months ended | ||||||||||||
| Adjusted EBITDA | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||
| Net Income (Margin) | $ | 942,139 (4%) | $ | 2,980,357 (17%) | $ | 5,343,945 (6%) | $ | 9,855,552 (18%) | |||||
| Add back: | |||||||||||||
| (Gain) loss on foreign exchange | 346,897 | (574,477 | ) | 695,949 | (563,595 | ) | |||||||
| Depreciation | 414,046 | 322,577 | 1,024,061 | 478,193 | |||||||||
| Amortization | 132,183 | 132,183 | 528,733 | 528,733 | |||||||||
| Interest, net | 158,701 | 191,305 | 307,937 | 435,332 | |||||||||
| Foreign Fees | 55,023 | (296,936 | ) | 76,073 | 0 | ||||||||
| Taxes | 629,769 | 513,700 | 3,252,968 | 810,636 | |||||||||
| Other income | 177,248 | (222,226 | ) | (234,989 | ) | (436,147 | ) | ||||||
| Share-based payment | 189,018 | 401,281 | 347,091 | 974,266 | |||||||||
| Loss on joint ventures | 302,454 | 267,730 | 302,454 | 267,730 | |||||||||
| Loss on impairment of joint venture | 102,439 | 0 | 102,439 | 102,439 | |||||||||
| Loss on disposal of assets | 437 | 0 | 437 | 0 | |||||||||
| Exchange (gain) loss arising on translation of foreign operations | (319,111 | ) | 310,525 | 179,822 | (43,422 | ) | |||||||
| Adjusted EBITDA (Margin) | $ | 3,769,466 (16%) | $ | 4,322,955 (25%) | $ | 11,926,919 (14%) | $ | 12,307,278 (22%) | |||||
About NTG Clarity Networks Inc.
NTG Clarity Networks' vision is to be a global leader in digital transformation solutions. As a Canadian company established in 1992, NTG Clarity has delivered software, networking, and IT solutions to large enterprises including financial institutions and network service providers. More than 1,400 IT and network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading enterprises.
Forward-Looking Information
Certain statements in this release, other than statements of historical fact, are forward looking information that involve various risks and uncertainties. Forward looking information includes, but is not limited to, statements with respect to: 2025 financial guidance including anticipated revenue and adjusted EBITDA margin; anticipated activity levels and operating results; projections based on current backlog; corporate strategies; customer demand and competitive conditions in the markets in which the Company operates.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: future demand for the Company's products and services; the results of research and development activities; access to capital; intellectual property protection; general business, economic, competitive, political and social uncertainties; delays in obtaining governmental approvals; failure to obtain regulatory approvals; reliance on key personnel; stock market volatility; fluctuations in interest rates and exchange rates; and the impact of new laws and regulatory requirements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about estimated annual revenue and adjusted EBITDA margin, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. The actual financial results of the Company may vary from the amounts set out herein and such variation may be material. NTG and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about the Company's anticipated future business operations on an annual basis. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
1 Net Dollar Retention = (Beginning Revenue + Expansion - Contraction - Churn)/Beginning Revenue
2 Gross Dollar Retention = (Starting Revenue - Churned Revenue) / Starting Revenue
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Source: NTG Clarity Networks Inc.
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