Canada · Delayed Price · Currency is CAD NTG Clarity Networks Earnings Call Transcripts
Fiscal Year 2026
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Revenue grew 6.4% year-over-year in Q2 2026, but guidance was withdrawn due to Middle East conflict-driven uncertainty. Gross margin declined to 33.5% as clients delayed renewals and payments, though July saw a rebound in collections and purchase orders.
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Q1 2026 saw 8.1% revenue growth year-over-year, with margins compressed by seasonal effects but a stable cost base. Guidance for 2026 is reaffirmed, with revenue expected to rebound and margin recovery anticipated as utilization normalizes.
Fiscal Year 2025
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Record 2025 revenue and EBITDA exceeded guidance, driven by strong Gulf region demand and deep client relationships. 2026 guidance is set conservatively at $90M+ revenue and 13%-16% EBITDA margin, with upside possible from new contracts and operational leverage.
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Q3 saw record revenue and 18 consecutive quarters of growth, driven by digital transformation demand in the Gulf. NTG Apps revenue surged, but adjusted EBITDA guidance was revised lower due to contract timing and pre-hiring. Backlog stands at CAD 88 million.
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Focused on Saudi Arabia's Vision 2030, the company leverages a cost-effective Egyptian talent pool and deep local relationships to deliver digital transformation and software services. Revenue doubled in 2024, with strong recurring revenue, multi-year contracts, and expanding proprietary software offerings.
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Q2 2025 saw 51% revenue growth to $18.9M, with NTG Apps up 1,600% and gross margin at 38%. Despite FX and tax headwinds, guidance for $78M revenue and 16-20% EBITDA margin in 2025 is reaffirmed, supported by strong demand and recent capital raise.
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Significant revenue growth is driven by Saudi market expansion, a sector-agnostic approach, and a land-and-expand model. High customer retention, recurring revenues, and investments in talent and technology underpin strong margins. NTG Apps and AI integration are key growth levers.
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Q1 2025 saw 68% revenue growth, driven by Saudi demand and strong offshore and NTG Apps performance. Gross margin was 34% due to temporary costs, but guidance for 2025 revenue was raised to CAD 78 million, with EBITDA margin expected to recover as investments taper.
Fiscal Year 2024
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2024 saw revenue double and net income more than triple, driven by strong Saudi demand and operational leverage. Guidance for 2025 targets 34% revenue growth and 16%-20% adjusted EBITDA margin, with continued focus on scaling and margin expansion.
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Q3 saw record revenue and net income growth, with revenue up 109% and net income up 303% year-over-year. Strong collections, a major new contract, and a robust cash position support reaffirmed 2024 guidance of CAD 55 million revenue and 14% net income margin.