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• NTG reported Q4 and 2025 financials that beat our estimates across the board, including 2025 revenue of $83.4M (+49% YoY, $80.5M expected) and adjusted EBITDA of $11.9M (14% margin, $11.1M expected).
• Management is guiding 2026 revenue of >$90M (+8% YoY) vs. our $96.2M and 2026 adjusted EBITDA margins of 13-16%, in line with our 14.8% expectation. NTG has a history of beating its revenue guidance.
• We recently interviewed Adam Zaghloul, VP of Strategy and Planning. Click here to watch the interview.
Yesterday, NTG Clarity Networks (NCI:TSXV, NYWKF:OTCPK) reported Q4 and 2025 financials that handsomely beat our expectations across both revenue and profitability. NTG grew revenue 49% in 2025 and expects >8% growth in 2026. Additionally, A/R declined $1.3M QoQ, improving quarterly cashflow; easing this point of contention from investors. We are maintaining our BUY rating and our target price of $2.50/share on NTG Clarity Networks.
Financial Highlights
• Q4 revenue was a record $23.9M (+39% YoY), beating our estimate of $21.1M and CapIQ consensus of $20.7M, bringing full year revenue to $83.4M (+49% YoY) vs. our $80.5M estimate and the Company's guidance of $78M. This was due to expansion from existing customers (135% net dollar retention) and $7.7M in revenue from new customers (primarily sourced through referrals).
• 2025 revenue was split up as 52% offshore services, 37% onsite services, and 11% NTGapps, reflecting a shift towards offshore YoY. KSA represented 96% of revenue in 2025, followed by Egypt at 2%.
• Gross margin for the quarter was 38%, compared to our 36% estimate and 35% in Q3/25, with a full-year gross margin of 36%, in line with our forecast.
• Adj. EBITDA for Q4 came in at $3.8M (16% margin) vs. our estimate of $3.0M (14% margin) and consensus of $2.8M, bringing full-year adjusted EBITDA to $11.9M (14% margin) vs. our $11.1M estimate and the revised margin guidance of 12-16%. S&M was 7% of sales and G&A was 16% of sales, in line with previous quarters, due to investments into Baghdad, Dubai, and Madinah.
• Net income (continuing ops) for Q4 was $1.3M vs. our estimate of $1.7M, with 2025 net income of $5.5M ($0.11/share) compared to our $5.9M ($0.14/share) estimate. This was due to elevated taxes, depreciation, and other expenses.
• OCF for Q4 was $2.8M, following a $1.3M decrease in A/R QoQ.
• NTG ended the year with $8.3M in cash, $29.4M in A/R, and $6.1M in debt.
NCI: 2025 Financials Beat Expectations; Revenue Up 49%, Collecting A/R
What you need to know:• NTG reported Q4 and 2025 financials that beat our estimates across the board, including 2025 revenue of $83.4M (+49% YoY, $80.5M expected) and adjusted EBITDA of $11.9M (14% margin, $11.1M expected).
• Management is guiding 2026 revenue of >$90M (+8% YoY) vs. our $96.2M and 2026 adjusted EBITDA margins of 13-16%, in line with our 14.8% expectation. NTG has a history of beating its revenue guidance.
• We recently interviewed Adam Zaghloul, VP of Strategy and Planning. Click here to watch the interview.
Yesterday, NTG Clarity Networks (NCI:TSXV, NYWKF:OTCPK) reported Q4 and 2025 financials that handsomely beat our expectations across both revenue and profitability. NTG grew revenue 49% in 2025 and expects >8% growth in 2026. Additionally, A/R declined $1.3M QoQ, improving quarterly cashflow; easing this point of contention from investors. We are maintaining our BUY rating and our target price of $2.50/share on NTG Clarity Networks.
Financial Highlights
• Q4 revenue was a record $23.9M (+39% YoY), beating our estimate of $21.1M and CapIQ consensus of $20.7M, bringing full year revenue to $83.4M (+49% YoY) vs. our $80.5M estimate and the Company's guidance of $78M. This was due to expansion from existing customers (135% net dollar retention) and $7.7M in revenue from new customers (primarily sourced through referrals).
• 2025 revenue was split up as 52% offshore services, 37% onsite services, and 11% NTGapps, reflecting a shift towards offshore YoY. KSA represented 96% of revenue in 2025, followed by Egypt at 2%.
• Gross margin for the quarter was 38%, compared to our 36% estimate and 35% in Q3/25, with a full-year gross margin of 36%, in line with our forecast.
• Adj. EBITDA for Q4 came in at $3.8M (16% margin) vs. our estimate of $3.0M (14% margin) and consensus of $2.8M, bringing full-year adjusted EBITDA to $11.9M (14% margin) vs. our $11.1M estimate and the revised margin guidance of 12-16%. S&M was 7% of sales and G&A was 16% of sales, in line with previous quarters, due to investments into Baghdad, Dubai, and Madinah.
• Net income (continuing ops) for Q4 was $1.3M vs. our estimate of $1.7M, with 2025 net income of $5.5M ($0.11/share) compared to our $5.9M ($0.14/share) estimate. This was due to elevated taxes, depreciation, and other expenses.
• OCF for Q4 was $2.8M, following a $1.3M decrease in A/R QoQ.
• NTG ended the year with $8.3M in cash, $29.4M in A/R, and $6.1M in debt.
Underlying
NTG Clarity Networks Inc.
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Nicholas Cortellucci, CFA
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